Latest / WCHS Network Podcasts / 04/06/2026 Retire Right Radio with John Burdette

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04/06/2026 Retire Right Radio with John Burdette · WCHS Network Podcasts

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Speaker 1: The views and opinions expressed on this program do not
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Speaker 1: necessarily reflect the views and opinions of five ADWCHS, its employees,
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Speaker 1: or WVRC Media. This is Retire Right Radio, a weekly
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Speaker 1: show from John Verdett at Fourth Avenue Financial that aims
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Speaker 1: to answer your questions about financial planning, investing, and how
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Speaker 1: to retire right. Fourth Avenue Financial is located in downtown
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Speaker 1: Charleston at one seventy Court Street. More information online at
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Speaker 1: Fourth Avenue Financial dot com. Join the conversation by calling
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Speaker 1: three oh four three four five fifty eight fifty eight
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Speaker 1: or text three oh four nine three five fifty oh
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Speaker 1: eight and on your entire Right Radio. Let's golide to
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Speaker 1: the studio with host Dale Cooper and John Verdett from
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Speaker 1: Fourth Avenue Financial HSDALS.
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Speaker 2: And good Monday morning to you, Jeff jenkins Z and
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Speaker 2: for Dale Cooper. Today, John Burdett is here and that's
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Speaker 2: what's important, Okay, he's Here's a twenty three on Monday
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Speaker 2: morning retire Right Radio here on five ADWCA, the voice
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Speaker 2: of Charleston. John Burdett with Fourth Avenue Financial is with us.
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Speaker 1: John.
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Speaker 2: Everybody, I kind of you just kind of get to feel,
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Speaker 2: you know, Friday, some people had a holiday, some people
1:10
Speaker 2: had a half day, some people. You know, you get
1:13
Speaker 2: into the holiday weekend and you just kind of ease
1:15
Speaker 2: your way back right into into Monday, and maybe, you know,
1:20
Speaker 2: folks are kind of looking back, well, what really kind
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Speaker 2: of happened last week? We had the president's speech right
1:26
Speaker 2: to the nation. Uh, there was response to that, and
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Speaker 2: what's going to happen in Iran? And how's that impacting
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Speaker 2: oil prices? What's going on? So kind of as we
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Speaker 2: sit here on Monday morning, the first morning of April,
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Speaker 2: where are things kind of settled at on the market?
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Speaker 2: Where is it still is kind of unsettled with this
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Speaker 2: Iran thing?
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Speaker 3: Or where are we well? I mean there's certainly volatility
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Speaker 3: built around it because news changes so fast and what's
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Speaker 3: happening changes all the time. Last week was a good example,
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Speaker 3: I think of why you want to stick to your
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Speaker 3: long term plan. The market had been down three four
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Speaker 3: weeks in a row, and you know, people are starting
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Speaker 3: to get a little bit antsy about the about the market,
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Speaker 3: and last week it was up three four percent, rebounded
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Speaker 3: pretty pretty sharply, so about about a third of the
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Speaker 3: losses were a race last week that that we've had
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Speaker 3: since the beginning of this. You know, everything right now
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Speaker 3: is I think predicated on oil prices, and you know
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Speaker 3: what's going to happen there. And if you look at
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Speaker 3: the market participants that are voting with their dollars trying
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Speaker 3: to guess where oil prices will be in the future,
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Speaker 3: there's a pretty sharp decline in oil prices predicted over
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Speaker 3: the rest of the year. So most of the people
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Speaker 3: that within the within the market are putting their money
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Speaker 3: that oil prices will moderate as we get far further along,
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Speaker 3: which in a way makes sense. I mean, you know,
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Speaker 3: the oil is being produced, it's just got to get
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Speaker 3: through there, and at some point somebody's going to need
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Speaker 3: some dollars. So you know, it's not a shortage of oil,
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Speaker 3: it's a shortage of the ability to deliver it. And
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Speaker 3: and one way or the other, I have a feeling
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Speaker 3: that that you know that that bottleneck will will break
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Speaker 3: one way or another.
