Latest / WCHS Network Podcasts / 07/27/2026 Retire Right Radio with John Burdette

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07/27/2026 Retire Right Radio with John Burdette · WCHS Network Podcasts

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Speaker 1: The views and opinions expressed on this program do not
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Speaker 1: necessarily reflect the views and opinions of five ADWCHS, its employees,
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Speaker 1: or WVRC Media. This is retire Right Radio, a weekly
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Speaker 1: show from John Verdett at Fourth Avenue Financial that aims
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Speaker 1: to answer your questions about financial planning, investing, and how
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Speaker 1: to retire right. Fourth Avenue Financial is located in downtown
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Speaker 1: Charleston at one seventy Court Street. More information online at
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Speaker 1: Fourth Avenue Financial dot com. Join the conversation by calling
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Speaker 1: three oh four three four five fifty eight fifty eight
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Speaker 1: or text three oh four nine three five fifty oh
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Speaker 1: eight On retire Right Radio, Let's go live to the
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Speaker 1: studio with host Dale Cooper and John Verdett from Fourth
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Speaker 1: Avenue Financial.
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Speaker 2: HSS and very pleasant, good Monday morning too.
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Speaker 3: Here you're listening to retire Right Radio one, five ADWCHS,
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Speaker 3: the voice of Charleston on del Cooper, thanks for tuning
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Speaker 3: in on this Monday after coming through, uh, what was
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Speaker 3: a pretty decent weekend in Mconnall Valley, Greater Charleston area
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Speaker 3: here that we just came through, and John Burdett is
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Speaker 3: here ready to kick off our Monday morning with us.
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Speaker 2: John, Good morning, how you doing this morning.
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Speaker 4: I'm doing great, trying to catch my breath. I was
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Speaker 4: a little late coming in and I felt like oja
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Speaker 4: through the airport, you know that's jumping the.
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Speaker 3: Better that than through the driveway, I guess. Welcome into
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Speaker 3: retire Right Radio. John Bredett is here from Fourth Avenue Financial,
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Speaker 3: helping you to demystify the retirement scenario just a little bit.
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Speaker 3: You can put the money to work for you, your
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Speaker 3: investment money from your employment. You can put that to
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Speaker 3: work for you for your retirement if you haven't done
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Speaker 3: it yet, This is a good place to start. Today's
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Speaker 3: the next best day other than when you first got
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Speaker 3: your job, in order to start building for your retirement
1:43
Speaker 3: in John's here to help kind of pick through some
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Speaker 3: of that to help you on your way. We always
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Speaker 3: start to day talking about the headlines and what's going
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Speaker 3: on with the market, and then we spend a few
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Speaker 3: minutes telling you why that doesn't matter so much, because
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Speaker 3: that's that's kind of the truth of the matter. But
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Speaker 3: there's a lot of things going going and the first
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Speaker 3: job that we have to do well job John's first
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Speaker 3: job to do is just to explain what's going on
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Speaker 3: and then and what that may or may not mean
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Speaker 3: for you. So it was another big week for things
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Speaker 3: along those lines. But first of all, John, how you
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Speaker 3: doing Everything going all right?
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Speaker 4: I'm doing great?
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Speaker 2: Yeah, it was I know. That was a nice weekend
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Speaker 2: last week.
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Speaker 3: We ended up, of course, on Friday, we had a
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Speaker 3: big drive to gather supplies and funds for the folks
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Speaker 3: in the flood ravaged counties in West Virginia. That was
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Speaker 3: a huge success that we had out of here Monday,
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Speaker 3: we'll have more information you've heard some of the morning news,
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Speaker 3: but we've had. We had many trucks that left out
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Speaker 3: of here on Friday, several thousand dollars that were donated.
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Speaker 3: So it was a good, good end of the week
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Speaker 3: for some tragedy that happened, it was good to be
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Speaker 3: able to help our neighbors. So that was a good
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Speaker 3: way to kind of get into the weekend a little bit.
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Speaker 3: It's always nice to be able to do that. But
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Speaker 3: let's talk a little bit about the market, what's going
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Speaker 3: on and what things are probably what people are probably
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Speaker 3: going to run into this week. First of all, I
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Speaker 3: guess the Fed to meeting this week, So folks are
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Speaker 3: always kind of interested in how that plays out.
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Speaker 4: I guess probably no interest rate change, so the focus
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Speaker 4: will be on what is said. You know, are we
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Speaker 4: really the bond market's almost pricing in a rate hike,
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Speaker 4: which is totally opposite of what we were talking about
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Speaker 4: six months ago. But we'll see. I don't think that's
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Speaker 4: going to be anytime soon, but you know, Tom will
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Speaker 4: tell you know, last week kind of transpired the way
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Speaker 4: we talked. Monday. We had some tech earnings out and
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Speaker 4: the earnings numbers were okay, but the cap x the
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Speaker 4: expenditures that these companies make and kind of spook to
3:39
Speaker 4: the market, and you have that rotation we talked about
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Speaker 4: last week still happening. The tech stocks, the Magnificent seven
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Speaker 4: were down last week about five point six percent, but
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Speaker 4: the market itself was only down zero point six percent.
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Speaker 4: So you know, that means there are other things in
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Speaker 4: the market that we're doing well. As the tech stocks
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Speaker 4: were selling off, that money was flowing elsewhere. It wasn't
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Speaker 4: getting out of the market. It's just moving and shifting
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Speaker 4: within the market.
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Speaker 2: It was pretty interesting.
