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Transcript

Zach:

You’re listening to retirement today. I’m your co-host Zach Holcomb. And alongside me, we have Michael Reese. He’s a certified financial planning professional, and he spent the last 20 plus years helping families get into and through retirement and retirement is what today’s show and all about. Mike has shared the stories of his parents, his grandparents, really talking a lot about how retirement is a fundamental shift in life and how you really have to understand that.

Mike:

Yeah. And Zach, by the way, it’s Christmas time, right? It is. I am going to deliver a Christmas present to all of our

Zach:

Listeners. Oh my gosh. I can’t wait that

Mike:

By the way I did, did I prep you that I was gonna do this?

Zach:

No, you didn’t.

Mike:

No, this is gonna be like, Brett, you don’t know have any clue this coming. So, oh, I was looking at the number. Here’s the problem that we have. So as you’re listening one of the things I shared is, you know, kind of what we do and who we do do it for mm-hmm <affirmative> and why that’s so important. And what do we do? Comprehensive retirement planning. That means we help you with your income, your investments, your tax planning, your risk management, your insurance, all this kind of stuff. Right? And who do we do it for people who are middle class and upper middle class families. Typically it’s people who have anywhere from 250,000, say retirement all the way up to maybe 5 million. And we said, if you wanna have a free second opinion on your planning, you want someone who’s been doing this 25 plus years, just looking over your shoulder saying, Hey, let’s make sure that you’re not missing out on anything that you’re making all the right choices said, if you wanna do that set aside 10 spots, absolutely free, no obligation for you to have us look over your shoulder, make sure you’re making the right moves.

Mike:

Here’s a problem. They’re all taken. <Laugh> they’re all taken. So this is, I’m gonna open up a Christmas present here for you that I did not Zach. I might just right now, I may make Zach tier’s hair out a little bit, trying to figure out how we’re gonna do this. <Laugh> but here we go. I am going to officially open up five more spots. I’m gonna open up five more spots. I, I don’t know when they’re gonna be right, Zach, Zach might. I don’t know when they’re gonna be, but here’s the deal. The reason I’m doing this is is a couple reasons. One is Christmas. I wanna be giving, but here’s the other thing it’s coming up on the end of the year. And there’s gonna be a lot of changes coming up next year. There’s gonna be changes in required distribution rules. There’s gonna be changes in the tax code.

Mike:

There’s gonna be changes in a lot of areas that are gonna affect your retirement. I do not want you to miss out on making the right planning moves because we ran outta space. So I’m opening up five spots. I’m not sure when they’re gonna be, but we’ll make it happen. And again, all you gotta do. Just give us a call 5 1 2 8, 8, 6 58, 50. It’s so easy. And when you call all that’s gonna happen, you get our after hours team, they’ll set up a what like a 15 minute introductory call, just so we can learn a little bit about what your most pressing concerns are. And let’s see if we can help you, right? Let’s make this happen. Let’s let’s, you know, it’s Christmas season. Let’s help each other out. Why not? Right. All right. I promised at the end of the last segment that I would share with you a core hypo, a core hypocrisy of the financial industry.

Mike:

Okay. And here’s what it is. It’s like, and this goes all the way back to the beginning of the show. When I talked about my parents, if you remember, and maybe you missed the beginning of the show, my, my parents retired in 1999 and they had about 300,000 safer retirement. And the industry told them, just invest in a balanced portfolio, 60% stocks, 40% bonds, a diversified balanced portfolio, which works really, really well when you’re saving money, you on too much risk. But if you try to take income from that portfolio, it only works. When the markets go up, mm-hmm <affirmative>. If the markets go down like they did in 2000, 2001, 2002, you can lose half your money, which is exactly what happened to my parents. And it really messed ’em up. And by the way, the good news is I was able to jump in and vent and help them.

Mike:

But you know, it messed them up, right? Or in 2008, when the markets lost half of their value over a year and year and a half period, you’re up the Creek without a paddle, right? This 60, 40 portfolio is horrible for retirement planning. If you are retired, it is like the death. Now it gives you a feeling that you’re good and you feel good until the markets decide not to cooperate. And then you are in a world to hurt, right? Mm-Hmm <affirmative>, you need better planning than that. And there are ways to do it, but this brings up the core hypocrisy of the financial industry. So here you go. I’m gonna call out a couple names, oh, this is exciting for this. I’m gonna call out Vanguard and I’m gonna call out Schwab, okay? Because they’re doing the same exact thing. And you know, they should like these people should be in my opinion, put in jail for this crap.

Mike:

<Laugh> right. This is complete BS. What they’re doing. So if you go on their websites, you can go through things like risk profile questionnaires. You can say, Hey, I’m getting ready to retire. Let me fill off this risk profile questionnaire. In both cases, they’re going to give you portfolios that they recommend that by the way are gonna look a whole lot, like the exact same portfolio. My parents had 20, some years ago that have failed twice in, you know, since then they fail. It’s like, they’ll both tell you to do the same thing. Do they CA do they learn that, oh, these portfolios don’t work. When the markets don’t cooperate? Oh, they know it, but eh, who they don’t care. Right. But that’s not the part that makes me angry. Here’s the part that makes me angry. In both cases. When you look at these portfolios, they give you data.

