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. (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.

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