Latest / WCHS Network Podcasts / 12/22/2025 Retire Right Radio with John Burdette

Transcript

12/22/2025 Retire Right Radio with John Burdette · WCHS Network Podcasts

0:00
Speaker 1: Unlock your dream property with Meeks Realty Group, where Rich
0:03
Speaker 1: the realtor makes real estate dreams a reality, whether it's
0:05
Speaker 1: residential or commercial. We've got Charleston to Huntington covered. Your
0:09
Speaker 1: key to exceptional real estate experience is start here Meeks Realtygroup.
0:13
Speaker 1: Contact us at Meeks dot us.
0:15
Speaker 2: The views and opinions expressed on this program do not
0:18
Speaker 2: necessarily reflect the views and opinions of five eight WCCHS,
0:22
Speaker 2: its employees or WVRC Media. This is Retire Right Radio,
0:27
Speaker 2: a weekly show from John Verdett at Fourth Avenue Financial
0:31
Speaker 2: that aims to answer your questions about financial planning, investing,
0:34
Speaker 2: and how to retire right. Fourth Avenue Financial is located
0:38
Speaker 2: in downtown Charleston at one seventy Court Street. More information
0:42
Speaker 2: online at Fourth Avenue Financial dot com. Join the conversation
0:46
Speaker 2: by calling three oh four three four five fifty eight
0:49
Speaker 2: fifty eight or text three oh four nine three five
0:52
Speaker 2: fifty oh eight. On Retire Right Radio, Let's go lide
0:57
Speaker 2: to the studio with host Dale Cooper and John Verdett
0:59
Speaker 2: from with to have any financial.
1:00
Speaker 3: Feature and her replies to good morning to you. It
1:03
Speaker 3: is twenty one minutes past eight o'clock and it is
1:05
Speaker 3: Monday morning. Are you ready for Christmas? Just a couple
1:08
Speaker 3: of days away from from the big day coming up
1:10
Speaker 3: on Thursday. You are listening to retire RTE Radio and
1:14
Speaker 3: John Burdetta is back in the studio with this morning. John,
1:16
Speaker 3: how are you doing this morning? I'd go great, out standing.
1:18
Speaker 3: Always glad to have you back back on a Monday morning.
1:21
Speaker 3: I was out last week, so it's always nice to
1:23
Speaker 3: be back after a week off and getting things going
1:26
Speaker 3: along the line. You can I give us call this morning.
1:27
Speaker 3: If you like our numbers three zer a four three
1:29
Speaker 3: four five, fifty eight fifty eight, you can have John
1:32
Speaker 3: help you out. You don't want to be shooting in
1:34
Speaker 3: the dark when it comes to planning for your retirement,
1:36
Speaker 3: and you can put a professional on your side. John
1:38
Speaker 3: Burdet can help you out this morning with Fourth Avenue Financial.
1:41
Speaker 3: Threes are A fourth, three four, five, fifty eight fifty eight.
1:42
Speaker 3: If you want to give us a call on line
1:43
Speaker 3: fourth Avenue Financial dot com. You spell out the whole
1:45
Speaker 3: thing fourth Avenue Financial dot com and you can find
1:48
Speaker 3: his web page over there. Do that same search on
1:50
Speaker 3: Facebook and like the page so you can be kept
1:52
Speaker 3: up to date on all the events. You can also
1:53
Speaker 3: text us this morning three zero four non three five
1:55
Speaker 3: five zero zero eight. Luckily I can rely with muscle
1:58
Speaker 3: memory and I remember all those numbers. Okay, that's not
2:00
Speaker 3: so bad. Yeah, that's all right. My last week that
2:02
Speaker 3: I was here working, I was also covering for Hotline
2:05
Speaker 3: in the afternoons, and the separation of numbers was starting
2:09
Speaker 3: to get to me a little bit. I was giving
2:11
Speaker 3: the wrong test line text line number at the wrong
2:13
Speaker 3: show and stuff like that. That happens.
2:15
Speaker 4: We can do taper ones, especially these days, you don't
2:17
Speaker 4: have to remember phone numbers or anything.
2:19
Speaker 3: I mean, that is a good point, because it used
2:20
Speaker 3: to be you'd have to keep all those things sorted.
2:22
Speaker 3: I tell people all the time that if I'm ever
2:24
Speaker 3: in one of those situations where I'm in like a
2:25
Speaker 3: foreign country, and I get hauled off to prison and
2:28
Speaker 3: they take my phone from me and I can only
2:29
Speaker 3: make one call on like a cell phone dangling from
2:31
Speaker 3: outside the prison door, It's going to end up being
2:33
Speaker 3: a guest on one of our programs because those are
2:35
Speaker 3: the only numbers I know because I call them off
2:37
Speaker 3: the time. Just stay out, Yeah, you know, it's actually
2:40
Speaker 3: like you know Tony Creed. You better be waiting for
2:42
Speaker 3: a phone call because I know his number. Jeff ericson
2:44
Speaker 3: from Rota Wire. His numbers really easy to remember. The
2:45
Speaker 3: last four digits is one, two, three four. If if
2:49
Speaker 3: I ever get in problems with jeff Erickson's gonna be
2:51
Speaker 3: rolling out of them and be like, Coop, why are
2:53
Speaker 3: you calling me from Mexico? Anyway you can get to
2:57
Speaker 3: call this morning three z or four three four five,
2:58
Speaker 3: fifty to fifty eight, John. I have to rely on
3:00
Speaker 3: this morning as we take our weekly look back into
3:02
Speaker 3: things that happened last week in the market and kind
3:04
Speaker 3: of where things are settling in. My week away on
3:06
Speaker 3: vacation was literally a vacation. I took a vacation from
3:09
Speaker 3: everything from work, from news, from social media. I didn't
3:12
Speaker 3: really get involved with any of the stuff. So what's
3:13
Speaker 3: going on, man? What happened to the week I was gone?
3:15
Speaker 3: How's the market? How's things going? Whites are on?
3:18
Speaker 4: Yeah, hey, we're still here. You know, last week was
3:21
Speaker 4: a pretty pretty good week. I mean, it was a
3:23
Speaker 4: mixed week, holding steady. So you know, we're coming into
3:27
Speaker 4: the end of the year now with double digit gains
3:29
Speaker 4: and back to back years, and you know that's that's
3:33
Speaker 4: not unheard of. You know, when when you see the
3:35
Speaker 4: news sometimes they use these big words to make it
3:39
Speaker 4: seem like it's unusual. The market does that. It grows
3:42
Speaker 4: in spurts and and it's just because it's been up
3:45
Speaker 4: two years in a row. Doesn't mean next year it
3:48
Speaker 4: can't be up again, because that wouldn't be unprecedented either. Now,
3:54
Speaker 4: looking at valuations, a lot of folks are concerned with
3:56
Speaker 4: that going forward. But if you strip out the text off,
4:00
Speaker 4: the underlying market is still reasonably valued. We're talking fourteen fifteen,
4:04
Speaker 4: sixteen times earnings, which you know in a environment where
4:10
Speaker 4: the economy is still growing, those are pretty fair valuations
4:16
Speaker 4: across the board. So it's just a question of you know,
4:19
Speaker 4: the tech stocks. So we've seen a little bit of
4:22
Speaker 4: for the last couple of months more participation in the
4:25
Speaker 4: broad market. You know, hopefully that continues and that that
4:29
Speaker 4: could propel next year forward. It's hard for me to imagine,
4:33
Speaker 4: of course, you know, I have no crystal ball that
4:37
Speaker 4: those handful of tech stocks are going to keep pulling
4:39
Speaker 4: all the way.
