Latest / WCHS Network Podcasts / 08/04/2025 Retire Right Radio with John Burdette

Transcript

08/04/2025 Retire Right Radio with John Burdette · WCHS Network Podcasts

0:00
Speaker 1: Unlock your dream property with Meeks Realty Group, where Rich
0:03
Speaker 1: the realtor makes real estate dreams a reality, whether it's
0:05
Speaker 1: residential or commercial. We've got Charleston to Huntington covered. Your
0:09
Speaker 1: key to exceptional real estate experience is start here Meeks Realtygroup.
0:13
Speaker 1: Contact us at Meeks dot us.
0:15
Speaker 2: The views and opinions expressed on this program do not
0:18
Speaker 2: necessarily reflect the views and opinions of five eight WCCHS
0:22
Speaker 2: its employees or WVRC Media. This is retire Right Radio,
0:27
Speaker 2: a weekly show from John Verdett at Fourth Avenue Financial
0:31
Speaker 2: that aims to answer your questions about financial planning, investing,
0:34
Speaker 2: and how to retire right. Fourth Avenue Financial is located
0:38
Speaker 2: in downtown Charleston at one seventy Court Street. More information
0:42
Speaker 2: online at Fourth Avenue Financial dot com. Join the conversation
0:46
Speaker 2: by calling three oh four three four five fifty eight
0:49
Speaker 2: fifty eight or text three oh four nine three five
0:52
Speaker 2: fifty oh eight. On Retire Right Radio, Let's go live
0:57
Speaker 2: to the studio with host Dale Cooper and John Verdett
0:59
Speaker 2: from pot to Avenue Financials.
1:01
Speaker 3: Or Logan Scott and for Dale Cooper on a Monday morning,
1:05
Speaker 3: August fourth. It is eight twenty two. This is retire
1:08
Speaker 3: Right Radio with John Bradatt. How are you this morning.
1:11
Speaker 3: I'm doing wonderful. That's awesome. So you know, talk a
1:15
Speaker 3: little bit about your business.
1:18
Speaker 4: Okay, well, yeah, you have Fourth Avenue. Financial is my business.
1:21
Speaker 4: I'm an independent financial advisor and I help folks, you know,
1:26
Speaker 4: plan for retirement and manage their investments, you know, answer
1:31
Speaker 4: all the questions they might have about their finances that
1:34
Speaker 4: pop up from time to time, life changes, things like that,
1:38
Speaker 4: and we just help guide the folks through those decisions.
1:41
Speaker 3: Yeah. And one of the things on your list too
1:44
Speaker 3: is college planning.
1:45
Speaker 4: Yeah, yeah, college planning is well, college is a big
1:48
Speaker 4: expense now. It's certainly something that you need to think
1:53
Speaker 4: about because with the cost of it, you can really
1:57
Speaker 4: create a financial burden going on into your life with
2:03
Speaker 4: some of the death that you take on during that
2:05
Speaker 4: college experience. You know, you can't. It's difficult nowadays to
2:10
Speaker 4: go to college to quote find yourself. You ratter know
2:12
Speaker 4: what you're gonna do before you're paying those fees.
2:14
Speaker 3: Out absolutely, and college is just around the corner, so
2:17
Speaker 3: things are about to gear back up with that.
2:19
Speaker 4: So yeah, yeah, my youngest he actually went and set
2:22
Speaker 4: WVU went to set his apartment up. He's he will
2:26
Speaker 4: be a sophomore this year up at WVU.
2:29
Speaker 3: So yeah, so there's a lot of things with you know, expenses.
2:35
Speaker 3: There are some tax advantage saving programs too with college.
2:39
Speaker 4: Yeah, yeah, there's the five twenty nine College Savings Program.
2:43
Speaker 4: Basically it works. The way you can put money in
2:47
Speaker 4: it is then you get a tax break for the
2:50
Speaker 4: state of West Virginia if you're a West Virginia resident
2:52
Speaker 4: used the West Virginia plan, and then it grows tax deferred.
2:58
Speaker 4: You can invest it in mutual funds, very similar to
3:01
Speaker 4: the way you can in your four oh one K.
3:03
Speaker 4: It grows tax deferred, and if it's used for college,
3:06
Speaker 4: it comes out tax free. So it's a pretty powerful
3:09
Speaker 4: way to accumulate funds if you have a long time horizon,
3:12
Speaker 4: you know, if you've got that five year old thinking
3:14
Speaker 4: maybe I should save put some money aside, that's a
3:17
Speaker 4: great way to do it. Yeah.
3:18
Speaker 3: And then even with student loans, paying those off after
3:21
Speaker 3: school too, after you're done school.
3:24
Speaker 4: Yes, and you know, interest, interest adds up. It's what
3:27
Speaker 4: I tell people with really any type of financial planning,
3:31
Speaker 4: you're better to earn the interest than you are to
3:33
Speaker 4: pay the entriest. So you need to some way get
3:36
Speaker 4: to that point as quickly as possible, you know, to
3:39
Speaker 4: be successful with your with your financial life. You know,
3:43
Speaker 4: it's it's really not that complicated to do, but it
3:48
Speaker 4: is difficult, if that makes sense, right. You know, the
3:51
Speaker 4: processes to accumulate wealth and to build that security are
3:56
Speaker 4: very simple. I mean, you can anybody can understand them.
3:58
Speaker 4: But of course life is uh can get complicated, right,
4:03
Speaker 4: that's right. I mean, but but you know, if you're
4:05
Speaker 4: out there listening and or wanting to take a kind
4:09
Speaker 4: of control of the finances, I mean, the first thing
4:11
Speaker 4: you need to do is understand that wealth is not
4:16
Speaker 4: dollar bills. Wealth is really the ability to serve someone, Okay,
4:22
Speaker 4: And the dollar bill is just the certificate that you
4:25
Speaker 4: get that says you served.
