Latest / WCHS Network Podcasts / 04-29-2024 Retire Right Radio with John Burdette from Fourth Avenue Financial

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04-29-2024 Retire Right Radio with John Burdette from Fourth Avenue Financial · WCHS Network Podcasts

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Contact us at Meeks dot us. The views and opinions expressed on this
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employees or WVRC Media. This is Retire Right Radio, a weekly show from
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John Verdet at Fourth Avenue Financial that aims to answer your questions about financial planning,
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investing, and how to retire right. Fourth Avenue Financial is located in
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downtown Charleston at one seventy Court Street. More information online at Fourth Avenue Financial
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dot com. Join the conversation by calling three oh four three four five fifty
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eight fifty eight or text three oh four nine three five fifty oh eight.
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On Retire Right Radio, let's go live to the studio with host Dale Cooper
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and John your Dad from Fourth Avenue Financial. Shots Right plus are good morning
1:03
too. You're listening to super Tight Right Radio one five ADWCHS, the voice
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of Charleston. Congratulations, you made it through the weekend. Wasn't that difficult
1:11
to attach this time around? Nice weekend, had a beautiful day yesterday,
1:14
of course it was nice, warm and sunny in the Kanaw Valley in the
1:17
Charleston area. Much more of that today. My the weather app on my
1:19
phone just has a big orange circle on it, which I think means a
1:23
lot of sunlight all right, no no clouds or anything in front of it.
1:26
And in the low eighties, I think, so it's going to be
1:29
a nice day to day. A little preview of later spring or early summer
1:33
here in the Kanaal Valley. And speaking of heating things up a little bit,
1:37
John Burdett is here from Fourth Avenue Financial. We're gonna be talking about
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how you can retire right, take a little look at the market, what
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the market's been up to in the last week, and also some tips and
1:44
advice from John on your investment strategies and how you can learn to retire right
1:49
and the methods in which you can do it. You can give us a
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call this morning at three zero four, three four five fifty eight fifty eight
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three four five fifty eight fifty eight. Is how you can get a hold
1:56
of joh Bredet to ask questions about how you can retire right. You can
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also question send over your questions via text the three zero four non three five
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five zero zero eight the three zero four non three five five zero zero eight
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And John Burdett is here from Fourth Avenue Financial one line fourth Avenue Financial dot
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com. You want to spell out the whole thing Fourth Avenue Financial dot com
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and also like the Facebook page with that same search. How you doing John?
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Have a good weekend? Oh, I had a good, good busy
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weekend. Yeah, we've got another project bruin my uh my wife is I'll
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just kind of give her a shout out here. She is opening a antique
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store and mall down in South Charleston. It will take a couple of months,
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but we closed on the building friday and we're making plans, or she's
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making plans for me, I think is what. That's great And this has
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been a passion of first for a while, so I mean it's it's kind
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of coming to fruition for that. That's great stuff. So if you're out
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there and have any interest in antiques, I'm going to actually put a little
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record section in there curated records from John. Yeah. Yeah, so so
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it's gonna be a little a little fun project too. But now do you
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co sign those and make her pay you for it? Yeah, I'm not
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sure. I'm not sure how that's all gonna work out. But you know,
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we'll see how that goes. But but if you're out there and you
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have interest in those type of things, go to her Facebook page it's called
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Vintage and Vines and search that up and you can follow along. And she
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has a couple of vintage booths at Eclectic Goods Markets over in Dunbar. But
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she's she's decided to go in big. Well you want to have to make
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her underwrite a show and then she could just come in and do a show
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instead, you know. Yeah, there you go. That's that's for you
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guys to convince her. Yeah, that's right. If you want to.
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If you have any questions this wrning about how you can retire, right and
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give us a call it three zero four three four five fifty to fifty eight.
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We want to touch a few topics this morning for what's been happening with
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the market as of late, and then also get into some investment strategies and
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some some looks and what you can do on how you can retire right,
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give us called this morning three zero four three four five fifty to fifty eight
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three zero four, three four five fifty fifty eight. Sort of a rough
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market week last week. Uh, as far as some indicators go, we've
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seen some some give back, but the future potential looks good. Well.
