Brian Quaranta discusses inflation, taxes, and low-risk ways to help you generate income to ensure your money lasts throughout retirement.
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Radio Show Transcript
Announcer 00:00
Information provided is for illustrative purposes only and does not constitute investment tax or legal advice information has been obtained from sources that are deemed to be reliable, but their accuracy and completeness cannot be guaranteed. Neither Brian Quaranta nor his guests are liable for the usage of information discussed always consult with a qualified investment legal or tax professional before taking any action.
And now, Retirement You Radio
asset protection tax reduction holistic planning
featuring Pittsburgh’s wealth financial and income coach Ryan Quaranta.
Steve 00:38
Hey, welcome, everybody. This is retirement you radio increasing your financial IQ with BrianQ. I’m consumer advocate Steve, Brian, of course, Brian Quaranta. And on this show on this week’s show, we’re going to talk about, you know, income in retirement is so crucial. It’s so important. And Brian’s gonna go through some ways to make sure that we are covered if you will make sure that we do have income and it’s a steady income. And if you’d like to get a head start, give us a call at 800-656-8616 800-656-8616 or text BrianQ to 21000. Brian, what do you think?
Brian Quaranta 01:11
That’s right, Steve, on today’s show, we’re gonna dig into several income strategies that could make sure your money lasts all the way through.
Steve 01:19
And that all gets underway right after this. Everybody, this is retirement, you radio increasing your financial IQ with BrianQ. Brian Quaranta, of course, is who we’re talking about. He is president and CEO of Secure Money Advisors. He is a fiduciary, he is an IRS specialist, and he is an independent. I mean, you are all good stuff. Brian, how are you?
Brian Quaranta 01:51
Hey, after 21 years, man, we try to check all the boxes?
Steve 01:55
Well, I think you do a fairly good job of that. And so, everything else good? I mean, you know, this certainly has been a weird year.
Brian Quaranta 02:03
Weird year. I mean, weird year, but um, it’s fair. For us. It’s been a very, very busy year. You know, I think this is really this whole change. And in this country, everything from COVID to the election, I think it’s just really had a lot of people retire this year. Yeah, retire?
Steve 02:23
Because, yeah, either they were forced into it or just didn’t want to go back?
Brian Quaranta 02:29
Yeah, I think I think what we saw a lot is, you know, even clients that we had on, you know, a two or three year plan to get into retirement, we saw a lot of those folks, you know, call us earlier in the year and say, you know, I’d like to rerun the numbers and see if I can go, you know, two or three years earlier. And that’s, that’s, you know, the one nice thing about building a plan around, you know, math, and having a real written plan, because those are the adjustments you can make, you’re not going to be guessing of whether or not it can be done. And so, it was a lot of fun at the beginning of the year to retire some of these people earlier than what we anticipated. And, you know, if you’re listening to the show, just keep in mind, I mean, you can do the same thing, once you get yourself organized. And you understand the basic fundamentals. And the five key areas to building out a solid retirement plan, retiring earlier than what you anticipated, you know, quite frankly, can be a pretty simple thing to do. And retirement planning itself is actually pretty simple. Once you talk with somebody that can break down these complicated decisions that you have to make and lay it out in a way that you can very clearly see the target.
Steve 03:45
Right? Well, one of the things you know, you talk about income, and we talk about it often. But one of the things that seems to be overlooked or ignored, because it doesn’t seem to be a big factor, but it can be and that is inflation. And even though it might seem low, it’s still a factor.
Brian Quaranta 03:59
Yeah, well, there’s two things that will erode your wealth. Number one is inflation. And number two is taxes. And this is something that you have to build into the retirement plan, because for most people retiring today, you go back, you know, 30-40 years ago, retirement was really simple. Because when you retired, you probably got a pension. Remember those?
Steve 04:21
Heh. Yeah, well, I don’t have one. Oh, yeah. Yeah. Right.