4:40
Speaker 3: Yeah, and you bring up a very good point. I
4:42
Speaker 3: never really thought of it before until you mentioned it,
4:43
Speaker 3: But you can have multiple things being true at the
4:45
Speaker 3: same time. It can be true that maybe some of
4:47
Speaker 3: the AIS stocks are a little overvalued in THEIRS, but
4:49
Speaker 3: that doesn't mean there's a problem with the market as
4:50
Speaker 3: a whole. Like you said, the more traditional stocks and
4:52
Speaker 3: things that are under there are probably fairly valued. So
4:55
Speaker 3: it's a little asymmetric as far as that goes. You
4:57
Speaker 3: can't expect. It doesn't mean one thing doesn't necessarily inform
5:00
Speaker 3: on the other. They're completely siloed to someday.
5:01
Speaker 4: And you know, you could have an environment where even
5:04
Speaker 4: though some things are fairly valued, that you still have
5:08
Speaker 4: a pullback in things.
5:10
Speaker 3: I mean, it's not that.
5:13
Speaker 4: Just because they're fairly valued doesn't mean they can't be
5:16
Speaker 4: more fairly valued. You know. So if you saw a
5:18
Speaker 4: big tech sell off, it might affect the rest of
5:20
Speaker 4: the market for a period of time. But the point is,
5:23
Speaker 4: you know, the bulk of the market that you're buying
5:26
Speaker 4: into is by most measures, still reasonably valued.
5:30
Speaker 3: And I think and that seems like a completely fair Assessmentee.
5:33
Speaker 3: One of the I told you I was I was
5:35
Speaker 3: trying to avoid all news when I was gone, So
5:38
Speaker 3: some of the podcasts and things that I typically listen to. Man,
5:41
Speaker 3: everybody is talking about I mean, of course everybody's talking
5:44
Speaker 3: about a because that's what everyboy's always been talking about.
5:46
Speaker 3: It is like to the point where I just have
5:48
Speaker 3: to push everything off and be like, I'm just I
5:50
Speaker 3: can't listen to this anymore. I mean, I'm familiar with it,
5:53
Speaker 3: I use it. I'm not embarrassed about it to the
5:55
Speaker 3: things I use it for them. But man, the warring
5:57
Speaker 3: factions and the different thing. Man, it's like, can I just, like,
6:01
Speaker 3: you know, get my data correlated and I'll tell you
6:03
Speaker 3: off air about a project that I did just as
6:05
Speaker 3: a hobby while I was on vacation that I thought
6:08
Speaker 3: was really fun. But everybody's talking about it from every perspective.
6:12
Speaker 3: Science podcast talk about economic podcasts we're talking about it.
6:15
Speaker 3: Business podcasts are talking about like the whole spectrum of
6:18
Speaker 3: stuff that I listened to, like are we over evaluated?
6:21
Speaker 3: Is or too much aid? Does the companies really wanted?
6:22
Speaker 3: Is actually really good? On and on and on, which
6:24
Speaker 3: isn't bad? I mean that's how a marketplace is birthed, right,
6:28
Speaker 3: I mean, that's the beginning of a new industry, right right.
6:32
Speaker 4: And and there again, I've stated this before. The real
6:37
Speaker 4: winners are going to be the companies that figure out
6:39
Speaker 4: how to utilize it within their businesses to be more efficient.
6:43
Speaker 4: And when you look at that, just what I said
6:46
Speaker 4: earlier about the relative good valuations on the rest of
6:51
Speaker 4: the market, those are the companies that could take advantage
6:55
Speaker 4: of that potentially to help grow their profits in the future.
6:59
Speaker 4: And so you know, you have a backdrop. Anytime you
7:02
Speaker 4: have innovation, you're gonna have disruption. But over time, just
7:07
Speaker 4: like we've talked about before with COVID and and all
7:09
Speaker 4: these other changes that has happened. You know, businesses try
7:12
Speaker 4: to adapt and and try to become more efficient, and
7:17
Speaker 4: largely they're successful. And that's why we keep plowing, you know,
7:20
Speaker 4: farther ahead over decades and decades.
7:23
Speaker 3: And sometimes there's shooting stars that take up inertia. I mean,
7:27
Speaker 3: I think back to the dot com era. You know,
7:30
Speaker 3: it's easy just to think Google, Google, Google, Amazon now,
7:32
Speaker 3: but that wasn't the case. You know, Asgeves ask, dot Com, Yahoo, Search,
7:36
Speaker 3: things like that were more prevalent for a long time.
7:39
Speaker 3: Amazon was one of the many players, but you also
7:41
Speaker 3: had buy dot Com, half dot Com, all these different places.
7:44
Speaker 3: Is that we're trying to do basically the same thing,
7:46
Speaker 3: and you kind of sort through the ones that that
7:49
Speaker 3: pill away go do other things. I mean, some of
7:52
Speaker 3: these websites actually still exist, they just completely change their
7:54
Speaker 3: business models to some degree and they find other ways
7:57
Speaker 3: to be profitable. Yahoo is a completely different entity now.
7:59
Speaker 3: It's still but as an entity, it's completely different than
8:02
Speaker 3: the than the web one point zero stuff that we
8:04
Speaker 3: were all used to during the dot com era. So,
8:06
Speaker 3: I mean, although Google and Microsoft are huge players in
8:09
Speaker 3: the AI thing and open ai is kind of we
8:11
Speaker 3: don't know who's really going to come through this and
8:13
Speaker 3: be you know, know, the Google of twenty thirty five.
8:16
Speaker 4: I mean, if I actually saw it yesterday, I'm not
8:19
Speaker 4: sure where I saw it, but it was Mark Cuban
8:21
Speaker 4: doing an interview and they were talking about when his
8:25
Speaker 4: was it America Online or something, Yeah, that when that
8:30
Speaker 4: sold at those crazy evaluations. He had like two and
8:34
Speaker 4: a half billion dollars at the time in stock valuation,
8:38
Speaker 4: and he thought, you know, even himself said this seems crazy,
8:45
Speaker 4: and he actually sold his stock and if he had
8:49
Speaker 4: held on just three months, he would it would have
8:53
Speaker 4: gone away completely. Stock went from like three hundred dollars
8:56
Speaker 4: to five dollars. Wow.
8:58
Speaker 3: Wow, imagine that. It's just crazy. Think about it when
9:00
Speaker 3: you when everybody was getting all those uh, when everyone
9:02
Speaker 3: was getting all those CDs in the mail and everything,
9:05
Speaker 3: and this was never want to go away. This company's
9:07
Speaker 3: won't be here forever. Look at all these CDs they
9:08
Speaker 3: can afford to print right else, right and then and
9:11
Speaker 3: then like virtually overnight, I mean I remember when all
9:13
Speaker 3: that happened virtually overnight once the Internet was let out
9:16
Speaker 3: of the box. Basically it used to be you had
9:18
Speaker 3: to go through AOL or something to get your Internet portal,
9:20
Speaker 3: you know, I mean that's how you got online America
9:22
Speaker 3: one line, right. But once they once they took the
9:25
Speaker 3: Internet out of a box, of those places just went away.