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Last week, you know, we did have a little bit of a recovery
4:13
last week. You know, a couple of stocks took it on the shen
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uh Meta Facebook, Uh, their earnings disappointed a little bit, but uh,
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but you know, Google, Microsoft, I believe, I believe Amazon
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might might have been one that came out that were that were solid and helped
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the recovery a little bit. You know, we still have this period where
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the numbers are coming in and and it is I guess worriesome for the FED
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that the inflation numbers aren't coming down anymore. They've kind of bottomed out where
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we're we're stalled out. I guess the decline is stalled out, and some
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of the economic numbers are looking a little softer, and and that's like,
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well, what do you do do you cut rates to try to boost the
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economy, or do you wait to until inflation is where you want it to
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be and where is that pain point there that may or may not come.
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It reminds me of plateau on weight loss a little bit. It's like,
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you know, when you're when I weigh three hundred and twenty pounds, My
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first eighty pounds frankly was fairly easy to lose because it was so much excess
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on top of what I should have that basically all I had to do was
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eat less and I would lose weight. It wasn't really all that hard.
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So I think although it wasn't necessarily easy to manage inflation, it's easier when
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it's much much higher. Now that we're getting close to what the target rate
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is. Anyway, getting that landing to stick just right is becoming tricky.
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Yeah, Yeah, And I think that you know, the FED believes they
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have more control of that than they really do, so you know, it
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gets to the point where it's like, well, at some point the market
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is really in control of this and individual decisions that people are making, and
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you know, people are still spending the economic activity of the GDP numbers.
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As we've talked about a couple of weeks ago certainly slowed down a little more
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than expected, but the consumer portions of that are still pretty good, So
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the consumers still still spending. The eighty percent of the earnings this quarter that
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have been reported have surpassed their expectations by greater than ten percent, So companies
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are still earning, you know, solid amounts of profits and growing amounts of
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profits, and you know that that kind of underpins the valuations of the market
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to a degree. It amazes me. And I think last week I brought
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up is the potential of of like some of these bigger than life personalities and
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certain industries influencing the entire run of those industries, and you were kind of
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struk that off and see it, and it seems like that that's definitely true.
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I mean, it's like two different worlds, is this. There's the
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there's the world of like the Twitter verse or the experts where you're online and
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you see all these all these things, you're like, wow, this is
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what people really think. But then when you get out into the world,
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the real world, and you look broadly, people don't think like that at
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all. I mean, it's it's really funny how such a small contingent online
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seems to draw so much attention, and really it's a very small amount of
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people. It's the soap opera, you know, the lifestyles, so the
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rich and famous and and that sort of thing that people, I guess get
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into kind of tabloid ish for We've talked about elon Usk can test Tesla a
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bunch of times, and the stock goes up and down whatever it does.
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It does. But it's funny because there's a there's this like sort of this
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beat on line that that's sort of dragging elon Musk a lot. Like with
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a cyber truck. There's been like a consumer pushed back on that and maybe
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not the best looking thing. I mean, there's been some negativity online.
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You're like, oh, this must be doing terrible. It's like just such
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a small sliver of people online that complain about this stuff. Broadly speaking,
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people don't care. It's like nobody cares. It's like, what do you
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mean about history of what truck? You know? Like nobody cares about that.
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And I think it's that's I always start a show. I think it
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was someone with this perspective, But it is true, no matter what side
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of these things, that you following people just do what they do, usually
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with the best intentions in mind for you know, furthering profit and different things
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along those lines. A lot of this chatter doesn't matter a whole lot,
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No, it really does have that. Like you say, three hundred and
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fifty million people in this country roughly are are waking up every morning and trying
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to lead their lives and making decisions as they do that along the way,
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and that that's what makes up economic activity. You gave me a little bit
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of homework to do, some reading to do over night last night for us
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to talk about in some articles that you shared with me. And what I
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what I took away from what you sent me is broadly speaking, as we
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look at things from the perspective that we always do on this show, it
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seems like we double down on the correct strategy to do every time. We
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know the method in which you can retire, right, that's the name of
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the show. You know, you've you've had a successful business that you've been
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practicing for a long time now. The way you can teach people how to
8:54
do this, it's just a matter of getting the message across and finding the
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right the right path to get through to someone on how how they can deploy
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their proper tools and the methods on how they can retire right as well.