4:26
Speaker 3: I love that, love that.
4:27
Speaker 4: And so you young folks out there that are thinking, Okay,
4:32
Speaker 4: what do I want to go to school for? You know,
4:34
Speaker 4: what I want to do with my life? You know,
4:36
Speaker 4: think about that, am I going to be valuable in
4:38
Speaker 4: this area to someone else? Because if you are, you're
4:42
Speaker 4: going to get plenty of those certificates back, right, And
4:45
Speaker 4: and then if you're doing that and serving and getting
4:49
Speaker 4: those certificates. All you need to do is claim less
4:53
Speaker 4: of other people's services, right right, absolutely, absolutely, and that
4:57
Speaker 4: creates savings and investment. And when you own stock in
5:01
Speaker 4: a company, what is that company doing. It's serving people,
5:04
Speaker 4: it's innovating, it's trying to make life easier, it's meeting
5:07
Speaker 4: needs and desires, and that's what they make money and
5:11
Speaker 4: get those certificates for it. So it's an extremely simple process,
5:16
Speaker 4: the mechanics of it. It's just that you know, life sometimes,
5:20
Speaker 4: like you say, throws a curve ball and and sometimes
5:24
Speaker 4: you have to make choices that are that are difficult
5:27
Speaker 4: to make to stay on that path. And that's what
5:30
Speaker 4: we can help you kind of. You know, we can't
5:34
Speaker 4: alleviate all things life throws at you, but we can
5:37
Speaker 4: certainly hof you make maneuvers and decisions that might impact
5:43
Speaker 4: your finances less than otherwise would.
5:45
Speaker 3: So what is a risk management analysis?
5:49
Speaker 4: Well, you know, everybody has a different opinion of what
5:54
Speaker 4: risk is to them. You know, I would never skydive,
5:57
Speaker 4: but some people skydive right right right, and they enjoy it.
6:01
Speaker 4: But that's not my thing. So my risk tolerance for
6:04
Speaker 4: that is very low and it's the same way with
6:08
Speaker 4: the markets. You know, certain types of stocks are more
6:11
Speaker 4: volatile than others. Stocks in general are more volatile than bonds.
6:15
Speaker 4: You know, bonds are more volatile than cash and CDs,
6:19
Speaker 4: that sort of thing. And so it's really understanding what
6:22
Speaker 4: you're comfortable with and what your situation will allow you
6:27
Speaker 4: to do prudently. So, for instance, let's say you are
6:32
Speaker 4: saving for retirement thirty years from now, right, you have
6:36
Speaker 4: a long time horizon. The market goes up and down
6:39
Speaker 4: all the time, right, but it's clear that over long
6:43
Speaker 4: periods of time, the market has been the best place.
6:46
Speaker 4: Owning companies have been the best place to grow wealth.
6:49
Speaker 4: So long term, how do you define that risk? The
6:55
Speaker 4: fact that the market can go up and down twenty
6:57
Speaker 4: percent right just overnight, right, or the fact that long
7:02
Speaker 4: term it's giving me the best opportunity to grow. So
7:07
Speaker 4: your time horizon helps also define that risk. Okay, you know,
7:11
Speaker 4: if you knew you were going to buy a car
7:14
Speaker 4: three months from now and needed that cash, you wouldn't
7:17
Speaker 4: want to invest that in the stock market because I
7:19
Speaker 4: can't tell you what the market's going to do in
7:21
Speaker 4: the next three months, you know, So you're taking on
7:24
Speaker 4: a risk that maybe you don't maybe understand initially because
7:28
Speaker 4: oh the market does well, it does over time, but
7:32
Speaker 4: it might not in the time horizon that you need
7:35
Speaker 4: to have those funds. And so what we try to
7:38
Speaker 4: do is understand your situation, understand what you can be
7:42
Speaker 4: comfortable with as far as that volatility, and then match
7:46
Speaker 4: up the investments with the with the job. It's like
7:49
Speaker 4: tools on a toolbox. You know, sometimes you drive a
7:52
Speaker 4: nail with a hammer and sometimes you cut u saw
7:54
Speaker 4: with a board. It's the same thing with the investments.
7:57
Speaker 4: Once you understand the job that you're trying to accomplish,
8:01
Speaker 4: then the tools you have the tools to do it.
8:04
Speaker 4: So talk a little bit about the market. Let the
8:08
Speaker 4: market has had a little bit of a roller coaster
8:12
Speaker 4: this year. We started out strong and then the tariff
8:15
Speaker 4: talk game and the market was down pretty pretty big.
8:19
Speaker 4: And then since then we've rallied about twenty percent and
8:23
Speaker 4: we're up for the year and we've been hitting record highs.
8:27
Speaker 4: Last week we gave some of that back. The market
8:29
Speaker 4: was down a couple percent across the board, which is
8:33
Speaker 4: there again typical for the market. You're not going to
8:36
Speaker 4: know day to day what the market is going to do.
8:40
Speaker 4: We had some employment numbers that came out and some
8:45
Speaker 4: were revised down a little weaker than expected last week,
8:50
Speaker 4: so it's showing that the jobs numbers, while we're still
8:54
Speaker 4: growing the number of jobs, the pace is slower than
8:58
Speaker 4: it has been in the past. And the Fed was
9:02
Speaker 4: out and did not cut interest rates as the administration
9:06
Speaker 4: would would like it to do, although the market is
9:12
Speaker 4: projecting that as we get into September through the end
9:17
Speaker 4: of the year, we'll get a couple of rate cuts.