Brian Quaranta 04:25
And you know, 80, over 85% of the people retiring today don’t have one. But you know, it was simple because you got a pension and you had a Social Security check. So that was pretty much for most people retiring. That was pretty much enough money for them to pay the bills and live the lifestyle. They wanted to live in retirement. If they had any extra savings, retirement savings, they didn’t even need to take risk with it. They would just take it down to the local bank, and back then they would just buy CDs because if you remember CDs, were paying probably what 12 15% Somewhere around there. Something like that. Sure. I think even back then the banks even gave, like, you got a toaster. But it was simple because you didn’t even have to risk your money. I mean, could you imagine having an extra $200,000? So here, you retire, you know, you no longer have a paycheck coming in, but the paychecks gonna be replaced by the social security check and the pension. And then if you need any additional money, you don’t even need to roll the dice with that money to make money on it, you just take it down to the bank. And if you had an extra $200,000, laying around, and you got a 12, or 15% rate of return on a CD, you know, you’re talking about an extra 24 to $30,000 a year in additional income without ever touching the principal. And isn’t that what we all want to do?
Steve 05:45
It is what we all want to do, and it still can be done. And that’s what you do, and you can help us get there.
Brian Quaranta 05:52
Well, it’s Secure Money Advisors, we’re always teaching the basics of cash flow. And, you know, over the years ways to generate cash flow, the ways to generate cash flow have changed. And that’s, you know, investment companies and insurance companies, you know, all the companies that provide strategies and programs to the investing public have gotten more and more skilled, and more and more sophisticated with the way that they’re designing programs to help generate that cash flow and retirement. So, there’s always new ways to do it, there’s always ways to potentially get better leverage on your money, I can tell you one thing, the old way of doing it was something called the 4% rule. I’m not sure if you’ve ever heard about oh, sure, have you sure, of course. So, remember, the 4% rule basically said, if you saved a million dollars, in the first year, you could withdraw 4% of that, that million dollars, which would be 40,000. And each year, you can increase that withdrawal by 3% a year to keep pace with inflation. So, you’re 40,000, the next year would go to 41,000, then maybe 42,500, and so on and so forth to keep pace with the rising cost. And so, you know, that’s how most people unfortunately, are still trying to build out their strategies. And there’s a lot of risk with doing that. You know, because they’re trying to take income, you know, for again, most people aren’t retirement pension. So, think about it, they get a Social Security check. And now they’re going to try to replace or create a pension from a 401 K plan or some type of retirement account that’s invested in the stock market. My gosh, how scary is that? Because if you get it wrong, and that balance of that account goes to zero, you’re out of money, right? Yeah, it gets to be a little tricky. That’s right. And the biggest the biggest thing we said at the beginning of the show, right? How do you make your money last all the way through retirement? Well, if you don’t get the market to cooperate with you, when you’re trying to take money out of your stock account, you’re gonna have a probability of running out of money. See, this is actually why we offer the plans, you know, here at secure money advisors, and we always offer an opportunity for the listeners to come in and speak to us at no cost. So, here’s what we’re going to do for the next 10 callers who call in right now, we are going to create a one-page financial review, it’s going to indicate whether or not you’re in need of a full-blown financial plan. I’ve seen people charge up to $1,000 or more for similar features or offers. But we’re going to give this review to at no cost if you’re one of the next 10 callers and what we’re going to do is we’re going to take that mystery out of financial planning, and we’re going to make it simple and easy for you to understand. We’re also going to run a fee report, help you untangle what working with your current advisor is costing you you’ll see if by simply protecting your retirement investments, you could experience dramatic growth potential we’ll also perform a tax analysis, well reveal how you could possibly reduce taxes. We will even run a customized income plan utilizing proven strategies and techniques which could turbocharge your retirement income. In short, we’re going to take all the guesswork out of financial planning. So, for the next 10 callers, that’s a comprehensive financial review that we’re going to give away complimentary with no obligation. And if you call in right now and you’re one of the next 10 callers, not only will you get that financial review and second opinion package that we’ve seen others charge up to $1,000 for but when you come in, we’re also going to give you a copy of this brand new hot off the press guide that we’ve released just for radio listeners only called the 401k Modern rollover guide
Steve 09:14
800-656-8616. You heard Brian, the next 10 callers they’re going to get that comprehensive financial review plus all the extras that he talked about. And then when you walk out the door you are going to have in your hand that roadmap that guide that can help get you to where you need to be when it comes to retirement. So, in short, you got nothing to lose 800-656-8616 is how you get the ball rolling. Call us at 800-656-8616 or you can just text BrianQ. That’s BrianQ, all one word to 21000, text Brian Q to 21000.