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Yes, and and I think one of the things in the article that I
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sent you that that is really important to realize is the progress seems very slow
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at the start, and you know, you say, well, the market's
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going up, I need to get excited and get involved and you start saving.
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Well, let's say you put a put away one thousand dollars and you
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know the market can go gangbusters and go up twenty percent, and that means
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you make two hundred dollars. You still are doing most of the work.
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You're putting in the thousand dollars that you've you've dedicated to save, and you're
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going to be doing that repeatedly, month after month after month after month,
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and accumulating, and it's going to seem it's going to take years, really
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a handful of years before you really start noticing that, you know what,
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this is getting easier for this acute emulation to happen. The market begins to
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do more of the work. But initially it's all about you. It's all
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about your actions. It's about am I living below my means? Am I
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consistently saving and investing and amend growth assets. You know, if you're in
10:16
in cash in coffee cans in the backyard, the market's never going to help
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you accumulate. So you have to participate, and you have to control your
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actions and keep that money flowing in and then the market takes over. But
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it can take years before you get to that point. One of the examples
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I gave it and you alluded to it just now, starting at basically zero
10:39
and investing one thousand dollars in my twelve thousand dollars annually. However, you
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could do it with a very modest growth rate of an average of eight percent.
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When you look at that, over a course of time, your returns
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become substantial on that, and that's a relatively modest amount that you're starting.
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It may not be exactly right for you, but that just gives the personal
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idea out there, the idea that a little bit of discipe starting very early,
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and if it's not early, then today is the next best time that
11:03
you can start. A little bit of discipline can go a long way with
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those And you might have to fudge the front end of the numbers a little
11:09
bit depending on when you're getting into it or when you're starting to do this
11:11
thing, but the results always play out one way or the other. You're
11:15
going to see those increases, and you can depending on your risk adversity and
11:18
where you are, you can be a little bit more risky or a little
11:22
less risky. But when you start early and you start adding these funds up,
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it's inevitable that you're going to see results at the end, and no
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doubt about it. And that's usually how this happens, as you're saving over
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long periods of time, you know, maybe towards the retirement. It just
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seems like it happens overnight, and it doesn't, but it's it took the
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fifteen to twenty years earlier to get to the point where you have the nest
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egg. The when the market grows it is significant to you. You know,
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if you have a half a million dollars and you earn roughly ten percent,
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you know, that's a fifty thousand dollars gain in your account. That
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if you're saving one thousand dollars a month, that's over four years worth of
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your work the market did in one year. And that's how this thing takes
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off and usually people as they get towards retirement, if they've done the right
12:15
thing, they just wake up and are like, oh my gosh, this
12:18
is really working. And that's what funds are. Retirement that growth, it's
12:24
the market is doing the work. You no longer have to do the work.
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That's the position you want to get yourself into. And you can see
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that happen over the course of time. And of course, like John said,
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a lot of times things start off slowly and then as you start increasing.
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And one another one of the examples that the article that you sent me
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gave was talking about something like a Vanguard S and P five hundred fund,
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and that's something that's very popular. I think everybody probably has that as part
12:46
of their selections when they're four one k when they're doing something like that.
12:50
But even when you're talking about funds, you know, that's a very fairly
12:52
conservative leviathan that's been around for a long time. It's relatively unexciting as far
12:58
as growth and stuff. But even something like that, if you had money
13:01
in a fund along those lines, and over the course of time, you're
13:05
still going to see on something relatively conservative with the low fee indux like that
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you're still going to see returns from it, because you know that's managing the
13:13
index, of course, but even conservative investments on something like that is going
13:16
to see net benefits in the long run. Yeah. I mean, you
13:20
want to be in particularly if you're young, you want to be in the
13:24
market. You don't want your money in cash. You don't want your money
13:28
earning very little. You want to expose it to the market. That doesn't
13:31
mean their market won't give you setbacks occasionally, the market certainly will. But
13:35
the most important thing is for you to commit to your actions so you can
13:41
keep accumulating. The more shares you have, the more ownership of companies you
13:45
have. Eventually, the market, you know, it always reaches new highs.
