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Video Transcript
Rebecca Powers 00:24
Welcome, everyone to this week’s edition of on the money with secure money. And I’m Rebecca Powers here with Brian Quaranta. He of course created secure money advisors. Great to see you, as always good to see you. Happy to be here. Yes. So, we always talked about how you are a fiduciary that you have created this model. And a lot of people are going toward it and becoming independent fiduciaries away from the big box as you don’t have to tell people stay in the stock market. It’s just a paper loss. We tell the story of when you began how they taught you talented ride the wave, it’s okay to worry, but easy for them to say, yeah,
Brian Quaranta 01:02
Yeah. Well, I’ve always said it’s really easy to tell somebody else to risk their money and not worry about it, especially if you get paid a fee or a commission to do it. I mean, you ever have ever played blackjack with a friend behind you? You know? Yeah, no, no, hit that hit that, you know? No. And that’s essentially what you have when you have a financial advisor that’s guiding you in the market. And you know, a lot of these advisors these days, they’re I mean, they’re young, right? A lot of them don’t even have the amount of money saved in the market their clients to exactly you know, and they’re, you know, they’re taking advice from people that don’t even have any money saved yet. When you start to save and accumulate a lot of money, you’ll learn very quickly, that protecting it is one of the most important things you can do.
Rebecca Powers 01:51
I remember it so well, in 2008, I was an anchor, my co-anchor had been a national network news, he you know, very accomplished. And he got kind of pale. And he put his head down, he used to always look at his money online on the computer at work. And he kind of put his head down and he said back, I don’t think I’m gonna come back. Like he looked like he was gonna throw up. Yes, it was the crash of 2008. Yeah, he was unmarried, he had saved everything, didn’t even buy a house, he was so big on putting money saving money, thought saving, he lost almost half,yYes, of everything. He literally had to go home from work that night and not come back and do the 10 with the 10 o’clock show with me.
Brian Quaranta 02:29
That’s right. I mean, think about I mean, think about, if you had a million dollars back then, and you just lost $500,000 in the matter of 8 months…
Rebecca Powers 02:42
Or yeah, it feels like hours, right when you’ve opened that paper.
Brian Quaranta 02:45
Yeah, in a very short period of time. The joke that started many years after 2007 2008 was your 401k turned into a 201K. And look at when you work hard for your money, and you’re going to work on days that you don’t want to go to work, you’re traveling away from your family, maybe going to work with people that you don’t necessarily care for all the time. You know, that’s a lot of sacrifice, that you’re doing to create and accumulate money.
Rebecca Powers 03:26
So, why risk it, why risk it,
Brian Quaranta 03:28
Especially entrepreneurs, you know, entrepreneurs will ask me a lot of times, how should I invest my money? You should be investing in your company, right? The best company for you to own is your own company, right? The best stock for you to buy as your own stock. I mean, where would you rather put your money, Microsoft or your own business, if you invest in your own business, and a lot of entrepreneurs don’t understand this, you’re taking money that you’ve risked to make because you’ve started a business, you might have employees, and you take it out of your business, and you give it to another business, like Microsoft or Apple or whatever companies you buy? Why in the world? Would you give that money to another business, when you can invest it back in your business, and probably make a much greater rate of return than you would in any of those other companies. Now, I’m not saying that you can’t invest a little bit of money, but just think about that, especially if you’re just getting started with your company. The best place for you to invest is back into your company. A lot of young entrepreneurs are taking their money out and invest in the stock market. Why? It makes no sense to me.
Rebecca Powers 04:35
You’re the first person I’ve ever heard say that. And that is really fantastic advice because at least you have some control. Because when it’s in the stock market, you have no idea what its gonna do.
