Latest / WCHS Network Podcasts / 10/05/2026 Retire Right Radio with John Burdette

Transcript

10/05/2026 Retire Right Radio with John Burdette · WCHS Network Podcasts

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  Speaker 1: The views and opinions expressed on this program do not
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  Speaker 1: necessarily reflect the views and opinions of 580 WCHS, its employees,
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  Speaker 1: or WVRC Media.
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  Speaker 2: RetireRight Radio is on the air. John Burdett from 4th
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  Speaker 2: Avenue Financial is here each week to answer your questions
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  Speaker 2: about financial planning, investing, and building the retirement you deserve.
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  Speaker 2: Find 4th Avenue Financial in downtown Charleston at 170 Court
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  Speaker 2: Street or online at 4thAvenueFinancial. com. Call 304-345-5858 or text 304-935-5008
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  Speaker 2: to join the conversation. Now let's go live to the
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  Speaker 2: studio with John Burdett.
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  Speaker 1: Jeff Jenkins in for Dale Cooper this morning and John
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  Speaker 1: Burdett is with us here on 580 WCHS, the voice
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  Speaker 1: of Charleston. It's 822, the first Monday of October. So
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  Speaker 1: welcome to October. It is here and John is here
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  Speaker 1: right across from me. Fresh back from the Windy City. Yeah,
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  Speaker 1: how was, well, why don't I hear you there, John?
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  Speaker 1: What's going on? I don't hear you. Why don't I
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  Speaker 1: hear you? You should be on. Go ahead, talk. No,
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  Speaker 1: I do not hear you. I don't know. There's some
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  Speaker 1: reason why. How about now?
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  Speaker 2: No, no.
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  Speaker 1: I'm not sure what's going on there, and that is
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  Speaker 1: not good. That's not good at all. How about we
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  Speaker 1: go ahead and take our break and let me try
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  Speaker 1: to figure this out.
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  Speaker 3: All right.
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  Speaker 1: So we're going to take our break here. John's here.
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  Speaker 1: We're going to take our break. We'll be back right
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  Speaker 1: after this on 580 WCHS.
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  Speaker 4: Investment advice offered through J.W. Cole Advisors. Fourth Avenue Financial, J.W.
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  Speaker 4: Cole Financial, and J.D.U. Cole Advisors are unaffiliated entities. The
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  Speaker 4: opinions expressed by John Burdett should not be construed as
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  Speaker 4: specific investment, legal, or tax advice. All economic and performance
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  Speaker 4: information is historical and not indicative of future results. Investing
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  Speaker 4: may involve risk of loss of principle. Any tax advice
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  Speaker 4: on this show is not intended to be used by
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  Speaker 4: any person for the purpose of avoiding use, federal, or
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  Speaker 4: state tax penalties that may be imposed on such a person.
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  Speaker 4: And each listener should seek advice from their tax advisor
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  Speaker 4: or legal counsel on topics that arise from the show.
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  Speaker 4: John Burdett is not providing legal or tax advice. Nothing
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  Speaker 4: should be construed as solicitation of an offer to buy securities.
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  Speaker 4: This program is sponsored by Fourth Avenue Financial, which is
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  Speaker 4: solely responsible for its content.
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  Speaker 3: This is J.B.
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  Speaker 5: Akers, your delegate in the 55th District in Kanawha County.
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  Speaker 5: We know how polarizing politics has become. More than ever,
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  Speaker 5: we need common sense leaders in government who focus on
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  Speaker 5: what really matters to you and your family. I built
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  Speaker 5: a record on being that kind of person. Whether it's
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  Speaker 5: initiatives to protect children or legislation to help local small
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  Speaker 5: businesses thrive, I work on what you care about. It's
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  Speaker 5: what I care about, too.
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  Speaker 3: I'm J.B.
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  Speaker 5: Akers, and I will be honored to again have your
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  Speaker 5: vote in November and work together to make our local
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  Speaker 5: government a positive example of something to be proud of.
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  Speaker 5: Paid for by J.B. Akers for West Virginia.
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  Speaker 1: You know, chicken and a waffle making at a sandwich.
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  Speaker 1: You can't go wrong. Hey, hey, I am Jamia in America.
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  Speaker 1: And a little thing we love about the Chick-fil-A chicken
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  Speaker 1: and waffles breakfast sandwich is the maple flavor in every bite.
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  Speaker 1: The maple sweetness of the waffle. And y'all know the
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  Speaker 1: Chick-fil-A chicken is on point, right?
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  Speaker 2: And that bacon.
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  Speaker 1: Think it speaks to whether you are team sweet or
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  Speaker 1: team savory.
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  Speaker 4: Order the Chick-fil-A chicken and waffles breakfast sandwich with a
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  Speaker 4: caramel cream cold brew on the Chick-fil-A app today.
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  Speaker 3: Real guests paid for their testimonials.
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  Speaker 1: And we are back on 580 WCHS. And we have
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  Speaker 1: figured this mic situation out.
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  Speaker 3: Yeah.
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  Speaker 1: Yeah, there's John there.
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  Speaker 3: There we go.
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  Speaker 1: There you go.
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  Speaker 3: Coming in hot with the ACDC.
