Latest / WCHS Network Podcasts / 03/17/2025 Retire Right Radio with John Burdette

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03/17/2025 Retire Right Radio with John Burdette · WCHS Network Podcasts

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Speaker 2: The views and opinions expressed on this program do not
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Speaker 2: necessarily reflect the views and opinions of five eight WCCHS
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Speaker 2: its employees or WVRC Media. This is retire Right Radio,
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Speaker 2: a weekly show from John Verdet at Fourth Avenue Financial
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Speaker 2: that aims to answer your questions about financial planning, investing,
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Speaker 2: and how to retire right. Fourth Avenue Financial is located
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Speaker 2: in downtown Charleston at one seventy Court Street. More information
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Speaker 2: online at Fourth Avenue Financial dot com. Join the conversation
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Speaker 2: by calling three oh four three four five fifty eight
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Speaker 2: fifty eight or text three oh four nine three five
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Speaker 2: fifty oh eight. On Retire Right Radio, let's go live
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Speaker 2: to the studio with host Dale Cooper and John Verdet
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Speaker 2: from Fourth Aveny Financial Nation and.
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Speaker 3: A very pleasant good morning to you. You're listening to
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Speaker 3: retire Right Radio on five ADWHS. The voice of Charleston.
1:08
Speaker 3: Happy Monday morning. I hope you enjoyed that weekend. For
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Speaker 3: the most part, not too bad. Other than the areas.
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Speaker 3: We got hit by some thunderstorms coming through in the
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Speaker 3: Charleston area. Downtown certainly got hit by some wind that
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Speaker 3: came through yesterday, but then breaks in the weather and
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Speaker 3: we had some mice weather at times this weekend. It's
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Speaker 3: early spring, if we're quite there yet, and those are
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Speaker 3: things to be expected here in the Canal Valley and
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Speaker 3: in West Virginia, speaking of which, not in the Mountain
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Speaker 3: state right now. John Burdett joining us from a remote
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Speaker 3: location from a secluded bunker in parts unknown. Good morning, John,
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Speaker 3: How you do in this morning?
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Speaker 4: Doing pretty well? I am here hiding out from the market.
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Speaker 4: I leave town and the market falls apart. What's going
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Speaker 4: on here?
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Speaker 3: I don't know. I'd definitely make the correlation directly between
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Speaker 3: one and the other, because that certainly seems to be
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Speaker 3: where we are. As far as that goes, we will
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Speaker 3: get through it, and folks that tune into the program
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Speaker 3: know that we will address a little bit about market
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Speaker 3: issues and where we stand and what the current trends
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Speaker 3: may be, as well as how to be above all
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Speaker 3: of that frame, and we're going to lean into how
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Speaker 3: you can plan for your retirement, how to do things
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Speaker 3: financially sound for your financial planning, and not to react
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Speaker 3: too strongly to pressures and headlines in the news and
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Speaker 3: things along those lines. But John Burdada is with us
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Speaker 3: every Monday morning at eight twenty for retire Right Ready.
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Speaker 3: You can catch any previous episode. You can go to
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Speaker 3: WHS network dot com slash retire right. I'll take your
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Speaker 3: right to the subscription page for this show, which means
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Speaker 3: you can get it as a podcast form and listen
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Speaker 3: to it every week if you happen to miss it
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Speaker 3: live on the radio. More information online Fourth Avenue Financial
2:39
Speaker 3: dot com. Fourth Avenue Financial dot com. You spell out
2:42
Speaker 3: the whole thing, do that same search on Facebook and
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Speaker 3: like the page. When you do that, you'll be notified
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Speaker 3: of certain events that take place that John puts together.
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Speaker 3: And we're looking for an April dollars to no notes.
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Speaker 3: I think properly you're going to be coming up with
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Speaker 3: a date for that pretty soon.
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Speaker 4: Yes, actually it'll be the end of this month. Let
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Speaker 4: me look here on account under it looks like to
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Speaker 4: twenty ninth, we'll have one this month, So yeah, coming
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Speaker 4: up soon. I don't have the event on Facebook yet.
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Speaker 4: I'll get that up here probably middle of the week
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Speaker 4: and you can start sign it up.
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Speaker 3: Very good. And that's of course the kind of informal
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Speaker 3: meeting that John has over a vintage and Biden's in
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Speaker 3: South Charleston Dollars in Donuts exactly that show up, have
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Speaker 3: some donuts and some coffee, talk about things that are
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Speaker 3: going on in a very informal environment, nothing like crowd
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Speaker 3: sourcing questions. You know, John can help answer the questions,
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Speaker 3: but also there's other people around and becomes a shared experience,
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Speaker 3: so that's always that's always a good thing. Dollars of Donuts.
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Speaker 3: You can check that out on the twenty ninth of
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Speaker 3: this month. You can go to Facebook at Fourth Avenue
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Speaker 3: Financial like that page and register for the event there
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Speaker 3: or like the event there. So John has an idea
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Speaker 3: of the people that might be showing up. So John
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Speaker 3: Burnett is here this morning. If you have any questions,
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Speaker 3: you can give us a call three zero four three
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Speaker 3: four two eight one three one. You can also text
3:53
Speaker 3: over questions. You have to three zero four nine three
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Speaker 3: five five zero zero eight. So the elephant in the
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Speaker 3: room is we got to talk a little bit about
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Speaker 3: the the market as it took place last week. So
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Speaker 3: where do we stand right now?