Brian Quaranta 04:45
No idea what it’s gonna be. So, if you invest, let’s say you invest $10,000 back into your business. What kind of return could you get on that? If you invested a 20 Let’s say you invested $60,000 in a new employee. What kind of return Could you get on that? Right? Right? Where are you invested $10,000 into new equipment? What type of return could that get you? Entrepreneurs don’t think that way. I don’t know why. Now, it hit me very early on in my career, that the best investment I could make was into secure money advisors. Now, it wasn’t until secure money advisors was very successful, that I started directing money out of secure money advisors and buying companies, other companies, what you mean stock and stock and other companies? Yeah. But for the longest time, 100% of the money went back in the secure money advisors. And still to this day, my accounting department is always instructed to invest back in the company, invest in our people, invest in our infrastructure, invest our ability to communicate with the public, right? Those are the most important things a company can do.
Rebecca Powers 05:50
And your first job when they were training you and teaching you tell him to ride the wave, that’s just a paper loss, it’ll always go back historically, it does go back. But if you don’t have the years, and you can’t make it back, you always say nobody knows what the market is going to do in three to six months. No one knows.
Brian Quaranta 06:05
Well, you know, my favorite line that they taught me was, you know, well, I don’t have a crystal ball, Bob. So, I couldn’t tell you what the stock market’s going to do. Right. And the thing with the crystal ball thing, is the fact that, you know, this is what bothers me about it, we got your friend. Here it is the infamous crystal ball. Now let’s see if we can find out if they can tell us what the stock market actually is going to do is we this is great. This is great. Greg in our studio did that for you. Let me tell you this story about the crystal ball. This is fantastic. Can we get another close shot on that? Because this is awesome. The crystal ball itself though, here’s what bothers me about the way that financial advisors are trained today. Okay, first off, they are taught cookie cutter phrases like why don’t have a crystal ball. Right? Or don’t worry about it hang in there, you’re in it for the long haul, or it’s just a paper loss. Right? These are all this is the language of the financial community.
Rebecca Powers 07:09
The double talk that you were taught, that they were taught.
Brian Quaranta 07:13
Yes. Now, here’s what’s really concerning about the whole crystal ball thing. People will say I don’t have a crystal ball. I can’t tell you. I can’t tell you what’s gonna happen. But I have one today. But you know, when the stock market goes down, Rebecca, here’s what really really bothers me. Okay, if you don’t have a crystal ball, and you can’t tell me what the stock market’s going to do, why in the world, are you able to tell me when the markets down, that everything’s gonna be okay, man, don’t worry about anything. It’s just a paper loss. Now, look, if you as financial adviser, was telling that to a 30-year-old, I would probably agree with you. Don’t worry about anything, just keep investing. But when you say that to a 55-year-old, a 60-year-old, a 65-year-old, a 75-year-old, you’re not being truthful, that’s trying because you want to know something, you’re in trouble. They that client is in trouble. And that plan may not work. And that advisor is hoping and praying that this market recovers as soon as it possibly can. Otherwise, they know they’re going to be in a world of problems. Because if Mr. Smith was planning on retiring in two years, and that stock market’s gone down, and you only have two years for that portfolio to recover.
Rebecca Powers 08:33
It’s not happening.
Brian Quaranta 08:34
Not happening. Not happening. No. And the thing is, when you lose money, you got to do a lot greater rate of return to get back,
Rebecca Powers 08:42
Right. We’ll talk about compound loss and compound interest. When we come back, we didn’t take a break. There’s a number on the screen, you can also go to onthemoneyoffer.com When you call them make an appointment, no obligation, no cost at all. It’s true. Brian will also send you this book and even paid for the shipping and handling. Tell us quickly what that first appointment looks and feels like.
Brian Quaranta 08:59
Let me ask the crystal ball. Let me ask the crystal ball. It looks promising. No. That first appointment, folks, you’ll get a lot out of it. It’s comprehensive. We go over five key areas with the income taxes investments, your healthcare and your estate planning. You’ll see the difference in working with a fiduciary firm that gives you a comprehensive financial plan when you come to the office. As always, nobody’s there to sell anything. We’re there to help identify any concerns that you have any challenges that you have. Remember, your money is only as good your plan as is only as good as the people that you’re getting the advice from. Amen.