9:27
Speaker 3: I mean, nobody needed that front end to the Internet
9:29
Speaker 3: when you could just get on yourself, right right. That's crazy.
9:31
Speaker 3: That's crazy stuff to think about.
9:33
Speaker 4: But you know that's when you speak evaluations and how
9:35
Speaker 4: quickly things can change.
9:36
Speaker 3: You know that that.
9:38
Speaker 4: You know, that was something else that was a good
9:40
Speaker 4: lesson too to He was like, I have two and
9:42
Speaker 4: a half billion dollars right now, that's plenty of money
9:46
Speaker 4: right at that at risk.
9:48
Speaker 3: Well, why don't I, Why don't I cash out on
9:49
Speaker 3: that now while while things are really good, that all
9:51
Speaker 3: brings up, that all brings up a good point and
9:53
Speaker 3: and the way these things can be informed. It just
9:55
Speaker 3: it just goes to show you that that number one,
9:58
Speaker 3: what what you talk about a lot on this program
10:00
Speaker 3: when you look at the companies that have been doing
10:02
Speaker 3: things for long periods of time, that have been creating
10:05
Speaker 3: profit for other people and finding ways to innovate in
10:07
Speaker 3: the industry and stuff like that. I mean, somebody will
10:09
Speaker 3: sort the AI stuff out. There'll be companies in the
10:12
Speaker 3: future that are going to be you know, kind of
10:13
Speaker 3: the bellwethers of that and stuff like that. There's no doubt.
10:15
Speaker 3: But there are companies that exist doing that now. They're
10:17
Speaker 3: just not an AI necessarily. I mean, you can find
10:19
Speaker 3: your I mean, you have your risk reward there, but
10:21
Speaker 3: you can still plan the rest of your financial life
10:24
Speaker 3: just like we always have.
10:25
Speaker 4: Sure, and if you're broadly diversified and the lesson that
10:29
Speaker 4: for Mark Cuban. If you're broadly diversified, you know, you
10:33
Speaker 4: don't need to chase everything. You know, stay diversified. Think
10:38
Speaker 4: about yourself the things that you can control. Think about
10:41
Speaker 4: your tom horizons and the goals that you have and
10:43
Speaker 4: then build that portfolio. It really comes back to what
10:48
Speaker 4: we talk about a lot, and that's that's your your
10:51
Speaker 4: temperament and your ability to step outside yourself and analyze
10:57
Speaker 4: the situation. And a lot of people have trouble doing that.
11:00
Speaker 4: It's that fear and the greed, you know that that
11:02
Speaker 4: seeps in and and and there again. I think that's
11:06
Speaker 4: what an advisor can bring to the table that here,
11:09
Speaker 4: here's another set of eyes separate from you and the
11:12
Speaker 4: emotions that you might hold, or the biases or previous
11:16
Speaker 4: experiences you've had, and and just look at it and say, hey,
11:20
Speaker 4: this is what we're trying to accomplish, and these are
11:22
Speaker 4: the tools to get there. And and you know, and
11:27
Speaker 4: Mark Cuban and our example was was able to do that.
11:30
Speaker 4: But most people, you know, even myself, it's it's hard
11:34
Speaker 4: sometimes to make those good decisions when it's you know,
11:39
Speaker 4: when you're internalizing it.
11:40
Speaker 3: Yeah, everybody has a bias, even if you try not
11:42
Speaker 3: to be biased. So everybody's want to have, you know,
11:46
Speaker 3: live different life experiences and things like that that even
11:48
Speaker 3: if you try not to be cognitively bias they're still
11:50
Speaker 3: going to be cognitively biased. One thing about Mark Cuban,
11:53
Speaker 3: not that that matters much anything, but I find it
11:55
Speaker 3: kind of interesting about the cat is that I think
11:57
Speaker 3: he's truly is authentic to himself, Like he makes everybody mad,
12:02
Speaker 3: you know, like as far as like political parties or
12:05
Speaker 3: anything else, he tends to make everybody mad. And he
12:08
Speaker 3: doesn't seem to say things for performative reasons. He seems
12:10
Speaker 3: to just I mean, you may not agree with what
12:12
Speaker 3: he says, but he seems to actually say what he
12:14
Speaker 3: thinks and not what he thinks people want to hear
12:15
Speaker 3: him say. And there's so few people like that anymore.
12:19
Speaker 3: It's kind of nice, you know. I don't necessarily always
12:21
Speaker 3: like the things he has to say or anything, but
12:23
Speaker 3: always appreciate his perspective because I know that he's being
12:25
Speaker 3: honest at least about his perspective, and that's a valuable
12:28
Speaker 3: perspective from somebody in his situation. And to know that
12:30
Speaker 3: they're being honest about and not trying to pretend that
12:33
Speaker 3: something else, there's some value in that. Sometimes. I think,
12:35
Speaker 3: you know, John Berdad is here with us. You can
12:37
Speaker 3: give us a call this morning if you want to
12:39
Speaker 3: steer your retirement just a little bit. Find out how
12:41
Speaker 3: you can retire right. Maybe you're wondering how to get
12:43
Speaker 3: the debt snowball going for you. That's something that you
12:46
Speaker 3: can use to get out from under your debts. And
12:48
Speaker 3: I hate to say it at this time of year.
12:49
Speaker 3: I was just talking to somebody yesterday and no judgment,
12:53
Speaker 3: just in keeping my ears open in a conversation. I
12:56
Speaker 3: know that they were charging a bunch of their Christmas
12:58
Speaker 3: presents on a credit card because they we struggling about
13:00
Speaker 3: how they were going to pay it off. And I'm
13:01
Speaker 3: thinking to myself, man, I have been in this situation recently,
13:05
Speaker 3: like in the last twenty years, where I just didn't
13:06
Speaker 3: buy anybody anything for Christmas because I didn't have any money.
13:09
Speaker 3: I mean, sometimes it is what it is, man. So
13:13
Speaker 3: if you have any questions about that, how you can
13:15
Speaker 3: maybe keep out from under problems that you're building around
13:17
Speaker 3: Christmas time. Maybe that has nothing to do with it,
13:19
Speaker 3: and you're just wondering how you can get started or
13:21
Speaker 3: how you can fine tune your retirement plan. You can
13:23
Speaker 3: give us a call this morning or a text. You
13:24
Speaker 3: can call three zer a four three four five fifty
13:26
Speaker 3: eight fifty eight. Threes are A four three four five
13:28
Speaker 3: fifty fifty eight. You can also text threes are A
13:30
Speaker 3: four non three five five zeros, er eight three zer
13:32
Speaker 3: a four non, three five five zeros or eight. Obviously,
13:35
Speaker 3: this time of year you're not a tax advisor, of course,
13:37
Speaker 3: but this time of year is you really need to
13:40
Speaker 3: keep things together if you're going to go into charitable
13:42
Speaker 3: donations and things like that, because this is when people
13:45
Speaker 3: usually open up, you know, they see the struggles and
13:48
Speaker 3: things like that, and so you start getting into things
13:50
Speaker 3: like that, and so that plays into part of like
13:52
Speaker 3: when you're doing your financial planning and you're working with
13:54
Speaker 3: your financial planner and maybe you're accountant and things like that.
