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Ep 23: Lies Learned in Broker School

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Ep 23: Lies Learned in Broker School

The Concept:

A lot of financial professionals will tell you things that just aren’t true. That doesn’t mean they do it intentionally. Many times these professionals have been given talking points, which they might even feel to be true themselves. We want to talk about the statements you should be cautious of if you hear them from an advisor.

The Reality of the Matter:

As you navigate the financial world, you’re going to come in contact with many types of people. Some of those might shoot you straight while others will tell you what you want to hear.

Today we wanted to pull back the curtain on the financial industry and share some of the talking points you might hear from professionals. Hopefully you aren’t hearing these from an advisor so take caution if you do.

On this episode of the Retirement Reality podcast, MIke is joined by associate advisor Kasey Byrd to take a look at four different statements that you might’ve heard at some point.

This episode also features conversation about the retirement age trend around the world to move it older. Plus, we got a question from a listener that recently hit seven figures in his portfolio and wants to take it higher.

It’s all on this episode and you can listen now.

Is Retiring at 65 a Thing of the Past?

CNBC recently published an article about the trend worldwide to raise the retirement age. No one wants to hear that but the reality is we’re living longer. The article talks about the decision some European countries are making and even compares the retirement ages from many of the largest countries in the world. Our age is 66 but there’s speculation that could rise again in the near future.

So is retiring at 65 a thing of the past? It doesn’t have to be if you plan correctly, but we’re seeing many people in Minnesota and Wisconsin that are choosing to work beyond that date for different reasons. Mike and Kasey will give their opinions on the trend and talk about what we’re seeing in our office.

3:55 – In the News: A recent CNBC article points out that an older retirement age is becoming the trend around the world. Is Mike seeing this in Minnesota and Wisconsin?

5:53 – Why we’re talking about broker lies today.

Financial Lies!

The main focus of this episode is to shine a light on some of the talking points that you might hear from a financial professional. Whether they want to sell you something, get your business, or just believe it themselves, these statements can be anywhere from misleading to downright lies. We want to identify them first and then explain why they aren’t correct. The main goal is to make sure you aren’t hearing these things from your advisor. If so, you need be cautious and ask some follow-up questions.

5:53 – Why we’re talking about broker lies today.

6:26 – Lie #1: ‘We have experts who can accurately predict market movement.’

7:42 – Here are the investments we see people come in with all the time.  

9:10 – Lie #2: ‘Just look at our past investment returns and you can see that we have a system that works in all markets.’

10:43 – Lie #3: ‘Your tax rate is going to be much lower in retirement.’

12:30 – Most people we work with have the majority of their savings in pre-tax accounts.                 

13:23 – The SECURE Act will have a big tax impact as wealth gets transferred from the Baby Boomer generation.

15:09 – Lie #4: ‘It’s just a paper loss. Hang in there and you’ll be fine.’

17:03 – The difference between working with a fiduciary versus the alternative.

One Million Dollars

A listener wrote in and told us that he always had the goal to hit seven figures in his retirement portfolio before moving a lot of that money to cash. Now that he’s hit it and the market is still going strong, he feels like $1.2 is within reach. So is this a good idea? We’ll give him some things to consider and talk about other investment options so that money doesn’t have to go to cash.

19:49 – Mailbag Question: I told myself that if I ever hit $1 million in my portfolio, I’d move it a lot of it to cash. Now that I’m there, I feel like I can get to $1.2 million. What do you think?

Thanks for checking out the Retirement Reality Podcast. We’ll talk to you again next week.



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