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Welcome to How to Retire on Time, a show that answers your questions about all things retirement, including income, taxes, Social Security, healthcare, and more. This show is an extension of the book How to Retire on Time, which you can grab today on Amazon or by going to www.howtoretireontime.com.
This show is intended for those within 10 years of their target retirement date or for those are are currently retired and are concerned about their ability to stay retired.
Every time a couple sitting in our office, usually he'll talk and he'll say, well, we're doing this. And I'll say, great. I need to talk to her now for a little bit. I need to hear her opinion. And I'll ask her, how do you feel about this?
Mike:Well, I don't know much about finance. That's fine. How do you feel about these decisions? And they'll be sheepish at first. And then I'll say, do you understand how this works?
Mike:It's okay if you don't. And they'll say, no, I really don't know. Then I'll break it down. Welcome to How to Retire On Time, the show that answers your retirement questions. We're here to move past the oversimplified advice that you've heard a 100 times and said we're gonna get into the nitty gritty because the truth is there's no such thing as a perfect investment product or strategy.
Mike:Heck, there's no such thing as a riskless retirement. That's why it's so important to put together a retirement plan, one that's right for you, that's designed to last longer than you. That's why we do this show. Text your questions to (913) 363-1234, and we'll feature them on the show. David, what do we got today?
David:Hey, Mike. How do I get my husband to take less risk in retirement? He loves trading, which feels risky. He believes he can make consistent returns and provide for us in retirement. But I'm not so sure.
Mike:Okay. First off, marriage counseling.
David:Yeah. We do that on the side of the show.
Mike:Yeah. And here's why. If you don't know enough or you spent decades, you know, hopefully you've been married for a long time, maybe not, with someone, you have an established system of trust. There are just certain routines that you've become accustomed to. And those routines in the financial space tend to really go down one way or the other while you're working.
Mike:Why? Because your income is your safety net. Your income is what you expect. Well, you lose that, everything changes. Retirement gets more complicated.
Mike:Traditionally, I don't agree with this stereotype, but traditionally women are not the ones making financial decisions. Now that's not all the case. I've met many, many people where the husband doesn't have a clue and the wife is just just, you know, takes care of all the finances. Okay. So please don't think I'm some sort of sexist bigot or whatever.
Mike:I'm not. I'm operating off of very I mean, I guess for the younger generation, they get upset when I say stuff like this. But the older generation, they're like, oh, yeah. Yeah. Oh yeah.
Mike:That's how it was. Right. So there you go. Whatever. YouTube comments.
Mike:But the traditionally women have been maybe not as wanting to dive into the details of financial analysis or the investments or whatever it might be. Okay. Whether you agree with that sentiment or not, a lot of people listening right now are going, yeah, that's kind of our situation. And so now as you approach retirement, many women are going, well, shoot, I'm expected to live longer than him. And he's making the decisions.
Mike:And what if he gets it wrong? A lot of them have the intuition women specifically in this situation where they're kind of going, you know, I don't remember the last really big crash. Like the Corona crash wasn't that big of a deal. Looking back, we recovered. We all had this beautiful safety net where we just recovered quickly.
Mike:But they have that memory of 2008 and how scary it was. They have these memories of knowing something was off. And so they're going, how do I in psychology, they call it a pattern interrupt. How do we change the dynamic? How do we change the routine?
Mike:How do we change this to where I have more say? And sometimes it's very difficult for someone to speak up. That's just that's that's normal human behavior. And so seeing marriage counseling, not because you have a problem in your marriage, but to bring a third party mediator mediator on how to reestablish a new norm could help. We do a lot of unofficial marriage counseling here.
Mike:Every time a couple sitting in our office. Usually he'll talk and he'll say, well, we're doing this. And I'll say, great. I need to talk to her now for a little bit. I need to hear her opinion.
Mike:And I'll ask her, how do you feel about this? I don't know much about finance. That's fine. How do you feel about these decisions? And they'll be sheepish at first.
Mike:And then I'll say, do you understand how this works? It's okay if you don't. And they'll say, no, I really don't know. Then I'll break it down in a different way so she could understand it. And then I'll say, it just doesn't feel right.
Mike:Like, what if these certain things happen? So okay. So I'm hearing you right is you're not really comfortable with this, but you don't know the solution. Am I hearing that right? They'll say, yeah, yeah, I just I don't know what else is out there.
Mike:I don't know how to solve this. I just know something needs to happen. I say, got it. Are you both okay that we explore various different options so that we can find the right blend for both of you? Every loving couple says, yeah, absolutely.