Brian Quaranta 09:46
When it comes to retirement planning, there are plenty of options. No matter what you choose. You need to make sure you’ve got all your bases covered. We’ll help you do that and more when we come right back.
Steve 10:05
We are back on Retirement You Radio increasing your financial IQ with BrianQ. Im consumer advocate, Steve. Brian Quarantas who were talking about President and CEO of Secure Money Advisors and does so much more. And I mean, boy, we’ve got a lot to cover here. And there’s, you know, we’ve talked about this a little bit before, but there’s a whole lot of people that would love to help you manage your money. You’ve got to make sure you make the right choice. And whatever is right for you. And, to me, I’m looking for a fiduciary, I’m looking for an independent, I’m looking for somebody with experience. Hey, Brian, that’s you.
Brian Quaranta 10:41
Yeah. Well, I mean, there’s planners, you know, there’s advisors, there’s brokers, there’s agents, oh, my, I mean, the list of people who want to help you manage a retirement portfolio, let’s just face is a very long list the short, the question is, which one is right for you. So, you know, obviously, you know, you, you want to make sure that you cover your bases and planning, and you want to make sure that whoever you decide to work with, that you’re going to really roll up your sleeves and build a real tangible plan. You know, if you’re just having conversations about financial products, I hate to tell you, but that’s just not planning. I mean, there’s five key areas to planning. And we really crunched this stuff down, utilizing Excel worksheets utilizing very powerful retirement planning software. And we’re looking at every key area of planning, and if you’re listening, write these down, because these are very, very important. Your five key areas are number one, and most importantly, income planning, right, your cash flow. And, you know, there’s a lot of different things to consider under that, you know, when to collect your Social Security.
Steve 12:00
That’s a big deal, Brian, I mean, and again, how many people in your, in your experience, claim Social Security at the right time?
Brian Quaranta 12:09
Very few. Very few. And because, you know, they’re not sure how to even build a strategy around collecting Social Security at a different time to try to maximize what they’re getting from Social Security. Because remember, Social Security will give you an 8% increase for every year that you wait. So it’s good to consider how you might be able to retire, delay taking the Social Security and get the larger amount by waiting.
Steve 12:37
Sure. Well, let’s talk about I mean, income, obviously, is key one of the key tools in retirement planning. And I think that kind of goes unnoticed sometimes by people.
Brian Quaranta 12:48
It does, what else goes on notice is analyzing your expenses, and determining what your schedule of expenses are going to be. And you know, because expenses will bounce around. And if you don’t have a way of looking at how that’s going to impact your cash flow, you know, you’re going to wake up one year and be surprised that you don’t have enough money this year compared to last year. So, analyzing your expenses important analyzing how inflation will affect that is important. What if you’re married, you certainly have to plan for the death of a spouse, because that’s certainly going to impact your cash flow.