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Speaker 2: And then we're talking about the straight of her news
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Speaker 2: where that that's kind of under control now from the Iranians,
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Speaker 2: and they're the oil tankers and the things that ship
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Speaker 2: the oil aren't getting through, so.
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Speaker 3: It's really fascinating that that that's straight. How narrow it
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Speaker 3: actually is? You know, think, well, how came it's so
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Speaker 3: easy to to disrupt? I think it's only maybe twenty
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Speaker 3: miles or so wide, but the actual navigable corridors are
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Speaker 3: only about two miles in each direction. About that. Yeah,
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Speaker 3: so it's a pretty narrow, narrow pass.
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Speaker 2: Okay, So is that if that plays out?
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Speaker 3: John?
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Speaker 2: And you've got all this oil ready to come in,
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Speaker 2: so it's supplying demand. So if you get I'm going
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Speaker 2: to use the wrong term here, but you're kind of
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Speaker 2: the markets flooded with oil, you know, did that didn't
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Speaker 2: drive the price down?
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Speaker 3: Yeah? I mean, if you look, we started this oil
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Speaker 3: is around seventy you know, sixty seventy dollars a barrel,
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Speaker 3: and the futures markets right now are predicting by year
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Speaker 3: end we're right back to that. So now there will
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Speaker 3: be spikes, and there will be based on news and
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Speaker 3: that sort of thing. But I think the biggest takeaway
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Speaker 3: I think from last week is just hey, if you
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Speaker 3: don't need this money right now that you've been saving
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Speaker 3: for for your retirement, it doesn't change your life. If
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Speaker 3: the market goes down one week to the next. If
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Speaker 3: you're still working and accumulating, it really is more of
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Speaker 3: an opportunity for you because you're adding to your investments
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Speaker 3: while the market is down, and so when it gets
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Speaker 3: to the inevitable rebound, you're going to be better off.
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Speaker 3: You know, you it's sometimes it's hard when you see
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Speaker 3: the statement to stick to that, but that is really
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Speaker 3: historically and logically the right thing to do. Now, if
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Speaker 3: you were in retirement and you're drawing money out, then
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Speaker 3: then the volatility can affect you more. But that's where
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Speaker 3: your allocation comes into play. You know. I think most
5:44
Speaker 3: people believe that, you know, whether it's a you know,
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Speaker 3: three months, two weeks, two years, there's going to be
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Speaker 3: some resolution to what's going on there. If your allocation
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Speaker 3: is that you have fixed income in retirement to go
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Speaker 3: along with the market, well, if the market's down, don't
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Speaker 3: don't liquid h your market holdings, you know, liquidat your
6:09
Speaker 3: fixed income holdings to make the income need that you have.
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Speaker 3: You know, it gives you options in that allocation to
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Speaker 3: manage that volatility even in retirement, because if you avoid
6:23
Speaker 3: the market, or if you panic and sell out while
6:27
Speaker 3: it is down, you're guaranteeing that you've taken that loss,
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Speaker 3: and you've actually absorbing the loss yourself because you haven't
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Speaker 3: given an opportunity rebound. And you know, two thousand and
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Speaker 3: eight it's a good example. As bad as that was.
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Speaker 3: You know, if you could have waited that out three years,
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Speaker 3: three and a half years, you really waited out the
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Speaker 3: whole you know, the whole process as far as the
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Speaker 3: market goes. Well, you know, if you're in retirement drawing income,
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Speaker 3: you should have that type of time horizon in fixed
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Speaker 3: income for instance, and it insulates you against the volatility
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Speaker 3: of the market. It's still happening, but it doesn't change
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Speaker 3: your life, just like just like a thirty year old
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Speaker 3: that's saving for retirement. So it makes a retiree able
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Speaker 3: to treat the market like they're much much younger in
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Speaker 3: a portion of it, which is which is good because
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Speaker 3: the market is the only way long term that you
7:28
Speaker 3: can deal with inflation.