9:19
Speaker 4: Finally going we're kind of at that at that point
9:23
Speaker 4: where yeah, yes, we could cut rates, No, we could
9:27
Speaker 4: not cut rates. The Fed is almost always behind on
9:31
Speaker 4: any decision they make, so, you know, some people say, oh,
9:35
Speaker 4: that's a political thing. I don't know that they're out
9:38
Speaker 4: to get the administration. I think it's just the way
9:40
Speaker 4: they operate. When is the market the best throughout the year?
9:44
Speaker 4: Is there a certain time? It doesn't matter? Yet it
9:47
Speaker 4: doesn't because if there really was a pattern, it wouldn't
9:50
Speaker 4: work anymore because people would understand there's a pattern and
9:54
Speaker 4: then jump in. You know, there was there's always this
9:58
Speaker 4: this saying that people used to use, for instance, called
10:01
Speaker 4: sell in May and go away because everybody's on vacation,
10:06
Speaker 4: the volume of the market slows down, and you know,
10:10
Speaker 4: it's usually a weaker period. Well, that would have been
10:13
Speaker 4: a mistake this year, wouldn't it. You know, So you
10:18
Speaker 4: really can't. I can't say that. I mean, there are
10:21
Speaker 4: certain times around the end of the year that the
10:25
Speaker 4: tax calendar might make certain things happen, but it's not
10:30
Speaker 4: always necessarily a positive or always a negative. Some of
10:34
Speaker 4: that has to do with how the market has behaved
10:36
Speaker 4: and what the individual needs to do for their tax planning.
10:39
Speaker 4: So it's still the market is a collection of individual
10:43
Speaker 4: decisions that are being made, and that's why no one
10:46
Speaker 4: can really predict it, because how are you going to
10:48
Speaker 4: predict what millions of people are going to do from.
10:52
Speaker 2: Day to day?
10:53
Speaker 4: You can't. You can't. You have to trust the process
10:56
Speaker 4: that if I own productive companies that are valuable and
11:01
Speaker 4: serve people, you know, I'm going to be better off
11:05
Speaker 4: if I'm patient with that. If it's productively earning and
11:08
Speaker 4: serving people, and I'm patient with that, how does that
11:12
Speaker 4: not accumulate wealth? R It will overtime, just not in
11:16
Speaker 4: a straight line, unfortunately for us.
11:19
Speaker 3: This is retire Right Radio with John Bredett. I'm Logan
11:22
Speaker 3: Scott Infradale Cooper on this Monday morning. So I think
11:26
Speaker 3: I also heard that it is tax free. Today's the
11:28
Speaker 3: final day for tax free shopping. I believe too, Yeah,
11:31
Speaker 3: I think so.
11:31
Speaker 4: I I've been in the middle of a personal move,
11:36
Speaker 4: so I haven't been doing much much back to school shopping.
11:39
Speaker 4: But but yes, I believe. We've had the sales tax
11:43
Speaker 4: holiday here in the state and it's been a good
11:45
Speaker 4: time to purchase clothing and items. I think even computer
11:49
Speaker 4: items like that is all. Oh, absolutely, absolutely, And you know,
11:55
Speaker 4: my wife had a real big weekend at my wife's store.
11:59
Speaker 4: She owns Vintage and Vines Mercantile down in South Charleston
12:02
Speaker 4: on d Street, and it was a big weekend. A
12:06
Speaker 4: lot of folks in buying vintage clothing and things like
12:09
Speaker 4: that for back to school.
12:10
Speaker 3: That's awesome. That's awesome. So give us your social media,
12:14
Speaker 3: your phone number, your website, all of that.
12:16
Speaker 4: Yeah, it's of course Fourth Avenue Financial. The phone number
12:20
Speaker 4: is three zero four at seven four six seven nine
12:24
Speaker 4: to seven seven. Have a Facebook page. Just search Fourth
12:28
Speaker 4: Avenue Financial. You'll see us pop up there. I encourage
12:31
Speaker 4: folks to follow us because we do events, and we
12:34
Speaker 4: don't have anything scheduled right now, but here shortly as
12:38
Speaker 4: we get into the fall, we'll have some events scheduled.
12:41
Speaker 4: That's where the best way to find out about it
12:44
Speaker 4: on our social media, So just Facebook is really predominantly
12:49
Speaker 4: where I am there. It's a Fourth Avenue Financial. Just
12:52
Speaker 4: search that out and then the web pages www. Fourth
12:57
Speaker 4: Avenue Financial dot com. That's all spelled out, so it's
13:00
Speaker 4: a long one with Avenue Financial dot yes fo U
13:04
Speaker 4: r thh not the number.
13:07
Speaker 3: So if somebody wants to purchase or invest in a
13:11
Speaker 3: company with stocks, how simple is that?
13:14
Speaker 4: Well, it's very simple. I mean the first thing we
13:15
Speaker 4: would do is make sure that you're ready for that.
13:19
Speaker 4: You know, if if you come into the office and
13:24
Speaker 4: you're piled up with a credit card debt you're paying
13:26
Speaker 4: twenty eight percent on, I'm probably going to look bat
13:29
Speaker 4: you and say, hey, you're not going to out earn
13:33
Speaker 4: you know what the bank is making here, So your
13:36
Speaker 4: best investment is to pay that off. You know, if
13:39
Speaker 4: you have an emergency fund, that's kind of a foundational thing.
13:43
Speaker 4: You need three to six months of kind of cash
13:46
Speaker 4: on hand to deal with some of those curveballs that
13:48
Speaker 4: life throws at you, and then at that point then
13:52
Speaker 4: you're in a position where I can start making long
13:55
Speaker 4: term investments and know that I can stick with them.