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  Speaker 1: Yeah, how about that? Coming in hot with the music. And, yeah,
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  Speaker 1: so John is with us and is with us, 4th
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  Speaker 1: Avenue Financial here on 580 WCHS, The Voice of Charleston.
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  Speaker 1: And as we were saying just a couple of minutes ago,
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  Speaker 1: fresh back from the Windy City, had a conference last week.
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  Speaker 3: Yes, it was a national conference that, you know, we
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  Speaker 3: have every year where you get all the good compliance information.
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  Speaker 3: that you need to have for your regulatory requirements and
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  Speaker 3: meet and talk to other people.
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  Speaker 1: What are people talking about? What are they talking about
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  Speaker 1: when it comes to the economy and comes to what's
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  Speaker 1: going on?
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  Speaker 3: I mean we had some economists and basically it's an
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  Speaker 3: earning story. With all the news out there, why is
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  Speaker 3: the market doing well? Earnings. Earnings are up about 30
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  Speaker 3: percent or projected to be up 30 percent this year.
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  Speaker 3: That's a big number. That's three or four times what
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  Speaker 3: it normally is. So companies are just earning a lot
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  Speaker 3: of money. So this year the market is up but
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  Speaker 3: earnings are up faster. So in a way, the market–
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  Speaker 3: the price for every dollar of earnings that you're purchasing
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  Speaker 3: when you buy a stock, on average, you're getting a
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  Speaker 3: better deal this year than you were last year even
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  Speaker 3: though the market is higher. because the earnings of those
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  Speaker 3: companies is that much higher. It really comes down to that.
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  Speaker 1: Over the history of the market, and you've talked about
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  Speaker 1: that many times here, what is it, about 14%? Is
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  Speaker 1: that what it is, about a year or something, the gain?
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  Speaker 1: It's in the double digits, right? Yeah, it's 10 to 12.
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  Speaker 1: 10 to 12, okay.
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  Speaker 3: You know, the time frame.
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  Speaker 1: Okay, so where are we right now as we head
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  Speaker 1: into the last couple of months?
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  Speaker 3: Yeah, I mean I think we're– I don't want to
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  Speaker 3: say the wrong thing. But I think we're low double digits.
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  Speaker 1: OK, low double digits. So we're right around where you
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  Speaker 1: would think we'd be. The economy is weird because the
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  Speaker 1: jobs report was bad.
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  Speaker 3: Yeah.
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  Speaker 1: Prices are up.
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  Speaker 2: Right.
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  Speaker 1: But well– but earnings are up.
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  Speaker 3: Right. So that's– Well, that's also a story of how
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  Speaker 3: over time owning companies is a great way to hedge
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  Speaker 3: against inflation. Because when you think about inflation, the prices
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  Speaker 3: go up or actually it's the value of your dollar
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  Speaker 3: is less. When you spend your money, what are you doing?
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  Speaker 3: You're acquiring goods and services. Who's producing the goods and services?
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  Speaker 3: The companies that you own in your portfolio. The same
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  Speaker 3: way they're out there serving in the current environment and
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  Speaker 3: their earnings– kind of keep up with that because their
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  Speaker 3: price of their goods and services keep up with that.
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  Speaker 3: In the same way, when you're serving and you're– you
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  Speaker 3: and I are serving in our jobs, our wages tend
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  Speaker 3: to keep up somewhat with that, some better than others.
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  Speaker 3: But we're out there serving currently in the environment that
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  Speaker 3: we're in. So we– our wages adjust to that. That's
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  Speaker 3: the– one of the issues in retirement. is that you're
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  Speaker 3: no longer out there actively participating in the marketplace, delivering
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  Speaker 3: your goods and services. Inflation can really get you in
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  Speaker 3: retirement because you don't have anything to keep up with it.
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  Speaker 3: That's where the market comes in. That's why you can't
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  Speaker 3: be too conservative when you retire. You have to have
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  Speaker 3: some exposure to the growth components that the market can
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  Speaker 3: provide so you can have a chance to keep up
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  Speaker 3: with inflation. If you go into fixed investments, keep it
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  Speaker 3: in a money market account or short-term bonds or things
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  Speaker 3: of that nature, you're just not going to grow that
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  Speaker 3: much faster than inflation. And eventually you're going to feel
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  Speaker 3: that pinch because you don't have that growth driver that
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  Speaker 3: just naturally keeps up with it. And the market over
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  Speaker 3: time does because, again, it's producing those goods and services
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  Speaker 3: in the current environment.
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  Speaker 1: How much would you– and I know this differs, but–
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  Speaker 1: You know, because say on your 401k, you're taking out
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  Speaker 1: and it depends on how much you're taking out. You've
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  Speaker 1: got– there's other things that are part of the mix
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  Speaker 1: of the retirement income, right? But how much should you–
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  Speaker 1: you talk about being aggressive and I just– I think
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  Speaker 1: that's the thing and I know that's financial literacy when
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  Speaker 1: it comes to you keep investing after you retire. But
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  Speaker 1: how much of that– I guess it just depends on
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  Speaker 1: a person how much of that mix that you're going
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  Speaker 1: to continue to invest.