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Speaker 2: Okay, so you're talking about change the allocations. So what
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Speaker 2: are those fixed income categories that you're talking about.
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Speaker 3: Well, money markets and cash and bonds. You know, there
7:41
Speaker 3: are all kinds of different bonds that you can purchase
7:43
Speaker 3: in a portfolio. And and interestingly, during this last several weeks,
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Speaker 3: interest rates have actually gone up a little bit, which
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Speaker 3: can be a great opportunity to actually get into some
7:56
Speaker 3: more bonds while the rates are a little bit higher.
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Speaker 3: Kind of intermediate corporate bond seemed to be a sweet
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Speaker 3: spot there. Again, that's not a recommendation for everybody. It's
8:07
Speaker 3: just just you know, some of the options out there.
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Speaker 3: But you're seeing investment grade corporate bonds now a lot
8:17
Speaker 3: of them can be north of five percent, and you know,
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Speaker 3: that's a pretty good fixed income that you can pretty
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Speaker 3: well depend on and insulate you from that volatility of
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Speaker 3: the market. That happened short term and will inevitably happen
8:32
Speaker 3: right short term. You know, this is an event that
8:37
Speaker 3: certainly at the beginning of the year, you didn't know
8:39
Speaker 3: that this was was going to happen, but it did.
8:43
Speaker 3: But that's how all events happen. We don't know about
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Speaker 3: them until they happened. And it requires a crystal wall
8:50
Speaker 3: to you know, which nobody has that I'm aware of,
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Speaker 3: and it's just part of the market, and and Tom
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Speaker 3: kind of deals with that and smooth things out. You
9:04
Speaker 3: just have to make sure that you've allocated appropriately to
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Speaker 3: deal with it because it's inevitable. Volatility is inevitable in
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Speaker 3: the market.
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Speaker 2: And is that mix that Fourth Avenue Financial that you
9:15
Speaker 2: can help with, you know what, you know, the categories
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Speaker 2: that fixed income categories, the volunteerity, the ones going to
9:23
Speaker 2: be more subject to the up and downs of the
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Speaker 2: market that you can help with.
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Speaker 3: The plant obviously, absolutely absolutely, And you know, underlying all
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Speaker 3: this you mentioned, you know what's going on in the market.
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Speaker 3: I mean, there are still economic statistics coming out and
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Speaker 3: last week they were pretty good. So fundamentally you have
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Speaker 3: the noise of what's going on, but the actual underlying
9:45
Speaker 3: economy is dealing with it pretty well. Consumer spending was
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Speaker 3: pretty strong last week. The ADP jobs numbers that were
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Speaker 3: out last week, we're strong. The manufacturing index is up
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Speaker 3: for three months in a row. So there are a
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Speaker 3: lot of things under under all this noise that are
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Speaker 3: still going on pretty well. That the points do you know,
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Speaker 3: potentially higher profitability for companies, which if you're a stockholder
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Speaker 3: and own those companies, that's a good thing.
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Speaker 2: Right John Predets with us Fourth Avenue Financial retire right
10:19
Speaker 2: Radio here on five ADWHS The Voice of Charleston three
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Speaker 2: oh four three four five fifty eight fifty eight's the
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Speaker 2: phone number, John. Why does there may be a simple
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Speaker 2: answer to this. Why does the price of oil drive
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Speaker 2: so many things? How can it control, you know, the
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Speaker 2: reaction of the market and just be such a big player.
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Speaker 3: Well, oil is certainly widely used, and it goes into
10:42
Speaker 3: a lot of products as well, plastics, and there's all
10:46
Speaker 3: kinds of things that oil is involved in. Now, oil
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Speaker 3: if you if you look at oil today, particularly in
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Speaker 3: the United States, but really globally, if you go back
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Speaker 3: to the seventies when we had the oil crisis and
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Speaker 3: there were gas lines and all these things going on,
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Speaker 3: and prices went up and it really created big inflation.