Mike:We're happy to explore those options. Now, usually the husband goes, well, I need my account to trade. Say, that's fine. You're going to have, you can have money that you can trade on your own. You could have money in the market as well.
Mike:Most, most everyone has money in the market. We don't, there's no, this all goes in anything, but it's the willingness to have vulnerability and have a third party mediator, whether it's a financial adviser who can slow down, not sell you a product, but ask questions and explain things to both sides that both people are okay with it. And this does not happen enough. Why? Because in the business, it's about, Okay, well, here's how we do things.
Mike:Are you in or out? And you just have to. That's ridiculous. Yeah. Slow down, explore the options.
Mike:And then for goodness sake. Get him to stop talking so she can start learning.
David:We don't do you feel like this happens enough in the industry or maybe if the same couple were in a different office somewhere, is there a good chance where that advisor wouldn't stop to consider what both partners were feeling or?
Mike:It depends on the quality of the advisor. If you feel heard, then it's probably a good advisor. If you feel like you can't say whatever you want in those meetings, it's probably not a good advisor in the emotional intelligence realm. But this is a real problem that many people are experiencing. And here's here's the real problem that we haven't even addressed.
Mike:It's called dumb luck. Okay. Pretty
David:much
Mike:most people that have been self investors who have gone on Reddit, who have gone on to X or gone on Facebook or whatever, they've probably made a good amount of money. It's the markets have just gone up pretty well.
David:So what you're saying is it's been kind of easy over the last, I don't know, a decade plus to just kind of make money.
Mike:Yeah. It's been really easy. But if you look at like this year, for example, around 60% of the S and P five hundred's growth comes from four stocks. So if you were brilliant enough to just invest in one of the four stocks that everyone keeps talking about, you know, Nvidia, Microsoft, right? Very, very normal things to invest in.
Mike:Yeah. Great. You're a genius. But here's something that they're not looking up. Here's what female guts are telling them that intuition.
Mike:I don't know how much more this is going to keep growing. Kind of concerned about that. Here's a quick example. So in February, the world's largest company was Cisco. Cisco made its name because it did the infrastructure, you know, the routers and the cables and all the things that the internet was built on the back of Cisco.
Mike:So why do you think it was the greatest company in the world? The largest company in the world? Because the a or the not the AI. Yeah. Freudianslip, the.com, the internet was built on the back of Cisco.
Mike:We needed Cisco to keep growing. We needed what they offered.
David:It didn't build all these networks. Yeah. The internet was sort of
Mike:We, it was, it was a high barrier of entry. So no one else could really do it like Cisco did it. So Cisco grew exponentially. Once Cisco's profits started to slip, once expectations or real or expectations weren't meeting reality, once things started to change, Cisco went down. I think it was like over 80%.
Mike:The world's biggest company lost around 80% of its market value. As in, if you bought it at a $100 a share, it's now at $20 a share. And a lot of women are getting this this intuition. They're going, I don't know if maybe we have too much in Nvidia. Are you sure we should be buying that company?
Mike:Oh, but it keeps going up. Well, what must go, what goes up must come down in some situations, especially in finance, especially when it's overvalued. So I think a lot of females are waking up going, you know, hey, can we talk to someone else? Hey, can we talk to the advisor? Hey, are you sure about these things?
Mike:Hey, they're asking questions because they realize that. Nvidia is the top largest company in the world right now. AI is built on the back of Nvidia. Yeah. What if Nvidia went down to a normal price earnings or stock price to company's profit value?
Mike:It could lose 70%. If it were to repeat what history had. I'm not saying it well. I'm not saying you should go out and sell all of your Nvidia. I'm saying maybe you should build a plan that you're both comfortable with.
Mike:Maybe you should lock in some of your growth and build some more stability with something that gives you more dependability because it's the female that's going to end up probably outliving the husband. So the decisions you're making now will affect her probably more than him. Marriage counseling or an adviser that's willing to slow down how these conversations so that you're both okay with the plan, that's what needs to happen. And it's not happening enough. That's all the time we've got for today's show.
Mike:If you enjoyed the show, consider telling a friend, leaving a rating, and most importantly, that you are subscribed to it so that you don't miss a thing. For more resources, including a copy of my book, on demand courses, and so much more, just go to www.retireontime.com. If you want help putting your retirement plan together, go to retireontime.com and click the button that says get started. But seriously, from all of us here at Kedrick Wealth, we wanna thank you for spending your time, your most precious asset with us today. We'll see you in the next episode.