14:00
Speaker 4: You know that volatility that we talked about in the market, Yes,
14:05
Speaker 4: it's not a risk if you're a long term investor,
14:07
Speaker 4: but it is a risk if life forces you to
14:10
Speaker 4: sell at a time that you don't choose to sell.
14:12
Speaker 3: Okay, okay, and that.
14:14
Speaker 4: Market volatility can work against you if if a life
14:19
Speaker 4: event happens, the market happens also to be down right,
14:23
Speaker 4: and now you have to liquid eight long term investments
14:25
Speaker 4: for a short term emergency, right, That's that is where
14:29
Speaker 4: the risk becomes. It's real. Volatility is a feature of
14:35
Speaker 4: the market. It's not a flaw. The planning can be flawed.
14:40
Speaker 4: But we know the market is volatile, you know, so
14:44
Speaker 4: when we invest, if you know it going in, then
14:48
Speaker 4: that's just what it is, you know, So you you
14:51
Speaker 4: accept that and plan around it based on what you
14:54
Speaker 4: need in your life.
14:56
Speaker 5: Gotcha.
14:56
Speaker 3: So at Fourth Avenue Financial, I'm going to be able
14:58
Speaker 3: to come in and you're going to be able to
15:00
Speaker 3: you know, advise me to maybe what company, how much
15:04
Speaker 3: to invest in to the company.
15:06
Speaker 4: Yeah, I mean, as far as individual companies, we certainly
15:09
Speaker 4: can do those those things. Generally, we're looking at your
15:14
Speaker 4: the goals that you have and are trying to manage
15:18
Speaker 4: to those goals. And and usually it's through more diversified
15:23
Speaker 4: type investments than excuse an individual stock and you know,
15:30
Speaker 4: so more exchange traded funds, mutual funds, things of that
15:35
Speaker 4: nature that are being blended together through the risk tolerance
15:38
Speaker 4: that we've we've decided is right for you. You know,
15:44
Speaker 4: you and I could even have the same long term
15:46
Speaker 4: goal right same time horizon, everything being the same. But
15:51
Speaker 4: one of my jobs is to get to know the client,
15:53
Speaker 4: get to know you so that I can try to
15:57
Speaker 4: figure out what the best route is to get from
16:00
Speaker 4: point A to point B. You know, you and I
16:02
Speaker 4: might want to both get to the same point B.
16:05
Speaker 4: But what if I'm more skittish than you are when
16:08
Speaker 4: the market goes down? You know that is a is
16:13
Speaker 4: a risk that then I'm perceiving maybe differently than you do. Right,
16:17
Speaker 4: you might see that volatility as an opportunity because the
16:21
Speaker 4: market's down and guess what, you can buy more shares. Yes,
16:24
Speaker 4: I might see that same market as fearful and I'm
16:30
Speaker 4: going to lose all my money. You know that that
16:32
Speaker 4: sort of thing. And you know, the the risk in
16:36
Speaker 4: me building the portfolio is not understanding the individual, okay,
16:43
Speaker 4: because it does no good to make a great plan
16:46
Speaker 4: that somebody can't sleep at night and stick to, right,
16:49
Speaker 4: because the plan is a long term plan, right. So
16:51
Speaker 4: I've got to figure out, okay, what is the temperament
16:54
Speaker 4: of the of of the person I'm speaking with. You
16:57
Speaker 4: know what types of investments that they do in the past,
17:01
Speaker 4: How did they respond when certain events happened. So I
17:04
Speaker 4: can help formulate and educate and try to come up
17:08
Speaker 4: with a plan that will get you from point A
17:11
Speaker 4: to point B in a way that you can tolerate. Now,
17:14
Speaker 4: the person that looks at it as an opportunity long
17:17
Speaker 4: term might might end up in a better spot, right,
17:21
Speaker 4: But the other person won't end up anywhere if they
17:25
Speaker 4: can't stick to the long term plan. Most most of
17:29
Speaker 4: the time, in the market, if you're diversified, the risk
17:34
Speaker 4: is not so much the market, because, like I say,
17:36
Speaker 4: the market is volatile. We know that the risk is
17:41
Speaker 4: how you individually respond to the market and the decisions
17:46
Speaker 4: that sometimes you're prone to make emotionally to that volatility
17:52
Speaker 4: that is a feature, not a flaw, of the market.
17:56
Speaker 4: And understanding that individual is really what I try to
18:00
Speaker 4: do as an advisor. It's not picking the best stock
18:04
Speaker 4: that's going to go from point A to point B.
18:06
Speaker 4: It's figuring out a way to get you from point
18:08
Speaker 4: A to point B in a way that has the
18:11
Speaker 4: highest probability. Yeah, with the way your attitude is towards
18:15
Speaker 4: risk and money, a.
18:16
Speaker 3: Very individual, individualized plan. I can't say the word either this. Yeah,
18:19
Speaker 3: I know it's it's a tough word. So this is
18:23
Speaker 3: retire Right Radio with John Burdett at eight thirty nine. John,
18:27
Speaker 3: We're going to take a quick break and we'll come
18:28
Speaker 3: right back.
18:28
Speaker 4: Sounds good.
18:29
Speaker 3: It is eight forty. This is the voice of Charleston.
