On the Money with Secure Money: Episode 86

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Video Transcript

Rob 00:19

Welcome back to On the Money with Secure Money Weekly Report. I’m Rob Hurtig. here with my good friend Brian Quaranta. Rob, how are you today? Man? I’m awesome. Good. I’m awesome. I know you are too.

 

Brian Quaranta 00:28

Very busy though. Yeah,

 

Rob 00:30

people are worried right now.

 

Brian Quaranta 00:31

Yeah, they’ve they’re very worried and they have every right to be you have every right to be because you’re talking about 40 plus years worth of work at risk in the market. Right now. I’ve made a lot of people that are just losing a lot of money right now. They’re terrified. You can talk to other people, and they don’t even want to face the reality of what might be happening to their 401 K’s or their retirement accounts. But it’s not a time to stick your head in the sand. This is not a time to kick the can down the

 

Rob 00:52

road when you have 14 years of positive reinforcement, right? Yep, we’re winning. We’re winning. We’re winning. And even in 2020. Yeah, we had some of the most volatile days in markets ever seen. 2000 point swings one way or the other. And we still finished 2020? Up. Right, right. All through COVID.

 

Brian Quaranta 01:05

All through COVID. Yeah, yeah, it was the, you know, it was the injection of all the caveats in the market, too. I mean, come on. We had kids that were investing their money that they were getting for college with through the Robin Hood apps or their TD Ameritrade apps, and they were making a ton of money right crazy how many people we heard millionaires, how many stories I hear from our clients about their grandson or their granddaughter making a million dollars in cryptocurrency? You know, it was just when I saw that happening. I knew we were at the peak. Because when you hear things being that easy, you know, the runs about to break.

 

Rob 01:38

Like Henry Ford, when he said, You got to get out of the market because a shoe shiner gave him investment advice. Yeah, right. That’s like, I know, the market saturated when the guy shining your shoes is giving you investment advice. Yeah, you know, it’s tough. You know, both money managers, and consumers get this confidence as years go by and they’re winning, winning, winning. It’s almost like they forgot that you can lose at some point. We get guys that are on the on the TV with commercials saying, you know, certain things that we use in the past to make sure we live great retirements Yep, that they’re bad. And we hate them. And yeah, don’t have them. Yeah. But you the people that are with that guy right now, wish they had annuity?

 

Brian Quaranta 02:15

Yeah, well, annuities are a very important part of planning. I mean, for some cases, you know, not all cases. You know, every everybody’s situation is different. But, you know, you got to remember that the losses will hurt you more than the gains will help you. Right, right. Let me say that, again, the losses will hurt you more than the gains will help you. So, and the reason I say that is because when you retire, it’s not about getting 100% growth of the market, it’s about protecting your downside, and most people don’t hedge by protecting their downside. So, you know, market goes down, they lose 20% 30% 40%, we need accounts that if the market goes up, we can make a little bit of money, right, the market goes down, we don’t lose, right, and the design of these annuity products, they will allow us to do that. But they’ll also do something else very important. They’ll provide us with a guaranteed income stream, not only guaranteed for your life, but guaranteed for your spouse’s life. And any money in the account will go to your family members, or at any point in time you wanted to take that money out, you could take it out, depending on when you take it out, you could pay some penalties. But at the end of the day, we have ways to protect money today and still get some growth in the market.

 

Rob 03:17

You’re a fiduciary, the other advisors at your firm or as well, and by law, you have to do what’s in the best interest of the client. Right? That’s right. Yeah. My problem with what happens that, you know, in the media, there’s always certain themes that start to get carried away. And yeah, there’s always multiple versions of the story. Right, we see it over and over again. Yeah, so this this narrative that annuities are bad. Well, there’s four or five different kinds of annuities. Right, right. Yeah. What I’ve noticed is these people on TV that run these commercials, they are taking the worst parts of every different type of annuity and combining them like they’re one organism and they’re not.

 

Brian Quaranta 03:47

That’s right. They lump it all in together. Right. It’s not a fair analysis. Right.