13:57
Speaker 3: Those are things because you might forget. I mean, we
13:59
Speaker 3: have people that on things that we do. We offer,
14:01
Speaker 3: you know, receipts and stuff when people bring things behind
14:03
Speaker 3: things like that, and a lot of people are just
14:05
Speaker 3: kind of wave it off. And of course, I think,
14:06
Speaker 3: again I'm not a tax expert. You have to go
14:08
Speaker 3: over certain deductions anyway for that stuff to matter. But
14:12
Speaker 3: be sure you keep that stuff in mind because those
14:14
Speaker 3: can be an important part of your strategy at the
14:16
Speaker 3: end of the year. Regardless of what you're doing when
14:18
Speaker 3: it comes to planning.
14:19
Speaker 4: Right, And there's some there are some things that I
14:23
Speaker 4: don't think everybody really knows about. I think more so
14:26
Speaker 4: now than in the recent past. But so I think
14:30
Speaker 4: it's it's becoming more common. But the rmds that you
14:34
Speaker 4: have to take after you're seventy three, oh yeah, you know,
14:37
Speaker 4: the government's forcing you to take that and pay taxes
14:40
Speaker 4: on that. They also allow you to do what's called
14:43
Speaker 4: a QCD qualified charitable distribution. So in lieu of the
14:49
Speaker 4: RMD that's taxable, you could donate that money to a
14:52
Speaker 4: charity and it's tax free, so that nobody pays the
14:57
Speaker 4: tax on that. So, for instance, and let's say you're
15:01
Speaker 4: you're taking your distributions and you don't really need those
15:04
Speaker 4: distributions to spend because it wasn't in your budget before.
15:08
Speaker 4: Now the government's just forcing that money out. And let's
15:11
Speaker 4: say you were already tithing to your church or giving
15:14
Speaker 4: to some organization charitable organization. Well, instead of taking that
15:19
Speaker 4: money out of your retirement plan and paying taxes on it,
15:22
Speaker 4: now you can direct it straight to the charity and
15:25
Speaker 4: hope and you get that tax savings.
15:28
Speaker 3: What a great, what a great idea. Yeah, I mean,
15:30
Speaker 3: and and for people again, if you're if that's a
15:32
Speaker 3: strategy that you have and you do tie either or
15:34
Speaker 3: you give to something, just work that into your your
15:36
Speaker 3: normal tithing or your normally contributions. And I mean, that's
15:40
Speaker 3: a great little game saver.
15:41
Speaker 4: You know, you could essentially you you either keep more
15:45
Speaker 4: money or the charity gets more money because the Uncle
15:47
Speaker 4: Sam's not in the middle of that transaction.
15:49
Speaker 3: Anytime you can cut out of Uncle Sam. That can't
15:51
Speaker 3: be a bad deal, right, that's not so bad. And
15:54
Speaker 3: just generally speaking, when you're reviewing these types of things,
15:57
Speaker 3: of course, when you get to the end of the year,
15:58
Speaker 3: and we've talked to this about before, everybody kind of
16:02
Speaker 3: feels like that there's deadlines, and there are deadlines. But
16:04
Speaker 3: when it comes to financial planning, there's no particular hard
16:07
Speaker 3: set that people have to worry about for getting things
16:11
Speaker 3: right for twenty twenty six. I mean, there's tax documents,
16:13
Speaker 3: there's different things like that, but for planning for your
16:14
Speaker 3: financial future. You can sit down with you with John
16:17
Speaker 3: Birdebt today or on January fifth, whatever day it is,
16:20
Speaker 3: and they can still put together the plan and start
16:23
Speaker 3: executing and there's no deadlines they're going to miss necessarily anything. No.
16:26
Speaker 4: I mean, you know, at the end of the year.
16:28
Speaker 4: There are a few things with the like tax loss
16:31
Speaker 4: selling things of that nature, and your portfolio that you
16:35
Speaker 4: have the year and deadline, but most things are not
16:37
Speaker 4: like that. Even ira A contributions, you have until you
16:40
Speaker 4: file your taxes next year to bake those contributions for
16:42
Speaker 4: this year, so you've got a little runway there. I
16:46
Speaker 4: think it's just psychologically at the change of the year,
16:48
Speaker 4: people start thinking about, you know, how to move forward,
16:53
Speaker 4: or maybe the mess they've made this year and we
16:54
Speaker 4: need to get that cleaned up. But you know, the
16:59
Speaker 4: time to invent is when you have money, and there's
17:04
Speaker 4: really not a bad time to get you know, walking
17:07
Speaker 4: down the right path. That's good stuff.
17:09
Speaker 3: As always with John Moredebt for Fourth Avenue Financial, why
17:11
Speaker 3: don't we do this, let's take our break, wouldn't we
17:13
Speaker 3: come back. We still have plenty of things we can
17:14
Speaker 3: talk about for you to control the conversation a little bit.
17:16
Speaker 3: If you have any questions for John Burdett about how
17:18
Speaker 3: you can retire right, you can give us a call
17:20
Speaker 3: this morning. Oh wait a minute, we have some questions
17:21
Speaker 3: in here. We'll get to these in just a moment,
17:23
Speaker 3: so hold on tight and we'll get to some of
17:25
Speaker 3: the questions that we that we have that's coming in
17:27
Speaker 3: on the text line. You can send us a question
17:29
Speaker 3: at three zerre four non three five five zero zero
17:31
Speaker 3: eight to three zer a four non three five five
17:32
Speaker 3: zero zero eight, or you can you can give us
17:35
Speaker 3: a call at three zero four three four five fifty
17:37
Speaker 3: fifty eight. Joon Bredet is here from Fourth Avenue Financial.
17:39
Speaker 3: This is retire Right Radio and you can find out
17:41
Speaker 3: more information online at Fourth Avenue Financial dot com or
17:43
Speaker 3: at Facebook Fourth Avenue Financial. We'll take a break and
17:46
Speaker 3: be back after this. I'm Dell Cooper. That's John Burdett.
17:48
Speaker 3: This is five ADWCCHS the Voice of Charleston.
17:50
Speaker 5: Retire Right Radio was sponsored by Fourth Avenue Financial, which
17:53
Speaker 5: is solely responsible for its content. Security is offered through
17:56
Speaker 5: JW CALL Financial Member fent RECIPIIC Investment vice offered through
17:59
Speaker 5: JW coas Advisors Fourth Avenue Financial, jw CL Financial and
18:02
Speaker 5: JWICLE Advisors are unaffiliated entities. The opinions expressed by John
18:06
Speaker 5: Burdett should not be construed as specific investment legal or
18:10
Speaker 5: tax advice. All economic and performance information is historical and
18:13
Speaker 5: not indicative of future results. Investing may involve risk of
18:17
Speaker 5: loss of principle. Any taxes advice on this show is
18:19
Speaker 5: not intended to be used by any person for the
18:21
Speaker 5: purpose of avoiding US federal or state tax penalties that
18:25
Speaker 5: may be imposed on such a person, and each listener
18:27
Speaker 5: should seek advice from their tax advisor or legal console
18:31
Speaker 5: on topics that arise from the show. John Burdett is
18:33
Speaker 5: not providing legal or tax advice. Nothing should be construed
18:36
Speaker 5: as solicitation of an offer to buy securities. This program
18:39
Speaker 5: is sponsored by for the Avenue Financial which is solely
18:42
Speaker 5: responsible for its content.