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Speaker 3: I was trying to read a little bit on this,
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Speaker 3: and of course, being a layperson, just trying to understand
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Speaker 3: sort of what these things mean. But and you just
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Speaker 3: explained it very well. From what I just read, it's
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Speaker 3: almost like the text stocks were punished just a little
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Speaker 3: bit because although they beat reportings, they have a negative
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Speaker 3: free cash flow and their capital expenditures. It just looks
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Speaker 3: out of whack because of all the investment that's going
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Speaker 3: into things without any clear near profit agenda that's in line.
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Speaker 3: So it really looks like, yeah, you're making like the
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Speaker 3: revenues coming in and you're beating expectation, but what exactly
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Speaker 3: we do in here? It sort of feels like the
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Speaker 3: beat from that.
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Speaker 4: Yeah, So it's you know essentially, and I think it's
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Speaker 4: healthy to be doing this rather than you know, having
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Speaker 4: these companies continue to run forward and blindly money being
4:51
Speaker 4: thrown at them. So it's almost like the market is
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Speaker 4: pumping the brakes a little bit and saying, Okay, wait
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Speaker 4: a second, we're spending all this money. What are we
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Speaker 4: going to get out of the When are we going
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Speaker 4: to get it out of it? And let's be a
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Speaker 4: little more cautious going forward to how we spend this money.
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Speaker 4: You know, that's really the signal that the market is
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Speaker 4: sending these companies and well, you know, we'll see how
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Speaker 4: that plays out. But really that process is healthy, I
5:18
Speaker 4: mean not. You know, it doesn't feel good if you're
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Speaker 4: tech heavy, which you should not be if you're in
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Speaker 4: a diversified portfolio, particularly close to retirement. But you know,
5:28
Speaker 4: I know a lot of people are tech heavy, and
5:32
Speaker 4: this is a great example of of of why you
5:35
Speaker 4: want to have that diversification, particularly if you're drawing money
5:40
Speaker 4: out of the out of the retirement funds.
5:43
Speaker 3: And I was I was reading some data with folks
5:45
Speaker 3: that were making some like estimates on what a what
5:49
Speaker 3: a investor maybe five or six years ago looks like.
5:52
Speaker 3: And this is a great example of why somebody might
5:54
Speaker 3: need rebalancing or something like that, because if you are
5:56
Speaker 3: making certain investments five or six years ago in the
5:58
Speaker 3: way things looked, could be a little bit unbalanced on
6:01
Speaker 3: the way your your holdings are are right now, you
6:04
Speaker 3: could be you could be too far into one one
6:06
Speaker 3: way or the other. So it's always a good opportunity
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Speaker 3: to kind of take a look and make sure that
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Speaker 3: you're balanced on what you're investing in, that it aligns
6:13
Speaker 3: with what your what your.
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Speaker 2: Risk and reward scenario is and things along those lines.
6:18
Speaker 4: Sure and when you started out, you might have had
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Speaker 4: a great balance. But over the last four or five years,
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Speaker 4: what's happened. The tech stocks have become a larger percentage
6:27
Speaker 4: of your portfolio. If you haven't rebalanced over the years,
6:31
Speaker 4: if you just kind of let it, let it roll,
6:33
Speaker 4: which benefited you. But now what is your position? Well,
6:37
Speaker 4: now you're five years closer to retirement when you should
6:39
Speaker 4: be more conservative, but your portfolio is concentrated in the
6:44
Speaker 4: growth areas that can be more volatile. So, uh, you know,
6:48
Speaker 4: what seemed like a good thing and now has put
6:50
Speaker 4: you in a position where you may be farther out
6:53
Speaker 4: of alignment than you think you are because of that.
6:57
Speaker 4: And you know the old saying the the what's the
7:01
Speaker 4: most dangerous time when you're climbing a mountain, It's not
7:05
Speaker 4: when you're going to the peak, it's when you're descending there,
7:07
Speaker 4: right when most of the accidents and deaths in in
7:10
Speaker 4: in mountain climbing happened. And it's really the same thing
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Speaker 4: in retirement. You know, you build that big pool of
7:16
Speaker 4: money and now what how do you turn that to income?
7:20
Speaker 4: How do you manage that properly in retirement? And it
7:23
Speaker 4: requires different strategies, and you just have to be cautious,
7:27
Speaker 4: particularly as that tome horizon narrows between you saving and
7:33
Speaker 4: you drawing out.
7:35
Speaker 3: I think that there's been there's been several different narratives
7:38
Speaker 3: that have been kind of illustrative of some of strategies
7:41
Speaker 3: to take to not to take. Why you might need,
7:43
Speaker 3: you know, somebody a professional counsel with someone. I've known
7:47
Speaker 3: several people. We don't get into particular stocks here, but
7:51
Speaker 3: I've known several people that have that took a little
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Speaker 3: bit of a flyer on a like an I p O.
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Speaker 2: You know, like that that was.
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Speaker 4: That was going to the moon.
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Speaker 3: Yeah, like literally correct, yes, and and uh and frankly,
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Speaker 3: I know a lot of people that are a little
8:05
Speaker 3: clutching their purses a little bit over it now because
8:08
Speaker 3: things didn't go quite all that well.
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Speaker 4: It's interesting on that particular stock in my office the
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Speaker 4: week of that, the day of that PO, I was
8:21
Speaker 4: getting calage right and left people wanting to buy that
8:24
Speaker 4: not a PO and it was going up, and I
8:27
Speaker 4: would ask questions like, well, what what do you want
8:30
Speaker 4: to pay for it? Just whatever? You know, people didn't
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Speaker 4: even care, which is a concern if you don't care
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Speaker 4: what you're paying for a company, and the stock was
8:41
Speaker 4: you know, one fifty one, sixty one, seventy and on
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Speaker 4: and up.
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Speaker 2: Is that why?
