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Common Sense Retirement 11-9

Nov 9, 2013|

Tony Dale and Phillip Allen

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Automatically Generated Transcript (may not be 100% accurate)

Well good morning and welcome to comment since retiring or playing did she just say snow showers and ownership hours and she did. He recovering meteorologist and he's just aching to get home and look at -- some bars -- and and you haven't lived to -- -- time chicken some bars and manages checker periods to pitch that hit homer and milk of course number SF. Hey this is about investing right now wise investment Brigham and I'm just -- All right so if you imagine it snowed and we didn't have enough Britain what would we didn't it's the south. You know the -- shelves will be cleared -- of that as word is even just mentioned on him and Britain have just gone. It's crazy -- I think that's all you need bread milk market. So listen if you have and never joined on this program what we do. -- -- -- Performing very specific function. We are retired players there is a huge difference between Johnston investment advisor and retirement -- what is that different well. Our goals are to protect people from the three biggest dangers to. Which our market risk. Inflationary risk in longevity. And sweet talk about these things and right now they're easy. It the type of irrational exuberance I have not seen since the late nineties way. And much to talk about in that regard so so we will give you a different perspective love to have you join student what -- call us 232963. Greenville. Spartanburg price reporting success in three. Then. Of course what we do we do. And capital investment group member in rain in sight to see it in and therefore when we talk radio with the advice we give who's gonna be. In general. In nature of -- one of the reasons we invite you come for free consultations. But added fight I have to tell you had a funny and and you've probably at these castings and had a really nice guy coming yesterday. And now he said we were talking -- -- I've listened to you for a long time says they just wanted to thank you said. You kept me from lose my teacher back in 2008. He says it can I -- now quality was good occasionally have -- -- things into it now which had continued his immediate security in the meantime. So so would we give you warnings which we will duty day. About the situation in the market. Be aware that did did going to cash and staying there is not. The game plan there are other things you can do you can protect you from from lost without. Having just because remember inflation story you can't just sit and cash forever either just. That's an important word of warning about her show. Is that if you listen their show one time and we tell you to go to cash. You have no idea what -- solution that he is a news. You know could have cost you fortune where is -- clients who are clients and you know have locked in the gains that we've had games are great. It's just knowing when to lock in those gains it's important but we never recommended she do any thing. Just from watching here on the ship. And have what we do on the show of course is also always. Under the guidance and auspices of the Bible we tootsie you know we are we look at everything we do from a stewardship perspective and therefore we always start program with. Bible quote. And I just wanted to read the Bible one of the clear teachings of the Bible that. The lord wants us to work and just to work our proverbs 1423 says and all labor their profit that mere talk leads only to poverty. In the inning collages -- do what every what possible what are you do do your work hardly ask for the lord rather than for me in. And Maginnis in Timothy says but if anyone does not provide for his own especially of those of his house -- he has denied the faith. In his worse than a non believer. The Bible. Comedians hard work. And that Bible also comedians. Prudence. I mention the word rational exuberance which of course was first used from Alan Greenspan before the dot com last week trying to warn people him. I'm there are only two motions to dry what we do when it comes to money they are right agreed to a fear goes into. Proverbs 23 forces don't Wear yourself out trying to get rich the wise enough to know when to quit. But most people. Right now we're seeing a classic. Case of irrational exuberance under way. And markets are up and enough enough and you have to ask yourself. Is this a sensible thing. And there's a lot out there today that the reasons for caution there's a piece. Actually cnbc.com. You can. -- read our market is at risk of in 1999 style food but I want to preface this by saying. That I was warning people and the -- was two in the late nineties. If there was -- that this was hit all the hallmarks of classic asset bubble this dotcom crash. Anybody listening to me. Didn't lose. We were on this radio program. Back in all five. Saying there is a coming real estate credit collapse we were looking at the fundamentals and that's what this fellow was talking about it today. He listened and he didn't suffer this huge drop that happened. But people have short memories and therefore we find ourselves where we are. US stocks hitting record highs. Speculation about a market bubble is now beginning to form. And on CNBC yesterday. One of element Michael gay views he is a U. One of the shining light from pension partners very large. Hedge fund chief investment strategist. And so he says that he says that people do not appreciate the full risk of another 1999. Style bubble. Here's what he says you are seeing fairly sizable inflows and equities the most since 2000 yet inflation expectations are so -- trending up. It appears to be the start of a bubble given how far US equities have diverge from the underlying economy. The overall reality and where we are in the economic cycle this is a -- big problems that is being under appreciated. He draws parallels to the