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  Speaker 3: Yeah, it generally will depend. I mean some people have
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  Speaker 3: pensions and social security and a lot of their income
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  Speaker 3: needs are met. Their base income needs are met. That
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  Speaker 3: person can afford to be a little more aggressive. One
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  Speaker 3: of the things about the market, it's a great thing
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  Speaker 3: over time to keep up with inflation and grow your money.
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  Speaker 3: grow your income over time. But it is volatile. One
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  Speaker 3: out of every four or five years, you're not going
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  Speaker 3: to like it. It might be down 20 percent one year.
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  Speaker 3: You don't want that to affect you in retirement because
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  Speaker 3: now you're drawing money off of that account. So that's
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  Speaker 3: where the asset allocation comes into play. That's where you
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  Speaker 3: look at it and say, OK, if the market is down,
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  Speaker 3: historically– Most of the time, one, two, three, certainly four years,
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  Speaker 3: it has recovered. That's been pretty good history. And let's
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  Speaker 3: say you have an income need off of your money.
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  Speaker 3: of $ 1, 000 a month, $ 12, 000 a year. Well, if you
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  Speaker 3: put $ 50, 000 in a fixed type of portfolio, you've now
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  Speaker 3: insulated yourself from that volatility. That doesn't mean that's not
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  Speaker 3: happening in your portfolio, but it no longer has the
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  Speaker 3: ability to affect your daily living and it gives you
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  Speaker 3: the time and the cushion to wait out the volatility
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  Speaker 3: that the market– it's really not that the market fails.
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  Speaker 3: It's a feature of the market. It's not a flaw
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  Speaker 3: of the market. There is going to be volatility because
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  Speaker 3: earnings are some years better than others. The environment changes
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  Speaker 3: and companies have to adjust. When you look at things
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  Speaker 3: like the Persian Gulf right now. Why has that not
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  Speaker 3: been disruptive? Well, it's disruptive, but the longer it goes,
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  Speaker 3: the less disruptive it is because people and companies don't
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  Speaker 3: just quit. They don't just sit on their hands and say, oh, well,
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  Speaker 3: this is going on. They try to figure out the
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  Speaker 3: best way around it.
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  Speaker 1: They adjust.
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  Speaker 3: They adjust. And so when the market gets out of
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  Speaker 3: line and the prices go down, It's not as if
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  Speaker 3: people aren't out there working to right the ship. They
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  Speaker 3: certainly do, and the history shows that over time, the
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  Speaker 3: ship gets righted. And it's a pretty good track record.
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  Speaker 1: John Burdett's with us, 4th Avenue Financial. And what you do,
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  Speaker 1: one of the things you do is you– the main
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  Speaker 1: thing is that you sit down with people and you
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  Speaker 1: make a plan. You know, you'll sit down with young
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  Speaker 1: people just starting out. You'll make a plan. You'll sit
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  Speaker 1: down with people five years from retirement. You'll make a plan.
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  Speaker 1: Or even you'll make a plan. People can call you.
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  Speaker 1: Maybe they just entered retirement, and they've never had any
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  Speaker 1: financial advice or help, but they've done pretty well. Maybe
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  Speaker 1: they've done okay in the 401K, but they just kind
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  Speaker 1: of need some help now. Okay, I'm entering retirement, you know,
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  Speaker 1: and just what you're talking about.
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  Speaker 3: I mean, everything you've been told is how to save, save, save.
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  Speaker 3: Put money in your 401K. Put money in your IRAs.
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  Speaker 3: Make sure that you don't take on debt and save
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  Speaker 3: and accumulate investments. But when retirement time comes, now what
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  Speaker 3: are the rules? Now what are the changes that need
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  Speaker 3: to be made? A lot of times you'll get people
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  Speaker 3: that say, hey, I don't want to change anything. I've
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  Speaker 3: done OK over the years. Well, your stage of life
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  Speaker 3: and your needs are changing though. Once you get into
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  Speaker 3: I'm no longer saving until I'm drawing out, really the
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  Speaker 3: math does change. Volatility affects you much, much differently potentially
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  Speaker 3: than when you're younger. You don't have time to wait
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  Speaker 3: it out. And if you have an income need, not
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  Speaker 3: only might the market go down, but now you're drawing
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  Speaker 3: it down. It's much harder for it to recover unless
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  Speaker 3: you've built a strategy in to sustain that income stream.
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  Speaker 3: And so– you know, just because you've done well saving
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  Speaker 3: doesn't mean that, you know, that strategy is not the
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  Speaker 3: same strategy that's necessary when you start drawing down. And
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  Speaker 3: that's missed a lot. You know, and it makes sense
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  Speaker 3: because it's worked for you for all those years, but
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  Speaker 3: your life is changing. Your needs are changing and, and
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  Speaker 3: your financial plan has to adjust to that.
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  Speaker 1: Yeah. One of the, one of the things that folks
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  Speaker 1: that folks run into and, Now they're no longer working.
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  Speaker 1: So now there's the health care situation, right? There's the
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  Speaker 1: health insurance. Whatever the mix is, I mean that's a cost.
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  Speaker 3: That's right. Yeah. And all of those little things add
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  Speaker 3: up over time and you need to think about them.