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Speaker 3: Though? It was because because people that I don't want
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Speaker 3: to say, didn't know any better that people without a
8:51
Speaker 3: without a ceiling, were like, yeah, I'll just pay whatever
8:52
Speaker 3: for it.
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Speaker 2: Is that the reason? I mean? Was it like a
8:54
Speaker 2: self fulfilling prophecy?
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Speaker 4: Absolutely? And and so what I find interesting now that
8:59
Speaker 4: it's what one ten or something like that, it's about
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Speaker 4: half of it's high. Nobody's calling, well, you know, nobody's
9:07
Speaker 4: calling and and and you know you would think if
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Speaker 4: you were really understood the company and were bullish, now
9:14
Speaker 4: would be the time you would call, not when it
9:16
Speaker 4: was double the price.
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Speaker 2: Right.
9:18
Speaker 4: But that's how the psychology of of the market is
9:22
Speaker 4: a great example, and that's why it's so difficult to
9:26
Speaker 4: manage your own portfolio as you particularly as you get
9:28
Speaker 4: close to retirement, because the time horizon short, all the
9:32
Speaker 4: decisions you make are are much more impactful. And because
9:37
Speaker 4: of all those things, your emotional u the contributor of
9:42
Speaker 4: emotions to those decisions is greater because it's more important
9:46
Speaker 4: you're living off of it now when you see it
9:49
Speaker 4: go down. It can impact your your life, and it's
9:53
Speaker 4: just all of those things you just have to be
9:55
Speaker 4: aware of as you as you change those stages of life.
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Speaker 3: I know somebody who is very educated, not not a professional,
10:03
Speaker 3: but very educated, takes care of his own portfolio and
10:05
Speaker 3: everything and has done very well for himself. He'll retire
10:07
Speaker 3: very well, there's not much of a problem with that.
10:09
Speaker 3: But boy, he has buyer's remorse, and and and he
10:13
Speaker 3: went against recommendations as well from from professionals that that
10:18
Speaker 3: he had consulted, and found himself seriously upside down on
10:21
Speaker 3: this on this I po And so that's just one
10:23
Speaker 3: of those. And it was completely an emotional you know, it.
10:27
Speaker 4: Was fear of missing out exactly true, It's what it was.
10:30
Speaker 4: It's like, well, what if this does triple or a quadruple,
10:32
Speaker 4: I'm gonna feel bad that I didn't get in on it.
10:35
Speaker 4: And you know, usually when things like that are are
10:39
Speaker 4: going down, you know, there's too much emotion involved, so
10:44
Speaker 4: the price isn't always the best. You know, when you're
10:49
Speaker 4: buying a stock, buying an investment, you're buying a real company.
10:53
Speaker 4: You're a piece owning a piece of that company. In
10:56
Speaker 4: the in the price you pay for that stock is
10:58
Speaker 4: how much that company is worth. You know, you have
11:02
Speaker 4: to evaluate it. Know what you own. It's not just
11:04
Speaker 4: a name, it's a real company. And if you don't
11:09
Speaker 4: really understand what you're buying and what you're paying for it,
11:12
Speaker 4: and why you're paying that number for it, you know
11:16
Speaker 4: you should back away and do a little more, put
11:18
Speaker 4: a little more thought into it.
11:20
Speaker 2: Yeah.
11:21
Speaker 3: Uh saves advice from John Bradept from Fourth Avenue a
11:23
Speaker 3: financial because that's uh, you always want to approach things
11:26
Speaker 3: about as soberly as you possibly can. And just some
11:29
Speaker 3: recent headlines that that have taught some of those things
11:32
Speaker 3: as far as uh, you know, sort of sexy new
11:34
Speaker 3: IPOs that get launched. Uh, you know, listen to the experts,
11:37
Speaker 3: because there was a lot of experts on that thing
11:39
Speaker 3: that that was cautioning. You know, it was not a
11:42
Speaker 3: surprise what happened if you listen to the people that
11:44
Speaker 3: that kind of know, they they gave this, they gave
11:47
Speaker 3: this warning right from the very beginning.
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Speaker 2: Yep.
11:49
Speaker 4: Yeah, I mean, you know, when something is priced at trillions,
11:54
Speaker 4: you know there better be some some good hard numbers underneath.
11:58
Speaker 3: And we talked, we opened up show talking about the
12:00
Speaker 3: FED meeting and and what that may or may not be.
12:03
Speaker 3: And I find that to be kind of an interesting thing,
12:05
Speaker 3: just because we've had recent changes and it seems like,
12:08
Speaker 3: you know, there, I guess there's like a board that
12:10
Speaker 3: votes on these things, and it seems like that that
12:11
Speaker 3: like there's a lot of clashing that's going on there
12:13
Speaker 3: right now. So and frankly, that feels like a good
12:16
Speaker 3: thing as a lay person, that feels like, you know,
12:19
Speaker 3: I want people debating this, and you know, for it
12:22
Speaker 3: not to be like you know, seven to one way
12:24
Speaker 3: and zero there or whatever it might be.
12:25
Speaker 2: I want there to be some robust debate on that.
12:27
Speaker 2: I guess sure.
12:28
Speaker 4: And and you know it's funny too that all the
12:30
Speaker 4: hooplah over that change, you know, nothing, nothing really has
12:35
Speaker 4: happened as far as far as that goes. So there again,
12:39
Speaker 4: you know, if you get too caught up in headlines,
12:40
Speaker 4: it can make you make decisions that you know, maybe
12:44
Speaker 4: aren't the right thing to do. Same thing with the
12:48
Speaker 4: with the with the war. Last Thursday or Friday, it
12:51
Speaker 4: was war on and and now this morning it's war off.