market environment seen in the late nineties when huge appetite for Internet they stocks led to massive gains for US indices. And then of course their eventual crash in 2000. A similar trend is emerging now. He says due to the -- huge money stimulus program which is pumped two point eight trillion. Dollars into US economy since 2008. But residents stimulating the economy. This flow of easy money is only stimulate the stock market and as a result we're risking the embarrassment of another 1999. -- -- liquidity bubble. He says that the forming of this bubble including the recent poor performance of other stocks should be a warning sign big corrections in the stock market. Are always perceived by complacency the illusion of stability. Leverage in the sense of entitlement. Just by introducing the word -- you've seen you'll spike. Maybe they can use a few words to -- from here on out to calm the market down. -- retirement planning is all about income planning paycheck replacement. And we talk about that a good retirement plan doesn't make you know is not the same. Is a good investment plan does not make a good retirement plan. You can have a good investment plan. And have done well the last five years and almost insure yourself that -- run out of money before you -- The last since 2000 T. Rowe Price they had a good investment plan. In their opinion. You'd had a 71% chance that your money what are ran out before he died using traditional investment planning for your retirement you have to start looking at things. In more of a risk management approach lifetime income paycheck replacement than just -- investing. Because right now everyone's telling you that the market is at an all time high what is that when you buy a house when -- when when they're the highest or do you wanna try to get a bargain. Well people are piling into the market this is that a CNBC to sit -- Liechtenstein which it needs. He knows his staff said the price of everything is out of whack. He says now we have the -- suppressing the bond market says that rates are ridiculously low the capitals being this allocated everywhere. And the price of nearly everything is out of whack Liechtenstein say it. But he says that they it is starting to lose control already meaning that stocks could. Crack even if the Fay continues to -- 85 billion worth of assets each month's interest rates on eighteen year bonds have risen a hundred basis points since last spring and there's still no tapering. So why have bond rates risen I think the say it is no longer able to dictate where the bond market is going to trade if that's the case and I say if then the game is going. To change. Because if the -- loses control the bond market is not going to be able to head unilateral site where the -- trade. Specifically fleck is that as watching the 3% level on the eighteen year yield very closely. If the bond market trades -- 3% in the absence of some super strong economic data are actual tapering and it will be clear that something is radically different. So once things did change how low can the marquee ego you say when those rates start DS in these hated south. The bond you know your stocks are headed south. Without giving getting specific. Like -- -- said the stocks will hear a lot lower and enough -- to make people really unhappy. Understand. That there is something fundamentally different underway. Right now. -- mentioned the figure earlier two point eight trillion trillion dollars. Of money that the -- it is just created out of thin air. And made available through. Their loan window to the big Wall Street firms. And on their own have also gone out and bought 85 billion a month in treasuries and mortgage backed securities. Well because people. Are fooled into thinking that. Because the stock market news about the economy is fine and this this week is a perfect example you know the devil is in the details. So we heard. What appeared on the surface to be good news this week that the quarterly GDP. Rate was up it looked good growth accelerating to two point eight up from 2.5. But he is that right well let me tell you what actually happened. And this is not good news. This increase in GDP was supercharged by 86 billion buildup in inventories because what's happening with -- companies are restocking warehouse shelves. It the fastest clip in a year and a half. Farmers were boosting inventories most in seventeen years. Largely because of the terrible rout. So. Inventories rise almost every quarter rarely as fast as they did. And didn't you have another figure and this ought to be one the people ought to stand and take notice about. Consumer spending that is 70% of the economy now. That is the most important fuel. Slowed to a lackluster one and a half percent advance from the third quarter. Down from one point eight and that is the smallest gain. That we've seen in two years of big question was what happened to inventories in the fourth quarter. Because usually when you have a big jump like this you see a small jump in the next quarter. Here's my point. If you understand. The whole theory. Behind John -- McCain's approach to how you get out of recession. Which is what of course affair has been doing this what they call quantitative easing. Supposedly you create this money and loaned out to the big banks and that stimulates the economy will be given the money -- the big banks but they've not -- it. They are investing in a Wall Street in there helping create this bubble and now mom and pop for getting involved at the. Absolute worst possible time. Oust organ declined the other day and we're talking about that everybody has an agenda. Tony and I have an agenda is that we want you to be safe with your retirement savings we want to have -- meetings with you when we meet with you every year. So that you refer other people to us because we have a goal of being having a successful business. And the way we have a successful businesses you have a successful retirement. And so if you're not happy with the