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  Speaker 3: But really the overall allocation is something that needs to
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  Speaker 3: be really looked at. And everybody is different with that
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  Speaker 3: allocation because some people– Like I say, some people have
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  Speaker 3: more need for income off of their portfolio. Others have
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  Speaker 3: more of a baseline fixed income coming in. So those
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  Speaker 3: two people can adjust their portfolios differently. But it still
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  Speaker 3: needs adjusted because it is a major life change. And
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  Speaker 3: if you keep doing the same thing and now you're
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  Speaker 3: in a different situation, what worked for you before may
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  Speaker 3: not work for you going forward. It certainly won't work
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  Speaker 3: for you as well or as comfortably. you know, going
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  Speaker 3: forward with that type of a life change.
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  Speaker 1: And some folks don't know, I would imagine, John, because
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  Speaker 1: you're the one that does this on a day-to-day basis.
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  Speaker 1: They may think that they need a certain amount of
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  Speaker 1: income stream in retirement and you make the plan, you
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  Speaker 1: work with them, then they get into it and say,
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  Speaker 1: you know what, I really don't need that much or
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  Speaker 1: I need more. So there's a different, there's other adjustments.
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  Speaker 3: Yeah, I think that the For the most part, I
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  Speaker 3: think people overestimate … What they need? What they need. OK.
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  Speaker 3: And I just think that's natural because when it's unknown,
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  Speaker 3: you pad the numbers a little bit to be sure
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  Speaker 3: that you're– can make do. But I think most people
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  Speaker 3: overshoot that number. And there's nothing wrong with that. It's
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  Speaker 3: better to overshoot it than under. But most people don't
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  Speaker 3: change their habits that much. Even when they retire. You know,
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  Speaker 3: if you haven't been a world traveler, probably all of
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  Speaker 3: a sudden you're not going to be. You might take
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  Speaker 3: a vacation. You might take a trip. But, you know,
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  Speaker 3: for an ongoing change in life, it can happen, but
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  Speaker 3: it usually doesn't. Because we're set on our routines to
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  Speaker 3: a degree. If you like to travel, you probably found
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  Speaker 3: a way to do that a little bit. While you
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  Speaker 3: were working too. So I think people, because of the unknown,
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  Speaker 3: overestimate a lot of times what they'll actually need. You
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  Speaker 3: also see folks that maybe they have a baseline need
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  Speaker 3: of $ 1, 000 a month out of their investments combined with
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  Speaker 3: the Social Security and other incomes they have to fill
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  Speaker 3: that gap up. And they'll draw that out. But really
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  Speaker 3: not need at all. The thing about it when you're
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  Speaker 3: working with us, the money is still yours. If you
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  Speaker 3: only need $ 700 a month, don't pad it to $ 1, 000
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  Speaker 3: because now you're just paying taxes on money that you're
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  Speaker 3: just having it set in a checking account. It can
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  Speaker 3: set inside of that IRA. in even fixed income so
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  Speaker 3: you don't have market exposure to it. And it's a
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  Speaker 3: phone call away from getting that money out. But now
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  Speaker 3: you haven't created a tax bill to do that for
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  Speaker 3: no purpose. Just things like that, little things that around
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  Speaker 3: the edges make an impact of how long your money
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  Speaker 3: lasts and how efficiently you're using it.
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  Speaker 1: Let's talk about that for a second because you said
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  Speaker 1: the word, the T word, the tax is So what
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  Speaker 1: you take out of your 401K, it is taxed as income, right?
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  Speaker 3: Is it? Most of the time it is. You know,
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  Speaker 3: there are now a lot of folks have Roth inside
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  Speaker 3: their 401Ks that would not be taxable. But most money
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  Speaker 3: that people have is still going to be taxed when
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  Speaker 3: it comes out, the vast majority of it really right now.
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  Speaker 2: Right.
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  Speaker 3: That probably will shift over time as younger people that
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  Speaker 3: have been doing Roth. But right now, most people are
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  Speaker 3: paying taxes when it comes out.
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  Speaker 1: Because you saved it pre-tax.
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  Speaker 3: That's right.
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  Speaker 1: And they get you on the box.
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  Speaker 3: They do. And now they're getting you on a larger
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  Speaker 3: number because it's grown over the years. So you have
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  Speaker 3: to account for that when you pull that out. So
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  Speaker 3: if you pull $ 1, 000 out, you might only net $ 750
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  Speaker 3: or $ 800. So you have to account for it. for that. Now,
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  Speaker 3: we withhold that. We can withhold the state and federal
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  Speaker 3: taxes just like when you're working. And then at the
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  Speaker 3: end of the year, you get your statement showing what
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  Speaker 3: was withdrawn and what taxes were paid and use that
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  Speaker 3: to file your taxes. So it's a pretty seamless process,
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  Speaker 3: but you have to account for the tax bill if
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  Speaker 3: you save that pre-tax. The bill will come due.
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  Speaker 1: Right, right, right. How many people– I mean you tell
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  Speaker 1: people that when you work with them, but are they surprised?