18:43
Speaker 6: Boats, bikes, Broncos. This holiday season, Discover Charleston with Charleston
18:48
Speaker 6: Riverfrontwater Sports, Charleston's number one river and road adventure company.
18:52
Speaker 6: Pop into our Bronco Raptor for our Christmas lights and
18:54
Speaker 6: holiday tour like no other. Cruise through Holly Jolly Brawley
18:58
Speaker 6: on our premium e bikes, or we have the Ultimate
19:00
Speaker 6: Gift a Kid Safari Adventure. This wildly popular, family friendly
19:04
Speaker 6: river safari includes kids binoculars and activity sheets for NonStop
19:08
Speaker 6: fund book your holiday tour. Or give the gift of
19:11
Speaker 6: adventure today at Charleston Riverfrontwatersports dot com.
19:16
Speaker 4: Bye.
19:16
Speaker 7: Now, I'm sure you recognize that cha chain sound means
19:19
Speaker 7: this is a commercial for fifty fifty Fridays, but this
19:21
Speaker 7: one is a little different. We're always looking for exciting
19:24
Speaker 7: new restaurants and businesses to feature on fifty fifty Fridays,
19:27
Speaker 7: and that's where you come in. Instead of paying cash
19:29
Speaker 7: for your advertising sign your restaurant, we're business up to
19:32
Speaker 7: be featured with fifty fifty Fridays, which will safety money
19:34
Speaker 7: and bring new customers into your location. Just call and
19:37
Speaker 7: ask for Sean at three zero four three four two
19:40
Speaker 7: eighty one thirty one. That's Sean at three zero four,
19:43
Speaker 7: three four two eight one three one.
19:45
Speaker 2: This is retire Rife Radio with John Burdett from Fourth
19:49
Speaker 2: Avenue Financial, taking your calls at three oh four three
19:53
Speaker 2: four five fifty eight fifty eight or texts on three
19:56
Speaker 2: oh four nine three five fifty oh eight.
20:10
Speaker 3: That's about nineteen minutes in the top of the hour.
20:15
Speaker 3: You're listening to retire Right Radio one five awc HS,
20:18
Speaker 3: the Voice of Charleston. John Burdad is in studio with us.
20:21
Speaker 3: This morning is just a few days before Christmas, you
20:22
Speaker 3: can give us a call three zero four three four
20:24
Speaker 3: five fifty eight fifty eight three four five fifty eight
20:26
Speaker 3: fifty eight. You can text over your questions the three
20:28
Speaker 3: zero four non three five five zero zero eight three
20:30
Speaker 3: zero four non three five five zero zero eight right
20:33
Speaker 3: here on retire Right Radio. Before we while we were
20:36
Speaker 3: in the commercial break, I did have some an idea.
20:39
Speaker 3: When I was younger, it was pretty common there would
20:42
Speaker 3: be gifts of you know, sometimes you get like a
20:45
Speaker 3: like a bond that you would hold one to for
20:46
Speaker 3: a while or whatever it might be, and and your
20:49
Speaker 3: grand grandparent would talk to you about, you know, the
20:51
Speaker 3: responsibility that was with it and things like that. I
20:54
Speaker 3: was trying to construct something in the modern day that
20:56
Speaker 3: would work like that, like something that to teach, because
21:00
Speaker 3: we talk about it all the time. I mean sometimes
21:01
Speaker 3: in schools, you know, kids will learn like algebra two
21:05
Speaker 3: or something, but they don't learn how to tell to
21:07
Speaker 3: how to ballot to their bills, you know, how to
21:09
Speaker 3: pay bills, and and I mean, you know that stuff
21:12
Speaker 3: isn't really taught anymore. And then if you take that
21:14
Speaker 3: to the next step and you start talking about the
21:16
Speaker 3: financial market and literacy in the financial market, how does
21:18
Speaker 3: interest work? Things along those lines. I feel like that
21:22
Speaker 3: there's something as parents and as grandparents and things like
21:24
Speaker 3: that that we can do to help along on that
21:25
Speaker 3: those lines, like what can what what what can we
21:27
Speaker 3: give to our child or our grandchild to kind of
21:30
Speaker 3: point them in that direction, Things that we can use
21:32
Speaker 3: that as building blocks to teach them along the way.
21:35
Speaker 4: Right, Well, like you I got saving spons as well
21:38
Speaker 4: for my grammar.
21:38
Speaker 3: Right, but.
21:42
Speaker 4: You know the saving spawns are great, but they're fixed
21:46
Speaker 4: income and Jerry low low interest. What I think is
21:51
Speaker 4: a good idea. Uh, you can open a mutual fund
21:54
Speaker 4: account for for your child, a custodio account, and and
22:00
Speaker 4: give exposure to the market and how the market works.
22:04
Speaker 4: You can see on that mutual fund, for instance, what
22:07
Speaker 4: stocks might be held in there. Oh, look, you on
22:10
Speaker 4: pieces of Nike or McDonald's or you know, businesses that
22:14
Speaker 4: they are familiar with, and it will help help them
22:18
Speaker 4: understand you know that this is not just a number,
22:22
Speaker 4: it's it's something tangible. You know, that's a when somebody
22:24
Speaker 4: buys a Nike shoe, you know you're benefiting from that
22:27
Speaker 4: in some way. And try to make try to bring
22:33
Speaker 4: the the investment or the theme of investment into reality
22:38
Speaker 4: rather than out there in ephemerals somewhere that it's hard
22:41
Speaker 4: to put your finger on. You don't understand why it
22:44
Speaker 4: goes up or down. Well, no, these are businesses, you know,
22:48
Speaker 4: and that's an important lesson. And then also the idea
22:52
Speaker 4: of compound interest. You know, you could look at many
22:57
Speaker 4: of these household name companies and look at charts and
22:59
Speaker 4: see how they've compounded over the years, and see how
23:01
Speaker 4: they've paid dividends over the years, and you know, you
23:05
Speaker 4: can you can think, okay, how how did you know
23:09
Speaker 4: on this chart, how did this one thousand dollars grow
23:11
Speaker 4: to fifty thousand dollars over this period of time? What's
23:14
Speaker 4: compound interest? You know, it's money making money on itself
23:18
Speaker 4: over the years. And there's some things that you know,
23:22
Speaker 4: you know, you could use little analogies, things like that
23:26
Speaker 4: the concept of the penny doubling. You know, would you
23:29
Speaker 4: rather have a million dollars today or a penny that
23:32
Speaker 4: doubles every day for a month, for thirty days. And
23:35
Speaker 4: most people picked the million dollars, not thinking that penny
23:38
Speaker 4: can can grow to more than that. But but the
23:41
Speaker 4: penny's the right answer, you know, I think it's five
23:44
Speaker 4: point three million dollars after thirty days.
23:48
Speaker 3: Why did that happen?
23:49
Speaker 4: Because it compounded on itself, and it's very powerful, and
23:53
Speaker 4: it teaches you a couple lessons. I mean, one, it
23:56
Speaker 4: teaches you how money compounds, but it also teaches you
24:02
Speaker 4: how to delay gratification a little bit, which is also
24:05
Speaker 4: important in that exercise.
24:07
Speaker 3: You know, because.