Mike:

They say, you know, since 1926, by the way, they have data all the way back to the 18 hundreds. So why they started 1926. I don’t know. Mm-Hmm <affirmative> well, I have a sneaking since fishing. Wonder why, but anyway, say since 1926, a portfolio like this has averaged something like an 8% rate of return. And you know, you have some good years of bad years, but on average, you earn about 8%. And if you take out 4%, that means, Hey, you get your income and your growing your port portfolio by 4%, keep pace with inflation. And does that not give you the warm and fuzzy Zach? You like, oh, that feels so good. I’m gonna average 8%. And if I only take out like three or four, I’m, I’m gonna be inflation protected. This just feels so good. Doesn’t that feel good? It would make me feel good, but I think I know where you’re going with this.

Mike:

Okay. So here’s the deal. They are out there telling you this stuff on their websites. Mm-Hmm <affirmative> and you know, it’s out there, but here’s the thing they say here, do what we say so we can make money on you. And we’re gonna tell you, you can expect her in 8% over time. Well, they do say his past performance is no guarantee of future results. So they’re covering their backside, but nowhere do they really say everywhere? It says, Hey, you’re gonna earn 8%. I mean, that’s what they say. Yeah. On average, yet, if you Google, what they think is gonna, what markets are gonna return over the next 10 years? If you say, Hey, Vanguard, what do you think this, this 60, 40 portfolio is gonna actually earn over the next 10 years or Schwab? What do you think it’s gonna earn Zach? Do you know what they think?

Mike:

A 64, a 60, 40 portfolio is gonna earn over the next 10 years. Lower than 8%. Yeah. Like two to 4%. And I’m like, this is the part that really gets, like, if you think, if you’ve listened to the show, you know, I hate politicians and I hate taxes and I hate those, you know, those weasels weasels. Yes. In Washington, DC. <Laugh> and I might have just got, I don’t know. Sometimes I get beeped out when I use that word. So I’ll say it once again, weasel there. If I got beeped out again there, you know, basically it’s a, it’s an ugly form of ENT. Yes. Right? That I’m calling these so-called people in DC. It’s not all of them, of course. But you know, come on. They’re worsening used car sales people <laugh>. And guess what? There are some good used car sales people.

Mike:

So I shouldn’t even say that, but here’s the deal. This is the point I’m trying to get to. Everybody looks at Vanguard, Schwab like, oh, you guys are great companies yet. They’re treating you like dirt. They’re treating you with zero respect. They are treating you like dirt. And what makes me mad is you deserve so much better than this. You deserve consistency of expectation here. If they sit there and tell you in their marketing, Hey, you should average 8%. But then they turn around and say, but we only think you’re gonna earn two to four mm-hmm <affirmative> do we see a problem there? Big problem. I mean, that’s, if that’s not hypocrisy, I don’t, what is right? You deserve to be working with someone that can look you in the eyes and say, look, this is what is reasonable to expect. And this is what you have to make your plans based on, by the way, I believe if you do things right, you should be able to do better than two to 4%, right?

Mike:

You should definitely be able to do better than that, but can need to eight with these balance portfolios pie in the sky, it’s complete BS and it drives me crazy. Don’t be listened at you deserve better. So here we go. We’re at the end of the show, I said, I was gonna open up five more spots. First five colors. Here’s what I’m gonna do for you. For the first five colors. We’re giving you a free second opinion by someone that’s been doing this for 25 plus years, I’m gonna look over your shoulder. I’m gonna help make sure you’re doting your eyes and crossing your Ts. Because I believe you know, your middle class, upper middle class person, you are great families. That’s what I grew up in. And I believe that your great families and you deserve the, of getting proper planning. It’s absolutely free to get a double, a second opinion.

Mike:

There’s no cost. And it all starts with an easy 15 minute phone call where you share with us. Hey, here’s what your, you know, what’s on your mind, right? What are you thinking about? Mm-Hmm <affirmative> what are you concerned about? Let’s help you get on the right path for retirement, or at least double check that you’re on the right path. No harm in a double check, right? No harm in that second opinion. Why not make sure you’re making all the right choices. It’s super easy. It’s free. Zach, help us out. What do our listeners need to do?

Zach:

Mike gets 5 1, 2 8, 8, 6 58 50 a. Again, give us a call at this number (512) 886-5850. Now one more time. It’s after hours, you’re gonna get our answering service and they’re just gonna get your name, your phone number, and a good time for us to give you a call back. One last time, (512) 886-5850

Mike:

Folks. I wanna help you enjoy the retirement that you so richly deserve. Let’s get this second opinion done so that we can make sure you are on the right track. That’s our show. See y’all next week. Merry Christmas, everyone.