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  Speaker 3: Well, I mean most people know that the IRS is
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  Speaker 3: coming out there to get them. Yeah, that's true. But
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  Speaker 3: it's just something you have to think about and it's
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  Speaker 3: not just– when you think about your retirement budget, it's
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  Speaker 3: not simply I need this amount of money and I'll
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  Speaker 3: pull it out of my– you know, 401k or IRA
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  Speaker 3: rollover that you've done with your 401k. Um, you have
• 19:27
  Speaker 3: to account and gross up the number so that you
• 19:31
  Speaker 3: actually net the amount of money that you're going to spend.
• 19:34
  Speaker 1: Right. Right. John Burdett's with us, 4th Avenue Financial 842
• 19:38
  Speaker 1: here on 580 WCHS, the voice of Charleston. Wanted to
• 19:41
  Speaker 1: talk to John about IRAs and just maybe some, misconceptions
• 19:47
  Speaker 1: about them. And so obviously it's individual retirement account, so
• 19:52
  Speaker 1: that's an option for folks to put money in. There's
• 19:54
  Speaker 1: a limit every year, right, on what you can put in.
• 19:57
  Speaker 1: So what are some of the things you think that–
• 19:59
  Speaker 1: I mean that you know from experience that folks think
• 20:02
  Speaker 1: about those?
• 20:03
  Speaker 3: Well, an IRA is– tax-deferred account. If it's a traditional IRA,
• 20:09
  Speaker 3: it's a tax-deferred account. If it's a Roth account, it's
• 20:12
  Speaker 3: the opposite. You are not getting the tax break up front.
• 20:16
  Speaker 3: You're getting it at the end. It's tax-free when you
• 20:18
  Speaker 3: pull it out. The younger you are, the more likely
• 20:24
  Speaker 3: it is the Roth will make sense because it compounds
• 20:27
  Speaker 3: longer and then it's tax-free at the end. Plus, the
• 20:31
  Speaker 3: younger you are, you probably are earning less wages in
• 20:34
  Speaker 3: your career than you will be later. And so the
• 20:36
  Speaker 3: tax bite is not as– maybe not as bad up front.
• 20:39
  Speaker 3: So everybody is individual and you have to look at that.
• 20:42
  Speaker 3: But that's a pretty good rule of thumb. The younger
• 20:45
  Speaker 3: you are, certainly the Roth makes sense. Even older, if
• 20:51
  Speaker 3: you've been a great saver in your traditional over the
• 20:57
  Speaker 3: years– At some point, you may have more money in
• 21:01
  Speaker 3: that IRA, 401K than you're actually going to spend. Well,
• 21:07
  Speaker 3: at that point, the Roth can make sense even when
• 21:11
  Speaker 3: you're right on retirement store step because if you're not
• 21:17
  Speaker 3: going to spend that money, the Roth passes more efficiently
• 21:20
  Speaker 3: to the next generation. It doesn't create a tax bill
• 21:23
  Speaker 3: for them. Traditional IRAs require a distribution to start happening.
• 21:34
  Speaker 3: The law now is at age 73. The government wants
• 21:38
  Speaker 3: their tax money from that tax-deferred account. And if you're
• 21:43
  Speaker 3: not using it in retirement for some reason, you don't
• 21:48
  Speaker 3: need to use it to supplement your income. At age 73,
• 21:52
  Speaker 3: the government is going to force you to start drawing
• 21:55
  Speaker 3: income off of it. That doesn't happen in a Roth IRA.
• 21:59
  Speaker 3: So it can stay deferred and, like I say, pass
• 22:02
  Speaker 3: to the next generation much more efficiently. So you have
• 22:05
  Speaker 3: to analyze which is the best way to save pre-
• 22:09
  Speaker 3: or post-tax. But there are vehicles out there for both.
• 22:15
  Speaker 3: I think a big misconception is just the concept of
• 22:20
  Speaker 3: an IRA. And I think it's because banks advertise. And
• 22:29
  Speaker 3: it almost looks like, hey, buy an IRA.
• 22:33
  Speaker 1: Like a CD almost.
• 22:34
  Speaker 3: Yes, which is a lot of times what you get
• 22:37
  Speaker 3: when you go to the bank and buy an IRA
• 22:40
  Speaker 3: that they're advertising. They're basically sticking you in a CD
• 22:46
  Speaker 3: that's inside that IRA account. The IRA account, whether it
• 22:50
  Speaker 3: be a Roth or a traditional, is really just how
• 22:54
  Speaker 3: the account is titled for tax purposes. It's not the investment.
• 22:59
  Speaker 3: So it is not a product. It's just the way
• 23:02
  Speaker 3: the account is taxed. A lot of times questions will
• 23:07
  Speaker 3: come like, what kind of return can I get if
• 23:11
  Speaker 3: I buy an IRA? It all depends on what investments
• 23:16
  Speaker 3: are inside the IRA. You can own mutual funds and
• 23:20
  Speaker 3: stocks and bonds and CDs and all of those things
• 23:24
  Speaker 3: can go inside that IRA. So really it's– the IRA
• 23:28
  Speaker 3: itself is not an investment. It's just how the account
• 23:33
  Speaker 3: is treated for tax purposes, how it is titled. All
• 23:38
  Speaker 3: of those types of investments can go inside that IRA
• 23:42
  Speaker 3: and I think that's a pretty large misconception that I
• 23:45
  Speaker 3: see frequently that a lot of times folks aren't aware
• 23:51
  Speaker 3: of that. And just by the language– and I think
• 23:55
  Speaker 3: it's because banks market them so much and it seems
• 24:00
  Speaker 3: like a product. And it's really much more broad and
• 24:05
  Speaker 3: there are much more possibilities than simply getting a CD
• 24:10
  Speaker 3: with an IRA. You can get market-like returns on an
• 24:15
  Speaker 3: IRA if you invest in market-like investments. You can get
• 24:19
  Speaker 3: fixed returns. type returns if you invest in fixed type investments.