12:54
Speaker 4: And you know, how do you plan around that? Well,
12:59
Speaker 4: you know, you can't. You just can't. You've got to
13:03
Speaker 4: focus on what's important to you. How you're allocated doesn't
13:07
Speaker 4: match up with that, and and and try to put
13:10
Speaker 4: a put those things in the in the background, even
13:13
Speaker 4: though it's pounded into you every time you open your
13:16
Speaker 4: phone or turn on your TV. You know, you just
13:21
Speaker 4: have to focus on what you could control. And certainly
13:25
Speaker 4: when it comes to that, and there's no way we're
13:27
Speaker 4: controlling it, right, yeah, you know, And and from one
13:31
Speaker 4: day that an X, it's it's just a different news story.
13:34
Speaker 4: I mean, oil was up to one hundred dollars a
13:37
Speaker 4: barrel and now it's below ninety this morning last time
13:40
Speaker 4: I checked. And you know, that's a pretty wide swing
13:43
Speaker 4: over a weekend.
13:44
Speaker 3: Yeah, it's it's weird, and uh, call me skeptical, but
13:49
Speaker 3: it always seems to be driven by purposely placed headlines.
13:52
Speaker 3: Right going into the weekend, it's one thing. Coming out
13:54
Speaker 3: on Monday, it's another thing. And it's been that way
13:56
Speaker 3: for like like twelve weeks now.
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Speaker 2: It's it's a very.
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Speaker 3: Odd thing that we fall for the say, or we
14:03
Speaker 3: sort of believe the thing on Friday every single week,
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Speaker 3: and on Monday it always ends up not being true.
14:07
Speaker 3: That's a really weird thing where we keep on stepping
14:10
Speaker 3: on the same rate.
14:11
Speaker 4: It feels like, yeah, you wonder well, I don't want
14:15
Speaker 4: to get into yeah, I know, but you know some
14:20
Speaker 4: of these poly bets.
14:21
Speaker 2: There are people that.
14:24
Speaker 3: Stumble up one ways to find to make money with
14:26
Speaker 3: these with this ebb and flow somehow or another, having
14:29
Speaker 3: a little bit these polymarkets.
14:31
Speaker 2: I'll tell you what.
14:32
Speaker 3: It's absolutely it's absolutely something else. But all of this
14:36
Speaker 3: goes into I mean it's and back to what you
14:38
Speaker 3: always talk about and being aware of companies that provides
14:42
Speaker 3: a service that that in the long regardless of what
14:44
Speaker 3: the market on a micro level does, if you're investing
14:47
Speaker 3: in a company that's doing work and knows how to
14:49
Speaker 3: make a profitable within that, by the time your portfolio
14:52
Speaker 3: comes out of whatever it is on this end of things,
14:54
Speaker 3: we know historically that this is going to work. So
14:56
Speaker 3: people might think that things fill a little flat. The
14:58
Speaker 3: market choppy a little bit last week, was down, some
15:01
Speaker 3: was up some things, but earnings are still are still
15:04
Speaker 3: one pace to be what a thirty eight percent overall
15:07
Speaker 3: in quarter two or something like that. I mean, when
15:09
Speaker 3: you talk about corporate earnings, I mean the companies know
15:11
Speaker 3: what they're doing out there.
15:12
Speaker 4: Yeah, earnings. Earnings are certainly good. Like you say, even
15:15
Speaker 4: the companies last the tech stocks last week, the earnings
15:18
Speaker 4: were good. It's just the question marks that some of
15:22
Speaker 4: the expenditures. The market is now looking at that a
15:26
Speaker 4: little harder to try to determine when are we going
15:29
Speaker 4: to get to see some profit from this investment? And
15:34
Speaker 4: and so the market in those cases it's not looking
15:37
Speaker 4: at the now, it's looking at a year from now,
15:39
Speaker 4: three years from now. How will this multi trillion dollar
15:44
Speaker 4: investment that has been made be monetized, you know, and
15:49
Speaker 4: will it be monetized to the degree to the supports
15:52
Speaker 4: that investment. And that's why we're getting these question marks
15:56
Speaker 4: around those companies, not that their earnings are bad.
15:58
Speaker 3: Yeah, yeah, that makes sense. And going back to the
16:01
Speaker 3: kind of the headline thing when we talk about driving
16:05
Speaker 3: the conversation, it's really something else when just a company
16:08
Speaker 3: like and I'll pull these out here, like when you
16:11
Speaker 3: talk about Tesla and SpaceX or something like that, that
16:14
Speaker 3: really took a little bit of a haircut when it
16:16
Speaker 3: comes to when it comes to their their market cap
16:19
Speaker 3: and things long. But they took a little bit of
16:20
Speaker 3: a haircut. But the thing is other things are strong,
16:22
Speaker 3: other things, but those lead the day sort of because
16:26
Speaker 3: the pop culture aspect that goes into who runs the
16:29
Speaker 3: company and everything else that people kind of get. The
16:32
Speaker 3: sentiment of that is people kind of get all, man,
16:34
Speaker 3: all the tech stocks are dead, none of them are doing.
16:36
Speaker 2: That's not true.
16:37
Speaker 3: You're you're you're kind of looking into like expecting for
16:40
Speaker 3: the most famous one to be carrying the day, and
16:42
Speaker 3: that's not necessarily the case at all.
16:44
Speaker 2: No.