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Speaker 4: John, Well, you know, the markets has been voladle this year,
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Speaker 4: and a couple of weeks ago we finally went negative
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Speaker 4: for the year, and Thursday of last week we actually
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Speaker 4: hit the official correction territory, which is a decline of
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Speaker 4: ten percent or more from the high. Of course, Friday
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Speaker 4: we bounced back pretty good, but we are still down
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Speaker 4: two to three percent for the week across most indexes
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Speaker 4: and so year. Today, the Dallas down two and a half,
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Speaker 4: the S and P's down four point one, Nasdex down
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Speaker 4: eight point one. The international stocks are up eight point one,
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Speaker 4: which is you know, surprising, I guess in light of
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Speaker 4: recent history the past few years, where the where the
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Speaker 4: international stocks have lagged us, they're they're leading away this year.
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Speaker 4: You know, when you hear the word correction, it really
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Speaker 4: that's that's really all it is. It's a it's a
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Speaker 4: ten percent decline from the high. If you take about
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Speaker 4: the market, and it always feels bad when we go
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Speaker 4: through these things, but you have to keep in mind
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Speaker 4: that these are normal parts of the market. It is
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Speaker 4: just a feature of the market. It's going to happen
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Speaker 4: plenty of plenty of times. As an investor, if you've
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Speaker 4: been invested, you've experienced many of these before, and it's
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Speaker 4: not the end of the world. Going back to nineteen
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Speaker 4: twenty eight, which is a pretty good long time period
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Speaker 4: to look at, five percent dip or more from the
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Speaker 4: high has happened three hundred and fifty times, which is
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Speaker 4: about three and a half times every year we're going
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Speaker 4: to have a moderate pullback of five percent or more.
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Speaker 4: A correction of ten percent or more has happened one
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Speaker 4: hundred and seventeen times, which is a little more than
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Speaker 4: once a year. So what we're experiencing now, if you're
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Speaker 4: an investor, you've experienced these about every year that you've
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Speaker 4: been invested before, so that there's nothing new at all
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Speaker 4: about this, nothing to panic about. A severe correction is
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Speaker 4: fifteen percent or more that's happened fifty six times, about
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Speaker 4: once every two years, and an actual bear market happens
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Speaker 4: about every three years, which is twenty percent or more.
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Speaker 4: So the market doesn't go just one direction. It has
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Speaker 4: these pullbacks along the way, you know, two steps forward,
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Speaker 4: one step back, and that's just how the market operates
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Speaker 4: over time, So I really wouldn't you know, advise you
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Speaker 4: to to change your long term view over these things
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Speaker 4: that happen normally as just part of the market. What's
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Speaker 4: important to note this time is the importance diversification and
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Speaker 4: how diversification can protect you. You know, as we've talked
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Speaker 4: about the last few years, the tech stocks have led
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Speaker 4: the way. What are on the bottom this year the
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Speaker 4: tech stocks. There are actually many segments of the market
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Speaker 4: this year that are up. Healthcare stocks are up, utilities
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Speaker 4: are up, consumer staples are up, energy stocks are up,
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Speaker 4: basic material stocks are up. You know, it's it's the
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Speaker 4: tech stocks that are really the ones that have been
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Speaker 4: hit the hardest. And and those are the ones that
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Speaker 4: that if you were I hate to use the word greedy,
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Speaker 4: but maybe a little reaching a little too far chasing
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Speaker 4: the winners and in concentrating your portfolios in those areas,
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Speaker 4: you know, you're feeling this pullback much much more than
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Speaker 4: than a person in a diversified portfolio.
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Speaker 3: And that's and that's simply what you talk about a
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Speaker 3: lot on this program. When you try to time things
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Speaker 3: out and to chase things, you know, for one thing,
8:04
Speaker 3: I mean, what you're really hoping for is to get
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Speaker 3: like an insider break almost. I mean that's not maybe
8:09
Speaker 3: not what you're asking for, but you're hoping to hit
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Speaker 3: along the same lines as someone who does have an
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Speaker 3: insider break. You're hoping to time something out just perfectly
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Speaker 3: to make things in the market. And that's just not
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Speaker 3: a good strategy when it comes to really being sound
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Speaker 3: with your future retirement plans. Because chances are you're not
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Speaker 3: an expert. It's easier to make mistakes. And there's strategies
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Speaker 3: that have been shown time and time again over the
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Speaker 3: course of decades with with any number of millions of
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Speaker 3: test cases out there, there's strategies that we know work.
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Speaker 3: Why do you want to go off the ranch and
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Speaker 3: do a high risk, relatively low reward when it comes
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Speaker 3: to what you're going to get if you just do
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Speaker 3: things the right way anyway?
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Speaker 4: Yeah, Yeah, those magnificent seven tech stocks are down fourteen
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Speaker 4: point four percents this year, so you know, if you
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Speaker 4: were concentrated there, you know you're taking it on the
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Speaker 4: shoe right now now. There. Again, that doesn't mean these
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Speaker 4: companies are bad. It just means everybody had heard it
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Speaker 4: into them and bid the prices up to where the
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Speaker 4: valuations were extreme. So when volatility happens, those are the
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Speaker 4: first things that are going to feel at You know,
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Speaker 4: if you're in a diversified portfolio, of balanced portfolio maybe
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Speaker 4: sixty percent stocks, forty percent bonds, something that you know,
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Speaker 4: if you're near retirement or in retirement that you should
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Speaker 4: be in you're probably you know, only down low single
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Speaker 4: digits two three percent this year if you're well diversified.
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Speaker 4: So you know, if you're down a lot more than
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Speaker 4: two three four percent right now, the chances are your
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Speaker 4: portfolio it's concentrated in areas that are tech heavy, and
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Speaker 4: particularly if you're in retirement, drawing income off of those
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Speaker 4: those assets, that can be a very dangerous saying. Even
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Speaker 4: in a moderate pullback, you know, if you're if you're
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Speaker 4: down ten to fifteen percent and you're taking money out
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Speaker 4: every month to fund your retirement, it doesn't take very
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Speaker 4: long for before that that goes upside down, and you
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Speaker 4: have to be very very careful with your allocations as
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Speaker 4: you get closer to retirement. Now, if you're thirty years old,
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Speaker 4: if you have a long time horizon, you know, the
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Speaker 4: market volatility doesn't change your life. You're not depending on it.