 

Rob 03:52

I think there’s bad annuities. I think there’s good ones. And those ones that are appropriate for people and ones that aren’t

 

Brian Quaranta 03:57

Yes. And you got to know in the annuity market, you have to know what you’re looking at in order to purchase the right one, and get the right one that’s going to solve the problems that that you need it to solve, right.

 

Rob 04:08

Some do accumulation some do income for life that you cannot live is guaranteed even if you outlive the money that’s there. That’s right payment coming in. So, give me an example of where you would use like an accumulation vehicle.

 

Brian Quaranta 04:17

Yeah, well, look. So, let’s say you’re getting ready to retire, right? And you know, you’re retiring and the only amount of income that you’re going to have on a guaranteed basis is your Social Security check. Okay, so let’s suppose and this is about 85% of the people retiring today, right? Let’s say that you need an extra $20,000 a year in income, right? Well, you’ve got two choices. You could keep all your money at risk in the market and you could pull that $20,000 a year out of your investment portfolio, okay. And as long as the market cooperates, you got nothing to worry about taxes don’t go up no inflation, no market drops, no market drops, most importantly, right. No market drops most importantly, but if you’re trying to get $20,000 of income out from a stock portfolio, you pull that out and the market is going down like it has been now your compound only in those losses. And this is what we see where people will spiral and run out of money. And they’re not running out of money in the first 10 years of retirement, they run out of money in like 15 to 20 years when they don’t have the physical health to go back to work. And you need it the most you when you need it the most vulnerable when you’re the most vulnerable. So, what the annuity does is by carving that money off by carving a portion of your money off and placing it into that guaranteed account, we can provide that income stream of $20,000 a year, and even some annuities that $20,000 a year would increase every year. Okay, so we can even get increasing income. Now you tell me, would you rather have an account that could run out of money? Or would you rather have an account that wouldn’t run out of money?

 

Rob 05:39

Well, people over the last 14 years they fell so in love with that account balance, and they thought that was important. I think what they’re finding out is a paycheck is way more important than that great big account balance. We convinced everybody to operate like we’re all independently wealthy, right? “Let’s do it like the wealthy do” well, you don’t have the money to do it like the wealthy do. That’s right, wake up.

 

Brian Quaranta 05:56

That’s right. I always say, would you rather have a million dollars in your account? Or would you rather have a guarantee of income of $50,000 coming in here, I would rather have a guarantee of income of $50,000 coming in a year rather than a million dollars sitting in my account that could go down and I could lose it? Yeah, you’re right, Rob, that income is more important than the account balance itself. It’s the monthly income that gives you peace of mind and security in retirement, and really allows you to have the retirement that you always wanted, because nobody wants to be worrying about the pandemonium on Wall Street when they retire. They want to be spending time with their kids and their grandkids, right and their families in going on vacation. They don’t want to worry about being on vacation on some cruise, and the market just dropped 30% And they’re thinking themselves, we probably shouldn’t spend the money we’re about to spend on this cruise because we’re not gonna have a whole lot left after the market takes it from us.

 

Rob 06:45

Yeah, you actually just made me think of something. So, the prospects, the people you’re meeting with that are coming in that are scared? Yeah, a lot of them have lost 20, 30, 40%, in the market how much of your clients lost in indexed annuities?

 

Brian Quaranta 06:56

Zero. you cannot lose money in those accounts. And even you know that the other good annuity is even something called a fixed annuity where you can get a guaranteed rate of return like an old CD, right, like an old CD where you can get you know, three and a half 4% rate of return, we’ll probably see those rates go up even more.

 

Rob 07:11

I’m watching it day by day as the interest rates are going up. I’m seeing those yields on the backsides of those climb as well.

 

Brian Quaranta 07:17

That’s right, Rob, these index annuities are alternative asset classes that are not correlated to the stock market, that’s the most important thing. They’re built off an options portfolio that allows you to take it get this upside gains without the losses. But this is this is why our right track retirement system is so important, because I’ve built this out to cover all of these areas. And I want people to have this information. And folks, if you call in and schedule a time to come in, I’m going to walk you through our right track retirement system, we really have done a good job breaking this down. So, you have a simple, easy to understand plan that’s going to provide you with income and peace of mind in retirement will show you a better approach than just rolling the dice and taking risks. If you’ve won the game, folks, there’s no reason to keep playing it take advantage of the right track retirement analysis, all you got to do is call 1-888-382-1298. Again, that’s 1-888-382-1298 or scan the QR code. 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 08:26

And the last thing you want to do is have a really good job and you’re in your 60s retire, be looking for work again in their late 70s.