13:50
And there might be years that you feel like, well, I'm not
13:54
getting anywhere because I lost as much as I put in. For instance,
13:58
you hear that a lot get anywhere. I saved all year, and I'm
14:01
at the same place. You're not at the same place. You own more
14:05
shares than you had the year before. Yeah, right, and so when
14:07
the shares increase, you're going to be in a much much better place.
14:11
And that's the way the market works. You know, if you look at
14:13
the last several years. You know, as we know, twenty twenty two
14:18
was a bad year for the market. It was down over eighteen percent,
14:22
but in twenty twenty three it was up twenty six percent. So if you
14:26
were patient, you basically it seems like you got nowhere over those two years.
14:31
Felt good when the market was up, felt bad when the market was
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down. But if you were contributing all through that time period, you really
14:39
got nowhere. But the market, you know, recovered and now you've you
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know, from there the years in the future, this year, you know,
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it's all it becomes gravy and it adds up quickly. If you've got
14:52
a nest egg there that you've built over the years, you can't get frustrated
14:56
and you can't get impatient. You have to stick to the plan. And
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that's really the lesson in this. You know, the market is volatile,
15:05
the market will do its thing, but none of that matters if you don't
15:09
do your thing. That's a really selling point. I guess if you're somebody
15:11
that was seeing depressed returns during like the COVID era things like that, where
15:16
things were down and maybe the balance that you had didn't protect you against the
15:22
types of things that were going on there. If you held firm and kept
15:26
doing what you were doing even in the face of that, most of those
15:30
places that were struggling then have reverse course. Now and then, like you
15:33
said, you own more shares. When that happens, when things start to
15:37
recover, suddenly your portfolio is going up. Suddenly, you know, where
15:41
everything was terrible in nineteen, in twenty twenty one and twenty twenty four,
15:46
things don't look quite as bad. Hopefully correct and over time. I mean,
15:50
you have to visualize it in your mind what you're doing when you're investing.
15:54
You know, you are owning companies that are producing the goods and services
15:58
we all use. A lot of times, folks think, well, what
16:00
if the market fails. Well, if the market fails, then what is
16:04
going to work? What is going to work if the companies that we rely
16:08
on all fail at the same time, what's the likelihood of that happening?
16:14
You know, when you think it through, it almost doesn't make sense that
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the market doesn't make progress because three hundred million people aren't waking up and just
16:26
you know, sitting on their hands. Well, which is another reason why
16:27
you don't wake up. One morning and say, hey, I think I'm
16:30
going to take all of my investments and put them in AI or something that
16:33
you don't do that because you don't want to put all of your eggs in
16:36
one basket literally and rely on one industry. Not that that industry may not
16:40
in fifteen years be fine, but you might see some rough patches between now
16:44
and then, Whereas if you broaden out and diversify, you know, the
16:45
industries might come back and forth a little bit, but in the end they'll
16:48
all get to that place in twenty years down the line. And that's what
16:52
the money that you're putting to work there is great. Yeah, you know,
16:55
And speaking of AI and those type of things, I actually saw in
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an article this past week talking about you know how we talked about who are
17:03
the winners going to be? And sometimes they're not who you think they will
17:10
be. That's why it's good to say diversified, you know, if you
17:11
can chase the big AI names. But this article actually said that one of
17:15
the biggest winners are going to be things that you would never consider, which
17:19
are utilities m M. It takes a lot of energy to run these big
17:25
data centers and and you know, so here you have the most boring stocks
17:30
of the world, and this article, at least this one individual says,
17:33
you know, how do these companies not win as these big data centers aren't
17:38
built and the huge energy demand that they have to run them. That makes
17:44
sense that the people think of the top line, like, you know,
17:48
what's going to happen when this robot starts doing human calculations or whatever. Okay,
17:51
that's great, but the narrow ais that are helping companies under the surface
17:55
already do their job more efficiently. Some people might say that it's that it
17:57
costs jobs, but also so the pressures that could do that create other jobs.