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Speaker 4: Right now, you're still acquiring shares into the market, you
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Speaker 4: know you have a little more ability to take that
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Speaker 4: risk on. But if you're closer into retirement, you know
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Speaker 4: having that balance portfolio is certainly the way to support
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Speaker 4: that retirement lifestyle that you're looking for.
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Speaker 3: Great information this morning with John bre Debt from Fourth
10:51
Speaker 3: Avenue fin Answer. You can text over any questions you
10:52
Speaker 3: have three zero four none, three five, five zeros or
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Speaker 3: eight threes are four non three five fives zero zero eight.
10:57
Speaker 3: You can call three zero four, three four two eight
10:58
Speaker 3: one three ones on for Debt one location this morning.
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Speaker 3: We're gonna be talking about what John's doing doing later
11:04
Speaker 3: on too with the University of Charleston. That's a neat
11:07
Speaker 3: thing that John does every year in trying to increase
11:09
Speaker 3: UH business financial literacy and different things along those lines.
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Speaker 3: Talk about that in just a few minutes. But if
11:14
Speaker 3: you want to give us a call this morning again
11:16
Speaker 3: the phone number three zero four, three four two eight
11:17
Speaker 3: one three one, you can text three zero four non
11:19
Speaker 3: three five five zero zero eight three zero four non
11:22
Speaker 3: three five five zero zero eight. Well of the one
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Speaker 3: of the things that folks need to look into. Maybe
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Speaker 3: if we if we're looking at moving from a bull
11:28
Speaker 3: market into a bear market type mentality. There are some
11:34
Speaker 3: strategies that you can look at doing, either that you
11:36
Speaker 3: pick up one on the other side of that or
11:38
Speaker 3: things that you no longer do do. As we talk
11:40
Speaker 3: about on this program a lot, the toolbox becomes a
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Speaker 3: little bit different depending on how the market is reacting
11:45
Speaker 3: in what the trend seemed to be happening.
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Speaker 4: Yeah, no doubt about it. Like to say, the fixed
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Speaker 4: income bonds, for instance, are are are working? You know,
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Speaker 4: they're they're positive for the year. For instance, a balanced
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Speaker 4: portfolio that that a few percent that you're making there
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Speaker 4: can offset those stock losses. You know, just having that
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Speaker 4: good mix that aligns with where you are in your
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Speaker 4: in your life, what your needs are, is going to
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Speaker 4: make your portfolio much much more resilient. And there again,
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Speaker 4: just because we've had a pullback of ten you know,
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Speaker 4: of ten percent of correction, although that you know so far,
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Speaker 4: that correction only lasted the day we hit that and
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Speaker 4: then Friday on Thursday, and then Friday we rebounded, so
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Speaker 4: we're technically not in correction territory now, but you can
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Speaker 4: say we've had a correction because it was down ten
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Speaker 4: percent or more. But you know, three out of four
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Speaker 4: times that we go into a correction, we don't necessarily
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Speaker 4: slip into a bear market. Only one out of four
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Speaker 4: times historically do we actually slip further down into into
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Speaker 4: a bear market. And usually when we slip into a
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Speaker 4: bear market, not all the time, but usually it's accompanied
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Speaker 4: with some sort of a bad corporate earnings environment, which
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Speaker 4: we really don't have right now. Corporations are doing just fine.
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Speaker 4: I mean, even the Magnificent seven stocks that are that
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Speaker 4: are down the most this year, you know, their earnings
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Speaker 4: are growing. The expectation is maybe they're going to grow
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Speaker 4: a little slower, but it's not as if their their
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Speaker 4: earnings have evaporated or or even they're not growing anymore.
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Speaker 4: They're still growing. So you know, it would be somewhat
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Speaker 4: unusual to have a big economic and big market calamity
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Speaker 4: and an environment like that. That doesn't mean it can't happen,
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Speaker 4: but you know, history shows that that we go into
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Speaker 4: these corrections a whole lot more than we go into
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Speaker 4: an actual bear market, more prolonged downturn.
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Speaker 3: That makes a lot of sense. You want to use
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Speaker 3: a little class before doing that. If is it worthwhile
14:02
Speaker 3: for folks depending on where they are on their portfolio,
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Speaker 3: how they're looking at things. Maybe their tools are still
14:07
Speaker 3: half in and half out depending on where the market is.
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Speaker 3: Taking a look at some sort of rebalancing of their
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Speaker 3: allocations or something along those lines, especially with oversight of
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Speaker 3: a professional like yourself, may not be the worst strategy
14:18
Speaker 3: for someone, especially if they've left those unattended for a while.
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Speaker 4: Well, no doubt about it. I mean sometimes these type
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Speaker 4: of events open your eyes to the risks maybe that
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Speaker 4: we're building in your portfolio and alerts you to you know,
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Speaker 4: this may be the right time to take a look
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Speaker 4: at this and to get this right. It's very easy
14:41
Speaker 4: to say you're doing the right thing when the market's
14:43
Speaker 4: going up, because it's hard to miss when there's a
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Speaker 4: bull market and everything goes up, and these type of
14:53
Speaker 4: doundturns can, like you say, open your eyes to some
14:56
Speaker 4: of the risks that you have or that may have
14:58
Speaker 4: been building in your portfolio that were easy to ignore
15:01
Speaker 4: when the market was good.