 

Brian Quaranta 08:34

The average person might say, well, good portfolio would be a good mix of stocks, bonds or mutual funds. A good portfolio is all designed around the five key areas income, taxes, investments, health care and legacy planning.

 

Neil Major 08:49

It’s we’re not just product pickers here, what we do best here is we build retirement plans.

 

Brian Quaranta 08:54

Nine 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 09:05

People, you know, can actually see a vision once we start to really build out their plan.

 

Brian Quaranta 09:10

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 thing. 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.

 

Rob 09:40

Welcome to On the Money with Secure Money. I’m Rob Hurtig here with Brian Quaranta.

 

Brian Quaranta 09:44

Rob, good to see you, as always!

 

Rob 09:46

Always good to see you. We always have a lot of fun here. Yeah. Let’s talk about stuff that’s important and timely, right? We try to do our best job of it. You have something here called the hidden tax. I think most people, most people know what we’re talking about.

 

Brian Quaranta 09:57

Yeah, inflation.

 

Rob 09:58

Inflation, right. It’s a tax that you did not sign up for, nobody voted on it. Well, they probably did by printing money, you know, but uh

 

Brian Quaranta 10:05

They call it the stealth tax.

 

Rob 10:06

Really?

 

Brian Quaranta 10:07

Yeah. They call it the stealth tax. I mean, think about it. I mean, look at the numbers here. I mean, first off, inflation’s at 8.9%, you know, as of this show here, you know, cost of flights up 33%, gas 40%. I mean, I’ve got, you know, people watching the show here, and I don’t know about your Facebook feed, but I’ll see a lot of friends taking pictures of the gas pump now, because they’re shocked. Right, you know, I had a friend just post a picture that $118 to fill his truck. Yeah, right. But gas up 40%, Car Rentals up 8.5%, used cars up 35%, energy of 32%. I mean, think about what’s happening here to people. I mean, the average household could spend between $3500-$5,000 more buying this stuff,

 

Rob 10:46

Right? You know what’s interesting, though, Brian, everything you listed there, it’s either a necessity that you have to have

 

Brian Quaranta 10:51

They’re consumer staples!

 

Rob 10:46

Right? Yeah, or it’s bucket list stuff, the stuff that you work so hard for your entire life and the stuff you dream about doing in retirement. And you know, just watching this, I care about this stuff, I love what I do. And I care about this stuff. And every day you see, you know, the markets volatile, you see costs going up. And really what that means to people in the audience is you see retirement dreams being eroded in front of our very eyes. And people don’t even know it yet. Their heads are still in the sand.

 

Brian Quaranta 11:15

They are and they need to wake up because this is not an easy time right now. And this is not the time to keep your head in the sand and kick the can down the road and procrastinate because if you don’t make adjustments right now, and you don’t evaluate where you’re at, and what type of positions you’re in, or understand the risk level that you’re taking, or how much more your portfolio could potentially go down if the market continues to drop, or how this inflation increase is going to impact your writing. I mean, most people, what we find fundamentally, when we plan, I’ve been planning for, you know, over 20 years is they don’t have a plan, right? They don’t have them set.

 

Rob 11:46

So how would somebody know if they don’t have a plan? If they can’t dictate exactly what their investments? Do? You don’t have to know how they work. If they can’t tell you when they come in what everything does, would you say that that person has a plan.

 

Brian Quaranta 11:56

Now, most people don’t know how to get their money to start working for them. See, we all save the accumulated this money so that eventually when you retire, it actually started working for you. Yeah, and 85 to 90% of those people are going to need it to work for them. Because most people retire without pensions. So, when you don’t have a pension and the only guaranteed source of income, you’re going to have his social security, most people are going to rely on those retirement savings to generate additional income.