18:34
Speaker 6: Retire Right Radio a sponsored by Fourth Avenue Financial, which
18:36
Speaker 6: is solely responsible for its content. Security is offered through
18:39
Speaker 6: jw CL Financial. Member fin Recipic investment advice offered through
18:43
Speaker 6: jw COL Advisors. Fourth Avenue Financial, jw CL Financial and
18:46
Speaker 6: jw COL Advisors are unaffiliated entities. The opinions expressed by
18:50
Speaker 6: John Burdett should not be construed as specific investment, legal,
18:53
Speaker 6: or tax advice. All economic and performance information is historical
18:56
Speaker 6: and not indicative of future results. Investing may involve risk
19:00
Speaker 6: of loss of principle. Any types advice on this show
19:03
Speaker 6: is not intended to be used by any person for
19:04
Speaker 6: the purpose of avoiding US federal or state tax penalties
19:08
Speaker 6: that may be imposed on such a person, and each
19:10
Speaker 6: listeners should seek advice from their tax advisor or legal
19:13
Speaker 6: console on topics that arise from the show. John Burdett
19:17
Speaker 6: is not providing legal or tax advice. Nothing should be
19:19
Speaker 6: construed as solicitation of an offer to buy securities. This
19:22
Speaker 6: program is sponsored before that Avenue Financial, which is solely
19:25
Speaker 6: responsible for its content.
19:28
Speaker 7: I pick up litter at the neighborhood park.
19:30
Speaker 3: I volunteer at my local food bank.
19:33
Speaker 4: I helped build homes in my community.
19:35
Speaker 8: No matter where you are in West Virginia, there's always
19:37
Speaker 8: a chance to be kind. That's because every mountaineer is
19:41
Speaker 8: a volunteer. Help us make a difference during the National
19:44
Speaker 8: Day of Service on September eleventh. Visit volunteer dot WV
19:47
Speaker 8: dot gov to find an opportunity near you. Brought to
19:50
Speaker 8: you by Volunteer West Virginia, the West Virginia Broadcasters Association,
19:54
Speaker 8: and this station.
19:57
Speaker 7: According to feeding America. Over seven million seniors nationwide where
20:01
Speaker 7: food insecure in twenty twenty two. West Virginia is no different. Hi,
20:05
Speaker 7: I'm Jason, President and CEO of Union Mission Ministries. For
20:08
Speaker 7: one hundred and thirteen years, Union Mission has focused on
20:11
Speaker 7: helping people in need. Right now, our senior citizens need
20:15
Speaker 7: our help. That is why Union Mission is partnering with
20:17
Speaker 7: local senior living facilities to get food delivered directly to
20:21
Speaker 7: those in need. Will you help us reach more seniors?
20:24
Speaker 7: Visit Union Mission dot com to learn more.
20:27
Speaker 5: This is retire Rife Radio with John Burdett from Fourth
20:31
Speaker 5: Avenue Financial, taking your calls at three oh four three
20:34
Speaker 5: four five fifty eight fifty eight or texts on three
20:38
Speaker 5: oh four nine three five fifty oh eight.
20:41
Speaker 3: It is eight forty two and I am Logan Scott
20:43
Speaker 3: in for Dale Cooper on a Monday morning. This is
20:45
Speaker 3: retire Rate Radio with John Burdette of Fourth Avenue Financial. Now, John,
20:51
Speaker 3: how if I would like to make an appointment meet
20:54
Speaker 3: with you? How do I do that? What do I
20:56
Speaker 3: need to bring?
20:57
Speaker 4: Sure? Sure? Well, you can always call. Calling still works,
21:02
Speaker 4: but you can even go to the website or Facebook
21:05
Speaker 4: and schedule your own introductory phone call. If you don't
21:09
Speaker 4: want to take the full step and come in with
21:12
Speaker 4: guns blazing, you can schedule a ten minute phone call
21:16
Speaker 4: and we'll we'll chat a little bit about your situation
21:20
Speaker 4: and see if you want to take that next step
21:22
Speaker 4: and come into the office. If you set an appointment
21:25
Speaker 4: for the office, you know, we have a questionnaire that
21:29
Speaker 4: we will send you to try to get some background
21:32
Speaker 4: information on you. I can ask better questions if I
21:37
Speaker 4: have that beforehand, to kind of get get an idea
21:41
Speaker 4: of of what's important to you and what you want
21:44
Speaker 4: to talk about. It's a you know, ten minute process
21:49
Speaker 4: for you to you know, I don't I don't need
21:53
Speaker 4: It's not like filling out a tax return. I don't
21:55
Speaker 4: need detail that detailed information. I'm looking for a thirty
21:58
Speaker 4: thousand foot view, and so we request that you send
22:01
Speaker 4: that back and then when you come in, just just
22:05
Speaker 4: come in ready, ready to talk. You know, when you
22:08
Speaker 4: come in for the first time, it's not a it's
22:11
Speaker 4: not a meeting where you know, I'm going to say, oh,
22:13
Speaker 4: this is what you need to do with your money.
22:15
Speaker 4: It's really just to get to know one another, make
22:19
Speaker 4: sure that I understand what you want to accomplish. Make
22:24
Speaker 4: sure I understand things you've done in the past with investing, yeah,
22:29
Speaker 4: and and what your attitudes might be two investments in
22:34
Speaker 4: the future, so then I can formulate a proper plan,
22:38
Speaker 4: which would be in a follow up meeting. So you
22:41
Speaker 4: know you're not going to get in the office. I'm
22:42
Speaker 4: not going to lock the door and say you can't
22:44
Speaker 4: leave until you sign here. You know, it doesn't worke
22:46
Speaker 4: decisions on the first Yeah, it doesn't work that way.
22:49
Speaker 4: And you know that's that's something to be avoided if
22:52
Speaker 4: you're ever in that situation. By the way, So, so
22:56
Speaker 4: is there any certain you know, maybe I'm.
22:59
Speaker 3: Twenty seven years old, is somebody fresh out of college,
23:03
Speaker 3: twenty one, twenty two? Is there any age that's right
23:06
Speaker 3: or wrong to come and talk to a financial Well.