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Speaker 3: Yes, when something's chugging along at a great pace, it's
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Speaker 3: it's kind of easy to hide some of the mistakes
15:09
Speaker 3: or some of the other problems that might be in there.
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Speaker 3: Because if you're stocking paper, you're stocking paper, you're not
15:13
Speaker 3: really you may not be a paying attention to some
15:15
Speaker 3: of the fundamental problems that you have and where your
15:17
Speaker 3: allocations may be. Because everything's going great once things aren't
15:20
Speaker 3: so great anymore. That's where you really need a professional
15:23
Speaker 3: step in because when everything's going great, Hey, if you
15:25
Speaker 3: got in in Navidia early and you just watched that
15:27
Speaker 3: thing rise, you might think that you're a genius, but
15:29
Speaker 3: really you just got in early and congratulations, but doesn't
15:32
Speaker 3: mean that you made it, you made any that you
15:34
Speaker 3: did anything other than getting in early on something along
15:37
Speaker 3: those lines. Don't trust yourself to keep on making those
15:39
Speaker 3: kinds of calls in the future.
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Speaker 4: Yeah, that's one of Warren Buffett's famous quotes. It says,
15:46
Speaker 4: you you find out who's not wearing shorts when the
15:48
Speaker 4: todd goes out.
15:52
Speaker 3: That's pretty good anyway, that's pretty good. So there are
15:59
Speaker 3: there are something things that you could take a look
16:00
Speaker 3: at your own portfolio too, to maybe that lets you
16:03
Speaker 3: know that maybe it would be worthwhile contacting John con
16:05
Speaker 3: protacting professional, maybe taking a look at things. Uh, you
16:08
Speaker 3: might have a lack of diversification, which is one of
16:10
Speaker 3: the things that John spoke about here at the at
16:12
Speaker 3: the at the the opening of the show. If you're
16:14
Speaker 3: not diversified well or diversified the right way, it might
16:16
Speaker 3: be something that that you, uh, you need to look into.
16:20
Speaker 3: Also if if you have things that are in uh,
16:24
Speaker 3: if you're over exposed at high risk assets. You know,
16:26
Speaker 3: maybe you're looking at some growth industries or something like
16:28
Speaker 3: that that at one time looked like they were right
16:30
Speaker 3: for some some uh some investment for some profit. Growth
16:34
Speaker 3: industries may not grow so much if the market variables
16:37
Speaker 3: change a little bit, that might be something else you
16:38
Speaker 3: might need to look into.
16:41
Speaker 4: Yeah, you know, the market is a lot bigger than
16:43
Speaker 4: seven stocks, and there there are a lot of a
16:47
Speaker 4: lot of pieces out there that have been left behind
16:50
Speaker 4: that and you can see it this year. I would
16:52
Speaker 4: like to say, there are many sectors of the market
16:54
Speaker 4: that are up. So it's not that necessarily when the
16:57
Speaker 4: market goes down, people aren't necessarily fleeing the stock market
17:02
Speaker 4: and just getting out all together. But more so it's
17:06
Speaker 4: a rotation into other types of companies and and so yeah,
17:11
Speaker 4: so we may sell out some of the of the
17:15
Speaker 4: tech stocks and it rotates into utilities or more more
17:20
Speaker 4: conservative companies that are valued more reasonably. Maybe not growing
17:27
Speaker 4: as fast, but they're very stable and and a lot
17:31
Speaker 4: of them have good dividend streams, you know, income to
17:34
Speaker 4: help offset volatility. There are all kinds of uh, you know,
17:38
Speaker 4: sectors in the in the market outside of the tech
17:42
Speaker 4: stocks that you know. Unfortunately, in the last few years,
17:46
Speaker 4: you know, a lot of folks have hoarded into which
17:49
Speaker 4: was good for for for a period of time. You know,
17:53
Speaker 4: even if you were in those the last handful of years,
17:56
Speaker 4: you're still way up on on on those type of investments.
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Speaker 4: It's just the runway seems to have run out as
18:04
Speaker 4: far as the outperformance of those industries.
18:08
Speaker 3: Finally, you're listening to retire right ready with John Bredebt
18:12
Speaker 3: for Fourth Avenue Financial. More information online. It's fourth Avenue
18:15
Speaker 3: Financial dot com. Fourth Avenue Financial dot Com located one
18:17
Speaker 3: seventy Court Street, downtown Charleston, right across from the town
18:20
Speaker 3: Center Mall. We wanna take a break. When we come back,
18:22
Speaker 3: we're going to talk about what John is doing with
18:24
Speaker 3: the University of Charleston, and we'll deep dive back into
18:28
Speaker 3: your portfolio maybe problems that you might be having. We
18:31
Speaker 3: want to talk about style drift, maybe where you might
18:33
Speaker 3: be overexposed in some areas, making sure you're not ignoring
18:37
Speaker 3: macroeconomic indicators, things along those lines that John's going to
18:40
Speaker 3: help you through and maybe raise some red flags for
18:43
Speaker 3: you where you know you need a professional to help
18:45
Speaker 3: you along. So we'll be back with more information along
18:48
Speaker 3: those lines. So John, if you don't mind holding on
18:49
Speaker 3: for just a moment, we'll take a break. We're going
18:51
Speaker 3: to come back after this and with more questions from you.
18:53
Speaker 3: From John Bredada and Fourth Avenue Financial, you can give
18:55
Speaker 3: us a text three zero four nine three five five
18:57
Speaker 3: zero zero eight three zero four nine three five five
19:00
Speaker 3: zero zero eight. You can also call three zero four
19:02
Speaker 3: three four two eight one three to one. I'm Neil Cooper.