16:45
Speaker 4: No, I mean there again argues for a diverse five
16:49
Speaker 4: portfolio all the time. You know, it's okay if you
16:52
Speaker 4: want to take a flyer on a on a company,
16:54
Speaker 4: if you understand it and it's an appropriate position within
16:58
Speaker 4: your portfolio. You know, we have a lot of folks
17:00
Speaker 4: that you know, I managed their portfolios and keep them
17:06
Speaker 4: in balanced, but you know, sometimes they have a little
17:08
Speaker 4: bit of money elsewhere or or you know, in another
17:11
Speaker 4: account with us where they want to pick and choose
17:14
Speaker 4: some individual stocks. And that's fine, but you know, for
17:19
Speaker 4: most people, if you don't have a large portfolio, it's
17:23
Speaker 4: hard to get diversification with just those individual names. So
17:27
Speaker 4: so you know, usually when we have individual stock pickers
17:33
Speaker 4: it's to complement a broadly diversified portfolio, not to make
17:39
Speaker 4: up the portfolio, because you need a pretty large amount
17:42
Speaker 4: of money to really be picking and choosing individual stocks,
17:46
Speaker 4: individual bonds to get that diversification. You know, ETFs and
17:52
Speaker 4: mutual funds and things of that nature that are that
17:55
Speaker 4: are broadly diversified. You know, that's that's what a typical
18:00
Speaker 4: portfolio looks like. That is being managed, not necessarily picking
18:04
Speaker 4: those individual names. The fund managers picked the individual names,
18:08
Speaker 4: and in most of those cases.
18:09
Speaker 3: We got a perfect text that came in in regard
18:12
Speaker 3: to this question. Well, I answer this question. We'll answer
18:14
Speaker 3: this text. We'll take a break and come back and
18:15
Speaker 3: wrap up the show. After that, you can get in
18:17
Speaker 3: on the text line as well. Three zero of four
18:19
Speaker 3: non three five five zero zero eight is our text
18:20
Speaker 3: line number. Threes are a four non three five five
18:23
Speaker 3: zero zero eight. You can also call this morning three
18:24
Speaker 3: zero four three four five fifty eight fifty eight. Three
18:26
Speaker 3: zero four three four five fifty eight fifty eight is
18:29
Speaker 3: our phone number. This is from the three zer of
18:31
Speaker 3: four three six three. I looked at my four oh
18:33
Speaker 3: one K this weekend for the first time in a while, honestly,
18:37
Speaker 3: and I don't understand what I'm looking at. I know
18:39
Speaker 3: what the balance is, but I don't know what I
18:41
Speaker 3: should own at my age. That sounds like a perfect scenario.
18:45
Speaker 3: This is somebody that's probably just been putting money in
18:47
Speaker 3: their four oh one K as part of their employer matching,
18:50
Speaker 3: which is great. It's good that you've done that, but
18:52
Speaker 3: if it's been a while since you've because if you
18:54
Speaker 3: don't know what you have, you did the allocations at
18:56
Speaker 3: one time. So I mean that might mean something that
18:59
Speaker 3: might need a look taken at it.
19:01
Speaker 2: Yeah.
19:02
Speaker 4: Absolutely. You know, a lot of times in your company
19:06
Speaker 4: plan you have default investments and sometimes those default Most
19:13
Speaker 4: of the time those default investments are age based funds
19:17
Speaker 4: or retirement date funds that you get slotted into based
19:24
Speaker 4: on your age and tom horizon and that sort of thing,
19:27
Speaker 4: and it roughly tries to to make adjustments as you
19:31
Speaker 4: get older and closer to retirement. A lot of plans
19:34
Speaker 4: have those, most plans have those, and and those are
19:38
Speaker 4: usually the default investments, which is a good thing that
19:42
Speaker 4: if you don't pay attention, you're not going to you know,
19:45
Speaker 4: have a portfolio that might be tailored exactly for you.
19:48
Speaker 4: But you're going to be in the ballpark of having
19:51
Speaker 4: the right type of allocation if you selected them yourself
19:58
Speaker 4: rather than being in one of those those funds, then
20:02
Speaker 4: you need to watch it every so often, not daily,
20:05
Speaker 4: but you need to make sure that you stay in
20:07
Speaker 4: balance every six months every year or so, you know,
20:11
Speaker 4: look and see if you're in those individual allocations that
20:15
Speaker 4: you selected. For instance, over the last couple of years,
20:18
Speaker 4: all of your growth and your tech and everything that
20:21
Speaker 4: you selected in those areas. You may have been originally balanced. Right,
20:27
Speaker 4: maybe that represented twenty percent of your portfolio. It very
20:30
Speaker 4: well could be forty percent of your portfolio now if
20:34
Speaker 4: you didn't rebalance along the way because it grew faster.
20:39
Speaker 4: Now there again the problem with that. Now you're older
20:43
Speaker 4: than you were. Now you're closer to retirement, and now
20:47
Speaker 4: your portfolio is structured in heavily and growth that is
20:51
Speaker 4: much more volatile, which is the opposite of really what
20:55
Speaker 4: you want to have happen as you approach retirement. So,
21:00
Speaker 4: if you selected those funds, like you say, it's probably
21:03
Speaker 4: not a good idea to look at it every day
21:06
Speaker 4: because that will can stoke emotional decision making. But certainly
21:11
Speaker 4: looking at it you know, every six months, every year
21:15
Speaker 4: looking at the allocations. It doesn't even matter what the
21:19
Speaker 4: returns are at that point, you're just looking at the
21:21
Speaker 4: allocations to make sure that you're still diversified and imbalance
21:25
Speaker 4: inappropriate at your age.
21:28
Speaker 3: That's great information. With John bred Debt from Fourth Avenue Financial,
21:30
Speaker 3: I have a follow up question. We'll get in and
21:31
Speaker 3: take our break. I have a follow up question for
21:32
Speaker 3: when we come back, because there are a lot of
21:34
Speaker 3: folks out there that take their employer match and that's
21:37
Speaker 3: their retirement. You know, they take their four to one K,
21:40
Speaker 3: they match it, their employee puts in the money and
21:42
Speaker 3: they manage that and that's what they consider their retirement. Well,
21:45
Speaker 3: there's more to it. There could be more to it
21:47
Speaker 3: than just that, and you may not understand those things.