23:09
Speaker 4: The sooner the better, The sooner the better. Of course,
23:12
Speaker 4: most folks that come into the office are those. It
23:17
Speaker 4: seems like about five six years out from a retirement date,
23:21
Speaker 4: people start to I don't know if panic is the
23:25
Speaker 4: right word, but they realize that it's around the corner.
23:28
Speaker 4: And so we have a lot of folks, probably predominantly
23:32
Speaker 4: folks in their fifties are really coming in, but more
23:36
Speaker 4: and more we're seeing younger folks come in as well.
23:38
Speaker 4: I had a phone call a week before last. It
23:42
Speaker 4: was a it was a young girl. She wanted to
23:47
Speaker 4: open up a roth Ira and we weren't able to
23:52
Speaker 4: schedule the appointment for until next month because she'll just
23:55
Speaker 4: be eighteen.
23:56
Speaker 3: Oh wow wow.
23:58
Speaker 4: And she knew a lot about research about investing, and
24:04
Speaker 4: she had taken a Dave Ramsey course and she really
24:11
Speaker 4: knew a lot of the basics and it was it
24:14
Speaker 4: was pretty impressive. So you know, she'll be coming in
24:16
Speaker 4: here in a few weeks and get her started at
24:19
Speaker 4: age eighteen. So and you know the way math works,
24:25
Speaker 4: the younger you start, the easier things. You know, if
24:28
Speaker 4: you wait to start when you're fifty, you're going to
24:32
Speaker 4: have to do most of the work. You're going to
24:34
Speaker 4: have to decide to put money away, and it's not
24:38
Speaker 4: going to have as much time to compound and work
24:41
Speaker 4: for you at eighteen, at twenty, at twenty seven, your
24:46
Speaker 4: money will do most of the work. Over time, you
24:49
Speaker 4: still have to do some work, right, but your money
24:52
Speaker 4: ultimately will will provide more of the return than your
24:55
Speaker 4: actual input of your own right. You know, you know,
24:58
Speaker 4: because it will compound on itself. We count touched on
25:02
Speaker 4: this last week, but I don't think we could touch
25:04
Speaker 4: on it enough. And that's the power of compound interest.
25:08
Speaker 4: And there's a little math trick called the rule of
25:11
Speaker 4: seventy two. You take your return and divide it into
25:15
Speaker 4: seventy two, and that tells you how long it takes
25:17
Speaker 4: for money to double. Gotcha, So roughly a ten percent
25:20
Speaker 4: rate of return, it's roughly seven years seven point two
25:26
Speaker 4: is how long it would take for that money to double. Well,
25:30
Speaker 4: you know, imagine your you know, eighteen years old. How
25:35
Speaker 4: many times will your money double by the time you
25:38
Speaker 4: reach sixty five? What would that be? I mean, that's
25:42
Speaker 4: that's crazy math. Really too early for that crazy math.
25:47
Speaker 4: You know, probably seven or eight times that money, right, double.
25:49
Speaker 4: So a thousand dollars deposit goes to two, goes to four,
25:53
Speaker 4: goes to eight thousand, goes to sixteen thousand, goes to
25:56
Speaker 4: thirty two thousand, goes to sixty four thousand, goes to
25:59
Speaker 4: one hundred and twenty eight eight thousand. So that eighteen
26:02
Speaker 4: year old, the thousand dollars deposit, assuming you've got a
26:06
Speaker 4: market type rate of return, right, could be looking at
26:10
Speaker 4: six figure money for every thousand that's put away right
26:14
Speaker 4: now by retirement. So you know who's doing the work there.
26:17
Speaker 4: The market's doing the work absolutely Now initially you know,
26:21
Speaker 4: you still have to put the input in and get
26:24
Speaker 4: it and get that ball rolling. But you know, the
26:27
Speaker 4: longer you have to go, the easier your job is
26:30
Speaker 4: going to be. And that's why you always always encourage
26:32
Speaker 4: everybody you know, get started young.
26:35
Speaker 3: Lets say so the moral of the story, get started young, Yes,
26:38
Speaker 3: no doubt about it.
26:39
Speaker 2: Yeah.
26:39
Speaker 3: So you I just purchased a house, yes, and so
26:44
Speaker 3: what's the risk in that I'm in.
26:46
Speaker 4: The same boat. I think we have been moving over
26:49
Speaker 4: the last week or so myself, so well, I mean
26:53
Speaker 4: there are you know, risk with everything, I mean risk
26:58
Speaker 4: in buying a house. You might have to move unexpectedly,
27:06
Speaker 4: maybe your job changes and you get shipped off somewhere else,
27:10
Speaker 4: and then you're subject short term, just like the stock
27:16
Speaker 4: market short term. You know, the house is a long
27:19
Speaker 4: term investment. Short term, you don't know what the market's
27:23
Speaker 4: going to be like, so you could be upside down
27:25
Speaker 4: on that purchase. There are lots of costs, closing costs,
27:28
Speaker 4: things that go in in purchasing a house, selling a
27:31
Speaker 4: house that will eat into your you know, transaction costs
27:37
Speaker 4: there that if you haven't been in a house long enough,
27:39
Speaker 4: you might not cover that. So that certainly is a risk.
27:44
Speaker 4: Unlike renting, there's a risk that tomorrow the air conditioner
27:48
Speaker 4: doesn't work and you can't call the landlord and say, hey,
27:53
Speaker 4: hey the air conditioner doesn't work, and he's on the
27:56
Speaker 4: hook for the ten grand right now. So there are
28:00
Speaker 4: more unexpected things that come with homeownership. So you have
28:05
Speaker 4: to have a good financial base. It's not just coming
28:07
Speaker 4: up with that few percent down payment. You need to
28:10
Speaker 4: have a financial foundation to be able to deal with
28:15
Speaker 4: those things. Now, what you do when you buy a house.