19:05
Speaker 3: You're listening to retire Radio with John Bredet from Fourth
19:07
Speaker 3: Avenue Financial. One five AWCHS the Voice of Charleston. Retire
19:11
Speaker 3: Right Radio is sponsored by Fourth Avenue Financial, which is
19:13
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19:16
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19:20
Speaker 3: Fourth Avenue Financial, JW Call Financial and JW CO Advisors
19:23
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19:27
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19:30
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19:33
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19:37
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19:44
Speaker 3: on such a person, and each listener should seek advice
19:46
Speaker 3: from their tax advisor or legal console on topics that
19:50
Speaker 3: arise from the show. John Bredett is not providing legal
19:52
Speaker 3: or tax advice. Nothing should be construed as solicitation of
19:55
Speaker 3: an offer to buy securities. This program is sponsored by
19:58
Speaker 3: Fourth Avenue Financial, which is solely re responsible for its content.
20:01
Speaker 5: We all want what's best for our kids, safe, healthy choices,
20:07
Speaker 5: but some politicians right here in West Virginia are going
20:11
Speaker 5: way too far. They're pushing a ban on safe ingredients
20:15
Speaker 5: in our grocery stores. That ban would jack up prices
20:18
Speaker 5: on almost everything we buy. Banning these types of ingredients
20:22
Speaker 5: would eliminate sixty percent of the food on grocery shelves,
20:25
Speaker 5: hiking prices even more when we're already struggling. Worse, it
20:30
Speaker 5: would cost thousands of jobs all across West Virginia. Governor
20:34
Speaker 5: Morrissey can stop this reckless ban and veto it. We
20:38
Speaker 5: just can't afford it. It goes way too far. There
20:41
Speaker 5: are more sensible solutions. It should be our choice, not
20:45
Speaker 5: the governments. Call Governor Morrissey at three zero four five
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Speaker 5: five eight two thousand, tell them to keep growing our
20:51
Speaker 5: economy and stand with hard working West Virginians. At your
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Speaker 5: part your Choice dot Com paid for by Americans for
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21:01
Speaker 6: This is retire Right Radio with John Burdett from Fourth
21:05
Speaker 6: Avenue Financial taking your calls at three oh four three
21:09
Speaker 6: four five fifty eight fifty eight or texts on three
21:12
Speaker 6: oh four nine three five fifty oh eight.
21:22
Speaker 3: I like this fans on time you're listening soon or
21:24
Speaker 3: ty you Right Radio rob ABWCHS the Voice of Charleston.
21:27
Speaker 3: I'm Del Cooper in studio not in studio with us
21:30
Speaker 3: is today, I should say John Burdett with Fourth Avenue
21:32
Speaker 3: Financials joining us on the phone lines this morning. You
21:36
Speaker 3: can send in your questions to three zero four non
21:38
Speaker 3: three five five zero zero eighth. Threes are a four
21:40
Speaker 3: non three five five zeros zero eight. You can call
21:42
Speaker 3: three zero four, three four five fifty eight fifty eight. John,
21:44
Speaker 3: We've talked about this a few other times that you've
21:46
Speaker 3: been on the program before, but this is a really
21:48
Speaker 3: neat thing that you're doing with the University of Charleston.
21:50
Speaker 3: Watch you explain a little bit about that initiative that
21:52
Speaker 3: you're into.
21:55
Speaker 4: Sure, the University of Charleston, they have a financial planning
21:58
Speaker 4: program for the last tan over years and so I've
22:03
Speaker 4: been doing some uh some work with them. And you know,
22:08
Speaker 4: one of the things that you know, you think about
22:11
Speaker 4: when you when you get into the financial industry, you
22:16
Speaker 4: don't realize there are so many different opportunities within the industry.
22:21
Speaker 4: And so you you know, in your mind, you you
22:24
Speaker 4: maybe are going to school, you you say, well, I'm
22:27
Speaker 4: going to get a financial planning degree and I'm going
22:29
Speaker 4: to become a financial planner. But there are so many
22:31
Speaker 4: more opportunities within the industry that you probably don't even
22:36
Speaker 4: never even heard of. You know, there are you know
22:41
Speaker 4: the companies that that the fund companies, they have wholesalers,
22:46
Speaker 4: they have marketing people, they have compliance there are all
22:51
Speaker 4: kinds of sub sectors that as a as a student,
22:56
Speaker 4: you have no real exposure to. So what I've been
23:00
Speaker 4: trying to do is each year, plan a plan a
23:03
Speaker 4: trip and where we go visit somebody and visit a company.
23:11
Speaker 4: Last year we did Chicago a company called First Trust
23:14
Speaker 4: that I use an investment a company, and you know,
23:20
Speaker 4: they take them around to the departments and teach them
23:24
Speaker 4: what each department does and what type of skill sets
23:27
Speaker 4: that you need to perform in those various areas. And
23:32
Speaker 4: you know, some people are more personal than other personal
23:35
Speaker 4: skills that others. Some people are more computer savvy. There
23:39
Speaker 4: are just so many different areas that you can go into.
23:44
Speaker 4: A lot of times, these companies will give them interview tips,
23:48
Speaker 4: you know, what are they looking for when they interview?
23:51
Speaker 4: And just real world opportunities, real world experience that we're
23:57
Speaker 4: trying to give them exposure to as they is to
24:00
Speaker 4: go through and get their financial planning degrees this year.