• 24:23
  Speaker 3: So the, the account itself is not producing the return.
• 24:28
  Speaker 3: It's the investment inside of it.
• 24:31
  Speaker 1: So, you know, again, that's, and that's part of what
• 24:35
  Speaker 1: Dan John's with is John Burdett, fourth Avenue financial. And
• 24:38
  Speaker 1: that's part of making the plan with you with fourth
• 24:41
  Speaker 1: Avenue financial, you know, what, you know, what would be
• 24:44
  Speaker 1: good for an IRA? I mean, who's, who's a good
• 24:46
  Speaker 1: candidate for that. And, uh, I mean it's another option, right? Absolutely.
• 24:52
  Speaker 3: I mean for most people, the easiest way to save
• 24:56
  Speaker 3: for retirement is your 401K. It comes right out of
• 25:00
  Speaker 3: your paycheck. You don't have to think a lot about
• 25:02
  Speaker 3: it after you set up and it just happens. That's great.
• 25:09
  Speaker 3: But at some point, maybe you're saving enough. You've got
• 25:15
  Speaker 3: the full match from your employer. and you don't get
• 25:18
  Speaker 3: any more match, then you might think, well, maybe I'll
• 25:22
  Speaker 3: do an IRA. I'll diversify it into different investments outside
• 25:26
  Speaker 3: of the menu that my employer gives me. And you
• 25:29
  Speaker 3: can do that inside an IRA. If you've maxed out
• 25:34
  Speaker 3: your 401k, for instance, then you have to look for
• 25:39
  Speaker 3: other alternatives if you continue to want to save. So
• 25:43
  Speaker 3: there are reasons that you could do both. But for
• 25:46
  Speaker 3: most folks... It's just getting set up on that company
• 25:49
  Speaker 3: retirement plan. Now, what happens as you retire? At that point,
• 25:55
  Speaker 3: that 401K can be rolled into an IRA where you
• 26:02
  Speaker 3: remove it from the employer plan and put it into
• 26:05
  Speaker 3: the individual retirement account that's under your control. So when
• 26:11
  Speaker 3: you retire, a lot of times that is something that
• 26:14
  Speaker 3: we'll look at. we'll roll that into an IRA, we'll
• 26:18
  Speaker 3: manage it for you, we'll decide how much income you're
• 26:23
  Speaker 3: going to need in retirement, and then we'll set that
• 26:26
  Speaker 3: up so that it happens like clockwork with the taxes withheld,
• 26:31
  Speaker 3: and it looks like a paycheck. If you want a
• 26:35
  Speaker 3: distribution to come out every month on the 15th, we'll
• 26:38
  Speaker 3: set it up to automatically come out on the 15th,
• 26:41
  Speaker 3: and then it just happens like a paycheck and you
• 26:43
  Speaker 3: don't Again, you don't have to think about it. Taxes
• 26:46
  Speaker 3: are withheld. And if you need additional money at any
• 26:51
  Speaker 3: other time during the year, certainly with us, it's just
• 26:54
  Speaker 3: a phone call away. I say, hey, I've decided to
• 26:57
  Speaker 3: take this trip. I need an extra $ 5, 000. We can
• 27:01
  Speaker 3: send that out as a one-off. In other words, there's
• 27:06
  Speaker 3: no need to take larger distributions thinking you're going to
• 27:11
  Speaker 3: save it for something that may or may not happen,
• 27:16
  Speaker 3: pull it out when you need it. Don't create a
• 27:18
  Speaker 3: tax bill for no purpose. So that is frequently how
• 27:24
  Speaker 3: that looks. And when you separate employment, like I say,
• 27:29
  Speaker 3: oftentimes that's the opportunity to roll it to the IRA,
• 27:32
  Speaker 3: take full control of it, and adjust it to whatever
• 27:36
  Speaker 3: the lifestyle demands that you are trying to accomplish.
• 27:43
  Speaker 1: And part of that mix is, as you mentioned earlier,
• 27:44
  Speaker 1: to invest, those type of things.
• 27:48
  Speaker 3: Yeah. We would diversify, like I said, based on what
• 27:51
  Speaker 3: your income needs are. If you have a high income
• 27:56
  Speaker 3: need off of that account, you need to really look
• 27:59
  Speaker 3: at what is sustainable. If you have a low income
• 28:05
  Speaker 3: need off of that account, then you can look at
• 28:07
  Speaker 3: things and maybe be a tad more aggressive because you
• 28:12
  Speaker 3: don't have the the income demand. So it's almost like
• 28:15
  Speaker 3: you're a younger, even though your age is more, you're
• 28:18
  Speaker 3: a younger investor because you're still farther away from needing
• 28:21
  Speaker 3: the assets. So it's an individual thing when you sit
• 28:25
  Speaker 3: down and find, you know, what is the prudent path forward?