Steve 13:24
That is something that it’s not an easy conversation, but it’s one that has to be had,
Brian Quaranta 13:30
it absolutely has to be had. And you have to look at what that drop of income is going to be. So, in our planning sessions with our clients, and potential clients, what we do is we look at what that cash flow is going to look like if we lose a spouse. And then what that helps us do is determine if we’re going to need to take more money from the retirement accounts. And if we do need to take more money from the retirement accounts, how is that going to affect the balance of those accounts are we going to run out of money more quickly, if that happens, and then also the time of the dusty if I mean, if the time of the death happens earlier on in retirement versus later in retirement, then the surviving spouse have is even more challenges because that means they have a lot less money to live off of for a longer period of time when that spouse dies. So those things have to be looked at. And that also is going to help you determine whether or not you need life insurance or you don’t need life insurance, or you can get rid of your current life insurance and not have it anymore. You got to also look at what happens if there’s a health event and one of you gets sick, how are you going to pay for that cost of care, because if you don’t have a way to pay for it, you know, the state is going to have a plan for you. And I’m going to tell you right now, you’re not going to like that plan. Because they’re pretty much going to take every dime you’ve got if you’re staying in a facility so. and then of course making sure that you’re maximizing your investment strategy. So, we want to maximize the gains and we want to potentially reduce as much risk as possible. So wouldnt it be nice to know that by just coming into Secure Money Advisors, when we give you that complimentary review, we’re going to be able to tell you whether or not you know, you’re maximizing every area of your retirement. One is security. We’ll show you how to get more money from Social Security. Number two, we’ll do an analysis of your current financial portfolio. How nice would it be to know if you could make more money? I mean, who doesn’t want a better return? You know, and, you know, I’m not saying that we can promise a better return. But certainly, when’s the last time you got to comparison? You know, people were very surprised when you look at, you know, the traditional strategies out there for building investment strategies. Don’t compare to some of the cutting-edge technology that you can use now, like algorithms to help you really boost the returns you’re getting and, you know, and then of course, reduce, potentially reduce the risks too. So, these are all things that we can look at, with you, when you come in. And again, it’s complimentary, what do you have to lose, you know, you just can’t procrastinate, you’ve got to get up, you got to make a phone call. And you got to schedule an appointment. And we understand that that can be a pretty intimidating process. But when you come into secure money advisors, we’re here to not make it intimidating. We’re here to truly be a friend, a coach, a guide. And, and that’s what we’re going to help you do and whether or not we actually move forward and work together. You don’t need to worry about that, because there’s no pressure to do anything with us. But here’s what typically happens, you know, if somebody doesn’t move forward with us right away, because they’re super impressed, because maybe they’ve got a relationship. Typically, what we’ll hear from those people, two, three years later, you know, I just had a guy come in the other day that came in four years ago, and he came back, he was working with a family friend, and the family friend didn’t do a good job. And, you know, four years later, he’s come back, and we’re happy to have him back. And we wanted to be, you know, we wanted to be at the top of his list. So again, folks, for the next 10 callers who call in right now, we’re going to create a one-page financial review that will indicate whether or not you’re in need of a full-blown financial plan. And like I’ve said, I’ve seen people charge up to $1,000 or more for these similar features. We’re not going to charge anything when you come in, it’s going to consist really have taken that mystery out of financial planning. We’re going to run the free report, we’ll run a tax analysis. I’m going to even show you what a customized income plan looks like. I’ll show you strategies and techniques that can literally turbocharge your retirement income. And again, like we always do at Secure Money Advisors, we’re going to take the guesswork out of financial planning. So again, for the next 10 callers who call in right now, that’s a comprehensive financial review, that we’re going to give away complimentary at no obligation.
Steve 17:40
Hey, that sounds fantastic. Brian, take advantage of this offer today, folks, it starts with a phone call the 800-656-8616. You heard Brian, the next 10 callers are going to get that comprehensive financial review, you’ll see where you are today, of course, but most importantly, you walk out the door with a roadmap with a guide, that’s going to help get you to where you need to be when it comes to retirement. 800-656-8616 again, 800-656-8616 better yet just text BrianQ lots of folks do on that all one word, BrianQ to 21000. Text BrianQ to 21000
Brian Quaranta 18:14
Options, options, options, so many of them to decide in retirement. When we come back, we’re going to continue to talk about what strategies and techniques to use so that you have a bulletproof retirement income right.
Steve 18:35
Welcome back, everybody. This is Retirement You Radio, increasing your financial IQ with BrianQ. Brian Quaranta. Is who were talking about. I’m consumer advocate, Steve. And Brian, you just mentioned something here that really got my attention. You talked about having a bulletproof retirement, I like the sound of that.
Brian Quaranta 18:50
That’s right. And folks, you know, just a little inside information here, we got a really good book coming out that I’m going to be releasing, I’ve worked on it all year, called bulletproof your retirement, I’ve got a number of training videos that are going to go along with it. So, look for that, at the beginning of the year, you can also monitor our website, or if you go to secure money advisors.com Get on our email list. And when we do the book launch, and the educational video launch, you’ll be the first to get a copy of it. So loaded with information. But yeah, there’s, you know, seven strategies to really building a bulletproof retirement and, and we’re talking about this, some of those right now. But you know, on the last segment where we were talking about is, you know, all the things to be concerned about, and we were we were talking about, you know what would happen if you have a health event and you go into a nursing home facility, nobody wants to talk about that. But it does need to be resolved. But the big one that was that we didn’t get to Steve, in the last part of the planning process is the legacy part. Because you know, the ideal situation for everybody would be knowing when you’re gonna die, because we could figure out exactly how much money we could take out every year, and the last check we would write would be to the Undertaker and there would be no money left.
