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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.
Hello, and welcome to How to Retire on Time, a show that answers your questions about all things retirement, including income, taxes, Social Security, health care, 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.how to retire on time.com. My name is Mike Decker. I'm the author of the book, How to Retire on Time, but I'm also a licensed financial advisor, insurance agent, and tax professional, Which means when it comes to financial topics, we can pretty much discuss whatever is on your mind. Now that said, please remember this is just a show.
Mike:Everything you hear should be considered informational as in not financial advice. If you want personalized financial advice, then request your wealth analysis from my team by going to www.yourwealthanalysis.com. With me in the studio today is my esteemed colleague, mister David Fransen. David, thank you for being here today.
David:Hello. Thank you.
Mike:This is gonna be a fun show. And now just for the newcomers, David will be reading your questions, the questions you have submitted, and I'll do my best to answer them. You can send your questions in now or anytime during the week by either texting them in to 913-363-1234. That's 913-363-1234 or email them to hey mike at how to retire on time.com. Let's begin.
David:Hey, Mike. I have always managed my assets on my own. At some point, I know I won't have the energy or interest to continue to manage my assets. How does someone vet an adviser and then slowly turn things over to that adviser?
Mike:So let's first address why you're managing your assets on your own. Typically, what I found is those who wanna manage things on their own, it's because of one of 3 things. One is you did work with an investment adviser at some point and probably they either had a lack of training or just didn't listen to you or something happened. Maybe it was a prepackaged portfolio, it was cookie cutter, and it just I mean, you had bad experience. And you've decided that you could do it just as good as them.
Mike:So you start managing assets on your own. No problem with that. I I get that that happens often. Yeah. Just because you have a license doesn't mean you're good at your job.
Mike:And every industry has people that are good at their job and are bad at their job. Doesn't mean they're bad people. It just means that there are some people that are better or worse. That's just how every industry works.
David:Alright. When we drove to work, we came in on the roads, and everybody's a licensed driver, presumably. Some are great drivers. Others, not so good.
Mike:Not so good. Yeah. You find in everything. There are good dentists and maybe not so good dentists. There are good doctors and maybe not so good doctors.
Mike:There are good skilled plumbers, and there are some not so good plumbers. Yeah. There are electricians. I mean, every profession, it's about efficiency and competence. So that's one reason why you maybe you've just decided that you're better than the singular or the 2 people that you've worked with, and that's a very small sample size.
Mike:The other one is you might have trust issues. You could just never work with someone because you can't handle the idea that someone's managing your assets because what if? And then the last one is you've got control issues. You have to be in control. So understanding that it's gonna be a very difficult transition for you.
Mike:No matter how you slice it, it's going to be difficult for you. Because it it's an emotional thing. It's not a logical thing. It's an emotional thing. Because at the end of the day, Fidelity and Vanguard, 2 very large companies who actively advertise and suggest that you should just buy the indexes, openly admit that professionally managed portfolios average 2 to 3% more growth year over year net of fees than a self managed portfolio.
Mike:Most people don't realize that.
David:Right. Yeah.
Mike:So no matter how you slice it, it's gonna be tough. It it logically, a correct system could get you more money, but you have to understand that there's gonna be that void or that loss that you're gonna fill. So with that said, there are 3 relationships that you could have with a financial professional. And why would you do this? I really appreciate this question and how they're admitting that they might run out of energy.
Mike:They didn't say this, but whenever they die, is the surviving spouse going to be able to maintain the current plan and or strategy? Many times, one spouse does all the finances and the other blindly trusts the person. Just says, they handle it. I don't have to worry about it. Usually, the person that says, I don't wanna worry about it is the one that lives longer, and they're now stuck with a very difficult thing, and it's often a shock to the system when they try to then manage things themselves.
Mike:So, really, there's 3 relationships that you could look out there. One is that there are advisors that just manage everything, and they say you're either all in or you're all out. That's fine. Just one way to do it. Some advisors out there will manage some of your assets, but help you with all of it.
Mike:And then other advisors will do a planning only for a fee, so you you pay them an hourly rate. We at Kedric actually support all 3. So you tell us the relationship you want, and then we go from there. Because everyone's different, and we recognize that. And, frankly, our hourly rate was to help people who had trust and control issues build a relationship to help them make better decisions.