21:49
Speaker 3: And I want John to approach those things exactly what
21:51
Speaker 3: his services are because your four oh one K is great,
21:54
Speaker 3: but there are other tools in the toolbox that's accessible
21:56
Speaker 3: to people than just that. So I want John to
21:59
Speaker 3: talk about that just a little bit, because it sounds
22:01
Speaker 3: like we do have a lot of folks that invest
22:02
Speaker 3: in their four one K, which is great, but there
22:04
Speaker 3: are some other things that you might be able to
22:05
Speaker 3: do to supercharge your retirement a little bit, to put
22:08
Speaker 3: that money to work for you a little bit more.
22:09
Speaker 3: I want to ask John about those things when we
22:11
Speaker 3: come back. If you have any questions along those lines,
22:13
Speaker 3: you're welcome to give us a call three zero four
22:14
Speaker 3: three four five fifteen fifty eight three four five fifteen
22:17
Speaker 3: to fifty eight. You can text three zero four nine
22:18
Speaker 3: three five five zero zero eight. More information online is
22:21
Speaker 3: Fourth Avenue Financial dot com. You spell out the whole
22:22
Speaker 3: thing Fourth Avenue Financial dot com and you can also
22:25
Speaker 3: do that same search on Facebook and like the page
22:26
Speaker 3: over there. We'll take a break and be back right
22:28
Speaker 3: after this. You're listening to retire Right Radio with John Burdett.
22:31
Speaker 3: I'm Del Cooper and this is five eight EWCHS.
22:33
Speaker 5: Retire Right Radio is sponsored by Fourth Avenue Financial, which
22:36
Speaker 5: is solo responsible for its content. Security is offered through
22:38
Speaker 5: JW CALL Financial Member Fentrecipic. Investment advice offered through JW
22:42
Speaker 5: COL Advisors. Fourth Avenue Financial, jw CL Financial and JW
22:46
Speaker 5: COL Advisors are unaffiliated entities. The opinions expressed by John
22:49
Speaker 5: Bredet should not be construed as specific, investment, legal, or
22:52
Speaker 5: tax advice. All economic and performance information is historical and
22:56
Speaker 5: not indicative of future results. Investing may involve risk of
22:59
Speaker 5: loss of principle. Any types of advice on this show
23:02
Speaker 5: is not intended to be used by any person for
23:04
Speaker 5: the purpose of avoiding US federal or state tax penalties
23:07
Speaker 5: that may be imposed on such a person, and each
23:09
Speaker 5: listener should seek advice from their tax advisor or at
23:12
Speaker 5: legal console on topics that arise from the show. John
23:15
Speaker 5: Burdette is not providing legal or tax advice. Nothing should
23:18
Speaker 5: be construed as solicitation of an offer to buy securities.
23:21
Speaker 5: This program is sponsored byfore The Avenue Financial, which is
23:24
Speaker 5: solely responsible for its content.
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Speaker 1: Right Radio with John Burdett from Fourth Avenue Financial taking
24:33
Speaker 1: your calls at three oh four three four five fifty
24:36
Speaker 1: eight fifty eight or texts on three oh four nine
24:39
Speaker 1: three five fifty oh eight.
24:49
Speaker 3: Dolls don't thank you, Stacker Doll, little Hendrix bringing us
24:59
Speaker 3: back here. That's John Burdett from Fourth Avenue Financial and
25:02
Speaker 3: Guitar this morning. You give us a call this morning
25:07
Speaker 3: three zero four three four five fifty eight fifty You
25:09
Speaker 3: can text threez are a four nine three five five
25:11
Speaker 3: zeros or eight. We had a text right before the
25:12
Speaker 3: bank break that was talking about the callers. This is
25:15
Speaker 3: from the three es erre A four three six three.
25:17
Speaker 3: The caller was talking about their four to one K,
25:19
Speaker 3: and they hadn't looked they hadn't looked at it in
25:21
Speaker 3: a while, and I was backfilling a lot of information
25:23
Speaker 3: that the caller didn't give us. I kind of imagined
25:25
Speaker 3: that maybe they had an employer match program. They said
25:27
Speaker 3: it some years ago when when they first set up
25:29
Speaker 3: their four one K. Didn't really bother at all that much.
25:31
Speaker 3: None of those things are necessarily bad. But one of
25:34
Speaker 3: the things that I've learned when I first started doing
25:36
Speaker 3: these shows with John and otherwise is that you know,
25:39
Speaker 3: a lot of times, I think folks, and this included me,
25:41
Speaker 3: at the time, your your four one K, your employer match,
25:45
Speaker 3: that's your retirement. You know that that Do you have retirement? Yeah?
25:48
Speaker 3: I have my four to one K. But that's not
25:50
Speaker 3: the whole story. And that's that's part of what we
25:52
Speaker 3: do here and what John talks about. There is a myriad,
25:56
Speaker 3: a plethora of tools out there that people can can
26:00
Speaker 3: use if they know how to gain access to them,
26:02
Speaker 3: if they know the proper way to to uh put
26:04
Speaker 3: it together. For example, if all you have is your
26:06
Speaker 3: four one K and you retire, where exactly is your
26:09
Speaker 3: is your monthly revenue coming from? Where where are you
26:11
Speaker 3: going to get Where are you going to turn that
26:13
Speaker 3: into how you're going to live in your retirement? There
26:15
Speaker 3: there's other things that you do need and certainly things
26:19
Speaker 3: that can help you beyond just your four one K.