Steve 20:10
Right? Right, exactly.
Brian Quaranta 20:11
How simple would it be? But, unfortunately, that’s just not the way it goes. But the legacy planning is important. And here’s why. For most people, their largest holding in their portfolio is probably some type of retirement account like a 401K, 403B, 457 Plan, something that’s never been taxed before. Steve, do you think tax rates are gonna go up or down in the future? Let me ask you. Oh, boy, I think everybody would agree that going up? Yeah, probably going up, sir, I’m gonna go down, that’s for sure. That’s right. And remember, there’s two things that are going to erode your wealth, taxation, and inflation, right, those are the two things are going to erode your wealth. So always seem to be going up. But both always seem to be going up. So, let’s talk about taxes for a moment. So. And I’m really surprised with how many people still don’t know about the secure Act that was signed into law in 2019. Now, this was a monumental change in financial planning. And what it did was it prevents you from now, allowing your children to inherit your IRAs without paying a big tax bill, see in the past, if you died, your beneficiaries could inherit your retirement accounts, and they wouldn’t have to pay any taxes. When they inherited that money. However, what they would be required to do is they would be required to take out a required minimum distribution. Now, for most of you, listeners, you probably know that a required minimum distribution, you know, used to start at the age of 70 and a half, but one of those changes with the secure act as they changed the required minimum distribution age to 72. Now, but along with those changes, came the changes to these IRAs. So, the kids would be required to take this required minimum distribution in the year that they would receive the money. So, you know, there was a great story. In Money Magazine, Steve about a son. His name was John Baron. And John Baron inherited his father’s retirement account when he died, it was a half a million dollars. The article went on to say that, you know, not knowing anything about legacy planning, or how to actually properly transfer money, he contacted the company. That’s what a reasonable person would do. I mean, if you’re, if you’re, if your dad dies, you’re probably going to reach out and contact the company where his money was? Well, he does. And the person on the line says, oh, okay, well, we’re sorry to hear about that, what we’re going to do we need is we need a death certificate, and, and then we’re gonna send you some paperwork, you need to fill it out, you need to send it back to us. So, he does exactly that. Okay, so he sends it in. And a couple weeks later, he gets a check for a half a million dollars. Well, couple weeks after that, he also gets a 1099, showing that he had a half a million dollars in income from that distribution from his dad’s IRA account, that got added to his income for the year, which was 100,000. So now, John Baron has a tax bill that year on $600,000 of income, oh, my gosh. So, the article went on to say that he paid over $240,000 in taxes that year, that’s almost half of that retirement account wiped out in taxation. And unfortunately, this happens year after year after year to so many families. And this is why in my world of financial planning, there’s a group out there called the ED slot, elite Ira Advisor Group, which I was part of for years. And Ed slot has written a number of great books, one called the Retirement Savings Time Bomb, how to stay rich for life. But Edie slot is probably the number one sought after CPA in the country when it comes to understanding tax law and regarding to retirement accounts. And so, what happened here was, John has to pay this this tax money, which by the way, is due nine months from his dad’s passing. See, most people don’t realize that they give you nine months to get in the world, and they not give you nine months to get out of the world.
Steve 24:12
It’s an interesting way to look at it.