• 28:29
  Speaker 3: What makes sense as far as the allocation? It is
• 28:32
  Speaker 3: an individual calculation.
• 28:35
  Speaker 1: So if you just keep it in your traditional with
• 28:40
  Speaker 1: your employer, how you've, you know, your 401k, And it
• 28:43
  Speaker 1: comes out– do you need– do you have to figure
• 28:45
  Speaker 1: out those taxes yourself or do some of those offer.
• 28:49
  Speaker 3: Well, they will– oftentimes they'll withhold as well. But you
• 28:54
  Speaker 3: have to set that tax rate based on your own
• 28:58
  Speaker 3: knowledge of what is appropriate. I think the biggest thing
• 29:03
  Speaker 3: with the 401K versus an IRA, you're just limited to
• 29:08
  Speaker 3: the menu of investments that are with your employer. And
• 29:13
  Speaker 3: you don't control that. So if the employer changes the
• 29:17
  Speaker 3: plan or changes the investment options, you're along for that
• 29:21
  Speaker 3: ride where an IRA you're in full control of. You
• 29:25
  Speaker 3: can tailor it more to what your individual needs are.
• 29:29
  Speaker 1: Right. 852, John Burdett is with us, 4th Avenue Financial.
• 29:32
  Speaker 1: And they're the folks to call to get a plan together.
• 29:36
  Speaker 1: If you're approaching retirement, maybe you've just entered retirement, you
• 29:39
  Speaker 1: need help, maybe you're just starting to work. You know,
• 29:42
  Speaker 1: all of those, John, right, are available for plan creation.
• 29:47
  Speaker 3: No doubt. And, you know, just started to work. Sometimes
• 29:50
  Speaker 3: it's like, oh, I'd like to be younger, and then
• 29:54
  Speaker 3: you think, wow, that was a road, wasn't it?
• 29:56
  Speaker 1: Yeah.
• 29:58
  Speaker 3: There are pluses and minuses to every stage of life.
• 30:01
  Speaker 2: Right. Right.
• 30:02
  Speaker 1: Exactly. I mean– and planning is obviously a wise thing
• 30:08
  Speaker 1: to do. It's– because the years– if you put it off,
• 30:12
  Speaker 1: I mean the years pass pretty quickly.
• 30:14
  Speaker 3: No doubt. No doubt. And the younger you are, the
• 30:17
  Speaker 3: less work you have to do and the more work
• 30:18
  Speaker 3: the market will do.
• 30:20
  Speaker 1: Compounding interest.
• 30:21
  Speaker 3: Compounding interest. So getting started young is– by far the
• 30:27
  Speaker 3: best thing you can do. And if you didn't do that,
• 30:31
  Speaker 3: then the best time by far is today. You don't
• 30:35
  Speaker 3: want to wait any longer because the time is the
• 30:38
  Speaker 3: one component that you can't make more of. You can
• 30:41
  Speaker 3: make more money and you can allocate it and try
• 30:44
  Speaker 3: to get more return, but you can't get the time back.
• 30:48
  Speaker 3: And the younger you are, the easier it's going to
• 30:50
  Speaker 3: be to reach your goals. And conversely, Once you retire,
• 30:57
  Speaker 3: the decisions you make as far as the income and
• 31:00
  Speaker 3: the drawdown, that's equally as important because now that compounding,
• 31:07
  Speaker 3: it's not just working for you. You're drawing out. So
• 31:10
  Speaker 3: if the market is down, you're compounding the down by
• 31:13
  Speaker 3: your distribution just like you were compounding the up by
• 31:16
  Speaker 3: your savings. It's just– There are just risks that you
• 31:22
  Speaker 3: need to be aware of when you're making those decisions
• 31:25
  Speaker 3: on that retirement distribution that– there again, it warrants a
• 31:32
  Speaker 3: real look at what the situation is and how the
• 31:36
  Speaker 3: allocation needs to be. It warrants a change oftentimes from
• 31:41
  Speaker 3: what you've done to get to where you are at
• 31:44
  Speaker 3: retirement's doorstep.
• 31:46
  Speaker 1: You listen to your commercials here on 580 WCHS and
• 31:50
  Speaker 1: other stations here in our company. You'll hear you say,
• 31:53
  Speaker 1: here's a common question. Have I saved enough? Right. Right.
• 31:58
  Speaker 3: That's always– that's a big question. Everybody wonders that even
• 32:02
  Speaker 3: if they have saved more than enough. There's just a–
• 32:09
  Speaker 3: it's a huge life change. It's not just a math change.