18:03
And there again it's how you look at it. It's not necessarily costing
18:06
a job, but it's freeing labor up to use in more productive ways,
18:11
which which could benefit that company in the long run. Well, it could
18:15
benefit all of us in the long run if we if we are applying our
18:18
skills more efficiently or in more efficient areas. You know, if if a
18:22
if a tool can do something, you know, are you are you going
18:30
to build a house and say well that that hammer took took jobs away?
18:34
I could just pound that nail with the rock you're not gonna do take me
18:38
twice as long. But you know, people to do it Right's right,
18:41
You're not going to do that, you know that. And so it's just
18:45
progress is all it is. And you can't be afraid of that process because
18:48
if you look historically process that process, I mean, look at automotive is
18:53
a great example that that killed the buggy whip makers, but it not only
19:02
created the auto industry, but all the ancillary and I mean, you know,
19:07
you have tires, and you have the brakes, and you have all
19:10
of these service centers and all these things that I want no question that created
19:15
jobs that didn't exist before. And I'm sure over time, technology and AI
19:22
and all of those things will bring industries into being that don't exist now to
19:27
service that I tell you when you look at for example, here in West
19:32
Virginia, we're very protective of our natural astraction industries, you know, the
19:37
coal mining and so forth. And we talked about the ancillary jobs that play
19:41
into that, and it could be in the thousands or wherever it goes.
19:44
If you haven't lived in a place like Michigan to see exactly how the auto
19:48
industry is so substantial to the backbone, and I'm sorry, but it is
19:52
much larger than the extraction industry is. And you can't go to a city
19:57
without there being a parts manufacturer without there being something that's with the auto manufacturers
20:02
or somebody that supplies the auto manufacturers, or a supplier of the supplier or
20:07
the automangif however it is, everything is related to that. In Michigan,
20:11
it is very hard to disentangle yourself from something along those lines. Those industries
20:15
would have never existed if we just kept with the horse in the whip,
20:18
right, I mean, that's I mean, that's kind of what we're looking
20:19
at. That's pretty much it. Yeah, yeah, and and so that's
20:25
that's the progress that that creative destruction that happens, the progress that's made,
20:30
and why it's so important to participate because it ends up in a much more
20:37
efficient place. There might be some growing pains along the way, but history
20:41
is very clear on this. You know, the more productive you can be,
20:45
the richer society is going to be. Threes are four three four five
20:49
fifty fifty is our number of three zero four three four five fifty to fifty.
20:52
You can text over questions the three zero four non three five five zero
20:55
er eight. I want to take a break now. When we come back,
20:56
I have a bunch of questions for John. I haven't got too yet.
20:59
It's based a little bit on the article that we wrote, but also
21:02
have just some questions about investing, about some strategies, mindsets and things along
21:07
those lines. But these questions are always better if you can participate as well.
21:11
Give us a call or a text. You can call three zero four
21:12
three four five fifty eight to fifty eight and you can steer the conversation three
21:15
zero four three four five fifty eight fifty eight how you can retire right.
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You can also text three zero four non three five five zero zero eight.
21:21
We'll take a break and be backgra after this. You're listening to Retire Right
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Radio with John Burdett from Fourth Avenue Financial on five AWCHS, the Voice of
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JW CO Advisors are unaffiliated entities. The opinions expressed by John Bredet should not
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performance information is historical and not indicative of future results. Investing may involve risk
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For a free quote, log on to bank Atcity dot com. This is
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retire Rife Radio with John Burdett from Fourth Avenue Financial, taking your calls at
23:37
three oh four three four five fifty eight fifty eight or texts on three oh
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four nine three five fifty oh eight. You're listening to Stuber. You're story
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right with five regulars just burance walking at term jump with evenue fenty your question
24:03
three four five fifty to fifteen. You can also text three zero four non
24:07
three five five zero zero eight. We talk a lot of on this show,
24:11
John about prepping people to get ready to participate in UH in retirement,
24:15
to participate in the stock market. I was wondering if there's any cautionary because
24:18
some people when they get inspired to do something they like double, they like
24:22
double triple and quadruple down. They do it with maybe too much zeo.