Rebecca Powers 09:33
It might just be a second opinion; you might be on the right track. And we’ll tell you that too. All right, more with Brian Quaranta and our crystal ball right after this.
Brian Quaranta 09:41
So, everybody can tell you how to invest your money. There’s not a lot of people out there and a lot of firms that can teach you how to use your money. Most people also tell you that they’re scared. And the reason they’re scared is because they’re afraid of running out of money.
Neil Major 09:55
The last thing you want to do is have a really good job and you’re here 60s retire, the looking for work again in the late 70s.
Brian Quaranta 10:04
The average person might say, well, a good portfolio would be a good mix of stocks, bonds and mutual funds. A good portfolio is all designed around the five key areas, income, taxes, investments, health care and legacy planning.
Neil Major 10:18
Because we’re not just product pickers here, what we do best here as we build retirement plans.
Brian Quaranta 10:23
9 out of 10 people, when they walk through the door would ask us, we just want to know if we’re on the right track. And I always say, if you’re not on the right track, when would be a good time to know it? Probably now.
Neil Major 10:33
People, you know, can actually see a vision once we start to really build out their plan.
Brian Quaranta 10:39
This is about you, if you’re not getting what you need, and you feel that when you walk out of the advisor’s office, it’s time to get a second opinion. And you can’t get a second opinion from the person that gave you the first the difference at secure money advisors, as a fiduciary firm, we help you manage the risk, build the income, and give you the retirement you dream of.
Rebecca Powers 11:10
Welcome back. I’m Rebecca Powers. We’re having a fun day today. Taping you saw our crystal ball in the first segment kind of joking about Wall Street telling people Oh, I don’t have a crystal ball, but keep your money in there should be okay. So, risk in retirement, those two words do not go together. Brian, you actually named your business secure money advisors, because you know, that is the most imperative thing, taking risk out being secure. Let’s talk about some of the ways to secure our money.
Brian Quaranta 11:38
Yeah. Well, look, I think the best way to secure money that you’re going to need to get monthly income from is from the income annuity. So let me explain why. Okay, and I think once people understand why, and they really start to research, the benefits of income annuities, they will start to understand that this is the direction that they probably are going to want to go. So, I had a client that they weren’t a client at the time, but they came in for a review. And they said, Look, we just want to see if we’re on the right track, if we’re doing the right things. And through conversation, we’ve got a very disciplined process that we follow. There’s lots of questions that we ask, and but one of the questions is, what is the primary purpose of the money? What does the money need to do for you? Exactly? Okay. Well, a lot of people will tell us, and I would say 90% of the people will tell us that the money needs to provide them with some type of income, whether it be monthly or on an as needed basis, right. But they are going to need it to generate income. So, I said, well walk me through your income plan right now. Okay, what is the current strategy that your advisor has in place? They said, well, the goal is to take about 4% a year from the portfolio. And I said, Okay, so on a million dollars, that’s about $40,000 a year that you’d be able to take each year, then they said, well, the advisor said we could increase those withdrawals a little bit too, every year, okay, based on the portfolio. So, I said, Okay, so you need a million dollars to generate $40,000 a year, and using what a lot of people know, is this 4% withdrawal rule?
Rebecca Powers 13:31
It used to be the 3%.
Brian Quaranta 13:38
Well, yeah, now they’re saying maybe you don’t want to take four, maybe you want to take three and maybe you want to take two, right? They’re always adjusting for volatility, you know, what a concept, right? Well, it always changes. You don’t even know what it is. You know, so I said, Okay. Here’s my concern with your strategy. Yeah. If you don’t get the right rate of return on a year-to-year basis, and you’re taking money out, when the markets down, which they were telling me they need money every single month. So, if the markets down, what are you going to do, not take money? That doesn’t seem like a plan to me, right? I mean, pay your bills, right. So, what happens is when people use this 4% withdrawal rule, no matter what’s happening in the stock market, they continue to take the withdrawals out. Now, some advisors might recommend well, we’ll keep like a year’s worth of cash aside so that when the markets down, we don’t have to take from the market account we can take from the cash. Okay, well, what happens if the markets down more than a year? What happens if it’s down more than two years? That’s happened before, 2000 2001 2000 2003.