26:21
Speaker 3: And that's where John can help out.
26:22
Speaker 4: Right and and even understanding your four oh one k.
26:25
Speaker 4: In the last handful of years, a lot of companies,
26:27
Speaker 4: most companies now have introduced the WROTH four oh n
26:31
Speaker 4: K version. You know, are you putting your money in
26:33
Speaker 4: traditional or WROTH? How do you make that decision? And
26:38
Speaker 4: you certainly if you're young, you know the WROTH makes
26:40
Speaker 4: a whole lot of sense. It can make sense too
26:43
Speaker 4: for somebody that is closure of the retirement that you
26:47
Speaker 4: know you want to minimize. There if you have too
26:51
Speaker 4: much in your tax deferred money, that can set you
26:54
Speaker 4: up for additional taxes and and and things in the future.
26:57
Speaker 4: So there maybe it makes sense to do a raw
27:00
Speaker 4: in certain situations where you think, well, I'm close to retirement. Well,
27:05
Speaker 4: if you've got a lot of money that you've saved
27:08
Speaker 4: tax deferred more than your needs really are you're creating
27:14
Speaker 4: a tax bill for yourself. You put that additional money
27:18
Speaker 4: in the wrath, and now it can grow tax tax
27:20
Speaker 4: deferred and ultimately tax free for the future, and it
27:24
Speaker 4: passes better to the next generation. I mean, there are
27:26
Speaker 4: all kinds of things that you know you can do
27:29
Speaker 4: to maximize that. In addition to just picking the right
27:34
Speaker 4: mix of investments. You know, outside of your four A
27:37
Speaker 4: win k, if you happen to be participating fully in
27:40
Speaker 4: that maxing it out, you know you can do individual
27:43
Speaker 4: I arrays. A lot of folks don't understand that that
27:48
Speaker 4: not all investments have to even be for retirement. You
27:52
Speaker 4: can open up brokerage accounts and they're not tax deferred.
27:57
Speaker 4: You'll get a ten ninety nine, you know, showing the
27:59
Speaker 4: earnings that you and dividends and such that you put
28:03
Speaker 4: with your taxes each year. But you pay the taxes
28:06
Speaker 4: when you go. So that means when you want that
28:08
Speaker 4: money out, it's not tax does income because you know
28:13
Speaker 4: it's it's after tax money that you that you invested.
28:16
Speaker 4: You know, you might get some capital gain or something
28:19
Speaker 4: like that, but but you're not going to have the
28:21
Speaker 4: big income tax hit that you will coming back out
28:26
Speaker 4: of your your four O n K. A lot of
28:29
Speaker 4: things like that. It's it's you know, not really even
28:33
Speaker 4: about the investment. It's about which tool, which type of
28:36
Speaker 4: account and tool will we use to achieve what's important
28:38
Speaker 4: to you.
28:40
Speaker 3: There was a receptionist worked for an office manager that
28:42
Speaker 3: worked for me when I was doing mortgages years and
28:45
Speaker 3: years ago, and I was always very impressed with her
28:47
Speaker 3: and her family. They were solidly middle class but always
28:51
Speaker 3: took very extravagant vacations, you know, And I don't mean
28:55
Speaker 3: like bad extravage, I just mean for their pay level,
28:58
Speaker 3: it was really nice vacation. But they had a mid
29:02
Speaker 3: teenage one daughter, one son I think maybe fourteen or
29:05
Speaker 3: fifteen years old, and a mom and a dad, and
29:08
Speaker 3: the mom worked for us, but what they all did
29:10
Speaker 3: it was like a communal effort. Every year, like the
29:13
Speaker 3: kids had odd jobs and things that they did that
29:15
Speaker 3: they got paid for. And they all had I don't
29:17
Speaker 3: know what kind of account. It was something they could
29:19
Speaker 3: get money out of, but they all put every spare
29:21
Speaker 3: cent that they had, I mean, and she would describe
29:24
Speaker 3: sometimes like three dollars in change or whatever, they would
29:26
Speaker 3: put that in a savings account. I actually put it
29:29
Speaker 3: in where they got some kind of modest investment return
29:31
Speaker 3: or something. But every single year they would have thousands
29:33
Speaker 3: of dollars they would end up in that account where
29:35
Speaker 3: they could take their vacation with and it didn't cost
29:38
Speaker 3: them basically anything. It was like loose change more or less,
29:41
Speaker 3: or money that they would get like a rebate on
29:43
Speaker 3: something or whatever it might be. They would put it
29:44
Speaker 3: into that vacation account and they would go to Disney
29:46
Speaker 3: where they would go on cruises. They would do all
29:47
Speaker 3: of these things that were amazing that should have been
29:50
Speaker 3: beyond their pay level, but it wasn't because they were
29:53
Speaker 3: so smart just for planning for their vacations. And I
29:55
Speaker 3: always thought that was really cool because it was like
29:57
Speaker 3: their family team effort and that's how they bonded together
30:00
Speaker 3: and stuff. And what a neat way to do it.
30:01
Speaker 3: And to learn how to save money.
30:03
Speaker 4: Yeah, absolutely, learn how to save money, not take on
30:06
Speaker 4: debt while you're doing it. You know. That illustrates that
30:11
Speaker 4: usually when people say things like I can't save for retirement,
30:17
Speaker 4: that is a choice. You know, if you have an income,
30:23
Speaker 4: there is a way for you to start saving for retirement.
