Today’s Objective…

Hopefully your famous last words in life won’t be “Hey y’all, watch this!” And in the financial world, there’s quite a few phrases that you don’t want to be your famous last words either… Dan talks through some common financial phrases that certainly aren’t words to live by.
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(Click the featured times below to jump forward in the episode)

Tactical Points:

[2:58] “I want to get out of the market and stay out (after 2008)”
  • Dan says this is not the kind of person who would be his client.
  • Taking all your money out of the market will mean you will experience some depreciation with inflation.
  • This is like saying, “I haven’t gone to the doctor since 2008 and I feel okay, so I don’t think I’m going back.”
[5:00] “I like the security of cash”
  • Dan spends time convincing several clients to keep money in cash to cover emergency funds or upcoming life events.
  • It is good to have some money in cash, but not all of it.
  • Long-term wealth creation, however, only works with some money in the market.
  • You have to have some risk to keep up with inflation.
[6:33] “I’m not planning to live a long time”
  • This one is self-explanatory, right?
[7:33] “I’ll never go to the nursing home”
  • Statistically, you are more likely to go into a nursing home than not.
  • The burden is often shifted to your children.
  • Dan shares a personal example of having to make decisions regarding this type of care for family members.
[9:26] “I can always go back to work”
  • It all depends on whether you are physically, cognitively, and emotionally able.
  • It’s not a plan, but often failure to plan that leads to this result.
[13:18] Mind Over Money: Handling Risk
  • Between the trade war and tension with the president and congress, Dan gets a lot of clients calling about their portfolio.
  • Dan recently read Your Money and Your Brain by Jason Zweig which listed some statistics including: about 41 percent of high net worth investors wish they had more self-control over their investing decisions.
  • Devise a plan that considers your age, goals, and risk tolerance, but then remember your portfolio was designed for turbulence.
[17:09] Mailbag: Inherited Stocks  
  • Gretchen inherited a lot of stocks and mutual funds from a relative, and a friend told her she would have to pay a ton of taxes on the gains. Does this sound right?
  • When a person passes away, stocks and mutual funds get a step-up in basis.
  • The value on the date your relative passed away is the basis, so you only have to pay on the gain from that.
  • Speak to a CPA or estate planning attorney to be sure based on your situation.
[19:39] Getting to Know You: Favorite Movie
  • Do you have a favorite movie that you could re-watch over and over?
  • Dan chooses a few that are philosophical, aspirational, and sentimental.

Additional Resources:

The Plan:

Sit down and devise a plan that has the amount of risk that is commensurate with your age, overall goals, and risk tolerance. Just like flying in a plane, when you hit turbulence remember that the plane is designed for turbulence--so is your portfolio. - Dan Betzel
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The Host:

Dan Betzel – Contact – Retirement Trailblazer Guide – Retirement Rescue Toolkit – Call: 614-472-4510