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Speaker 3: Two today one inflation adjusted, were nowhere near those type
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Speaker 3: of of highs. But also, oil as a percentage of
11:23
Speaker 3: consumer spending is about a third of what it was
11:27
Speaker 3: back then because of just efficiencies and and things. So
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Speaker 3: it does have an impact, but the impact even today
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Speaker 3: is not as big as it would have been, you know,
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Speaker 3: fifty years ago, because of just progress of the way
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Speaker 3: we are able to produce more goods and services with
11:47
Speaker 3: less less consumption.
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Speaker 2: Essentially, Oh, we remember the lines, Yeah, those are old
11:53
Speaker 2: enough to remember.
11:54
Speaker 3: I don't remember the lines, but I remember that, I
11:56
Speaker 3: remember those less than a dollar a gallon gas stays.
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Speaker 2: Yes, yes, exactly, exactly, exactly right, exactly right. Okay, So
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Speaker 2: that's good. So we settle in. We had a pretty
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Speaker 2: good week last week, and you know, maybe maybe we
12:11
Speaker 2: can build some off of that this week.
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Speaker 3: Yeah, and there again, it's going to be news driven
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Speaker 3: from day to day what happens, and that's going to
12:19
Speaker 3: be that's just to be expected. But there will be
12:22
Speaker 3: a resolution at some point. I mean even you know,
12:26
Speaker 3: the even World War two ended, right, you know, eventually
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Speaker 3: there will be a resolution.
12:31
Speaker 2: Right exactly. Okay, we're going to take our break. Be
12:32
Speaker 2: back with John. It's eight thirty five here on five EDWCCHS,
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Speaker 2: You still thinking job change in the new year.
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Speaker 8: Yeah, I need something that's in high demand and more
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Speaker 1: That's what I did. Really how went to my computer career.
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Speaker 8: Up sweet our classes online or on campus both, Well,
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Speaker 8: I'll check it out. Thanks.
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Speaker 9: This is Retire Right Radio with John Burdett from Fourth
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Speaker 9: Avenue Financial, taking your calls at three oh four three
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Speaker 9: four five fifty eight fifty eight or texts on three
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Speaker 9: oh four nine three five fifty oh eight.
15:29
Speaker 2: And good morning, Hey thirty eight. Jeff Jenkins in for
15:31
Speaker 2: Delle Cooper today. John is with us here and the
15:34
Speaker 2: CONDENSI theirty three four five fifty three oh four three
15:39
Speaker 2: four or five ye talking to John and general I'm
15:44
Speaker 2: one here. Is like that, you know, remind folks and
15:47
Speaker 2: John is and uh and what he does and uh.
15:51
Speaker 3: You know.
15:52
Speaker 2: Obviously, one of the main things at Fourth Avenue financially
15:54
Speaker 2: you do is you have clients and you sit down
15:58
Speaker 2: with them. They they talk about you know, they might
16:02
Speaker 2: be fifty or fifty five years old, they might be
16:04
Speaker 2: twenty five or thirty years old, but there's a thought about, Okay,
16:09
Speaker 2: there's a future. I'm going to retire at some time.
16:12
Speaker 2: What's the best plan? And that's what you help folks with.