28:18
Speaker 4: I look at housing as your personal home, your residents
28:23
Speaker 4: a little bit differently than an asset. You know, a
28:28
Speaker 4: stock is an asset that's out there kind of separate
28:31
Speaker 4: from you, growing and doing what it does. A house
28:35
Speaker 4: is kind of sets in between an asset and a liability.
28:39
Speaker 4: To me, yes, it's an asset. It has value over time,
28:44
Speaker 4: it tends to grow. You know the value of your
28:47
Speaker 4: home tends to grow, but you're still consuming it. You're
28:53
Speaker 4: living in the house, right It is an expense, So
28:57
Speaker 4: a lot of times folks say, well, I just need
28:59
Speaker 4: to know the bank says I can get X y
29:02
Speaker 4: Z number on a house. Just because the bank says
29:06
Speaker 4: you can borrow this money doesn't necessarily mean that's the
29:10
Speaker 4: right thing to do. Because the larger home you buy,
29:14
Speaker 4: you have a bigger payment that is doing what It's
29:16
Speaker 4: not that productive because you're living in it.
29:20
Speaker 5: Now.
29:20
Speaker 4: You can buy an apartment building that creates rent. That's
29:24
Speaker 4: an asset, that's an investment because it's providing. But you're
29:29
Speaker 4: the one paying the utilities, you're the one paying the taxes,
29:31
Speaker 4: you're the one that's paying the maintenance. So if you
29:34
Speaker 4: stretch too far for your house, you know, it can
29:39
Speaker 4: really tap and sap your resources that could be directed
29:44
Speaker 4: to other productive type investments. And let's say you're Let's
29:49
Speaker 4: say you buy a house for two hundred thousand dollars
29:52
Speaker 4: and you have it for twenty years and you sell
29:54
Speaker 4: it for four hundred thousand dollars, say, oh, that's a
29:57
Speaker 4: great investment. Well, where are you're going to live if
30:01
Speaker 4: you sell the house? Right, you have to buy You're
30:04
Speaker 4: going to have to buy another house. And so what
30:06
Speaker 4: did you really create there? You haven't created much of anything.
30:09
Speaker 4: Unless you, in your mind say well I want to
30:12
Speaker 4: downsize to harvest some of that equity. Well, that doesn't
30:18
Speaker 4: sound like a great investment to me. You know what
30:21
Speaker 4: kind of investment makes you downsize your life? So there
30:25
Speaker 4: are risks to it. It's not as clear cut as
30:31
Speaker 4: you know some people promote. Now, I'm not saying you
30:33
Speaker 4: shouldn't buy a home. I mean certainly you should buy
30:36
Speaker 4: a home if you can afford to buy a home,
30:38
Speaker 4: and you're going to be there for a while, you know,
30:42
Speaker 4: because when you buy a home, what are you doing.
30:43
Speaker 4: You're taking the risk of inflation off the table to
30:46
Speaker 4: a degree. Right. You know, when you rent an apartment,
30:50
Speaker 4: the rent tends to rise. When you buy a house,
30:53
Speaker 4: you fixed your housing cost as part of your budget.
30:56
Speaker 3: And rent is sometimes just as expensive as a.
30:59
Speaker 4: Mortgage, right so right it, and it tends to escalate
31:02
Speaker 4: where once you buy into that house, you've fixed your
31:06
Speaker 4: housing costs in other words, as far as your budget goes.
31:09
Speaker 4: That's why you know, people that have been in their house
31:12
Speaker 4: twenty years, even if they have a mortgage, the mortgage,
31:15
Speaker 4: because of inflation, is now less percentage of their budget
31:19
Speaker 4: as it would have been if they kept RENTINGPEP, you know,
31:23
Speaker 4: because the rent keeps rising, but your payment is fixed generally,
31:27
Speaker 4: so so there are reasons mathematically to buy a house.
31:31
Speaker 4: It's just be careful when you make that decision that
31:34
Speaker 4: you don't jump too far into it just because the
31:40
Speaker 4: bank says you can't. You know, the bank. A lot
31:43
Speaker 4: of times people look at banks. I'm going off on
31:46
Speaker 4: all kinds of tangents here today, but you know, a
31:49
Speaker 4: lot of times people look at banks and say like
31:52
Speaker 4: they're doing you a favor to loan you money. You
31:54
Speaker 4: got to remember that's their business, right they if they
31:57
Speaker 4: think you'll pay it back, they wouldn't give you as
32:00
Speaker 4: much money as possible. That's also a clue. If a
32:03
Speaker 4: bank does not want to give you money, you shouldn't
32:06
Speaker 4: be mad at the bank. You should look at your
32:08
Speaker 4: finances because they would love nothing more than the stuff alone. Yes, yeah, yeah, yeah,
32:17
Speaker 4: because that's your business. They sell money.
32:19
Speaker 3: So you're you're going to be able to at Fourth
32:21
Speaker 3: Avenue Financial you know, kind of help us in this
32:24
Speaker 3: ye with home, not with home buying, but looking at finances.
32:28
Speaker 4: Just look at finances, making sure that you're making you know,
32:30
Speaker 4: sometimes an individual you're too close to it to make
32:34
Speaker 4: up the right decision. You know, you you have some
32:38
Speaker 4: sort of in emotional attachment to a decision or maybe
32:42
Speaker 4: you know, we see that a lot of times people
32:44
Speaker 4: that inherit stock or something from you know, my grandpa
32:50
Speaker 4: worked at Carbide for years and years and he's passed
32:54
Speaker 4: away and left me all this stock, and now there's
32:56
Speaker 4: kind of an emotional attachment to that individual company. Ye
33:00
Speaker 4: when maybe it's wise to, for instance, diversify that. But
33:05
Speaker 4: sometimes people, well it worked for him over those years.