Rebecca Powers 14:40
Plus, you’re compounding the loss.
Brian Quaranta 14:43
Plus, you’re compounding loss. It’s called sequence risk. Yes, it’s called sequence risk. So, this is the order in which you receive your returns. Okay. So, they need all million dollars to generate the income they need. I said, All right, we can either use 100% of your money To generate 100% of your income, or rather than doing it that way, why don’t we approach it like this? What if we were to protect 50% of the money. So, let’s protect $500,000. And let’s leave $500,000 in the stock market. And we’re going to take the 500,000, and we’re going to put it into an income annuity, that income annuity is going to generate over $51,000 a year in income for them every single year, for the rest of his life, if he dies for the rest of her life. And if she dies, any balance is paid out to the kids amazing. The other $500,000, let’s keep that the stock market, let it ride, let’s make that our long-term money. But rather than having 100% of the money in the market, to generate 100% of our income, we’re only going to have half of the money in the market. And we’re going to have half of the money in the annuity. And we’re only going to use 50% of their money to generate 100% of their income needs. Now, what happens if the cost of living goes up? What happens if we need more money? Right, because the annuity is only going to pay a flat 51,000.
Rebecca Powers 16:15
It doesn’t take into account inflation and different Okay, does not however, why do we have money in stock market?
Brian Quaranta 16:20
So, if that stock market account earns 10%, next year, and it goes up $50,000? Couldn’t we take that $50,000 out and put it aside and use that to offset any inflationary cost that may go up over time? Right? If we don’t need to take it out to offset for increased cost, then we can just leave it in the market and let it continue to compound. What we’ve done now is we’ve created the most valuable thing that you can possibly have with risk that you’re taking money that you’re taking risk with the most valuable thing you can give it is time. Right. And by setting aside enough money in the annuity, to generate all the income that they need. We now have created time with that money that’s in the market. And that’s how you’re going to become successful in retirement. without worries and anxiety of what’s going on in the world. What’s happening in news today. What’s this person saying? What’s that? What’s the headline today? Is the market up? Is the market down? Do you really want to live a life in retirement, we are constantly worried about the news cycle, you’re worried whether the markets up or down. That’s not a way to build a retirement plan. A retirement plan should be built with some certainty in mind, with peace of mind. And that’s what this type of planning gives you. And I write about all of these strategies in my book, right track your retirement. I believe it’s chapter four, where I talk about think like a pensioner, not a gambler. And I want you to start to think like a pensioner. Look, the technology that we used back in the day has changed. I mean, I used to talk on a corded phone Rebecca, a corded phone. You know-
Rebecca Powers 18:05
I’m older than you buddy I know them very well. Hanging on the wall.
Brian Quaranta 18:10
Yeah. And then, you know, you couldn’t get away from any your family members, you’d have to, like, pull the, you know, cord down the hallway in a room and but look at how technology has changed just there. I mean, then we went to flip phones, right? Well, that was like the greatest thing ever when you had a cell phone. And it was amazing. But now look, it’s crazy. I don’t even need a computer anymore. I do all my banking; I do all my trading. I do everything right from the phone.
Rebecca Powers 18:33
Do you know we have more power in our- I mean more technology in our phone then they had to get Apollo 13 back from space.