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Speaker 3: Absolutely, and of course retirement is the main focus of
16:18
Speaker 3: most folks that come see me, but you know, we
16:20
Speaker 3: can help plan for other events as well, you know,
16:23
Speaker 3: and it's very important for me to know what those
16:27
Speaker 3: goals are as we're building the plan, because that's how
16:31
Speaker 3: I allocate the funds based on what your goals are,
16:35
Speaker 3: what your tome horizons are, and how you're going to
16:38
Speaker 3: use it at the time. You know, are you going
16:41
Speaker 3: to use it as an income stream, are you going
16:43
Speaker 3: to need it as a lump sum at a certain
16:44
Speaker 3: point of time to maybe purchase a second home that
16:48
Speaker 3: you had plans for, you know, those type of things,
16:50
Speaker 3: and how does that fit into your overall plan. So
16:55
Speaker 3: that's the biggest thing. It's just setting down and understanding
16:59
Speaker 3: the situation, getting to know one another because of a
17:04
Speaker 3: successful relation. It's a successful relationship that you need to
17:08
Speaker 3: have with your financial advisor so that you can be
17:11
Speaker 3: open and share those type of things, and so the
17:16
Speaker 3: plan can be truly tailored towards you individually. You know,
17:21
Speaker 3: it's not like a cookie cutter approach because every one
17:24
Speaker 3: of us are different. Every one of us have different
17:27
Speaker 3: experiences with money as well. You know, some people come
17:31
Speaker 3: after money psychologically from a kind of a negative perspective,
17:35
Speaker 3: and sometimes sometimes people come at it as a from
17:40
Speaker 3: a thought of abundance and scarcity. There's all of these
17:44
Speaker 3: things that play into how people deal with with money.
17:50
Speaker 3: And with us having those conversations and building that relationship,
17:54
Speaker 3: it allows me to work with you where you are
17:59
Speaker 3: to to work through some of those issues and try
18:02
Speaker 3: to get a you know, a clear set of eyes
18:04
Speaker 3: on the situation that sometimes emotionally it can be tough
18:09
Speaker 3: to do yourself right.
18:12
Speaker 2: Let me throw a scenario at you. I like to
18:14
Speaker 2: do this. You know, folks, they work hard, they have
18:18
Speaker 2: thirty of your mortgages or something. Maybe you know their
18:21
Speaker 2: other debt is very small. They pay off their house, right,
18:25
Speaker 2: they pay off their mortgage. Big deal, it's a big
18:27
Speaker 2: deal you've got now you've got some income. But you know,
18:31
Speaker 2: you've maybe put off major repairs to your house that
18:34
Speaker 2: are needed and now you know, and I would think
18:38
Speaker 2: that's another one of those things that you can help with.
18:40
Speaker 2: Go where do you go from here? Some people think about, well,
18:42
Speaker 2: maybe I should get a second mortgage, or maybe I
18:44
Speaker 2: should get a fund where I can just draw out
18:47
Speaker 2: of to get these repairs done, but I'm still working, right,
18:50
Speaker 2: you know, I'm going to work another ten years or
18:52
Speaker 2: whatever it is. Those are the type of that's a
18:55
Speaker 2: type of scenario that would deserve some discussion.
18:58
Speaker 3: Yeah, absolutely, that would be something to talk about. A
19:01
Speaker 3: lot of times, things like you're retiring, you you say, well,
19:05
Speaker 3: I need this amount of month to live comfortably, you know,
19:09
Speaker 3: But then a lot of times people forget, what if
19:12
Speaker 3: my car wears out, that's a major that's a major expense.
19:15
Speaker 3: You know, you have to think about all of those
19:17
Speaker 3: little things when you're building the plan because you know,
19:22
Speaker 3: if you don't have that in your budget, that's a
19:25
Speaker 3: major that's a major purchase. You know, if you don't
19:28
Speaker 3: have home repairs in your budget, you know, a roof,
19:32
Speaker 3: who knows, you know, you could spend fifteen twenty twenty
19:35
Speaker 3: five thousand dollars now on a roof. That's a major purchase.
19:39
Speaker 3: And so all of those things have to be factored in.
19:42
Speaker 3: And sometimes that gets missed when you're when you're doing
19:45
Speaker 3: your planning because you're just looking at that monthly number
19:50
Speaker 3: that you need to be comfortable, But it doesn't account
19:54
Speaker 3: for those things.
19:55
Speaker 2: Do people? When you meet with people are people and
20:00
Speaker 2: this is really generalization here are people in better shape
20:05
Speaker 2: with retirement than they think? Or are they below where
20:10
Speaker 2: they should be? I mean that's a real general question.