you're not refer us but we do have an agenda we we want you to be careful with your one life savings. And we were taught so why MI and that the client let's say I want to I'm not here at what your saying. From anybody else and -- -- well it is is just where you listening you know when. We're we're not making this stuff up we're reading it out of you know. He he economies he -- some of the greatest economists in the United States but that doesn't. The agenda for most of these companies are -- to take too much risk with your money therefore they're prominent read these kind of articles -- David Stockman who would Ronald Reagan's. Advisor on the economy. Said the -- is creating the mother of all bubbles. So it America should be bracing for the explosion of a mother of all bubbles brought on by the Federal Reserve's grossed an irresponsible manipulation of interest rates according to David Stockman. The colorful supply side he cannot economist and director of the Office of Management and Budget under President Reagan. The Central Bank has created a false prosperity that shows up enough overpriced stock market. So are you is your life savings invested in an overpriced stock market. The -- -- -- -- since 2008 the greatest gift to the 1% to the speculators to the leverage traders to carry trade ever imagined. Says now we have the greatest mother -- bubble and there's nobody left in the stock market today exit drugged. Up day traders and robots who were being maimed blind by the daily injections of liquidity from the -- -- this is totally irrational. Now what scares me is he says the only one left in the market is drug that they traders and a lot of people that come see me who have their last savings. And 80% of it is an equities because the market's been doing well lately. You know I don't want to being named among the drug debt they traitors because that's gonna come to a end. Later on in the the show -- read you some other things that David Stockman says that -- we're trying to give you warning. That. If you've got enough money. That she could take a reason more draw and getting guaranteed lifetime in town a principal protection shows had the you can create your own tension with your life savings. You need to do it now before you lose half of it in the market and you in you will not have enough money to have a successful retirement. Whether you have a successful retirement not may hinge on the next six months in the US economy. You know and I'm not trying to over. You know dramatized this. We will be covered up with business. Wants people lose thirty and 40% of their lives -- Unbelievable at what happened to win 2007. -- -- -- The EU. With 34 week wait to get in to -- yes. Because it didn't appoint did not get home to people until they opened up their statements and realize they they were losing just hemorrhaging. Read. In their statements and they said this has got to stop but unfortunately for a lot of and they didn't do something about it -- it already lost. 102030%. Of their life savings and that's but not what we want to happen to you I mentioned a little earlier. The fact that 70% of the economy is consumer spending. So this week you heard this report it just amazes me feel the way to get to the mainstream press. It's been specifically to mainstream financial press likes to spin things so you heard the report about. All these wonderful age report. What they were thinking. OK. Was it really. The only two things that matter. Are the labor force participation rate that is plunged from 63. Point 2262. Point eight that is the lowest. Participation rate. So the number of people who are not in the labor force grew by a million. They did that in one month. To add it to that is they record this was the third highest monthly increase -- people falling out of the labor market in the history of the United States. So at this pace the labor force will surpass the working. Americans. In about four years time. So I ask yourself. If these people are working. Are they buying. What what is going to drive the economy when half the people don't have jobs. It amazes me when I talk to people have many different ways they can tell me that they don't work. You know -- you know and come out and about talking to people in a soul or do you work that well why don't I'm on disability and some people they don't get me wrong some people need to be on disability I understand it. Others -- well you know like I got a divorce and I'm getting. You know payments from my -- so I'm not working right now or. You know I'm living at home -- -- home with my parents you know and I'm not but you know. It used to be a shameful thing you know not too now if you're trying to get a job and working hard -- one thing with their people -- just take pride. And in their. Not working and when we get to the point that there's more not working -- our and they are still voting and they're voting the money you know we're in trouble. Davis -- and says it tails you the clear and present danger in America that is the Fayette is run by people who are in some medieval castle somewhere and they've lost track of the real world. Stockman said artificially low bond rates -- force stock prices skyward and essentially are part of the same bubble. Meanwhile he said investors are hearing the same careless hiring call from retail stock analysts that they heard at the -- sent 2007 peak before the US financial melt down. Come on me in the water's warm we're just getting started well what you heard from Phillip and Tony Thompson retirement planning was you need to get out of the market. Because we're we will tell you the truth no matter how we we do not want you to take too much risk with your money. Says veteran investor and financial author Jim Rogers himself no stranger to hyperbole told. Reporters TV that that they it is only 1 of numerous central breaks around the world. That are all printing money in pursuit of economic growth the world is floating around on a huge artificial sea of liquidity