Brian Quaranta 18:42
Right? Exactly. Amazing. It’s amazing. And so, when we think about the advances in technologies just in our everyday life, you know, phones, microwaves, ovens, you name it, right cars, safer cars, the world of investing has also evolved, and it’s changed and there’s better technology. Right. And that’s why we use the income annuity because the technology is so good. It’s hard to argue with the math. Yeah. And this is why I highly recommend that you come in, schedule a time go to onthemoneyoffer.com You can get a copy of that book, I send it to you absolutely free. But while you’re there, you’re gonna have an opportunity to schedule an appointment. During that appointment, we’ll help you look at what you’re currently doing. We’ll give you a full comprehensive review of everything that you’re currently doing. And if you’re on the right track, we’ll let you know you’re on the right track. If you’re not on the right track, we’ll give you some suggestions to get on the right track. If you want to make those changes. That’s up to you. But we’re not there to pressure you to do anything. Or just call 1-888-382-1298. Our team standing by to get you scheduled. Folks don’t procrastinate on this. Don’t kick the can down the road. If you’ve seen this show before and you thought, man, we really need to go in and see those folks. Do it. Pick up the phone today and do it. We’ll see you again. On the next segment.
Rebecca Powers 20:00
Yeah, a lot of people say that: I watch you every week. I really need to call him! Like, yeah, you really do. Yes. All right. Stay with us more with Brian Quaranta very enlightening and educating, we’ll be right back.
Announcer 20:17
The work never seems to end until the day it finally does. After nearly a lifetime on the job, you should be rewarded for all the time you spent working. Whether that’s crossing off items on your bucket list, learning a new passion, or rekindling the love of an old one. After all, life isn’t over when you stop working. It’s the start of an all-new chapter, the one where you’re the writer and you get to choose how your story will go. A way to achieve that is by having a clear financial plan to sustain your golden years, the biggest fear most retirees have is if they’ll have enough money to maintain the lifestyle they always enjoyed. Having a plan to help protect you against the curveballs life often throws will help to maintain your lifestyle. Call today to get your free written financial plan. See me live every day to the fullest and enjoy the retirement of your dreams.
Rebecca Powers 21:08
Welcome back to On the money with secure money. I’m Rebecca powers here with Brian Quaranta. Of course, he created secure money advisors. This is something that you were so passionate about, you put the name in the show, you put the word in the show in the word in the title of your business secure, secure, secure, secure, I think you should like paint it outside your building. That’s what you are hyper hyper hyper focused on.
Brian Quaranta 21:32
Yeah, look, and I openly say we’re not the right firm for everybody. You know, some people just like the you know, to roll the dice. They just can’t get away from that strategy. But if you’re a lot like me, you’re a lot like our clients. I preserve, I prefer protection. I prefer to have things that are a little bit more conservative. I would rather show up just a little bit late, but no, I’m safe, then maybe not show up at all. Right? I mean, any how many stories? Have you heard about people losing everything? In these cryptocurrency companies, I mean, you know, and I’m not gonna go to jail, people going to jail. Risk is okay, but please just remember, you should only be risking money that you can afford to risk. People are risking money they can’t afford to lose, Rebecca, that’s the scary part about the financial planning community is that the industry needs the industry needs to change the industry really needs to realize that, you know, this isn’t a game. It’s not a dress rehearsal, you don’t get a second chance at this. If it gets screwed up. You’re literally delaying or costing someone their entire retirement. There’s a lot of people right now in their 70s that are still working because somebody got paid to take risk with their money and it didn’t work out well.
Rebecca Powers 22:59
Right. And there’s no slap on the wrist even there’s no, the housing market crash. If you watch the movie about a you’d mentioned the movie too, when you watch it, that they didn’t go to jail, they did get in trouble. They lost hundreds of billions of dollars. And they go to work as usual. Well, millions of Americans suffered.