Brian Quaranta 24:15
Right? And you’re not, you know, you have to understand that these accounts are designed to become a huge tax bomb. But in the past, you know what John Barron could have done, if he knew how to properly do this, and unfortunately, a lot of families don’t have, and this is why it’s so important that you consult with somebody that understands these issues and secure money advisors. I’m going on 21 years of doing this, we’ve got a great planning team here. We know the process of sitting down with a financial advisor could potentially be intimidating to some of you folks. But at the end of the day, Secure Money Advisors has done such a great job in creating such a welcoming environment. A simple, easy-to-understand process so that you can really make sure that with your retirement plan that every i is dotted and every T is crossed. And we’re passionate about not only teaching you about how to do these things, but also teaching your children and getting you into the best places when it comes to your financial plan so that you can maximize all five key areas of financial planning, which is income, investments, taxes, health care, and legacy planning. And if I teach you those five key areas, and the key strategies to each of those areas that can maximize each of those areas, you are going to have a great retirement. So again, folks, for the next 10 callers who call in right now, we’re going to give away a one-page financial review, I’m going to show you where all your red flags are. And we’re going to do it at no cost. It’s complimentary to you. Now we’ve seen others charge up to $1,000 or more to do this type of work. But we’re going to do this work absolutely complimentary to you. And we’re going to take this mystery out of financial planning, you are going to be crystal clear at the time that we’re done speaking, we’re also going to run a free report for you tax analysis, I’m going to show you how to build a customized income plan. I’m going to show you how to use strategies and techniques that can turbocharge your retirement income and maximize the amount of money that you’re getting in retirement. And I’m gonna show you how to take all the guesswork out of this. So again, for the next 10 callers, that’s a complimentary financial review, that we’re going to give away at no obligation.
Steve 26:19
So, 800-656-8616 the next 10 callers get that comprehensive financial review showing you where you are today, of course, but most importantly, when you walk out the door, you’ll have in your hand that roadmap that guy that can really help get you to where you need to be when it comes to retirement 800-656-8616 Again, 800-656-8616 or text BrianQ all one word, BrianQ to 21000. That’s BrianQ to 21000.
Brian Quaranta 26:48
When we come back, we’ll dig into some retirement strategies that could and should be avoided in your retirement accounts when we come right back.
Steve 27:03
Welcome back, everybody, this is Retirement You Radio, increasing your financial IQ with BrianQ, Brian Quaranta, of course, who we’re talking about. Im consumer advocate Steve. Brian’s been in the business over 20 years. A fiduciary, he’s president and CEO of Secure Money Advisors as well. And so again, you know, the way that you have the way that you put plans together your system, if you will, and that’s what it is, isn’t it?
Brian Quaranta 27:26
Yeah, it’s absolutely a system, and it’s a system that has come from a lot of experience, you know, over my 21 years, and, really being in the financial industry day in and day out, and really observing what works and what doesn’t work. You know, I’ve seen just about every investment strategy under the sun. And you know, and there’s good ones, and there’s not so good ones. So, let’s talk about that for a moment. You know, you go back 21 years ago, when I got into the business, I was so excited to, to get involved in the financial industry, I was born and raised in New Jersey, and I came to Pittsburgh on a scholarship to play football at Robert Morris University. And I was really excited. When I graduated, I got a job at an investment firm in the city of Pittsburgh. And I was really, really excited to start working with people and you know, I pass my exam. And when you pass your exam, they don’t really put you in a conference room right away to start, you know, advising people, but you do get an opportunity to work with, you know, under an advisor that had been doing it for, you know, 20 plus years. And you know, of course, you get you get pegged with the name Junior advisor, which really is just kind of a nice way of saying, “Hey, kid, can you go make me some copies? Hey, kids, can you get me a cup of coffee,” but, you know, when I got in the business, I got in the business right at the end of 1999. And I saw the tech bubble burst. And the firm that I was working at was a stock firm that was basically putting together retirement portfolios around, you know, mutual funds. And, you know, what I was taught back then was, the first thing I was taught was diversification. And basically, what they taught us was if somebody had $100,000, you couldn’t put all those eggs in one basket. And the reason you couldn’t put all those eggs in one basket is because you just never know what’s going to be going up in value or down in value. So, what you would do is if someone had $100,000, you would split that money up into maybe four or five different mutual funds. And maybe you’d buy some large caps, some mid-caps, some small cap, maybe some international, maybe some bonds, and you know, you would allocate it based around something called the rule of 100, which is a