Mike:And then if it makes sense and the time were right, maybe develop a different relationship. It's just it's up to what people want. But all that said, the only way that I have found that someone can feel comfortable working with a financial professional, especially when they've been managing things themselves, is by working with that financial professional in one way or the other so that there's time in the relationship. Time creates trust. People do business based on mutual trust and respect.
Mike:I'll be the first to admit, if I think you're sketchy, if I think you're lying to me, or if you're withholding information from me, I'm not gonna work with you. I don't care how much money you have. Mhmm. I will only work with those who are honest, open, and transparent with me. I don't need to manage all your assets.
Mike:But if I can't trust you, I'm not gonna work with you, and the same should be for you. If you can't trust us or someone else, if there's no respect, you should not work with that person. This is your money we're talking about.
David:Right.
Mike:People care more about their money than their health. I get it. If you screw up something with your health, you can probably recover, hopefully recover. The human body is very good about healing.
David:It is.
Mike:If you screw up your money, it's very difficult to recover. These are very important decisions. So because I believe there's more on the line, all the more reason to really make sure you've got a relationship built on trust and respect. And the only way to do that is through time. I've seen people that will say, well, look.
Mike:I've got $3,000,000, but I just I've managed myself. I've got $10,000,000. I've got $20,000,000. I've always managed it myself, but I I know I need to start work with another adviser. Great.
Mike:How about you give, let's say, a 100,000 to the adviser that you've already spoken with and you think is gonna be good? And just give them a little bit and start working with them, seeing if their models work, if their management works, and you could maybe do more or take it away. It's not a huge part of your portfolio, comparatively speaking. But unless you're willing to give, you're never gonna receive trust. You have to start somewhere.
Mike:And I know that's tough, but there's nothing that a person could say that would give you instant trust. It's time with the person. Time builds trust. And if you wanna explore more about these options, fee only, planning with some assets managed, or just with the white glove, everything's taken care of for you, whatever the option is. But if you're concerned that your spouse might not be able to maintain things when you pass or when you become incapacitated or when maybe you're just getting tired of doing it or you're losing your sharpness in the market, it's better to start now and have more time in the saddle, more of a relationship than a last minute decision.
Mike:If you wanna start having that conversation, kind of explore what is right, and you believe that we at Kedrick might be the right solution, then just request your analysis. It doesn't cost you anything, but at least you can have a 30 minute call with us and then up to 2 60 minute sessions reviewing your portfolio, reviewing your plan, reviewing your investment options, your income options, your tax strategies, and so on. And see, does this make sense to entertain the relationship or not? It's okay either way, but you can't know unless you at least start the conversation. Text analysis right now if you wanna start that conversation to 913-363-1234, that's keyword analysis, to 913-363-1234, or you can go to www.yourwealthanalysis.com to learn more, to request analysis, and so on.
Mike:I just wanna point this out. I've had people actually die during the planning process.
David:Oh, wow.
Mike:Just an act of nature, out of the blue, and the spouse said, hey. I'm I'm sorry we've been silent for the last 3 weeks. My husband died. He hasn't been respond to your emails. I know he was planning with you.
Mike:Can we finish this together? I have no idea what's going on. He said he trusted you, so let's keep going. That's happened a couple of times.
David:Wow.
Mike:Several times, actually, just last year. I had several clients that were going through the planning process, had a stroke in the middle of the planning process. This is one of the things that you really can't time it because no one knows the future, even with their own life. Please take it seriously. Consider your spouse, especially if they're not doing finances, to get on the same page with a professional that can take over that burden and allow your spouse to be supported with your hard earned money for the rest of your life.
Mike:That there's growth focus, that there's flexibility, that they're ready from a tax standpoint, from an income standpoint, and and so on. Text analysis right now to 913-363-1234. Make sure your spouse is on the phone with that call. Make sure that you're both available if married. But this stuff matters, and you can't build a steady, sturdy relationship overnight.
Mike:It does take time. Text analysis right now to 913-363-1234, or go to www.yourwealthanalysis.com. That's all the time we've got for the show today. If you enjoyed the show, consider subscribing to it wherever you get your podcast. Just search for how to retire on time.
Mike:Discover if your portfolio is built to weather flat market cycles or if you're missing tax minimization opportunities that you may not even know exist. Explore strategies that may be able to help you lower your overall risk while potentially increasing your overall growth and lifestyle flexibility. This is not your ordinary financial analysis. Learn more about Your Wealth Analysis and what it could do for you regardless of your age, asset, or target retirement date. Go to www.yourwealthanalysis.com today to learn more and get started.