Brian Quaranta 23:17
You know, I was taught by my parents growing up, if I especially if I was going somewhere, you know, and I was maybe considering buying something, you know, my dad would say, Well, don’t sign anything. Don’t sign anything. And, you know, what people don’t realize is one of the best things that you can sign is a contract. Now, a lot of people, well, so hear me out on this. The contract is the most important thing, because it’s a legal binding agreement. Right? So, think about it like this. Yeah. When you buy a home, you get a mortgage, you are signing a contract. And that contract is going to dictate the terms, meaning you’re going to buy a 30-year mortgage at whatever the interest rate is 2% 3%. Obviously not those rates anymore. You know, when you sign financial paperwork, like to open up a IRA or a 401 K, and you’re investing in the stock market, you’re not signing a contract, you’re signing paperwork that says that if we lose all your money, there’s nothing you can do about it. Holy smokes. Yeah, there’s nothing you can do about it. You’re taking the risk. You personally are taking a risk, read the fine print. The reason I liked the annuity, is because you sign a contract very similar to a mortgage where it says we promise to pay this specified amount for this period of time. If it’s a fixed rate annuity, it promises to pay that rate regardless for the next however many years. If it’s going to income annuity, it’s a contract saying we’re going to pay this much for the rest of your life. In my opinion. I think that is the biggest piece of mine that you can give yourself. Yep, going into retirement is having something that you know that you signed, that gives you some level of certainty.
Rebecca Powers 25:14
And it absolutely does after doing these shows for so long, I’ve said this before that we have half of our money, all of my old 401k money in that and it really does give you peace of mind. It sure does. Yeah, it absolutely does. There’s nothing like it. Insurance companies, nobody does it better. As far as risk analyzing your longevity. Right?
Brian Quaranta 25:32
Yeah. And you know, a lot of us, a lot of people ask, you know, well, how is this insurance company? Going to provide me an income for the rest of your life?
Rebecca Powers 25:41
Sounds too good to be true is what I hear a lot?
Brian Quaranta 25:44
Yeah. Well, first off, let’s realize that when the markets went down, I think what was it 2021 2022? There was $300 billion that went through annuities, I believe, right? You gave me that statistic?
Rebecca Powers 25:55
That’s right. Forbes article.
Brian Quaranta 25:58
Yeah. From a Forbes article. So why are why is money rushing there? Well, money is rushing there. Because you know-
Rebecca Powers 26:05
There’s a safe place, and all the rich people know where to hide. That’s right and more power to them. I mean, that’s why they’re rich.
Brian Quaranta 26:10
Well, listen, one of the biggest financial vehicles that very wealthy people buy, which is a little hidden secret, nobody talks about because the average person thinks that, but when they get older, they don’t need life insurance. But one of the biggest purchasers of huge life insurance policies are very wealthy people, because of the guarantees that are built into them. Because in life insurance, you can get a guarantee of dividends and cash value. Right. Okay. But you also get a guarantee and death benefit. So, why are so many people rushing to put tons of money into these things? Well, not only for the guarantees, but also for the tax benefits, because death benefits pay tax free. Right? So, but how do insurance companies make money that if they have to pay this money out in the form of income, we’ll remember if I give them $500,000, and in return, they give me $51,000 a year in income, by the way, that’s over an 11% yield on your money for the rest of your life? Yeah, where you gonna get that? Where are you going to get that type of yield on a payout? Right. So, how the insurance companies make money well, that money they’re only paying out so much a year. The other the other portion of its invested, they’re making money just like the banks do what’s called the spread. You bank gives you a 4% CD, they turn around, they lend it back out in auto loans, Home Loans At 6-7%. That’s called the spreads exactly how insurance companies work, folks, I want to get this book in your hand right track your retirement. It’s a simple guide to help give you a peace of mind and confidence and retirement. Come in for a complimentary right track review. And give yourself the peace of mind that you deserve. Our team will be willing to help you and give you give some clarity around retirement onthemoneyoffer.com Or call 1-888-382-1298
Rebecca Powers 27:49
And there’s the QR code. Thank you again for joining us the show flies by as usual. Hope you learned something. We’ll see you again next week.