24:26
Is there any Is there any? Is there any cautionaries that you would give
24:30
folks out there as far as when they're ready to get into it, to
24:32
do it, but don't go too far. You know, you want to
24:33
make sure that you're doing it the right way. Well, I'm I'm a
24:37
big guy on balance. Right. There is a I don't know if it's
24:42
a social media trend or post that people are doing. It's called the fire.
24:48
It's it's where you uh. Basically, it's like scorched earth financing,
24:55
where you live like a pauper, I don't know, like a true pauper
24:59
and save everything so you can retire at thirty or thirty five or something like
25:03
that. It's like, well, you know, I don't know. I
25:07
mean, it could be for you if you want to do that, but
25:08
I'm more of a balanced type. Cap you know, we got to live
25:11
our lives today well and think about tomorrow and find that balance. So that's
25:18
usually the direction I will counsel, and I find that people tend to stick
25:25
to it more if they can have a few enjoyments along. If I relate
25:27
it back to diet, it's very true if you incorporate something in your diet
25:33
that allows you to manage your way and to become healthier without crashing it,
25:37
you know, without completely changing your life, you're more likely to stick to
25:40
it then than you are if you just completely try to up up in your
25:42
life doing it. And I think another cautionary tale is don't start investing until
25:48
you have your foundation built because you feel like, oh, I need to
25:52
jump in and do this. Everybody tells me I need to invest, and
25:56
I'm going to accumulate all this money if I'm in. But if you don't
26:00
have your foundation built, there's a really good chance that you'll never get to
26:04
the endpoint because something will come along. They foundation what do you mean you
26:08
need an emergency fund. You've got to have three to six months worth of
26:12
cash on hand before you really a plow your investments in because inevitably something will
26:17
happen and you don't want to have to liquidate your investments early. They might
26:21
be in retirement or tax deferred accounts where there's a penalty involved if you get
26:25
out of it. The market could be down at the time that you have
26:26
the emergency and then you're selling into a weak market and taking losses. That
26:32
emergency fund is very important if you're going to begin investing. You have to
26:37
have that in place. If you have a bunch of consumer debt, you
26:41
know, twenty two percent credit card debts and things like that, you're not
26:45
going to out earn that in the market. Your best investment is to pay
26:48
those off and figure out why you accumulated that credit card debt to begin with.
26:53
And that's a sign there's a budget issue. If you save and invest
26:57
in the future and you still have a budgeting issue, those investments most likely
27:03
will not turn out to be long term investments. And so those are the
27:07
foundational pieces that need to be in place before you really jump into investing and
27:12
that can take several years to get that right. And so you know when
27:18
you're when you're when you're young, you know, you might have to dig
27:22
out of a little bit of a hole sometimes, well sometimes when you're older,
27:26
you have to dig out of a hole for sure. But but it's
27:30
very important to have the foundation built if you're going to be successful long term.
