Financial Choices Matter

Are You Making These Classic Pre-Retiree Mistakes?

There are some financial planning blunders that are interesting to talk about but are quite rare in reality. On the other hand, there are some financial planning mistakes that happen far too often. Let’s talk about the mistakes so many people have made in the past it has made them “classic”.
Show Notes: 
1:13 - Headline: 72% Of American Say They Will Prioritize Financial Planning Once Pandemic Is Over
3:15 - Classic Pre-Retiree Mistakes
4:03 - Mistake #1: Investing Like You’re In Your 20’s
5:09 - Mistake #2: Taking Social Security As Soon As Possible
6:49 - Mistake #3: Focusing On Tax Preparation Rather Than Tax Planning
8:10 - Mistake #4: Assuming The Majority Of Healthcare Expenses Will Be Covered By Medicare
9:15 - Mistake #5: Taking On Additional Risk To Make Up For Lost Time
11:20 - Mailbag: Rork Asks If His Is Getting All The Information He Needs From His Financial Advisor

Cracking Open The Financial Dictionary

Step into the classroom and let’s take a look at some financial terms, define them, and find out if they’re important for the typical investor and saver to know about them.
Show Notes: 
3:06 - Main Topic: Financial Dictionary 
3:35 - Accelerated Death Benefit 
4:21 - AGI 
5:28 - Fundamental Analysis
6:09 - Margin Account 
7:11 - High Yield/Junk Bonds 
9:31 - Sammantha Asks, “Should I Let The Kids Know About Our Plans To Leave An Inheritance?” 
11:25 - What”s Buggin’ Charles? 
 

Traditional IRA Vs. Roth IRA

It seems that most people don’t have a clear picture of whether they should contribute to a traditional IRA or a Roth. Let’s discuss how to determine what’s best for you.
Show Notes: 
1:23 - Headline: More Than 25% Of Americans Are Raiding Their Retirement Accounts Because Of COVID-19
4:16 - Traditional IRA Vs. Roth IRA - The Basic Definitions
5:10 - Why Are So Many In The Traditional Account?
6:11 - Is The Current Tax Environment We’re In A Catalyst For More People Wanting To Do Roth Conversions?
8:04 - Who Should Be Contributing To A Roth?
8:23 - Who Should Not Be Contributing To A Roth?
10:14 - Marshall Wonders If Paying The Penalty To Take Out His Variable Annuity Is Worth Avoiding The High Fees
12:37 - What’s Buggin’ Charles?

How To Avoid Critical Retirement Planning Mistakes

Let’s talk about some of the common mistakes that we see being made time and time again by retirees and pre-retirees.
Show Notes: 
2:24 - Bonds Are A Safe Investment
5:19 - Avoiding The Idea of Long Term Care Needs
8:43 - Guarding Against Market Declines
10:49 - Categorizing Different Investment Vehicles As Always Good, Or Always Bad
14:03 - Not Having A Plan In Place
16:06 - Beverly Asks If She Has Enough Diversification Between Her 33 Mutual Funds

Are You Paying Attention To Your Biggest Assets?

If you really took inventory of your financial situation, you might find that you’ve been taking for granted some assets that make up a huge piece of your puzzle. Is it possible you should be putting a little more thought into some of these assets?
Show Notes:
1:56 - Are you paying attention to your biggest assets?
2:32 - Should we be putting more thought into these assets?
3:32 - Asset #1: 401(k)
5:45 - Asset #2: House
8:54 - Asset #3: Social Security
11:15 - Asset #4: Smaller Accounts
13:38 - Mailbag: I have a lot of money in savings earning very little interest.
16:53 - Getting To Know Charles: What item would you want to be buried with?
 

Life Events That Spark Major Changes

Sometimes events happen in life that make it really important for you to carefully assess your financial situation. Let’s explain why each of these events is usually a good reason for a financial review.
Show Notes:
2:32 - Will Rogers Quote
4:00 - Life Events Can Spark Major Changes
9:50 - Unplanned Events Of Jobs
7:31 - Serious Medical Issue
11:09 - Estate Planning
17:56 - Mailbag Rick Worries About Running Out Of Money With Recent Downturn In The Market

Coronavirus Update

The Coronavirus (COVID-19) is having a dramatic impact on our daily lives and many people are taking a huge financial hit from lost wages, a volatile stock market, and general economic uncertainty. Charles will talk about his thoughts on this situation and we will briefly mention a couple elements of the new CARES Act.
Show Notes:
1:18 - How Business Has Been For Charles
3:27 - Being Able To Help A Client With The New CARES Act
6:03 - RMDs Are Not Required For 2020
8:51 - Taxes Will Have To Go Up, Which Is Why A Roth Conversion Might Be A Good Idea Right
12:00 - Great TP Shortage
13:49 - April Fools Story
15:53 - Mailbag Lucile Wonders What The Best Way To Save For Retirement Since She Cannot Contribute To A Roth

Financial Truths

There are many "it depends" situations in financial and retirement planning. On today's show we look at some truths we can state with confidence.
Show Notes:
2:07 - Financial Truths
3:17 - TV Can Be A Big Enemy
5:49 - The Market Moves In Cycles
8:10 - There’s No Magic Bullet
9:30 - Why Diversification Is Important
13:04 Mailbag Tim asks “My advisor is retiring and passing on the business. Should I Find A New Advisor?"

What's Bugging Charles?

On today's episode Charles explains why people who give investment advice without a securities license are bugging him. We also talk about how past epidemics have affected the stock market and we answer a couple email questions that have come in.
Show Notes:
1:46 - What's Bugging Charles?
6:25 - How Past Epidemics Have Affected The Stock Market
7:46 - You Need A Plan To Help During These Pullbacks
9:35 - Mailbag Question from Conner: "How To Pay For College In Retirement?'
13:07 - Mailbag Question from Denver: "How Much Long Term Care Is Recommended?"

Who Really Pays Income Taxes?

With the national elections in November, the parties have VERY different opinions regarding who should be paying their fair share of income taxes. But do we really know who pays what? You certainly can’t rely on either political party to give you the straight information. We also dive into a discussion on how to reasonably incorporate emotions into your financial plan.
Show Notes:
1:32 - Who Pays Income Tax?
2:20 - Income Tax Statistics From 2016
5:12 - Top Wage Earners
7:01 - Emotions In Financial Planning
7:29 - Fear And Greed
9:59 - Invest For The Long Term
10:55 - Using Emotions For A Good Cause
12:23 - Taking Clients' Emotions Into Consideration
16:49 - Mailbag Question from Frank: "My 401 (k) got rolled over into American Funds, is this a good thing?"