24:08
Speaker 4: Halfway through that thirty days, I believe it's somewhere around
24:11
Speaker 4: one hundred and fifty dollars is all that penny has
24:13
Speaker 4: grown to one hundred and fifty dollars. If you would
24:16
Speaker 4: have taken that money out and went and bought a
24:17
Speaker 4: pair of those nikes, you wouldn't have been to five
24:21
Speaker 4: point three million dollars. So there are a lot of
24:24
Speaker 4: little tricks you can you can use to try to
24:26
Speaker 4: make it as tangible as possible.
24:29
Speaker 3: I've never been. The closest that I can come to
24:32
Speaker 3: is when I got first got my job and mortgage
24:36
Speaker 3: business back in the late nineties. It was when people
24:38
Speaker 3: were just printing money and there was some ridiculously large
24:41
Speaker 3: paychecks that I was that I got back in the time,
24:44
Speaker 3: and I was, you know, relatively young, man, and so
24:46
Speaker 3: I can look back at that point being like, it'd
24:48
Speaker 3: been nice to have more financial literacy back then. But
24:51
Speaker 3: we're talking to, you know, tens of thousands of dollars,
24:53
Speaker 3: not in the hundreds of thousands of dollars. I've known
24:56
Speaker 3: some people that were in the hundreds of thousands of
24:59
Speaker 3: dollars range that that basically just it evaporated on them,
25:02
Speaker 3: you know, like they've either got inheritance or from a
25:05
Speaker 3: settlement of some sort or something along those lines, and
25:08
Speaker 3: what seemed like overnight, the money just disappeared. And I
25:13
Speaker 3: just feel like that sometimes some people just you just
25:17
Speaker 3: that's not the discipline and there's nothing that you can teach.
25:19
Speaker 3: But also I think that if people understood just how
25:22
Speaker 3: much that money can turn into and what waiting five years,
25:25
Speaker 3: ten years, or you know, segmenting off a portion of
25:27
Speaker 3: it and looking at exactly what would mean for you
25:29
Speaker 3: in the future and understand what that means, I think
25:32
Speaker 3: that would be a more powerful statement than just being like, hey,
25:33
Speaker 3: you don't want to spend it all at once. You know,
25:36
Speaker 3: maybe we shouldn't be telling people not to spend it
25:38
Speaker 3: all at once. It's like, you want to get more money,
25:40
Speaker 3: you don't want to lose all your money at once.
25:42
Speaker 3: A different way to context it because people don't look
25:44
Speaker 3: at it the right way.
25:45
Speaker 4: Yeah, I mean a lot of people, you know, might
25:48
Speaker 4: grow a tomato plant in their yard or on the
25:50
Speaker 4: back porch when it's in season. You know, it's the
25:54
Speaker 4: same thing. You know, if the plant gets those tomatoes
25:57
Speaker 4: and you whack it down the first time, there are
26:02
Speaker 4: no more tomato. But if you wait, you know, it
26:05
Speaker 4: keeps producing, you know, the wrong season and you know,
26:09
Speaker 4: just trying to and then when they produce, you know,
26:13
Speaker 4: then you can you can make more tomato plants, the seeds.
26:16
Speaker 4: You know, it's the same thing. It just it's just
26:19
Speaker 4: compounds and it's a powerful thing. It's why you know
26:24
Speaker 4: banks have all the big buildings right right, and you
26:29
Speaker 4: know you want that compounding. You want that interest coming
26:32
Speaker 4: to you. You don't want to be paying it out,
26:35
Speaker 4: you want to be receiving it. And as quickly as
26:37
Speaker 4: you can get to that side of the ledger, you
26:40
Speaker 4: know you're going to build wealth over time. It's just
26:43
Speaker 4: how it works and money. You know you have it,
26:49
Speaker 4: and if you don't do the right things, it will
26:51
Speaker 4: go away. The rules apply to sports stars that get
26:57
Speaker 4: big contracts, movie stars. You know, all of these lottery winners,
27:03
Speaker 4: why do they go broke? Well, because the rules apply
27:05
Speaker 4: and they don't know the rules, right yeah, and it's
27:08
Speaker 4: you know, and and it's is it their fault? Well,
27:11
Speaker 4: you know, maybe they should have had an advisor, maybe
27:13
Speaker 4: they should have listened to some some people that were
27:15
Speaker 4: trying to give them advice. But but you know, your
27:19
Speaker 4: money will will leave and go live somewhere else where
27:23
Speaker 4: it's treated better.
27:24
Speaker 3: You know, that's a yeah, right, yeah, If you abuse
27:26
Speaker 3: your money, it's going to go, and it's going to leave,
27:28
Speaker 3: it's going to go somewhere else. Yeah, the money money
27:30
Speaker 3: doesn't lie in that way. And you bring up and
27:33
Speaker 3: again this is kind of a great point because it's
27:35
Speaker 3: at the level where even grown adults at professional athlete
27:39
Speaker 3: levels are now having to contract people. And of course
27:43
Speaker 3: we're dealing with lots of money, But what's the difference
27:45
Speaker 3: other than zero's I mean, and I don't mean that
27:46
Speaker 3: to be flippant, but if you have to budget your
27:48
Speaker 3: your life, it's just a matter of decimal places, you know,
27:51
Speaker 3: when on how you're doing it. And and so you
27:54
Speaker 3: find professional athletes out here who have gone all through
27:56
Speaker 3: the rigamarole of becoming a star athlete that suddenly find
27:59
Speaker 3: themselves without the skill to be able to manage their
28:01
Speaker 3: life financially. And so what you see some of the
28:04
Speaker 3: league organizations and players unions and stuff like that, they're
28:06
Speaker 3: putting on classes. They're hiring people to come in and
28:09
Speaker 3: teach these people that are coming to get into the
28:11
Speaker 3: league how to manage their money. I mean, that's great,
28:14
Speaker 3: but why don't they know already?
28:16
Speaker 4: Well, that's true, but yeah, you know, and and there
28:21
Speaker 4: are challenges too with an athlete or a lottery winner
28:25
Speaker 4: in that in the case of the athlete, that's usually
28:29
Speaker 4: a very short window they're earning.
28:30
Speaker 3: That type actly. Yeah.
28:31
Speaker 4: Right, So you know, if you set your expectations of
28:34
Speaker 4: lifestyle up based on that salary and it only lasts
28:38
Speaker 4: five year contract, you know, you're in trouble.
28:41
Speaker 3: You can't I'll be Bobby Pinia. Yeah.
28:44
Speaker 4: But the you know, usually the people that do the
28:47
Speaker 4: best with money are the ones that are you know,
28:52
Speaker 4: above average earners. But they don't have to be, you know,
28:56
Speaker 4: at the extreme high end of earnings. But they do
28:58
Speaker 4: the right thing with money over time, and and their
29:01
Speaker 4: income is durable from their occupation and they just treat
29:07
Speaker 4: it right, and before long it compounds into you know, large,
29:12
Speaker 4: large numbers. And I'm talking about people you know that
29:15
Speaker 4: come into my office. That is surprising how much, even
29:18
Speaker 4: to me sometimes, how much things have compounded for someone
29:21
Speaker 4: that you know, maybe their household income was one hundred
29:24
Speaker 4: or hundred and fifty thousand dollars a year. You know,
29:27
Speaker 4: but if you make that and you live like you
29:29
Speaker 4: make sixty, you know, you're still out there living like
29:33
Speaker 4: the average person. And in ten fifteen thirty years in
29:38
Speaker 4: you know, you can live however you want.