27:34
So you need to make sure you have that foundation. Once you have
27:37
the foundation in place, then you can start looking at obviously looking towards the
27:42
future, learning your own investment strategy, you know, because a lot of
27:47
people when they're first getting into this, they don't know if they're high risk
27:48
or not high risk, or you know, where they fall on that comfort
27:52
on that comfort scale. So we talked a little bit about low fee index
27:59
funds and things like that earlier, like Vanguard or something like that, which
28:00
is a less active way to manage your to manage your retirement. What's the
28:04
difference between those strategies between doing something where you're where you're investing in a fund
28:08
and where you're being a little bit more active. Well, I mean there
28:11
are active and passive investments. Of an index fund is basically I'm just buying
28:19
you know, the fund will buy an allocation of stocks that are in that
28:23
index to try to mirror the index. An active fund, you may have
28:29
a manager or you're going to have a manager that is there saying, well,
28:33
there are five hundred stocks in this index, but you know, I
28:37
don't really like these hundred stocks, so I'm not having those in the you
28:41
know, I'm not going to buy those. I'm going to put more money
28:44
in these stocks that I think will outperform. And you know, sometimes they
28:48
do, sometimes they they don't. But and and there are periods of time
28:52
where passive investment has outperformed active generally, and there are periods of time where
28:59
where the opposite is true, where the managers and they and the people picking
29:04
can outperform. And so there again, when you build your portfolio, that's
29:11
just another type of diversification. I was gonna say, So when you're helping
29:15
somebody place together their strategy for retirement and putting together portfolio, you can use
29:18
tools that dip into either one of those things. Absolutely, yeah, because
29:23
you know there are there are definitely periods when the market goes, uh,
29:29
maybe off the rails a little bit, and and a discerning manager can add
29:37
value but then there are sometimes when that's you know, that's not the case
29:41
in certain markets. You know, we've had passive management as has won out
29:47
more often the last several years. And and you know, you anytime you
29:51
see these articles that are coming about, you know, is is active management
29:56
dead? Is the sixty sixty forty port folio? Dad? You know that's
30:00
when you should set back, scratch your head and say, okay, wait
30:03
a second, or just wait three months until the trends or whatever. That's
30:07
right. So the most important thing you can do is just participate, stay
30:15
diversified, and control your actions. If you're in passive, if you're in
30:21
active, both will work if you're doing your job and your patient. And
30:26
that's the most important thing, really, absolutely the most important thing. I
30:29
think that that a lot of times people blame too much on the unforeseen portions
30:36
of the market, you know, the mark of volatility or whatever. Would
30:38
if if they would look back on their own history, on their own volatility
30:42
for example, and proper participation, they pricey that they are the ones that
30:47
failed somewhere along the along the way. Well, we went over the numbers
30:51
earlier of eighteen percent loss in twenty twenty two twenty six percent gain in twenty
30:57
twenty three. Well, if you would have panicked in twenty twenty two and
31:02
sold, if you would have stopped your contributions, would you you wouldn't have
31:07
participated in the rebound. And not only would you not participate in the rebound,
31:12
you've now broken the discipline that you had where you were systematically accumulating,
31:18
and so you would have actually lost years worth of savings. Even if you
31:25
get back on track a year later, that loss and failure to capture that
31:30
next bounce back would have penalized you years worth of savings. And so it's
31:36
important to stick to the plan. If you have a long time term time
31:40
horizon, the market almost doesn't matter if you're well diversified into it. All
31:44
of this makes sense, And of course, if you have any questions for
31:47
johnber Dat at Fourth Avenue Financial, we still have a couple of minutes this
31:48
morning that you can give us a call. If you want to point the
31:52
conversation and a direction you want to go in, you're more welcome to goves
31:53
a call at three zer a fourth three four five fifty eight fifty eight three
31:56
four five fifty eight fifty eight. You can also find Fourth Avenue Financial on
32:00
line. It's worth Avenue Financial dot com. You can do that same search
32:02
on Facebook and find and like the page. They are located once. I'm
32:05
many Court Street, downtown Charleston. Their fune number three zerre a four seven
32:07
four six seven nine seven seven three zero four seven four six seven nine seven
32:12
seven. You can also email John John at fourth Avenue Financial dot com if
32:15
you want to get ahold of him that way, but you can go to
32:17
the Facebook site or the website. You can schedule and an appointment that way
32:24
where John will take a look at your situation and try to give you some
32:28
advice. Because another thing that I think is very useful for folks, even
32:31
if not everybody is an expert like they think they are. So I mean,
32:37
if you're not, if this isn't something you do for a living,
32:38
you don't know as much as somebody that does. But also sometimes it just
32:40
takes a third party to evaluate and to take a look at what you're doing
32:45
and to look at things at a way that maybe because you're in the middle
32:47
of your own finances, in your own storm, you can't really see it
32:51
because you're living that So it helps to have somebody take a look at things
32:53
from a perspective of somebody that understands how things work, but they're not dialed
33:00
into your personal life. That's actually a benefit. Absolutely. The main factor
33:06
of people falling off the plan is emotion. It's very hard to when it's
33:13
your money, particularly as you get closer to retirement, manage your emotions,
33:17
and that is the enemy of a long term investment plan because there are going
33:22
to be times one out of every four or five years you're not gonna like
33:27
the market. You're going to feel like you're taking it on the chin.