 

Rob 12:19

So, they’re just waiting on their financial advisor to save them.

 

Brian Quaranta 12:23

He’s not a financial advisor! you know what they tell him, Rob? They tell him just pull the money out of the account. So, they keep all their money in one bucket. Right. And they it’s all in the market. And they hope and pray that the market is going to continue to cooperate. And when they call their advisor and they say, you know, I’m really worried we’re continuing to take money out of this. And the adviser says, you know, don’t worry about it, everything’s gonna be fine. Keep doing it. But Rob, I meet people every single year that are running out of money, I meet these folks. And I’ll tell you the worst day of retirement is not the day you run out, the worst day of retirement is when the day you figure out you’re gonna run out of money, and there’s nothing you can do. It’s kind of heartbreaking. It’s heartbreaking for people.

 

Rob 12:57

You told me a stat before between segments here. And it was I think, with a 6% inflation rate, your income needs doubles every 12 years.

 

Brian Quaranta 13:05

Yeah, think about that!

 

Rob 13:06

So, we- think about how long people are living retirement now. Yeah. And think about if you’re on a fixed income, right, if your income need right now is $50,000 a year? Yep. Do you have enough money to last year when that becomes $100,000 a year that you’re having to withdraw from your account?

 

Brian Quaranta 13:19

That’s right.

 

Rob 13:19

Talk about that.

 

Brian Quaranta 13:20

Yeah, well, when we have inflation, right, things get more and more expensive. And normally, we have an inflation rate. That’s reasonable, right? We’re seeing accelerated inflation. We might even be seeing stagflation, where we’ve got high interest rates, right? High cost, but low growth, right. So that means portfolios are not going to keep up with what they need. So how are people going to when they see their expenses increase, how are they going to offset those expenses? They’re going to have to make major cuts, they may have to reduce, they made their sell their homes, go into a you know, a lesser mortgage, or go into an apartment, or move into with family, sell a car and only have one car? I mean, there’s going to be sacrifices that people need to make and unfortunately, they’re not getting the advice on how to mitigate these risks as much as they can.

 

Rob 14:04

You know, we always talk about providing solutions for people that they can do on their own Yeah, I think the day of the do it yourselfer you need to not be a do it yourself right now. Yeah, it’s too, It’s too hard.

 

Brian Quaranta 14:14

Well, look, if you’re a do it yourselfer, and you’ve got time for your portfolio to recover, that’s one thing but if you’re a do it yourselfer, and you’re planning on actually being the one that actually generates the income for your retirement and you’ve been following some stock journal or some you know, talking head on TV to get stock advice you might want to think again, because that’s okay if that’s money that you can roll the dice with, but that’s not money that you’re going to be able to live off of retirement because you’re going to need a lot of things to go right in order for it to work and a lot of people thought for the last 1214 years that everything was going right you know how many people did we know in big tech companies that were making money leftover right big time money, you know, they’re not singing the same tune anymore.

 

Rob 14:52

That’s right. You’re absolutely right. Thinking you know talking about do it yourselfers I like to look at houses. Yeah. And you can tell when somebody had to house it is a do it yourselfer? Yeah, it’s not the same quality of work. That’s right. You can tell when somebody’s not a professional, you probably can tell when somebody is to do it yourself and they bring their portfolio in.

 

Brian Quaranta 15:08

Yeah. And you know, the other thing too, is that, you know, not all advisors are created equal, right? Not all advisors have the extensive training and planning strategies that we do at secure money visor, I might be a little bit biased, right. But I see the work that’s out there. And it’s no different than contractors, right? I mean, there’s good contractors back contractor, you go into a kitchen, this guy does this type of work. This guy does this type of work. Doctors, doctors are the same way. Right?

 

Rob 15:33

There’s good ones, there’s bad ones, attorneys. You just have to find the one that’s right for you.

 

Brian Quaranta 15:37

What I will say this, I what I find is that a lot of people have hard time making a change, because they’re too worried about the relationship.

 

Rob 15:43

I would say that what, you know, the way that the quality of life and how we experience retirement is way more important than any relationship with any financial advisor.