20:12
Speaker 2: Or is it just is this the mix?
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Speaker 3: Well, there's definitely a mix. I think there's a lot
20:17
Speaker 3: of a lot of people I come across financially are
20:22
Speaker 3: in pretty good shape, but they don't know how to gauge.
20:29
Speaker 2: They don't know, yeah.
20:32
Speaker 3: Because everything is you know, it's like, well, if I
20:35
Speaker 3: stop working and don't have my income, what am I
20:37
Speaker 3: going to do? Is there enough here? How do I
20:39
Speaker 3: structure it? What if the market goes down twenty percent?
20:43
Speaker 3: You know, how will that affect it? So you know
20:46
Speaker 3: a lot of times, you know, you see people that
20:50
Speaker 3: and I think maybe it's a trade of people that
20:52
Speaker 3: have saved successfully have the most uncertainty built around it.
21:00
Speaker 3: That uncertainty is probably why they were such savers to
21:04
Speaker 3: begin investors to begin with, right, because the fear of
21:08
Speaker 3: not having in the future. So it's kind of a psychological, right,
21:13
Speaker 3: A lot of a lot of things about money are psychological.
21:16
Speaker 3: It's not math. It's how we think about things and
21:19
Speaker 3: how we deal with things that you know, happen and
21:23
Speaker 3: plan for things that are unexpected, but we should expect
21:27
Speaker 3: unexpected things are going to happen, you know that, And
21:32
Speaker 3: those emotional decisions or what really wrecked the financial plan,
21:35
Speaker 3: not the actual event itself.
21:37
Speaker 2: Right, right, And it's it's all. It's also kind of
21:40
Speaker 2: like the Bell curve of life, right. I'm sure you've
21:42
Speaker 2: met people that and and maybe have clients that didn't
21:45
Speaker 2: make a ton of money during their their working but
21:49
Speaker 2: they were tremendous savers. Yes, and it's probably pretty amazing
21:54
Speaker 2: when you look at it.
21:55
Speaker 3: It is. And if they were you know, the savers,
22:00
Speaker 3: especially if they were savers slash.
22:04
Speaker 2: Investorsyes, savers investors.
22:05
Speaker 3: Yes, it's very difficult over thirty years, no matter how
22:10
Speaker 3: much you save to save your way to wealth, you
22:13
Speaker 3: can't earn and save enough without the help of compound interest.
22:19
Speaker 3: You know. The folks that really have been successful planning
22:23
Speaker 3: and have abundance in retirement are the ones that were
22:29
Speaker 3: one savers first built that nest egg, but then allowed
22:34
Speaker 3: it to be placed in the market so it could
22:37
Speaker 3: grow and compound. You know, if you you know, save
22:43
Speaker 3: five thousand dollars a year, that's great, but if that
22:46
Speaker 3: five thousand over the next handful of years makes you
22:49
Speaker 3: another five thousand, you know, and that continues that process.
22:54
Speaker 3: You know, that's how you really accumulate wealth that takes
22:59
Speaker 3: you through retirement or maybe even into the next generation.
23:03
Speaker 3: If that's a goal that you have, you know, saving
23:07
Speaker 3: that is great. Saving is the first step you have
23:10
Speaker 3: to You have to create savings and investment consistently from
23:15
Speaker 3: your income. To have any measure of financial success is
23:19
Speaker 3: just a rule. I mean, there's no way around that.
23:21
Speaker 3: If you're always living up to what you earn, if
23:24
Speaker 3: you're always, you know, spending on credit cards some months
23:29
Speaker 3: more than you earn, you're never going to get out
23:32
Speaker 3: of that cycle and start accumulating wealth that can take
23:37
Speaker 3: care of you in the future. So the first step
23:39
Speaker 3: is always the budget, you know, and and inside that
23:42
Speaker 3: budget you have to earmark. Just like paying for your
23:46
Speaker 3: electric bill. You have to earmarks something for savings and investment,
23:52
Speaker 3: something that can be productive for the future for you.