24:04
Speaker 4: And and why I'm still in Florida. Last week, I
24:07
Speaker 4: was in Florida in vacation. I'm in Florida a few
24:10
Speaker 4: more days because today we have eight students flying down
24:16
Speaker 4: and we're going to meet them at JW. Cole, which
24:19
Speaker 4: is my broker dealer. They're in Tampa, and so you know,
24:26
Speaker 4: they're about eighty employees there in home office and all
24:29
Speaker 4: the departments that support basically my business, the back office
24:34
Speaker 4: portion of my business. We're going to get to do
24:37
Speaker 4: that with the students, take them around, show them how
24:40
Speaker 4: the actual industry works behind the scenes, and give them
24:44
Speaker 4: an experience that you don't get in the book work.
24:49
Speaker 3: And that and that's really we've talked about this before
24:51
Speaker 3: that it's so important to for folks. Frankly, you should
24:55
Speaker 3: start learning at even an early earlier age, I think
24:57
Speaker 3: with a lot of these concepts and things for for management,
25:01
Speaker 3: managing finances and things like that along the lines. But
25:04
Speaker 3: doing this part, doing this part that you see, it's
25:06
Speaker 3: very nice that that program exists in this area. It's
25:08
Speaker 3: very nice that you're a part of it. And it
25:10
Speaker 3: really is something that's it's practical, useful knowledge that's going
25:14
Speaker 3: to help folks on top of hopefully getting put folks
25:17
Speaker 3: into your industry to help out.
25:19
Speaker 4: Yeah, there's a there's a real lack of youth in
25:22
Speaker 4: the financial service industry. So you know, I'm I'm fifty
25:30
Speaker 4: one years old and I'm still relatively young compared to
25:37
Speaker 4: a lot of financial advisors now as young as I
25:40
Speaker 4: used to be, but still relatively young because there's a
25:44
Speaker 4: there's a real shortage of youth getting into the industry,
25:47
Speaker 4: which is a it's not a good thing. I mean,
25:51
Speaker 4: there are lots of folks in our country coming up
25:56
Speaker 4: towards retirement age and it's going to be more and
26:01
Speaker 4: more difficult to find, you know, find the advice that
26:06
Speaker 4: you need to get through that time period because we're
26:09
Speaker 4: lacking youth in the industry.
26:12
Speaker 3: And that makes a lot of sense. Again, more information,
26:14
Speaker 3: John er Debt, Fourth Avenue Financial. If you want to
26:16
Speaker 3: get on the conversation, you're more than welcome to text
26:18
Speaker 3: over a question three zero four nine three five five
26:20
Speaker 3: zeros or eight. We're call three zero four, three four
26:22
Speaker 3: five fifty eight fifty eight. I did have some other
26:24
Speaker 3: questions when it comes to the when it comes to
26:28
Speaker 3: the stock market, how you can guard yourself against problems
26:33
Speaker 3: some indicators that might mean that you have some issues
26:35
Speaker 3: or things that you might hear about. Then you might
26:37
Speaker 3: want to double check that you're not suffering from something
26:39
Speaker 3: like that. I was reading this about some things last
26:40
Speaker 3: night after you sent me some of the topics that
26:43
Speaker 3: we're going to get into. And one thing that we
26:44
Speaker 3: haven't we've talked about it in I think in description before,
26:48
Speaker 3: but we haven't really necessarily, at least in my knowledge,
26:51
Speaker 3: labeled something called style drift, which is when you have
26:54
Speaker 3: a strategy that you adhere to you in your financial
26:56
Speaker 3: advisor whoever, come up with an investment strategy, and over
27:00
Speaker 3: time you might find that that's drifting away from what
27:02
Speaker 3: your core goals are.
27:05
Speaker 5: Uh.
27:06
Speaker 4: Yes, you'll see that a lot. And this is one
27:10
Speaker 4: of the things that you can get yourself into a
27:15
Speaker 4: little bit of allocation trouble when you buy funds and
27:20
Speaker 4: then you don't review them every so often, especially the
27:25
Speaker 4: last couple of years where the tech stocks have led
27:27
Speaker 4: so so much. You'll have funds that initially may have
27:34
Speaker 4: been more conservative funds, and a year after year they
27:39
Speaker 4: keep getting beat in performance by the tech funds, and
27:43
Speaker 4: so you find that they drift their style over by
27:48
Speaker 4: acquiring some of those more growth oriented funds to chase
27:52
Speaker 4: those returns, so their return numbers look look look better. Well,
28:00
Speaker 4: what if you wanted to own the type of stocks
28:02
Speaker 4: that that fund own owned to begin with. Well, now
28:06
Speaker 4: it doesn't now it's drifted into the other style category.
28:11
Speaker 4: And that is how you end up thinking that, oh,
28:16
Speaker 4: I'm diversified because I own five different funds in all
28:20
Speaker 4: of these different style boxes. But if they drift internally
28:25
Speaker 4: to chase those returns, then you may not be as
28:29
Speaker 4: diversified as you thought you initially were. And that's one
28:34
Speaker 4: of the things you really have to look for. You know,
28:36
Speaker 4: when I'm managing a portfolio, in selecting funds, one of
28:40
Speaker 4: the criteria is that they do not drift, and that
28:44
Speaker 4: if they do drift out of their style box, they
28:47
Speaker 4: get kicked out of the portfolio. You know, I want
28:50
Speaker 4: a true fund style that stays the way it is
28:57
Speaker 4: so that way, when I'm allocating funds across the portfolio,
29:02
Speaker 4: I know I'm covering that box and and and it's
29:06
Speaker 4: not drifting into a portfolio that I'm not wanting it
29:09
Speaker 4: to be. And and that happens a lot, and it
29:13
Speaker 4: happens a lot inside for one case, you know, where
29:17
Speaker 4: you have a little less control over the allocation. Style
29:22
Speaker 4: drift is definitely something that that these managers sometimes find
29:28
Speaker 4: their way into because they're competing for dollars. You know,
29:30
Speaker 4: if their numbers year after year are lagging the overall market.