Rogers declared. It's going to drop it when he drives that were all going to pay the price for this madness. And if I might give you recent example. Last week the European ECB they're they're central bankers. They've dropped their prime rate down to point. To find. Thinking that the market was going to to trust the market fell. So eventually there's -- there's comes a point one of the point if I before I move on because I want to make these this is an important point. Is not just the quantity of jobs you've heard this job report I told jamming people who dropped out labor force. But it's also what kind of jobs. -- -- Well here's the truth of it. Com. In the month. We saw the third biggest jump in people not in the labor force in history as I mentioned that to loss of 600000. Full time workers. But now listen to where the jobs were. The top sectors. Leisure and hospitality. Retail. And temporary help. In other words with minimal wage hotel workers retailers amount to half of all the job gains how is that going to stimulate the economy. Do you remember when the you know -- we all know in 2008 it was a real estate you know credit bubble. Who you forget in 2001 it was the dot com bubble. Well return of the dotcom bubble says wild speculation and Internet stocks brings back the bubbly days of 2000. FaceBook is trading above hundred times its -- Amazon is treading a thousand times its earnings. AOL and Yahoo! did not do that pat in the last dot com level. I'm sure that some clever analyst can come up with with stories -- justify the valuation and of course no one can be absolutely sure about a bubble until it burst which was Alan Greenspan's justification for not acting against levels. I suspect that this dot come bubble burst in 2014. As soon as the fate is forced to tighten. The extremes in the new dotcom bubble tell us that the monetary condition. What -- in the world the real interest rate is practically negative everywhere. This is happening for probably. The first time in modern history negative real interest rates also trigger bubbly valuation. In credit. Property and stocks. If you're investing in things that depend on this ridiculously low interest rates you're in for a world of hurt in the near future. Tony and I would like to show you how to have a same retirement plan. And if your interest in that you give us a call at 1800. 6876768180687676. Say. And we'd love to talk to you it's a free complimentary consultation. And we talked a lot of different people. I had a fellow walk in the other day and he had a pair jumper cables around his neck and now as you know little wary of that that never -- before I told my talked to him. He'd better not start and he thinks. Our eight. Arabia and sooner or later it has to have that's a classic that collects them to collapse I -- we were we were in Pinehurst. This week. Philip and I spoke -- meeting you for a financial advisors fear. And talked about retirement planning to and most these guys were more investment guys and we were specifically because what we -- was a very specific -- very successful Pacific. This is a lot of to a lot of financial advisors are just not -- kitchen onto the retirement -- part of the equation anyway. But we went to dinner and was filled in and myself and -- in my life and in. Several people who work with -- And I have to tell you that is the -- I've tried to get Phil to go do standup comedy you've had no idea for me these guys when he's when he's duplicate that in. So you need to work of more on the radio contract when he got just. -- -- -- -- I'm there's -- I'm in a leading into the east what's coming after news very quickly by reading some numbers to. This is from a survey from the Wall Street Journal only 46% of those heading for retirement. Are confident about being able to reform essentials the 78% expect to be extremely happy later in life. Only 38% are confident about being able to afford extras like travel but 72% say their dream -- includes taking really nice vacations. 62 say they've done everything they can't prepare for retirement at 68%. Expect to have to work and Steve gates a saving more for retirement this of more than they're able to do now. Now is when you need to talk to the retirement planner if you wanna have that happy retirement it's. Do you think you're gonna have you better start doing something about it two day. And call us at 806876768. Coming in for a complimentary consultation on everybody takes their advice at all. The -- to do a pretty happy. Be happy to give you their names too by the way. Anyway when -- come back I'm going to tell you the latest in giving you some facts on the government's plan to take over your 401 case of new and stunning. Information about what is coming after Obama care. I'm telling you Philip Allen will be back right after the news. Welcome back to comments and retirement planning this is Phillip island. With Tony dale. We were at this conference and we had an economist from Goldman Sachs talked it's a little bit about this them this bond bubble that is just -- You know it they were all facing that a lot of your average financial advisors just. Seem to ignore. And he talked a lot about. He gave a hole his whole illustration was the bond bubble and the -- hand. And he was talking about you know in I didn't remember much of anything about it narrowed it down and -- -- -- college but the one thing at the agreement amber is. You know. What was the reason that the time -- -- You know was it the iron they use was that the -- was that the rotor a small you know all those kind of things. Well there's a lot of different reasons you know what the main reason the Titanic song. It mainly -- because the one who's in charge of the Titanic. You had an untried Chia. On a maiden voyage. With -- and I asked her warnings on moonless night and he had a captain trying to break the Atlantic speed record crossing. With all that going wrong. And it was a captain's fault. You know and as we go into the next crisis financially