What Are Your Thoughts?

Prospective client questions answered: I thought you should only use a Roth if you expect your tax rate to be higher later? Is this true? Does my money stay invested when I roll it from my old 401(k) to my IRA? Can we only take advantage of upside returns and "miss" any downturn in the market? Send any questions to: info@lifepointplanning.com

**If you hit the 401(k) maximum contribution before the end of the year, watch out! Make sure you are still in a position to get the full company match. Some employers will cease the match and you could miss out.** One of the most important and relevant topics (especially in 2022) is the sequence (or order) of returns risk in retirement. There is little importance to "average returns" when you are in the withdrawal phase. Make sure you have a plan for it! Baird Sequence of returns risk PDF. AXA Equitable SORR PDF. Athene SORR PDF.

This episode includes questions from listeners about what's going on in the stock market so far in 2022. Questions discussed: Who/what is to blame for the stock market's negative performance in 2022? Is investing gambling? How often should you check your investment accounts? Is retirement a myth?

In this episode, we discuss using ETF's as a way to hedge against market downturn. For retirees and investors that want to share in some upside potential with downside protection, this episode is for you. Sites mentioned: https://www.innovatoretfs.com/ https://www.allianzim.com/buffered-outcome-etfs/ https://www.allianzim.com/wp-content/uploads/files/Investor-Guide.pdf

The "A" word - annuity. People often have polarizing opinions on annuities. Let's look at the pros and cons and how they may or may not be a tool for some people in retirement. Annuity types covered in this episode: SPIA and SPDA (Single premium immediate/deferred annuities) and FIA (Fixed-indexed annuities). Get your retirement guide here: https://bit.ly/LPP-Ret-Guide

Now that you've learned about the pros and cons of the 4% rule(s), let's examine how we can improve them for retirees. In this episode, we discuss a popular strategy called "guardrails" and how to optimize your retirement income. Have you seen our guide on the top retirement income and investment strategies for all market conditions? If not, you can get our FREE download here. The full interview with Jon Guyton on the Financial Advisor Success Podcast is here. A lengthy blog post about Guardrails (including the examples used in this episode) is available here.

You may or may not have heard of the 4% rule for retirement distributions. In this episode, Doug breaks down what the 4% rule is, who it might work for and who it won't, and much more... Bengen's White Paper: https://bit.ly/4PRuleBengen Link to 4% Rule(s) Examples: https://adobe.ly/3cr6HKs

What are the biggest threats in retirement? This multiple-part series kicks off with what those threats are, why they matter, and how to overcome them. www.lifepointplanning.com/blog Link to Sequence of Returns PDF: https://snip.ly/xz45k7

"The question that I want to answer as an investor is not, how can I earn the highest returns? Because that's not really what matters. The question I want to answer is, what are the best returns that I can sustain for the longest period of time?" In this episode, I play a clip from a video by Morgan Housel, talking about how average returns that are sustainable beat one-off home runs. I also discuss how to think about returns and your portfolio with the market being down year-to-date. If you haven't already, please leave a review on your platform of choice.

If you have cash that would otherwise sit in the bank, Series I Savings Bonds might be a place to look. They're only available for purchase through TreasuryDirect, but could be a great solution for some people looking for a safe way to keep pace with inflation.

Why do we follow bad news more closely than good news - especially when it comes to money? I take a look at a chapter from Morgan Housel's book, The Psychology of Money, about why optimism gets written off and pessimism gets paid close attention.

*If listening on Spotify, you can now leave a 5-star review* Why does it seem like bonuses are taxed at a higher rate than normal? I break down the numbers. Also in this episode is a brief overview of what tax forms to look for from your retirement and non retirement investment accounts. The Social Security tax limit for income that I couldn't remember off hand is $147,000 for 2022. www.lifepointplanning.com/blog for links to articles from this episode.

Should your advisor tell you what your income should be in retirement? What's the best way to determine how much a retiree can spend based on their asset levels and income needs? Let's find out.

**If listening on Spotify, please leave a 5-star review** In this episode: I discuss a mindset shift I've seen with my clients and prospects. How the 12-year bull market has impacted investor psychology. The most popular podcast episodes from 2021. Link to Portfolio Visualizer referenced in the episode.

In this episode, Colin Overweg joins me to discuss fee structures in financial planning. We talk about what types of clients might be the best fit for each type of model and also discuss the pros and cons of each model for both the advisor AND the client. Colin utilizes the flat-fee model for a lot of his clients, so make sure you stick around to listen who that model is best suited for. AUM or percentage-based fees 00:00 - 22:00 (AUM pros and cons 13:00) Flat fees 22:00 - 41:00 (33:00 Pros and cons of a flat fee) Commission-based 41:00 - 46:00 Hourly fees 46:00 - 53:30

You may have heard that a diversified portfolio is the best for most people. Is that the truth? If so, why? What are the pros and cons? Link to asset class returns "quilt" here.