29:35
Speaker 4: There is a big uh I guess pressure on them
29:43
Speaker 4: to perform, and and sometimes that means they break their
29:46
Speaker 4: style and and drift into others, which is which is
29:49
Speaker 4: not a good thing. If you're trying to diversify your portfolio.
29:52
Speaker 3: Yeah, if you're doing these things by the numbers, are
29:54
Speaker 3: at least trying to and you think that you're diversified
29:56
Speaker 3: into into uh, into some of these that are so
30:00
Speaker 3: supposed to a fund that's supposed to be you know,
30:02
Speaker 3: diversified among traditional stocks and and things that deal outside
30:09
Speaker 3: of technology or sciences or something like that, and then
30:11
Speaker 3: suddenly they start incorporating some of this into that because
30:13
Speaker 3: it's a growth area and something massive hits in that industry.
30:17
Speaker 3: You think you're diversified, but you're not necessarily because you
30:19
Speaker 3: don't have that manute control and you haven't done your
30:21
Speaker 3: job in reviewing these things. That's definitely where you can
30:24
Speaker 3: come in handy and helping folks out to make sure
30:27
Speaker 3: that the funds that they're invested in aren't in some
30:30
Speaker 3: sort of a of ideological drift, because you want to
30:32
Speaker 3: make sure that your strategy is going to hold true, right, Yeah.
30:36
Speaker 4: Every so often you need to look under the look
30:38
Speaker 4: under the hood. You know, with these funds too. You know,
30:41
Speaker 4: managers don't work forever, don't don't don't live forever. There
30:47
Speaker 4: can be changes inside these funds to the management itself,
30:52
Speaker 4: and philosophies sometimes change when when when the personnel changes.
30:56
Speaker 4: So all of those things are are things that you
30:59
Speaker 4: need to be aware of. I mean, this is not
31:01
Speaker 4: a daily thing you need to watch, but it's certainly
31:04
Speaker 4: something over time you need to watch. And if there
31:06
Speaker 4: is a change in management of the fund. Sometimes funds
31:09
Speaker 4: get acquired by other companies and there and there's consolidation.
31:14
Speaker 4: Well when that happens, you are they are they sticking
31:18
Speaker 4: to the original style, you know? And sometimes they send
31:23
Speaker 4: you letters out uh and and it looks like a
31:27
Speaker 4: legal mumbo jumbo and and and inside that they may
31:30
Speaker 4: be telling you that they're switching the style of the
31:32
Speaker 4: fund or it was acquired and the management is changing.
31:35
Speaker 4: You know. Those are things that if you're managing a
31:38
Speaker 4: portfolio over time, you know you have to watch out
31:43
Speaker 4: for that. And and if you're not going to watch
31:45
Speaker 4: out for that, those are certainly things that that that
31:49
Speaker 4: that we do and can do for you.
31:51
Speaker 3: That's what John bre Data, Fourth Avenue Financial. One of
31:54
Speaker 3: the things that's sort of related to this that I've
31:56
Speaker 3: heard recently kind of a gross misinterpretation of of sort
32:01
Speaker 3: of of your mantry. You know, the market always works
32:04
Speaker 3: out when you look at the when you look at
32:05
Speaker 3: things far enough out, the market is always going up.
32:08
Speaker 3: You know, if you if you, if you invest properly
32:10
Speaker 3: in everything, that even when there's pullbacks things like that,
32:13
Speaker 3: in the end, things are going to come out. The
32:15
Speaker 3: problem that I've seen some folks, and this is mostly
32:17
Speaker 3: you know, some galaxy brain thinkers online or whatever. They
32:21
Speaker 3: don't want to accept the reality that things aren't as
32:23
Speaker 3: great as what they were. And they're just saying, hey,
32:26
Speaker 3: the market always works itself out. I can leave everything
32:28
Speaker 3: exactly as it is right now, and once we come
32:30
Speaker 3: through all of this, I'm want to be in great shape. Well,
32:32
Speaker 3: the market always works out because you have people working
32:34
Speaker 3: to make it work out. It doesn't just magically happen
32:36
Speaker 3: because you leave things alone.
32:39
Speaker 4: No, I mean sometimes investments go bad and and and
32:43
Speaker 4: you know they they say that the market goes down.
32:46
Speaker 4: It's like you you drop a basket of dump a
32:49
Speaker 4: basket of eggs, and rubber balls. You know, you want
32:52
Speaker 4: to make sure you own the rubber balls and not
32:54
Speaker 4: the eggs because the eggs won't come back nice. And
33:00
Speaker 4: you know that that's the way it is. You know,
33:02
Speaker 4: the market is it's creative destruction. I mean, think of
33:05
Speaker 4: all the big companies that were on top of the
33:07
Speaker 4: world that don't even exist anymore. You know, think think
33:10
Speaker 4: of Sears, you know, all of those big companies. There's
33:15
Speaker 4: so many companies that that that we're on top and
33:20
Speaker 4: now are gone. You know, when you think of technology,
33:24
Speaker 4: back in the sixties and seventies, it was IBM. You know,
33:27
Speaker 4: IBM is still around, but it's certainly not at the
33:29
Speaker 4: forefront of technology anymore. So you know, those are those
33:37
Speaker 4: are things that, yes, the market as a whole comes back,
33:42
Speaker 4: but not everything comes back all the time or doesn't
33:46
Speaker 4: come back the way you you know, other sectors do.
33:48
Speaker 4: That's why you have to stay diversified. And that's why
33:51
Speaker 4: when you talk about the market coming back, well, the
33:53
Speaker 4: market may come back in whole. Individual components may or
33:57
Speaker 4: may not come back. The market in general is always
34:00
Speaker 4: come back in as a whole, but the problem is
34:05
Speaker 4: it might not come back for you depending on what
34:08
Speaker 4: your individual needs are.