you know you -- captain are you got a financial advisor however you won't do it. But you do not have to participate in the disaster that's coming up if you got a captain that would just simply slowdown. And see the warnings and that's what we're trying to tell you is now is it time to see the Berg's that are coming. And not try to say whoa boy had a good last five years let's just pile -- on -- You need to slowdown. And realize that the ship could -- if you are not careful about watcher bill. And historically here's the sad truth -- if you go back and you look at the history of every market this happened so far. You know who are always the last of the party's always. It's you the retail investor mom and pop. Right now there is a net inflows into the market. And retail investors have overtime proved to be absolutely the worst market timers they buy at the wrong time sale of the wrong time. Those who bought stocks went public with selling them sold them again in the public bought them back. This is not the time to be jumping in to the market that that's not what you're gonna hear. If you go listen to CNBC or listen to the -- -- -- local in the strip -- -- there with that -- that is his investment advice. Business right next to the dry cleaner -- he's not gonna tell you. Let me let me do this -- quickly let's take a phone call from Libya and then I'm gonna tell you some just astounding things about what's coming for your 401K plan that Olivia how are you doing out there and -- joint country. Are you there. -- Related darling. Are you there. Associates say about the idea okay well. Bolivia. I guess that. I guess -- Libya isn't there. OK well may be Olivia will come back. All right so that was a good. It was a good comments are quite believe that the okay. So -- I was looking into independent living recently and they released a special report how many shares -- with you this is something we've been telling -- every now and then. I like to quote a people other than myself on this thing because. People don't realize. Obama's. Secret plan to hijack your 401 k's name. The US treasury and Labor Department have introduced proposed regulation CF far. All right in 1545. Danish BJ's you force call to Alter the embedded investment incentives. And to change things -- persistent labor secretary -- boards and expertise secretary mark are we are spearheading this effort. To convert 401K assets into government duties. Rob there's actually report here on this thing and you can read the whole thing I'm going to consult with government but. Here's what's happening to -- Washington's desperate for cash we notice. So you have retirement account deep privatization being advanced by the Ford and Rockefeller Foundation's. Key liberal congressional leaders. Influential think tanks Joseph Biden. And that part of his quote Middle Class Task Force the -- and -- deep privatization plan is the brainchild of one of the list rising stars Teresa. Gillard who -- we've quoted before on the show. She insists that. 41 -- should be still legal under her plan but the thrust. Is revealed any radio interview she did in 2008 in which she said quote. I'm just rearranging the tax breaks that are available now for -- to spreading the wealth. And -- spreading the wealth where have we heard this before Karl Marx. Obama. Lyndon. OK so here we go. So she goes on to talk about what she wants today Tuesday she calls them guaranteed a -- or retirement accounts this is what she -- to convert your 401K -- They're like universal 41 K plans except the government. As -- a large -- institution will invest and manage the money pooled the savings. She believes quote. Humans often lacked the foresight and disciplined investing skills required to sustain savings plan is always the progressives know better than you. So essentially what she wants to do. Your plan would go automatically. Into government. Securities. IE government treasuries for starters lockbox -- Exactly analog -- thank -- -- a lot of things are not log books and that's what they say nobody's ever seen them but death. Future tax deferment would go away would not be able to do it. But she would supposedly be guaranteed a 3% annual return -- some government treasuries. Now this is where there's a there's a picture we she could see it. Of this EPI briefing paper it tells all about it. Written by here and that the title is guaranteed retirement accounts toward retirement income security. -- sub chapter of the -- sub heading says listen closely my friends. Agenda for shared. Prosperity. Wait didn't mean shared prosperity. So we're sharing whose prosperity with whom. If we have 49% of the population right now without. -- does this tell you anything. Representative. Miller who's a Democrat it. We're going to have to do something about this tax deductibility of contributions to people for -- because the government is losing money were lazy -- this. And didn't they go on to say these are the key points of her -- listen to this retirement should be shared responsibility of employers employees and government. It should include all workers unless they -- and plans provide equally secure an -- benefits. Employers and employees should be required to contribute specific amount of pay and the government will subsidize the -- contributions for lower income workers wait a minute. Subsidized where they're going to get the money from the subsidized they're gonna get it from your taxes so think about you're gonna have to put money into the plan. Governor is gonna make sure that some of that money goes in the pockets of the. People were voting them into office but listen. I I cannot. Stress this do you strongly enough. If you are over the age of 59 and a half. And you're watching what is going on with this Obama it Obama Nation. Of obamacare. And you see the way -- east they're gonna sit tight end on the headlines on the headline of the -- today it says. Obama -- executive orders the second term crumbles do you think for a minute. The your 401K is not on the -- agenda. If you're 59 and a half do you. In almost every circumstance are able to do what is called an in service rollover of your 401K into -- hiring and get that they -- Gallagher and gain control to make yourself. You can continue to contribute if you have a match if you'd like to do that you can once a year removed -- putting into your primary. But they're there are so many warning signs flashing right now. In them the market's going to crash we've talked about that obamacare is is is the Titanic. Politically. And the next place they're going for money is the eighteen trillion -- -- B control now. Seven point three trillion in 41 K money it's -- out there and -- they're just salivating in Washington over this money your money. Call us at 800. 