23:55
Speaker 3: If you don't, you will always be in that cycle.
23:59
Speaker 3: And you know, the idea is wealth is created by
24:04
Speaker 3: serving people. When we go out and do our jobs,
24:08
Speaker 3: that's what we all do. We try to be valuable
24:10
Speaker 3: to somebody. That's why we earn what we earn, and
24:15
Speaker 3: when you spend your money, you're claiming other people's services
24:18
Speaker 3: and goods. You know, you go to a restaurant and
24:21
Speaker 3: whatever the case may be, those folks are serving you
24:24
Speaker 3: for your dollars. And when you retire, you're no longer serving,
24:28
Speaker 3: are you? You're you're you know, you may be serving
24:31
Speaker 3: not you know, maybe watching grandchildren and and and things
24:36
Speaker 3: like that, but but not actually, you know, providing a service.
24:39
Speaker 3: In the economy, how do you generate income? How do
24:43
Speaker 3: you keep up with inflation? What happens when you own
24:46
Speaker 3: a company? What are they doing? They're serving? They're like
24:51
Speaker 3: your proxy. They're out there serving in the current market
24:56
Speaker 3: economic environment. They keep up with inflation because if prices
25:01
Speaker 3: go up, who's producing the goods and services? Well, now,
25:04
Speaker 3: the companies you own, just like you when you are working,
25:08
Speaker 3: your wages tend to rise over time with inflation, so
25:11
Speaker 3: do your company's earnings. That is how you keep up
25:15
Speaker 3: with it. So it's it's a very simple, you know,
25:18
Speaker 3: simple process. Life can make it difficult to achieve, but
25:25
Speaker 3: the actual understanding and of how to build it as
25:28
Speaker 3: a pretty straightforward, not complicated process. That's why sometimes the
25:33
Speaker 3: folks that are the most successful are the ones that
25:37
Speaker 3: look at it and think about it the least. If
25:40
Speaker 3: they've built in that automatic investment part of their budget
25:47
Speaker 3: and if it's directed into you know, ownership of companies.
25:53
Speaker 3: You know, they wake up thirty years from now and
25:55
Speaker 3: everything everything looks good. Yeah, you know, it doesn't take
26:02
Speaker 3: really rocket science to to to become wealthy, and you
26:06
Speaker 3: just have to execute those handful of rules consistently.
26:13
Speaker 2: What are some of the jamberdeks with us fourth Avenue
26:15
Speaker 2: Financial retire Right Radio. What are some of the Because
26:19
Speaker 2: you have younger clients too, and what are some of
26:22
Speaker 2: there are some fundamental things you tell them. You know,
26:25
Speaker 2: because they get money for the first time, they want
26:28
Speaker 2: to spend the money for the first time. I mean,
26:30
Speaker 2: what are some of the fundamental things that you would
26:33
Speaker 2: tell a young person.
26:34
Speaker 3: Well, it all comes down to budget. That's the first
26:37
Speaker 3: thing you have to get right. You have to be
26:39
Speaker 3: able to create savings and investment. You know, if you
26:44
Speaker 3: can save twenty percent, you know, there's a there's a
26:48
Speaker 3: budgetary trick out there. It's called the fifty thirty twenty rule.
26:53
Speaker 3: Fifty percent of your money you can spend on your
26:56
Speaker 3: your needs food and shelter and transportation and that sort
27:00
Speaker 3: of thing. Thirty percent of your money you can spend
27:03
Speaker 3: on your wants. I want to go out to eat,
27:05
Speaker 3: I want to go to a concert, you know, whatever
27:07
Speaker 3: the case may be. That leaves twenty percent left over
27:11
Speaker 3: for savings and investment. And if you have acquired debt
27:17
Speaker 3: by the time that you have thought about this, we
27:21
Speaker 3: then that twenty percent savings investment goes towards paying those
27:26
Speaker 3: debts off. That's still productive, you know, to pay those
27:31
Speaker 3: things off. You know, you can't skip ahead and start
27:34
Speaker 3: investing if you're paying thirty percent credit card interest. That's
27:40
Speaker 3: the first step you have to before you start investing.