 

Brian Quaranta 15:51

That’s right. I mean, that should be a business relationship with the advisor at the visor is not getting that job done, that advisors should be fired, period. Bottom line.

 

Rob 15:58

Right, you’ll find your house cleaner, the guy that mows your yard for doing something wrong. Yeah, if the lines crooked, or you raise a few spots in the yard, and that’s not even that important, right? It’s not a big deal. That’s right. This is the most vitally important, it’s the hardest relationship to break out. Yes.

 

Brian Quaranta 16:11

Well, a lot of people are intimidated by having those conversations, you know, they’re intimidated by it. And I’ll tell you, you know, people don’t realize that there’s only four things that their money can do for him, it can either provide them with growth, it can provide him with safety, it can provide him with income, or it can be liquid, but it can’t do all four at one time. And too many people keep their money in one bucket, Rob.

 

Rob 16:28

Well, you always talk about your three-bucket approach, right? I know what it is, explain to the audience what it is.

 

Brian Quaranta 16:34

Well, they’re gonna, they’re actually going to get that three-bucket approach. And folks, if you were to call today, the next 10 callers who call in we are going to give you an opportunity to actually see our three-bucket approach to our right track retirement analysis, I want to show you this because nobody is walking you through a strategy like this. I hear from people all the time, I wish somebody would have showed me this, you know, 10 years ago, Brian, we would have been a lot better off. So, for the next 10 callers who call in we are going to give you a complimentary right track retirement review, all you have to do is call 1-888-382-1298 and scan or scan the QR code. But I want you to not kick the can down the road. This is not a time to procrastinate, this economy is moving quick, you need solutions. You need somebody else looking at what you’re doing to make sure that you’re not going to put yourself in harm’s way even more. Remember, losses will hurt you more than gains will help you right now. It really is all about protecting 30-40 years’ worth of work and making sure you have what you have. So, call that number today and schedule the right track retirement review, it’s 1-888-382-1298 or scan the QR code. 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 17:53

And the last thing you want to do is have a really good job and you’re in your 60s retire and be looking for work again in their late 70s.

 

Brian Quaranta 18:02

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 18:16

Because we’re not just product pickers here, what we do best here is we build retirement plans,

 

Brian Quaranta 18:21

Nine 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

18:32

People, you know, can actually see a vision once we start to really build out their plan.

 

Brian Quaranta 18:38

This is about you if you’re not getting what you need. And you feel that when you walk out of the advisors 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 opinion. The difference at secure money advisors as a fiduciary firm, we help you manage the risk, build the income and give you the retirement dream.

 

Rob 19:08

Welcome to on the money with secure money. This is the weekly report. I’m Rob Hurtig. I’m here with my good friend Brian Quaranta. Brian, how are we doing?

 

Brian Quaranta 19:14

Good. Rob, how are you? A lot of things going on the market right now. Hmm.

 

Rob 19:16

There’s a ton of stuff going on and stuff. Yeah, there’s a pile of stuff. So, we were talking before the show about you’ve been in the business here for about 22 years. Right? Yeah, a long time. And yeah, it’s it has been a long time. You’ve seen a lot of different stuff. And I was thinking about 22 years ago and where that put us right? Well, we’re does that put us? Tell everybody when you got in the business, it was-

 

Brian Quaranta 19:35

Well, right at the end of ’99. Yeah. Right at the end of 99. I mean, it was tough, man. I mean, I got into the business, and I saw people losing money right away because of the.com. Bust. Yeah, right. And then that carried over in the 2001, 2002, 2003. My first three and a half years in the business. I didn’t see anybody make any money.

 

Rob 19:52

Right. Financial Advisors running for the business at that point, right?

 

Brian Quaranta 19:54

They were hiding under their desk.

 

Rob 19:55

Right, nobody picked up the phone.

 

Brian Quaranta 19:56

Nobody wanted to pick up the phone, but they had me picking up the phone because I was the new guy. I had the firm, right, you know, and most of the other guys, you know, the guys have been here for 25 years, were hiding under a desk, I

 

Rob 20:05

You gotta be the bad guy.