6876768. We can show you how to do an -- -- -- we literally in most cases you come in the office we can do it on the telephone we can call up your provider. And literally get it moving while you're sitting here. But you have to do something about it you just sit around a way. Eventually gonna wake up one day and this is going to happen in -- dressing -- gone I wish I'd done something about it so let me give me the numbers game. 806876768. Do not let your 401K slip through your fingers. And don't wait till the last minute a lot of people say well if they ever get to -- that looks like they're serious about it I'll move my money at the last minute we you know they're not stupid. And most the time when they do things like that they have looked back provisions of -- you know. Is long you know you're OK as long as you had moved Germany out your 401 case say five years ago. But anything that moved in the last five years they would not capture that. Even if it's already in an IRA you know so. The thing about the thing about. Liberals is they want your money but they're not necessarily stupid. And so you need to be proactive about. Tony I'm afraid. If they get their hands on oral and hey what's next -- health insurance how to act. Had an atheist and a -- I told somebody. Ten years ago the government take over at Hilton shares it left about a larger eleven on him but it's happening. And it's happening faster and so we have to take. Pro active steps to just to make sure that our lack savings is not shared too much because guess -- That's what's happening for those they want to share the -- you know from those that have to those that haven't worked. You know the battles is go to the aunt -- slugger. You know and you know. They just never assume that these people that don't have enough -- mainly because they didn't work hard enough. You have to be careful about things like. This you know with the excuses going to be. We're going that we been telling you all day there's going to be a massive correction said the government is going to we have created the conditions that caused the next market to crash. And then when it crashes are going to be millions of Americans who lose lose trillions of dollars in their 401K plans in the government's gonna say see. Saying how unfair this is so greedy Wall Street guys have taken advantage of -- and and we're from the government and we're here to handle. And we want to make sure you money in new retirement and and so I deadly discontinue American region from the deal he goes -- yourself. So here's their -- let me just give -- the thumbnail what does Carla -- Gal wants to do with your money. For -- to contribute. Take away the deductibility. But here's the kicker. You when you go to want your money to get your money you can't have it as a lump -- it would be an annuity payment. And I'm not talking about. They do in modern new -- dad living benefit to catch which which you have to give up your principal and her in in and do it ties -- money none of this what you would give up your principal and I -- it. The ties and explain that to you. The government would say OK Bob. You got. Million dollar sit in this camp we're gonna let you take a 5% withdrawal rate for the rest of your life. With no raises. Because once the -- and -- -- ties that it doesn't change and secondly. When you pass away. The money stops the income stops to assure the pensioner you're instantly knew it that's how pensions work. Does that sound like a good plan for you in new -- life. We've would you not be kind of a bitter thing may be -- did did you could take an income for life for you when your wife. And get raises and leave the money to your -- was left to your children. You know the difference -- government nudity and a traditional annuity with an insurance company. Main thing is if you have an annuity with an interest them are what kind of a new ideas they actually have to have reserves. I think that they have to maintain. In order to meet that obligation now on the road well let me tell you what a government a new ideas it's -- Social Security. You know they claim they have a lot box with all this money. But what they do with a lot boxes they go in there and they borrow all that money out and spend it right now and that IOUs in there. And so your immunity guarantee is the fact that I hope we can raise money down the road to cover this. While they were already on each picture -- jury where parties and every bit of the federal income coming in will be to entitlements. You know they want -- argument what to spend it down there already broke. In what they're doing now is they're looking for these big pools of money they wanna take over because I think that what they see down the road. Is basically a welfare state. Overall barely trying to get along and and they are handing -- cheese out the back of a truck. And so that's what they see the future -- and we wanna try to avoid that in your case. So. You can take control of a lot of people don't realize that there are even able to do it if you if -- -- ride to the age of 59 and a half. You have a 401K. Do something about it is you can go in Monday. Give us -- Coming in we'll show you exactly do bring a copy of your -- with you and we'll