29:40
Speaker 3: Unfortunately, we get a lot and I mean it's not
29:42
Speaker 3: that I haven't been guilty this. We have a lot
29:44
Speaker 3: of people that that don't live like that. They you know,
29:47
Speaker 3: they make one hundred and fifty thousand and they have
29:48
Speaker 3: a two hundred thousand dollars life thousand. You know, that's
29:50
Speaker 3: not gonna work then, and then they get a raise
29:52
Speaker 3: and they start they become a two hundred thousand dollars
29:55
Speaker 3: a household and they start living a two hundred fifty
29:57
Speaker 3: thousand dollars lifestyle. It always pushes the envelope little bit forward,
30:00
Speaker 3: which maybe is what drives the America but also maybe
30:04
Speaker 3: you could just stop at the two hundred thousand dollars
30:06
Speaker 3: spending and then everything else you start getting in at
30:08
Speaker 3: that point, you're setting yourself up for a little bit later.
30:10
Speaker 4: Yeah, it's just understanding that whole process and the give
30:14
Speaker 4: and take of all the decisions you make. You know,
30:17
Speaker 4: if a twenty five year old spends frivolously one thousand
30:21
Speaker 4: dollars on an item, that might have been forty or
30:24
Speaker 4: fifty thousand dollars of retirement money on that one decision.
30:27
Speaker 4: Ouch when you think about when you talk about compounding
30:30
Speaker 4: in the market, So you know, it's just trying to
30:35
Speaker 4: get some perspective on that so that you're making educated
30:38
Speaker 4: decisions when you're parting with your money.
30:40
Speaker 3: I heard a story. It was on a financial podcast
30:43
Speaker 3: a couple of weeks ago, and it sounded apocryphal to me.
30:45
Speaker 3: I don't know that it's actually real, but it seemed
30:48
Speaker 3: to make a lot of sense. And this was a
30:49
Speaker 3: god telling a story about how I think as granddad,
30:53
Speaker 3: they had like a like a some sort of a
30:56
Speaker 3: containerful little pennies, like a big glass jar ful of pennies.
30:58
Speaker 3: It was like like three feet high on the floor
31:00
Speaker 3: or something. Like that just full of pennies. And I
31:03
Speaker 3: think the young boy's grandfather in this story, if it
31:07
Speaker 3: was true, told him that what he was going to
31:09
Speaker 3: do is every day he was going to double the
31:11
Speaker 3: amount of pennies he took out of the jar and
31:12
Speaker 3: put it into another jar. And so first day he
31:14
Speaker 3: took out one penny, next day two pennies for six.
31:16
Speaker 3: You know, he's compounding his interest. And he asked his
31:19
Speaker 3: grandson how long do you think it will take you
31:21
Speaker 3: to do it. It was like, oh, it'll take me at
31:22
Speaker 3: least a year, Paul, or you know whatever it was,
31:24
Speaker 3: and ended up taking m less than a month. And
31:26
Speaker 3: he was like, how did it go so quickly? He's like, sorry,
31:28
Speaker 3: that's the power of compounding interest. I don't know if
31:30
Speaker 3: that's a true story, but in concept, it seems like,
31:33
Speaker 3: oh kind of work. Yeah, you know, I mean that
31:35
Speaker 3: physically that you're moving the coins and you're seeing it
31:37
Speaker 3: move from one place to another. It took you a
31:38
Speaker 3: year to get all the random change thrown in here
31:42
Speaker 3: to fill it up, and then suddenly it's gone in
31:44
Speaker 3: just a couple of weeks. It seems like that that
31:46
Speaker 3: actually might actually work. I think the story was fake, honestly,
31:48
Speaker 3: but it seems like it might work well.
31:51
Speaker 4: You know, sometimes good fable never heard anybody like.
31:55
Speaker 3: I was hearing this. I'm like, man, that's nobody has
31:57
Speaker 3: that perfect of a story. That seems like something it's
32:00
Speaker 3: made up. But at the same time, I was thinking
32:02
Speaker 3: about it, and I was like, you know what, visually,
32:04
Speaker 3: that actually might be quite stark. What kid, could you
32:06
Speaker 3: get to commit to that for a course of time.
32:08
Speaker 3: I don't know, but yeah, it's tough. Yeah, but it
32:10
Speaker 3: does seem like that it would that it would probably
32:12
Speaker 3: work out. So if folks are listening right now, and
32:14
Speaker 3: of course we do this show, by the way, every
32:16
Speaker 3: Monday right here on, I'll retire write your radio on
32:18
Speaker 3: five ADWCHS. You can tune in at eight twenty every
32:21
Speaker 3: Monday morning so you can have your questions ready for John.
32:23
Speaker 3: So you can call in or Texas if you think
32:25
Speaker 3: of something over the course of a week between our shows,
32:27
Speaker 3: you're more than welcome to do that at any time.
32:29
Speaker 3: But if there is somebody out there, maybe they're listening
32:31
Speaker 3: for the first time, or they want to give some
32:32
Speaker 3: advice to a loved one or something like that, and
32:35
Speaker 3: they're in a situation, or know somebody in a situation
32:37
Speaker 3: that just does nothing for the retirement, which is unfortunately
32:42
Speaker 3: relatively common, you know, I mean maybe a four to
32:44
Speaker 3: one k and not much else. Some people don't even
32:46
Speaker 3: do that even when they have the option there. What
32:48
Speaker 3: would be the first step? Call John Burdett, of course,
32:52
Speaker 3: but what do they need to start thinking about as
32:53
Speaker 3: far as as far as that retirement. I think a
32:56
Speaker 3: lot of times people procrastinate because they think it's so hard.
32:58
Speaker 3: They're like, well, I don't want to do all this
33:00
Speaker 3: because it means days of getting all this paperwork together
33:03
Speaker 3: and doing this, and then I don't want it to
33:04
Speaker 3: go through all that.
33:05
Speaker 4: No, it's it's not that difficult. I mean it's certainly
33:07
Speaker 4: any statements that you have are valuable. But initially we're
33:11
Speaker 4: just trying to get an overview of what your financial
33:14
Speaker 4: life looks like. You know, do you have debts, what's
33:17
Speaker 4: your income about? How much money do you have saved currently?
33:20
Speaker 4: What are your goals? When do you want to retire?
33:22
Speaker 4: You know, those big questions that we can then start
33:26
Speaker 4: breaking it down over time and figuring it out so
33:29
Speaker 4: that it's not overwhelming, you know, to be successful financially
33:33
Speaker 4: you have to build the foundation first. So those are
33:36
Speaker 4: the first things that I make sure are in place
33:39
Speaker 4: before you go to full bore investing. You know, do
33:43
Speaker 4: you have consumer debt? If so, you're not going to
33:47
Speaker 4: out earn twenty two percent on a credit card, you know,
33:50
Speaker 4: So before you start doing all this aggressive investing, the
33:55
Speaker 4: best investment is paying that off. Well, if you have
33:58
Speaker 4: credit card debt, the only you're going to solve that
34:01
Speaker 4: is if you first look at your budget, because if
34:04
Speaker 4: you're creating credit card debt, by definition, you're living above
34:07
Speaker 4: your means. And so those things have to be in
34:10
Speaker 4: place for you to be a successful investor. If you
34:13
Speaker 4: skip the step and go into investing, it's inevitable that
34:18
Speaker 4: you'll end up raiding that investment account at some point
34:20
Speaker 4: because the foundation is shaky, it's not built on solid ground.