 

Brian Quaranta 20:06

Yeah, I remember taking a call from a guy that, you know, really changed my life and why I believe in what we do today at secure money advisors, but he called the office. And he said, he said, Hey, my name is Sam, I need to get I need to get out of the market today. I cannot lose any more money, why didn’t know what to tell the guy. So, I went back to I went back to the managing partner. And I said, we’ve got a guy on the phone that wants to place a trade wants to get out of the market. And he said, Brian, let me tell you a little bit about the stock market. He says you need to get back on the phone and let this gentleman know that it’s just a paper loss, okay, and that he’s in it for the long haul. Well, like a good employee, I went back, and I said that to this individual. And he said to me, something that changed my life. He said, Brian, I’m 75 years old, how much long haul Do you think I’ve got left? And that’s the scary part. When people lose money, they’re losing money at the wrong time, and they don’t have the time to recover.

 

Rob 20:53

It’s scary. It’s terrifying. It’s terrifying. It’s, you know, part of the problem with this is the standard definition of terms in our field, isn’t there? Right? If you’re an attorney, if you’re a doctor, you say one term, it means the same thing nationwide? Yep. You go to the retail shop on the corner, you know, the one that’s in every town? Yeah, their definition of risk is completely different than what yours is, I would assume?

 

Brian Quaranta 21:12

Well, we quantify risk as if it can lose money. It’s risky, right? Where other people might say bonds are not risky. I think bonds are risky. Okay, because we’ve seen who would have ever thought that we would be looking at the 20-year treasury bond, right? That’s down almost what 20%. That’s, you know, if you were given advice for somebody to buy a 20-year treasury bond, they would assume that that would be a safe, right place to put their money, and they’ve lost double digit return the

 

Rob 21:37

60-40 portfolio was supposed to be bulletproof. Right? Because the way that equities and fixed income work. That’s right. They’re always they have an inverse relationship traditionally. That’s right. What’s happening right now.

 

Brian Quaranta 21:47

Well, look at we’ve got we’ve got high inflation, right. We’ve got we’ve got volatility in the market, big volatility in the market. We’ve got every asset class being affected. Yeah, there is no place to hide.

 

Rob 21:58

You call this the financial perfect storm.

 

Brian Quaranta 22:00

It is.

 

Rob 22:00

So, what you dealt with in ’99, 2000 2001 2002. You have it, right. Yeah, that was tough. But it was just one risk, just the market dropped, the market dropped. Now, mostly four things happening at the same time.

 

Brian Quaranta 22:12

Yes, you’ve got high inflation, you’ve got volatility, you’ve got rising interest rates. I mean, everything is costing more. And the scary part about that, for most people is most people in retirement, or approaching retirement are going to be on a fixed income. So, if it’s costing them more to go to the grocery store, more to drive to go see their mom or their dad or their grandkids. That’s a problem. A lot of these people don’t have a whole lot of money left over, right about anyway,

 

Rob 22:34

I’s scary. Where do you cut from at that point, when you’re on a fixed income? Where do you cut because you have to have the necessities, you have to have the gas, that’s right, you have to have the food you gotta eat?

 

Brian Quaranta 22:41

Well, here’s what’s going to happen, it’s going to force people to have to take withdrawals from their stock portfolios when the portfolios are going down. And that’s a very dangerous thing to do. The biggest mistake people make when they’re when they’re planning for retirement or going into retirement is they pull money out of accounts that are in the stock market. And so now you’ve got the market going down, they’re losing money, because the markets going down and on top of it, they’ve got rising costs. So to offset that cost, they’re going to take more money out of their portfolios, right. This is something we call in our business called sequencing risk, right? This can cause people to run out of money and people will run out of money. I meet these people, Rob,

 

Rob 23:16

there were told for years that the systematic withdrawal approach the right the 4%. That’s right. We asked him forever, right, that 4% rule has gone down every year. It’s what is it now three and a half? 2%? Yeah, well, the

 

Brian Quaranta 23:26

Wall Street Journal said that if you if you retire at the top of a bull market, right, that there’s a high probability you could run out of money. Matter of fact, the article said that there’s up to a 57% chance that your plan could fail, if you retired at the top of a bull market. Why? Because the most likely it’s going to go down. And that’s exactly what we’re seeing happening right now.