show you how to do this it's not difficult and we will show you not only how to do it we'll show you. A place that you can roll it to. Where you can create your own pension but listen to the difference. Between the type of pension that the government would like you of the type engine we can show you. Because our approach. Is why don't we go on to something that allows us. To track an index like the S&P and when he goes up we can get some of that. But it goes down we lose nothing. And when the day comes that we want to actually retire we can turn on an income stream for life and never give away our principal and a new ties this money but rather. Have an income for a husband and wife for life. And every time the index goes up we can still participate -- get raises. We have a hedge against inflation and lastly because it and you didn't I knew -- ties this money. When you pass on whatever slept in his account is going to go to your beneficiaries. Does that sound like a better plan than the one Washington -- If you'd like to. Talk with us give us a call at 10687676. A 1067. Six. -- -- we'll start all of the series from any time -- won 80687. 676 say and I have another question for. Let me just let me just ask your question is your retirement plan where you have it now whether it's in a 401K is it safe. Is it safer market fluctuation. How much are you willing to lose in your life savings are you willing to lose 20% of your life savings are you willing to lose for deeper on -- -- -- 40% well then why do you have it in an asset allocation that you could lose 40% -- -- -- think it'd. What you need to make sure that you don't let me read you something -- -- asset allocation. Pie in the face. This is the typical approach to spending one -- in order to divert. Spreading one's assets in order to diversifying conquer is to have the -- complete a risk tolerance questionnaire. That survey is important not only to establish guidelines for how the assets will be managed but also becomes some form. It is required by securities regulators to make sure advisors know who their clients are. The magical conclusion usually includes a color pie chart. Representing a variety of asset classes that are -- soon to be the path toward asset growth and preservation of capital. But is that pie chart rarely know more helpful to the client in getting a pass thrown in their face like an old slapstick comedy. And I wanted to say that it he has at this conference we win and we were having Goldman Sachs economists and things like this. They say a typical conservative. Pop chart right now where you probably have your one life savings. With the bond market like it is. They are actually writing clients and telling him that conservative portfolio is gonna be reclassified. In many cases to moderately aggressive. The calls the stocks in the bonds no longer -- against tremendous losses. Just like in 2008 the stocks in the bonds are poised to go down at the same time. I believe that you know when you pull out that statement it looks just about like it's always looked but he may be extremely. Speculative. Is -- your life savings you know what kind of guarantee ally to have -- -- to have vote lifetime income that can't go down ever. You know they give raises for inflation. This guarantees for me and my wife. I like to -- most cases they principal gear entity that's real safety but we've been. Sold this illusion of safety with this. Risk tolerance questionnaire. Where you know you probably took filled out risk tolerance questionnaire. And real don't realize that the risk you're taking is far more. Then then the way you answered your question. And at night you've been years ago here's another point as we get closer to retirement. We have to become far more conscious of asset protection. So if I might come to give it seems some proof of what Phil is talking about here. And I can show it to you I actually of the chart in my office but I -- a chart that shows the vanguard. Stanley mutual funds now remember let's let's go back and remember Harry Markowitz theory of asset allocation is. If you have enough diversification. You've got all these different asset classes and they have inverse relationships one goes up while there's going down and that offsets the volatility and risk supposedly right. That's the theory. Well I can show you -- chart. Of what happened to vanguard in 2007. To 2008. When the markets as you were called Julius and be just for inflation lost 57%. So you there -- 500. You've got large cap small cap emerging market Pacific international reach has got to tremendously diversified portfolio here. They all went down in lockstep they all went down together. And I remember so clearly all the pundits when this occurred coming out things like this is an anomaly. It was never happened again well this war that would this was a one time event is like the hundred year flood this won't happen. Well guess what. And I got the article from USA today. In 2011. Actively managed. Stock mutual funds in 92%. Of them lost money. The average a loss was right at 6%. The S&P only lost one point 4%. Well now hang on aren't they supposed to be outperforming the index. But he didn't happen so you should be asking yourself that you have when these types of plans right now why am I paying. It if you got a shares may be five or 6% upfront in management fees plus ongoing management fees. -- coming -- -- 7000 dollars worth of management fees and a portfolio. Why are you paying for this if these guys can't even outperform the S&P. And if you what's improved on that only 24%. Of actively -- stock mutual funds actually outperformed the S&P. Jack mobile that the guy gets started vanguard has a new book out in which he says none of this almost verbatim quote pretty close. -- got the quote you're simply don't via. He said. That Wall Street is no longer the Wall Street guy and you. It has become the casino. In where there was once salesmanship stewardship there's now salesmanship. And Wall Street