34:26
Speaker 4: And that is the whole difference in people that are
34:29
Speaker 4: successful with money over time and people who are not.
34:32
Speaker 4: You have to escape that that kind of high interest
34:37
Speaker 4: churning of a month after month on those on those
34:42
Speaker 4: credit card bills, and you have to live below your
34:44
Speaker 4: means to some degree. I mean, you have to live
34:47
Speaker 4: like a pauper. It just means you have to realize
34:49
Speaker 4: the position you're in and live live within that scope.
34:53
Speaker 3: I've made the mistake before. I try to brute force
34:56
Speaker 3: my way into saving. At one point when I was
34:58
Speaker 3: younger and had some money that I locked into not locked,
35:02
Speaker 3: but I put it in a money market account that
35:03
Speaker 3: wasn't And this was back in the early so not
35:05
Speaker 3: everything was related anyway, but I made it harder for
35:08
Speaker 3: me to get to What did I do over the
35:10
Speaker 3: course of the next year, Like I had to work
35:11
Speaker 3: my butt off all the time just to get money
35:13
Speaker 3: out of my money mark account when I needed. You know,
35:15
Speaker 3: I wasn't ready. I wasn't ready. I probably should have
35:18
Speaker 3: paid debt off, you know. You know what I did,
35:20
Speaker 3: and I eventually figured it out how to do it
35:22
Speaker 3: the right way. But I thought, oh, I can save
35:24
Speaker 3: all this money first and then work when paying my
35:26
Speaker 3: debts as I'm going.
35:27
Speaker 4: And it didn't work right, right because if you would
35:29
Speaker 4: have well, even if you would have taken that money
35:32
Speaker 4: and paid all your debts off and and your budget's
35:36
Speaker 4: still broken, you're right back in the situation. So you know,
35:39
Speaker 4: those foundational things, that's what keeps folks from accumulating wealth.
35:43
Speaker 4: You have to have consistently more earnings coming in than
35:48
Speaker 4: going out, no matter what level that earning is.
35:50
Speaker 3: When when I got to zero debt, the way that
35:52
Speaker 3: I was able to do it, I was a business
35:53
Speaker 3: owner at the time, and we had a secondary location
35:56
Speaker 3: that was a warehouse that was a commercial location, but
36:00
Speaker 3: with shelves of books created walls and rooms in the
36:05
Speaker 3: warehouse and I basically lived in the warehouse for a
36:07
Speaker 3: couple of years. Right. It was actually kind of neat,
36:10
Speaker 3: but it didn't have all the modern conveniences. But I
36:12
Speaker 3: had zero other overhead, no living at spence overhead. It
36:15
Speaker 3: was the same overhead that my business had, and that
36:16
Speaker 3: enabled me to really buckle down and to pay off
36:19
Speaker 3: all my debts. I didn't have to worry about most
36:21
Speaker 3: of my other expenses and it worked, you know. And
36:22
Speaker 3: after that I went out and got a house and
36:24
Speaker 3: everything was fine. But that's what allowed me to do that.
36:26
Speaker 3: It was a little extreme, I mean, living in bookshelves
36:29
Speaker 3: is a little bit extreme, to be honest with I mean,
36:31
Speaker 3: we had a living room, but it was just built
36:33
Speaker 3: with walls of books. For the most part, I.
36:35
Speaker 4: Would think that place would be been haunted or something
36:37
Speaker 4: with all those old books around.
36:39
Speaker 3: Oh, man, it was in It was in the crazy
36:41
Speaker 3: thing about. It was in the industrial side of Jackson,
36:44
Speaker 3: Michigan is where the warehouse side. So you'd crossed the
36:46
Speaker 3: tracks and it was in this big industrial area right
36:48
Speaker 3: next to the river, and there was like the sludge
36:50
Speaker 3: going down the river. And so in my warehouse was
36:53
Speaker 3: right on the on a tributary to the river. So
36:55
Speaker 3: you would go outside and there was like the smelly
36:58
Speaker 3: river going out in front of them, and it was
36:59
Speaker 3: like an industrial wasteland. But man, it didn't cost me
37:01
Speaker 3: any money to live other than my business expences, so
37:04
Speaker 3: it ended up working out all right. I felt like
37:06
Speaker 3: it was my villain layer, you know. It was like
37:08
Speaker 3: that was my secret villain layer.
37:09
Speaker 4: Hey, however, you have to you know, make the mind work.
37:12
Speaker 2: You know.
37:13
Speaker 3: But the bottom line is I had to take extreme measures.
37:15
Speaker 3: You know. I was in a situation and not everybody
37:17
Speaker 3: has that kind of ability. But I realized that I
37:20
Speaker 3: had to live more asterly than what I actually was
37:22
Speaker 3: because there was no way living the way that I
37:24
Speaker 3: was that I was awa able to pay off my debt.
37:26
Speaker 3: So that's what I Because the debt.
37:27
Speaker 4: Is, like you say, the debt is the sign that
37:29
Speaker 4: you lived beyond what you could afford to live, and
37:32
Speaker 4: so not only now do you have to pay off
37:34
Speaker 4: that debt, but now you also have to live below
37:37
Speaker 4: where your your means are.
37:40
Speaker 3: Or you'll be right back in the situation.
37:42
Speaker 4: And it's you know, it's simple math and it's not
37:46
Speaker 4: hard to see the process, but it's life, so it
37:50
Speaker 4: can be difficult, particularly if you don't have somebody working
37:53
Speaker 4: with you and giding you through that.
37:55
Speaker 3: It's sage advice as always with Jobber debt for Fourth
37:58
Speaker 3: Avenue Financial. Before you get out here, Christmas, you and
38:00
Speaker 3: your family. We'll see you back on the other side.
38:02
Speaker 4: It's Tom.
38:03
Speaker 3: Yeah, I guess it is man. We'll see you back
38:05
Speaker 3: just before the new year. I guess right. Yeah. Take care.
38:06
Speaker 3: That's Joenre dett Form furth Avenue Financial Online, Fourth Avenue
38:09
Speaker 3: Financial dot com. Fourth Avenue Financial dot Com. You can
38:12
Speaker 3: find them on Facebook as well at Fourth Avenue Financial
38:15
Speaker 3: due that search phone number. Threes are A four seven
38:17
Speaker 3: four six seven non seven seven threes are A four
38:19
Speaker 3: seven four six seven none seven seven. Dave Allen is
38:22
Speaker 3: up next on on five eighty Live. I'll leave back
38:24
Speaker 3: this afternoon with Dave Weekly. We're back together for the
38:26
Speaker 3: first time in three weeks. Tune in, won't you at
38:29
Speaker 3: three oh six. Have a great day everyone On five
38:30
Speaker 3: ad w CCHS, where the Boys of Charleston.
38:41
Speaker 2: Fighting AWSAWT six point five, Charleston one oh four point
38:45
Speaker 2: five Cross Lane on WVRC Media Station. We're proud to
38:51
Speaker 2: live here too,