33:30
It's part of the process. You know, if we knew which year out
33:35
of five that was going to be that, but we don't, right,
33:37
But we don't. You know, you can see that through the conversations we've
33:40
had over the last several years. The market does its thing, and sometimes
33:45
it does exactly opposite of what you think it's going to do, but it
33:50
always historically has made progress if you're patient. And I think that's the important
33:54
thing that you always try to conveil on your shows is the patients that folks
34:00
need to have when it comes to the market, not making rash decisions,
34:05
because at the end when you're talking about compound growth, and you alluded to
34:07
this a couple of times earlier. Eventually, when you start seeing the results,
34:12
it's just again, we'll keep on going back to the losing weight analogy,
34:15
but eventually you get to the one you're like, wow, that really
34:17
worked, and then that's its motivation. Like once you see that it works
34:22
really well, then you can start feeding into it, and you feet,
34:23
you can really feel that starting to move for you. But it just takes
34:27
a little while to get there. Sometimes, yes, yeah, it's sort
34:29
of like planning a seed in the dirt. You can watch that dirt for
34:32
days, for weeks and nothing sprouts, but eventually it does, and then
34:37
eventually it takes off and it's like, wow, that really turned into something.
34:40
And it's usually when you're not looking too you know, it's like,
34:44
oh, there it is, okay. And so that's all of this stuff
34:46
comes back to play, and analogies are it seems to be the thing of
34:51
the day. But just getting the point across the folks to understand the way
34:55
that the market is a living and breathing thing a lot of times, and
35:00
there's people that know how to help you take advantage of it to sow in
35:05
your retirement. It's just the formula works. There's tools out there that are
35:08
available. A lot of times all people need to do is start, start
35:10
somewhere and you might have your four oh one k through your work that you
35:15
contribute to maybe you're not mixed out, or maybe maybe you are. But
35:17
that's not the only thing that you can do. You have other things potentially
35:22
in your toolbox that you can use, especially if you call John Berdad over
35:24
a fourth abuty financial there's other things that you can look at for it.
35:28
Yep. And another thing that this kind of struck me the other day when
35:31
I was thinking about it, you can play bag cops sometimes too. Kancha
35:35
like if you have spouses that one spouse is uh, there's a plan in
35:40
place, and maybe another spouse is wanting to break off the plan a little
35:44
bit. Well, John said that we needed to stick to our plan.
35:46
You know, I mean you can play you can you can play that role
35:50
a little bit if you had to. Well, the best thing to do
35:52
is to find a way to gain consensus, right, exactly true, and
35:58
try to do that in a way. I'm going to use, like I
36:00
say, try to use logic I'm going to try to listen to what the
36:06
concerns are and then you know, make a case around that to to bring
36:12
that consensus around. I mean, it's very clear what works in the market
36:15
and what works for financial planning, but if you know both parties aren't buying
36:20
into it, that's going to create some issues. Yeah, that's that's an
36:22
expert answer right there. So that's that's how you answer that. How you
36:25
answer that expertly. Give John a call over at Fourth Avenue Financial again the
36:30
phone number three zero four seven four six seven seven seven three zero four seven
36:32
four six seven non seven seven Retire Right Radio every Monday morning at eight twenty
36:37
right here on five ad W c HS. You can check this podcast out
36:39
at WHS network dot com slash retire right. That'll be up within about an
36:44
hour or so. After this show is over, John will be back here
36:47
on next Monday. John, thanks a bunch of your time today for sharing
36:50
your expertise and guidance for folks, and all we can do is presser here
36:54
and who we get through it all. Yeah, it'll work out, trust
36:58
me, I think it will be just fine. John, thanks a lot
37:00
your time. We appreciate that. Once again Fourth Avenue, Financial one sevenuey
37:01
Court Street, Downtown Charleston three zero four seven four six seven done seven seven
37:06
three zero four seven four six seven none seven seven. Have a great day
37:08
everyone, I mean, don't you see it? Jes Yeah, maybe six
37:59
going for IF then Dravest one h four point five Cross Lanes, WVRC Media
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Station. We're proud to live here too,