has become as he calls an -- giant leasing machine. And the clients of the sheep. They are taking risk and making fortunes with your money. They're gonna make money where where do you make him lose -- again mattered and there and if you'll believe it look at the -- to Gillis bonuses that are that these didn't fund managers are getting. On Wall Street right now. Isn't it time that you sat down and talked about what's going on in in in taking a different world view get a second opinion almost. -- talking and we're talking about modern portfolio theory this risk tolerance questionnaire that your all familiar with that -- in these different sectors and seventy. Listen what does SunGard investment research had given where markets are today simply accepting modern portfolio theory. As what has BN in the past smacks of marketing departments of major Wall Street firms. Devising shortcuts for financial advisors in the interest of crede at creating size and scale for their business but is the best thing for the client. And just because you -- seventeen different types of assets. What's to stop most or all of them from running in the same. Downward direction when global markets get thrashed which by the way is a time he really need diversification to work. The markets of yesteryear sing like a lifetime ago. Technology and global intertwined markets have changed things this calls for a different approach one built for the 21 century. And that's what Tony and I want to show you is a retirement plan this bill for the 21 century house looking to an old war to -- the other day. And I solve when Germany invaded Poland. Assault beautiful polish calvary on horses lined up in charging the tanks. With the calvary what they were fighting. The last war. With the wrong weapons and it was an obvious result I think a lot of us are going into retirement with the wrong weapons. But the last war and we'll have disastrous results if you don't make some kind of change. Well the here's the thing. There's a huge difference between a retirement planning and investment plan and once you get to be about fifty years older so we head toward retirement. You you should not even think about yourself as an investor you're really not. You should be thinking of yourself as a saver so here's here's is a word picture for. Think about. Retirement planning easy to stage rocket ship. So that -- stage blasts off that's the accumulation here that's what you're doing when you're twenty and thirty and forty years old. You're accumulating -- a rocket ship it's going up to the atmosphere will it runs out of fuel and you need something to punch you through the last part of the atmosphere and get you up into what's called the exodus here. And that's where the satellites are. And the goal is to get up into the excuse fear and parked yourself up there like a satellite in having happy retirement where you just flowed around and and and circle the earth and enjoy life. That is the deep humiliation or income face -- it is the most important one because it is Philip we'll tell you. Most people run out of money statistically. There's an article and it's real quick says are you flying blind on retirement income planning at a main streets as the number one retirement -- running out of money. But here's a note of caution many financial advisors are flying blind when it comes to assessing where their clients are on track to achieve a sustainable retirement income. According to a survey of US financial advisors. Fielded by our Russell investments in the survey a large majority 81% of advisors say they re -- rely on a total return approach. Well total return approach. T. Rowe Price say it would give you a 71%. Chance of running out of money. Before year while you're still alive -- don't assume that your financial planner really understands. What your retirement needs are. You need to get a second opinion you need to give us a call at 180687676. Say 180687676. Day. Most people don't have a -- -- you might be driving so let me just tell you something if you just do nothing more than Google. Group retirement planners Greenville. In the top five but you're gonna see Philip Allen or Tony day. That's us. And the other three are Muslims we don't. Know until these -- discussion as it. It a year previously five Kyl the two. Alan and Tony dale -- Well the others if I might be fear are just big investment firms that did that -- you'll also find the same guys under a bunch of other headings. So they'll they'll -- that. Anybody can say their. They do retirement planning. We're that's our special that's all we do. Where is these -- -- isn't that what would you want the job we get two major funding -- lifting to do that more abrupt and probably do that but we got it. No we're we're very very focused. We would likely to see what it's like to have insured retirement solutions. To create your own pension. -- right now with all the gains we've had you need to stop loss provision in your contract you know you need a way to lock in those gains. You know we hope for the best and we lock in their gains that we know what it is to be prepared for the worst we want you to be out of the unprotected equities. You know buy and hold -- work and along bear market and hasn't worked the last thirteen years. You need. A different approach. And right now's the perfect time the market is a long in the tooth as we've shared with you there is every belief that at some point down the road -- pretty quickly. The market is going to correct and all of a sudden all of those -- you've gotten over the last 45 years are gonna just -- way. Now is the time to take. It off the table walk away and put it into safe retirement system. That can guarantee you you will not run out of incoming your latter years when you're too -- to do anything about it. Call us. 806876768. The number again 806876768. Go on our web site Philip Allen Pinkett dot com or Tony -- info dot com and find -- more about a split. Come -- and publish had a good day. Got bush.