rule that’s used to determine how much money you should have in risk versus safety. So, if the way that that that rule would work is if you take 100 minus your age, so if you’re 60 That tells us that 60% of your money You probably should be in some type of conservative investment, like a bond portfolio of fixed annuity, something along those lines. And then 40% of your portfolio could be in equities. But the bottom line was diversification was all designed to help smooth out the volatility of a portfolio. And so basically, we would take some money, and we’d split it up into all of these different into these different buckets. And, you know, we would tell the clients that when, you know, when, when the economic environment changed, that we would go in, and we would make changes, and when the tech bubble burst and 911 hit, you know, and people started losing money, I was waiting for the firm to make an announcement that we were going to go into these portfolios, and we were going to start making changes, because that’s what they were telling people. And those changes never came. And we were taking phone calls from, you know, obviously clients that were very upset that they had lost money. And, you know, when things start going bad in the markets, the advisors hide under their desk, and the junior advisors are on the front line, you know, taken taking the heat. Sure. And so, I learned a lot through that process. And I was, you know, working for an advisor, who had a client that called in he was the client was very upset that they had just lost money. And so I went to the advisor, and I said, you know, your client would like to sell and get out of the market. And he said, “Brian,” he says, “Get back on the phone with him and let him know that now’s not the time to sell, if he sells, he’s going to lose, let them know, it’s just a paper loss, and remind him to not worry about anything to just hang in there that he’s in it for the long haul.” Now, most people listening to me right now probably have heard all of those things before at some point in their life, when the markets aren’t going well. Don’t worry about it hang in there, you’re in it for the long haul. It’s just a paper loss. And these are all cookie cutter phrases that have been created by Wall Street to manage emotions when the market starts to go down. So, like a good employee, I go back to the phone, and I get on and the guy’s name was Sam. And I said, Sam, I said, I talk to your advisor. He said, “You can’t sell now if you sell now, you’re gonna lose. Don’t worry about it. Hang in there. You’re in it for the long haul.” And what he said to me next, is what made me really rethink this whole financial planning career. Because what he said was 100% True. He said, “Brian, I’m 75 years old, how much long haul do you think I got left?” And I said, “you know, do the markets come back if they dropped?” Sure, they do. But the question you have to ask yourself is if the markets drop, are they going to come back in a time period that you need it to come back in, because if you’re 60 years old, 65 years old, 55 years old, and the market drops 30-40%. And it doesn’t come back when you need it to come back and you were planning on utilizing that money and retiring at a certain time, you’re not going to be able to do it. I knew so many people, so many stories that I read in 2007-2008 of people that because somebody got paid to risk their money and got told to not worry about it to just hang in there. They’re in it for the long haul. Those people lost half of their money; a lot of those people had to come out of retirement in the marketplace. We have algorithms that can have specific data points like volatility, money supply interest rates, and it can move the asset classes automatically based on where we’re at in the economic cycle. Are we in the trough? Are we in the expansion? Are we in the peak are we within the contraction so that we own the right asset classes at the right time? What we can also do is we can set a predetermined drawdown number, which is so important because if we know what the drawdown of the portfolio is, which is just a fancy way of saying how much can this portfolio go down, we can set a predetermined drawdown number like 5% or 10%. So that the algorithm will know that if it gets close to that number, it will start to reallocate the portfolio to things that are more conservative. So, it doesn’t go beyond that drawdown number and you lose 20, 30, 40%. And this gives you the confidence to stay fully invested in February and March of this year. That algorithm works so well, that our clients lost less than 10%, less than 10%. And we are up on the year up on the year because we didn’t have to recover because the algorithm did it. And this is where technology can really help you folks, but this is the type of stuff we do at Secure Money Advisors. You can’t procrastinate, come in take advantage of a conversation with us. Again, for the next 10 callers who call in right now we’re going to give away that complimentary review at no cost to you. Pick up the phone, call, schedule an appointment today. We’re going to spend a 1/2 hour-45 minutes with you. You’re going to learn a lot
Steve 34:43
10 callers right now. 800-656-8616 that’s 800-656-8616 or text BrianQ all one word to 21000. Brian, as always, a pleasure to hang out and just you know have the conversations. It’s good stuff,
Brian Quaranta 34:57
Steve, it’s always great seeing ya, and I hope everybody has a happy holiday season and Merry Christmas to you all, and we’ll see you again next week.
Announcer 35:10
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