30:27
Speaker 4: It truly is a choice. You know, you trade off
30:31
Speaker 4: some of what you get today for tomorrow. True, but
30:35
Speaker 4: most people have the ability to financially begin that path
30:42
Speaker 4: to saving for retirement. And really you don't have a
30:45
Speaker 4: very good alternative if you don't, yeah, right, because it
30:49
Speaker 4: is inevitable that you will reach an age where you
30:53
Speaker 4: no longer are going to be working. So it's not
30:56
Speaker 4: like an elective thing. It's something that you have to
31:01
Speaker 4: figure out how to do it.
31:03
Speaker 3: And if you kick that can down the road, we've
31:05
Speaker 3: we've seen what happens to folks that get to that
31:08
Speaker 3: point of their life and they have no no real
31:10
Speaker 3: where where, nowhere to go. You know, you haven't planned
31:12
Speaker 3: for end of life, caretaker, you haven't. You haven't fund
31:17
Speaker 3: I mean, that's the very basic of things. And not
31:19
Speaker 3: to mention you haven't funded your life to just live
31:21
Speaker 3: to within a certain means when you get to that
31:23
Speaker 3: age and you hate seeing folks, especially as you get older,
31:26
Speaker 3: get into that situation where they really don't have a
31:28
Speaker 3: good answer for that.
31:29
Speaker 4: Right, And and and then then money and investment, everything
31:33
Speaker 4: becomes negative at that point because it's pressure that's building
31:37
Speaker 4: every year that you delay, and and that's unhealthy and
31:41
Speaker 4: that's that's a very difficult thing to get out of
31:43
Speaker 4: and and get on the right track if you if
31:46
Speaker 4: you've built that type of a mindset and you know,
31:52
Speaker 4: start start as soon as you can, and even if
31:55
Speaker 4: you think you can't, start small and let it build.
31:58
Speaker 3: The one thing that that has all always not been startling,
32:02
Speaker 3: but the one thing that that that folks need to
32:04
Speaker 3: understand when they're listening to this program, that the barrier
32:06
Speaker 3: to get help, that the barrier for for getting John
32:08
Speaker 3: to help you out there. There's basically no barrier there.
32:10
Speaker 3: There's no huge UH. When I first started doing these shows,
32:14
Speaker 3: I assume that you would have to take a foul
32:16
Speaker 3: folder full of all of your documents to the initial thing,
32:19
Speaker 3: and you'd all have a visors on and you know,
32:20
Speaker 3: and be going through with the old UH, with the
32:23
Speaker 3: old UH ticker tape, calculators and stuff to figure out
32:27
Speaker 3: the budget and all that stuff, and it would be
32:28
Speaker 3: like a days long progress process. But that's not the
32:31
Speaker 3: case anymore. That I mean, this is really the it's
32:33
Speaker 3: a no barrier thing. If you're in a situation where
32:35
Speaker 3: you all you have is a four to one K,
32:37
Speaker 3: or maybe you don't have anything at all, and you're
32:38
Speaker 3: working towards retirement. Today literally is the next best day
32:42
Speaker 3: for you to start figuring out what it is that
32:44
Speaker 3: you're going to do. And there's no barriers. All you
32:45
Speaker 3: have to do is pick up the phone and call
32:47
Speaker 3: John and you can get started on it.
32:48
Speaker 4: Yeah, give us a call, Go onto the website. You
32:50
Speaker 4: can even book a call there. You know, we'll chat
32:53
Speaker 4: for a few minutes, you know, understand each other a
32:57
Speaker 4: little bit better, and then decide if you want to
32:58
Speaker 4: come in for your first the first meeting with me,
33:02
Speaker 4: and no charge for that either. We sat down, get
33:05
Speaker 4: to know one another better and the situation better, and
33:08
Speaker 4: then we'll circle back and if you want to move forward,
33:12
Speaker 4: I'll come up with some ideas and plans to execute
33:16
Speaker 4: and gets you in a better.
33:18
Speaker 2: Place sometime or another.
33:19
Speaker 3: It was within the last few weeks we got a
33:21
Speaker 3: text message over I didn't read it on the air,
33:23
Speaker 3: but the the intent of the text message was was basically,
33:27
Speaker 3: I would love to call in and talk, but I'm
33:29
Speaker 3: kind of ashamed of the decisions that I've made or whatever,
33:31
Speaker 3: and now I.
33:32
Speaker 2: Want to make sure that folks, you've seen it all.
33:34
Speaker 3: I mean, there is no reason for you to be
33:35
Speaker 3: like man I don't want to call John because he's
33:37
Speaker 3: really going to tell me so and so about doing this.
33:40
Speaker 3: Trust me, John and I have talked about some stuff
33:42
Speaker 3: off the air before we've You've seen it all and
33:45
Speaker 3: you don't care. It's not your it's not your business
33:47
Speaker 3: to care.
33:47
Speaker 2: Just call John.
33:48
Speaker 3: If you need to get your get your business straight,
33:50
Speaker 3: you can call John and get your business right. It
33:51
Speaker 3: doesn't The decisions you made to this point don't really matter.
33:54
Speaker 4: No, it's it's really the decisions you make going forward
33:57
Speaker 4: that matter. You can't change the ask, but you certainly
34:01
Speaker 4: can change the future.
34:02
Speaker 3: That's John Burdett with Fourth Avenue Financial, Fourth Avenue Financial
34:05
Speaker 3: dot Com. That's fourth Avenue Financial dot Com, one seventy
34:08
Speaker 3: fourth Street, right across from the Town Center Mall. John,
34:12
Speaker 3: thank you so much for your time this week. We'll
34:13
Speaker 3: see you again here next week.
34:14
Speaker 2: Take care.
34:15
Speaker 3: That's Jean Bredett, fourth Avenue Financial, Fourth Avenue Financial dot Com.
34:18
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