33:09
Speaker 4: You know, I don't want to mess up that quote legacy.
33:13
Speaker 4: And so sometimes emotions can get in the way of
33:16
Speaker 4: the of the proper decisions, and we helped kind of
33:20
Speaker 4: put that buffer between emotional decision making and what maybe
33:25
Speaker 4: a more prudent path would be.
33:28
Speaker 3: Is there I want to say, is there anything that
33:30
Speaker 3: you don't advise on?
33:32
Speaker 5: Oh?
33:32
Speaker 4: Well, I mean we talked about there are many things.
33:37
Speaker 4: I mean, I certainly, you know, I don't give tax advice.
33:40
Speaker 4: I mean, we certainly can talk about the taxation of
33:42
Speaker 4: certain types of accounts and investments and the and the
33:46
Speaker 4: types of taxes that may create. But as far as uh,
33:49
Speaker 4: you know, tax planning things of that nature. You know,
33:54
Speaker 4: we would refer those things out to somebody that is
33:56
Speaker 4: more qualified for that. But as far as investments and
34:00
Speaker 4: financial decisions you're making, you know, if you're if we're
34:04
Speaker 4: working together, I mean, that's that's my job as an advisor,
34:07
Speaker 4: to help you navigate financial decisions so that you don't
34:13
Speaker 4: go off track or that you don't you know, just
34:18
Speaker 4: earlier in the year when the market was down twenty
34:20
Speaker 4: percent real quickly, you know, a twenty seven year old,
34:25
Speaker 4: that might have been nothing to right, It's like, you know,
34:29
Speaker 4: there's going to be new news next month and the
34:31
Speaker 4: month after that and the month after that, and companies
34:33
Speaker 4: are still going to exist and right, still trying to
34:36
Speaker 4: sell you things, still trying to make money. But if
34:40
Speaker 4: you were on retirement stores step, you might look at
34:44
Speaker 4: that differently.
34:44
Speaker 3: Right, It affects you differently.
34:46
Speaker 4: It affects you differently, and you sometimes the closer you
34:49
Speaker 4: get to your goal, the more prone you are to
34:53
Speaker 4: emotional decision making. And that is there again, that's an
34:59
Speaker 4: individual that is really more of what I do. Is
35:03
Speaker 4: that really trying to gauge that relationship and making recommendations
35:07
Speaker 4: based on that. Because the investments themselves are somewhat commodities.
35:13
Speaker 4: Every advisor everywhere can almost offer the same thing, but
35:19
Speaker 4: you need to find the advisor that you can be
35:21
Speaker 4: comfortable with, that you can talk to and build a
35:26
Speaker 4: relationship with. And that's where you're going to get the
35:29
Speaker 4: most out of using a financial advisor, because otherwise, you know,
35:35
Speaker 4: you can buy all this on your own online. But
35:38
Speaker 4: when you do that online, there's no buffer there. Right,
35:41
Speaker 4: It's all your gut and emotion that you're dealing with.
35:44
Speaker 4: And even someone that says, well, I don't think we'll
35:48
Speaker 4: operate that way now, as you get closer to that goal,
35:52
Speaker 4: it's it's very difficult for anyone, myself included, it's very
35:56
Speaker 4: difficult to not wrap emotion into it.
36:00
Speaker 3: This is retire Right Radio with John Burdette. John, we're
36:04
Speaker 3: down to the last about a minute or so of
36:06
Speaker 3: the show today. Give us your locate, your address, your
36:09
Speaker 3: phone email. Where can we find you all over?
36:11
Speaker 4: Okay? Sure, I'm downtown Charleston, one seventy Court Street. That's
36:17
Speaker 4: right next to National Travel, right across the street from
36:20
Speaker 4: the the Chili's. It out back into the ball there,
36:23
Speaker 4: so really easy to get to. We have we're on
36:26
Speaker 4: the first floor. We have parking that right on the
36:31
Speaker 4: right beside the building that we can let you in
36:34
Speaker 4: the gate. You know, you don't have to worry about
36:36
Speaker 4: parking when you come downtown. We're we're real convenient for that.
36:42
Speaker 4: As far as reaching us, it's the phone seven four
36:45
Speaker 4: six seven nine seven seven and reaching out on Facebook
36:49
Speaker 4: or you can email. It's John J. O Hn at
36:53
Speaker 4: Fourth Avenue Financial dot com all spelled out.
36:56
Speaker 3: That is Fourth Avenue Financial dot com. And again one
37:00
Speaker 3: more time, you said that you're going to have some
37:02
Speaker 3: events coming up that we can find on Facebook.
37:05
Speaker 4: Yes, Facebook, please, if you're on Facebook, look up Fourth
37:08
Speaker 4: Avenue Financial. We've got a series that we started and
37:12
Speaker 4: we'll be picking back up in the fall called Dollars
37:14
Speaker 4: to Donuts and it's every Saturday morning where we're going
37:17
Speaker 4: to get together and chat about finances.
37:20
Speaker 3: That's awesome. Retire Retire Right Radio with John Burdett. Thanks
37:23
Speaker 3: so much for coming in on this Monday, all right,
37:25
Speaker 3: appreciate it. I'm Logan Scott Infredale Cooper. You're listening to
37:30
Speaker 3: five ADWCHS the Voice of Charleston fivehs amby six point
37:40
Speaker 3: five that Charleston one oh four point five Cross Lanes
37:42
Speaker 3: a WVRC Media Station.
37:46
Speaker 2: We are proud to live here too,