You may think the words "saving" and "investing" mean the same thing. You may wonder which one is "safer" or "better". In this episode, it's back to basics. Explaining the differences, pros and cons, and what it means to save and/or invest. This discussion has good takeaways for investors of all ages.

Ever wondered about the best ways to merge/combine finances with your partner? In this episode, we talk about a few different ways that merging finances can work and also the pros and cons.

A quick refresh on marginal vs. effective tax rates from episode 7. After that, it's all about reverse budgeting aka pay yourself first. Wouldn't it be nice to save first, automate everything, and then not feel guilty about spending the rest? Let's discuss.

How do federal taxes even work? What's the difference between marginal and effective tax rates? Should the US tax income (current process) or should it tax wealth and assets? Let's discuss. The marginal tax rate is the rate of tax charged on a taxpayer's last dollar of income. The effective tax rate is the actual percentage of taxes you pay on all your taxable income. YouTube video about taxing the rich from 2019.

Have you noticed that you're paying the same price for a small amount at the grocery store? Some companies are utilizing "shrinkflation" to combat rising prices. What about credit cards? Are they really a terrible thing to have? Let's walk through how I invest, which platforms I use, and which ETF's I own. Do you have a will? How about at least making sure your beneficiaries are correct on your accounts?

Did you know that $SBUX has become a nice dividend-paying stock? What if you invested in it 10 years ago? How secure are your passwords? Do you use a password vault? The Bobby Bonilla cell phone plan - would you prepay your cell phone bill for 25 years? Lastly, Roth IRA's for Medicaid qualification. What you need to remember.

S2E4 - How do you know which risk tolerance to choose when picking a portfolio? What's the difference between risk tolerance and risk capacity? When using software to make a financial decision, the software doesn't care about you. Are you confident in all areas of your financial life? If not, it's time to gain some confidence. Links to Apple and Spotify

Season 2, Episode 3: Did you make any mistakes with your money during the "Covid Market" of 2020? We talk about a couple of mistakes seen from prospects/clients and what to do to avoid them. After that, we discuss cookie-cutter portfolios (the classic 3-4 fund portfolio of index funds) and who they may or may not be a good fit for. Lastly, we spend some time on what to look for in an advisor's mindset when interviewing them - do they have an open mind, or do they see things in more of a cut and dry mentality?

Let's talk specifics. What themes does an investor have to understand should they want to put themselves in a position to beat the market? Topics discussed: diversification vs. concentration, using leverage (options), and investing in the correct account type.

The holy grail of investing seems to be whether or not someone can beat the market. Family, friends, people you meet on the golf course or in social settings always seem to bring up the stock (stonk) with which they made a killing. But is it possible to beat the market consistently, long-term? Let's assume that the answer is yes (even though it could be argued). In this episode, we talk about what it even takes to get a seat at the table, to put yourself in position, to even give you the chance, to beat the market.

This topic is a classic. Prospects, clients, friends, everyone always seems to ask: "What are your average client returns?" In this episode, Doug puts a framework around the best answer to that question - especially when dealing with clients at all different stages in life.

In this episode, Colin, Doug, and Alex talk about the NCAA's ruling on letting college athletes cash in on their name, image, and likeness. Since Alex was a D1 back-up kicker (lol), he provides some good insight. Next, we talk about mindset privilege. What can you do to take your life to the next level? How does your mindset play a role? We wrap up with discussing questions that sound good, but in reality, are bad to ask when interviewing a financial advisor.

In this episode, two financial planners and one consumer talk about real stuff related to investing and finance. We've been getting questions on how to increase your income month over month, so we wanted to talk about ways to do it. We also spend some time talking about real estate, dividend-paying stocks, and what you're actually doing when you buy a share of stock in a given company.

In this episode: Our guest, Alex Faust, is a friend of ours that has been asking us a few questions over the past few months, so we decided to bring him onto the show and discuss with him live. Sometimes people have questions regarding their financial lives and they don't necessarily know where to go. Background on Alex: Global Sales Manager at Ancos Rice Industries, New homeowner (as of July 2018), good saver, financially savvy, but wants to make sure he optimizes his financial plans. Does it always make sense to refinance your house? (0:50) Pay off mortgage or invest? (6:30) Should you buy a boat and how might it affect you long-term? (8:00) Are "play money" accounts a good thing? (15:00) Where to go to start investing? (23:30 AND 28:00) Investment fees 101 (25:45) Current recommendations on Netflix, books, etc. (32:00)