• 32:13
  Speaker 3: It's a psychological change. It upsets the– routine and that
• 32:18
  Speaker 3: can be in a good way or a bad way
• 32:20
  Speaker 3: depending on what you now do with that time. So
• 32:27
  Speaker 3: it's an interesting thing and because of that being such
• 32:30
  Speaker 3: a big life change, I think it also puts a
• 32:35
  Speaker 3: spotlight on those financial decisions you have to make and
• 32:39
  Speaker 3: it can make those decisions more emotional. which is generally
• 32:44
  Speaker 3: not the way you want to make financial decisions from
• 32:47
  Speaker 3: an emotional state. And, you know, any, any life change,
• 32:52
  Speaker 3: you know, death of a loved one or a spouse,
• 32:56
  Speaker 3: you know, Oh, I need to change all these things. Well,
• 32:58
  Speaker 3: wait a second, you know, let's, let's sit back and, and,
• 33:02
  Speaker 3: and really look at the situation and we don't have
• 33:05
  Speaker 3: to do anything today, um, in, in certain situations. Um,
• 33:10
  Speaker 3: You have to be clear-headed and clear-eyed when you make
• 33:14
  Speaker 3: financial decisions. And life changes can, like you say, bring emotion.
• 33:20
  Speaker 3: And that's not always the best state to make big decisions.
• 33:25
  Speaker 3: And another set of eyes on the situation can bring
• 33:31
  Speaker 3: clarity that you might not be able to get yourself
• 33:34
  Speaker 3: because of that emotion.
• 33:37
  Speaker 1: And important to have a plan because it can– I
• 33:41
  Speaker 1: mean all situations are different but you can get insulated
• 33:44
  Speaker 1: from the ups and downs and just different things.
• 33:48
  Speaker 3: Yeah, and understanding why a portfolio is built a certain way. Oh,
• 33:54
  Speaker 3: why do we have this and this– these fixed investments
• 33:58
  Speaker 3: over here? It's not growing as fast. Yes, but it's
• 34:00
  Speaker 3: providing a role in the portfolio that provides stability, provides
• 34:08
  Speaker 3: a cushion between you and the market volatility. In a way,
• 34:12
  Speaker 3: it takes you back years as far as investor age
• 34:16
  Speaker 3: on the rest of your portfolio where you can get
• 34:19
  Speaker 3: and be more comfortable with market type investments and growth
• 34:23
  Speaker 3: because you've insulated your short-term income needs inside that allocation.
• 34:28
  Speaker 3: So it's hard to do those things, like you say,
• 34:34
  Speaker 3: clear-eyed yourself as you're making those– also those emotional life changes.
• 34:39
  Speaker 3: I mean it's a big deal, you know. it's not
• 34:42
  Speaker 3: just about money. It's, it's your whole routine has changed.
• 34:46
  Speaker 3: The people you talk to every day are changing now,
• 34:49
  Speaker 3: you know, and it's, it's, um, you know, and, and
• 34:53
  Speaker 3: money is another thing in the thrown into the mix. And, um, it's,
• 34:59
  Speaker 3: I think a good, a good thing to, to, you know,
• 35:04
  Speaker 3: step aside somewhat and, and, uh, allow another set of
• 35:09
  Speaker 3: eyes to look at it, um, just to make sure
• 35:11
  Speaker 3: that you're You're making those right steps. And the reality
• 35:15
  Speaker 3: is if you've been successful saving, like say your habits
• 35:19
  Speaker 3: probably aren't going to change. Most people that have more
• 35:23
  Speaker 3: than enough money to retire end up still not spending it.
• 35:31
  Speaker 3: It still accumulates. And those who have maybe struggled to
• 35:36
  Speaker 3: save over the years will still have a lot of
• 35:39
  Speaker 3: the same the same issues it's just more important now
• 35:43
  Speaker 3: because you're not working that you're aware of those decisions
• 35:48
  Speaker 3: you know you can work around almost any issue.
• 35:50
  Speaker 1: Because you know the paychecks coming.
• 35:53
  Speaker 3: In yeah and you can work around any any issue
• 35:56
  Speaker 3: if maybe if you're shortfall here shortfall there but you
• 35:59
  Speaker 3: have to be aware of what the issues even are
• 36:01
  Speaker 3: right you know if if if you've throughout your life
• 36:06
  Speaker 3: maybe made decisions and you don't have as much as
• 36:09
  Speaker 3: you need to have. Well, it's because you've made decisions
• 36:11
  Speaker 3: without fully knowing the impact of them. That's not going
• 36:15
  Speaker 3: to change in retirement. That's going to be amplified.
• 36:17
  Speaker 1: All right. So we've got about a minute left. How
• 36:19
  Speaker 1: do we do it? How do we get started on
• 36:21
  Speaker 1: the plan with you guys?
• 36:22
  Speaker 3: The old-fashioned way, you can call us on the phone.
• 36:25
  Speaker 3: That's 304-746-7977. Just give us a call. Generally, I'll do
• 36:27
  Speaker 3: a 10-minute phone introductory call. You can also set that
• 36:41
  Speaker 3: up on our website. If you go to www. 4thAvenueFinancial. com, all
• 36:47
  Speaker 3: spelled out, you can set your own meeting up and
• 36:50
  Speaker 3: schedule it right on the website.
• 36:52
  Speaker 1: All right. You'll sit down and get us started. Yep.
• 36:55
  Speaker 3: We'll get started and it'll...