34:10
Speaker 3: You bring up a great point there, and you actually
34:11
Speaker 3: mentioned something when you talked about computers and IBM back
34:14
Speaker 3: in the day. If you've been around for long enough
34:16
Speaker 3: and been around with computers. I'm fifty today, but I
34:19
Speaker 3: was sort of an early adopter. I was given my
34:21
Speaker 3: first computer. It was called a k Pro two and
34:23
Speaker 3: it was in the early eighties. Was an I was
34:25
Speaker 3: like nine years old, eight years old when I got
34:27
Speaker 3: this thing. And I've been around computers for a long time,
34:30
Speaker 3: part of computer clubs, different things like that. The generic
34:33
Speaker 3: how things are like Apple and PC now and PC
34:36
Speaker 3: generally means a Windows computer when it has Microsoft Windows
34:39
Speaker 3: on it, and things Back in the day you had
34:42
Speaker 3: you had the Microsoft computers, the Apples, but you also
34:46
Speaker 3: had they just called it ibms. It wasn't the Windows PC,
34:50
Speaker 3: it wasn't the Microsoft PC, it wasn't the Windows OS
34:53
Speaker 3: or whatever that it was the IBM computer. So personal
34:57
Speaker 3: computer still exists today, right, It's a huge indust right,
35:00
Speaker 3: but IBM as a sole component as being one of
35:02
Speaker 3: the leading indicators of the PC industry is just not
35:05
Speaker 3: the case anymore.
35:07
Speaker 4: No, And and there again, you know, the market goes
35:10
Speaker 4: down and we know it will come back if given
35:14
Speaker 4: enough time, but if it comes down you're allocated improperly
35:17
Speaker 4: and you're drawing income off of it in retirement for instance,
35:22
Speaker 4: it might not come back for you even though the
35:24
Speaker 4: market comes back. You know what if it takes two
35:26
Speaker 4: years for it to come back and you're drawing income
35:28
Speaker 4: off every year, you know you may have a problem
35:31
Speaker 4: building there that it won't come back because you've drawn
35:35
Speaker 4: it down through your your living needs and it doesn't
35:39
Speaker 4: come back in the timeframe you need it to come
35:41
Speaker 4: back in. You know. That's why it's so important to
35:44
Speaker 4: match your portfolio up to the needs that you have individually.
35:49
Speaker 4: And that's a whole lot different than saying, well, the
35:50
Speaker 4: market will come back. Yes, the market will come back,
35:54
Speaker 4: but is it aligned properly with what your individual needs are.
35:58
Speaker 4: That's the real question.
36:00
Speaker 3: We've learned a lot this morning on retire Right Rady
36:02
Speaker 3: with John Bredet for Fourth Avenue Financial. You know, John
36:05
Speaker 3: takes us through, especially when there's activity in the market,
36:08
Speaker 3: whether it be good or bad, and puts a sobering
36:10
Speaker 3: hand on it, whether again whether you need to calm
36:12
Speaker 3: you down a little bit one way or the other.
36:14
Speaker 3: Fourth Avenue Financial John Bredet always does a great job
36:16
Speaker 3: of doing that for you on Monday mornings right here
36:18
Speaker 3: on five ADWHS on retire Right Radio. Let me take
36:21
Speaker 3: a minute just to get out the contact information for
36:23
Speaker 3: you for Fourth Avenue Financial as we're wrapping up the
36:25
Speaker 3: show here just about a minute left. Fourth Avenue Financial
36:27
Speaker 3: is located one seventy Court Street, downtown Charleston. It's across
36:30
Speaker 3: from the Town Center mall, right next to National Travel.
36:32
Speaker 3: Their phone number three zero four seven four six seven
36:34
Speaker 3: non seven seven three zero four seven four six seven
36:37
Speaker 3: none seven seven is where you can get a hold
36:39
Speaker 3: of Fourth Avenue Financial and John Burdett. And you can
36:43
Speaker 3: also check out this show every Monday morning at eight
36:45
Speaker 3: twenty retire Right Radio with John Burdett right here on
36:47
Speaker 3: five ad W c HS, the Voice of Charleston. John,
36:49
Speaker 3: thank you so much for your time remotely doing a
36:52
Speaker 3: great thing with the folks over at U see in
36:54
Speaker 3: that department over there. And will you be back here
36:56
Speaker 3: next week?
36:58
Speaker 4: I will. I'll be in the studio. If everything coats
37:02
Speaker 4: as planned, I will be in the studio.
37:03
Speaker 3: That sounds great, well, let's hope. Let's hope that it does. John,
37:06
Speaker 3: thanks a lot for your time this weekend. We'll see
37:08
Speaker 3: you next week here on retire Right Radio.
37:11
Speaker 4: All right sounds good, Take care.
37:12
Speaker 3: That's John Burdett, everyone from Fourth Avenue Financial again three
37:14
Speaker 3: zero four seven four six seven on seven seven three
37:17
Speaker 3: zero four seven four six seven non seven seven one
37:19
Speaker 3: last time to call Fourth Avenue Financial on John Bredett
37:22
Speaker 3: three zero four seven four six seven non seven seven,
37:24
Speaker 3: Dave Alan five Edy Love is coming up next. That
37:27
Speaker 3: will be followed by TJ and Dave Wilson on Talkin.
37:30
Speaker 3: I'll be back this afternoon at three ozh six with
37:32
Speaker 3: Metro News Hotline and Dave Weekly. Have a great day everyone.
37:35
Speaker 3: On five ad W c HS, we are the Voice
37:37
Speaker 3: of Charleston