 

Rob 23:45

Well, you get this false sense of confidence when you get returns, and you win, and you win, and you win, and you start to really start to think like, Hey, I’m never gonna lose, right? And then we have all these people doing it themselves. And they’re not professional planners are not financial advisors, right. And most of them leave their wives in the dark. You experienced a lot, right? When the husband comes in, and he’s got the plan. And yeah, he’s gonna take care of everything because he’s the man right?

 

Brian Quaranta 24:05

Well, a lot of people were very overconfident. You meet a lot of people that, you know, were investing in a lot of cryptocurrency, a lot of individual stocks. They were making a lot of money in tech. I remember meeting a guy a couple years ago, that had quite a couple of million dollars saved. And he was making a lot of money in the stock positions that he was in and I told him, I said, Look, I think with you being about three years out for retirement, the best thing we could do is protect some of this money and set up a pension for you for the rest of your life. That would increase over time. So as cost of living went up, we would have enough cash flow coming in. He said, Brian, why would I want to take my money out of the market right now? I’m making so much money. I said, that’s the exact reason why you want to take the money out of market because you are making money if you made money for the last 12 years. And he said I just can’t see doing it. Now. He just called me again. And his portfolio has been cut almost by 40% by 40%!

 

Rob 24:55

It’s not a win until you take it off the top

 

Brian Quaranta 24:56

Right, I’ve always said Rob, if you’ve won that Game, why keep playing it?

 

Rob 25:02

Because you’re getting bad advice is why you keep playing it. So, you’ve been a financial advisor for 22 years. Yeah. What most people don’t know is my background. I’m a consultant. And I work with financial advisors all over the country. And I get it, you know, I’ve got a pretty good view of what’s going on in the world. And, you know, it’s funny, there’s so many people out there that can say this. You can’t because you’re the bad guy, if you said, right, but there’s so many people that are willing to put their own financial success behind the relationship with their financial advisor, meaning they’re more worried about upsetting their financial advisor and doing what’s right for them. Yeah. Then they are upset. It’s insane breaking relationships. It’s very hard for people to break relationships in a time like this. Yeah, it’s dire. You have to get a second opinion. We haven’t even talked about the legislative risk with the increasing amount of cash we printed. Right?

 

Brian Quaranta 25:42

Well, Rob, you know, I’ll tell you, that is a big risk. But I’ll tell you why a second opinion is so important. Because typically the advice that people are going to get, okay, the traditional advice to get, and I know this, because when I started in the business over 20 years ago, these are the cookie cutter, things that I was taught to say at the financial firms. Don’t worry about it hang in there. It’s just a paper loss, it’ll come back, right. These are just sound bites to manage emotions. These are not everybody’s strategies. They’re not real strategies. That’s not a plan. This is Hold on. It’s not a plan, hold on is not a plan. And this is why I really would like to see people take advantage of our right track retirement review, because we really lay a lot of this stuff out to people where we can show them how to maximize their income, we can show them how to reduce taxes, we can show them the proper investment mix to have right so that if the markets do continue to be volatile, that they don’t have to be walking around on eggshells wondering whether or not their plan is going to work.

 

Rob 26:37

What’s happening right now is scary. Each one of those challenges by themselves can derail a retirement plan. We have all four working in unison together right now against us or not working for us or working against us. We always give people ways to fix stuff on their own. This is not something a person can fix on their own. This is not something to do it yourself or can do on their own. Hey, I think we’re at a time here. I think we’re going to commercial break and

 

Brian Quaranta 26:56

Let me just tell you take advantage of the right track retirement review. It’s really going to help you with five key areas income, taxes, investments, health care and legacy planning. We’ll show you how to maximize your time I will show you how to get through these volatile market times. We’ll show you some better approaches that you might not even be aware of. All you got to do is call 888-382-1298 or scan the QR code at the bottom and you can schedule an appointment with us.