27:44
Speaker 3: Have an emergency fund set aside. You know, have three
27:48
Speaker 3: to six months of your living expensive set aside somewhere
27:51
Speaker 3: and not in your checking account that you use day
27:54
Speaker 3: to day, but somewhere in a money market somewhere where
27:57
Speaker 3: you can access it if an emergency comes, but it's
27:59
Speaker 3: not readily available without you taking some action to put
28:03
Speaker 3: a barrier there. That's to deal with those unexpected things
28:06
Speaker 3: that happened from Tom to Tom. And then after that
28:09
Speaker 3: then you're really into to the realm where you can
28:12
Speaker 3: begin investing and owning long term assets because now you've
28:17
Speaker 3: built the foundation necessary to be able to treat those
28:20
Speaker 3: investments the way they need to be treated as a
28:23
Speaker 3: long term investment. You know, if you skip this, if
28:26
Speaker 3: you skip the steps, if you don't have the emergency fund,
28:30
Speaker 3: then what happens. Inevitably an emergency happens, and then what
28:34
Speaker 3: are you forced to do. If you're a young person
28:37
Speaker 3: under fifty nine and a half, Well, now you've got
28:40
Speaker 3: a ten percent penalty on those retirement funds to draw
28:43
Speaker 3: those out. Now you have taxes. The market might be down,
28:46
Speaker 3: and that might you know, also be a negative to
28:50
Speaker 3: you if you have to invade those funds that were
28:54
Speaker 3: intended for the long term and that emergency fund, even
28:59
Speaker 3: though that doesn't grow as fast as the market, that
29:03
Speaker 3: is the price you pay to protect those long term assets.
29:07
Speaker 3: So you have to have those steps in place, because
29:11
Speaker 3: you know, emergencies are unexpected, but they're not unexpected. You know,
29:18
Speaker 3: we all have emergencies that arise that we can't predict
29:21
Speaker 3: and can't you know, that's why they're called emergencies. But
29:28
Speaker 3: everyone has them, so you have to plan for them,
29:30
Speaker 3: even though they're unexpected.
29:32
Speaker 2: So that's a healthy exercise. That breakdown you were talking
29:34
Speaker 2: about the budget or the kind of the fifty thirty twenty,
29:38
Speaker 2: that's that's a good extra cause you can kind of
29:40
Speaker 2: get out of whack a little bit, right, you.
29:42
Speaker 3: Can, and that helps you, especially when you're young, trying
29:46
Speaker 3: to figure out how much should I spend on it
29:49
Speaker 3: if I want to purchase a house or if I
29:50
Speaker 3: want to rent a place, so you know, how does
29:52
Speaker 3: that align with my income and my budget and if
29:57
Speaker 3: you overspend in those you know, if you overspend and
30:00
Speaker 3: in purchasing a home, for instance, you know a lot
30:04
Speaker 3: of folks say, well, I'm going to purchase the home,
30:07
Speaker 3: and you know the price of the value the home
30:09
Speaker 3: goes up over time. It's a good investment. So I'm
30:13
Speaker 3: going to buy the biggest house I can. Well, that
30:17
Speaker 3: house may go up over time, but it's going up
30:20
Speaker 3: just like inflation goes up. You still have to live somewhere.
30:24
Speaker 3: So in a way, your own home is consumption. You're
30:26
Speaker 3: paying for it. You pay for the maintenance, you pay
30:29
Speaker 3: for the taxes, you pay for every utilities, everything that
30:32
Speaker 3: goes into that home you're paying for. And if you
30:36
Speaker 3: buy too much home, it takes away your ability and
30:39
Speaker 3: your budget to put money aside for the future. Even
30:43
Speaker 3: though the home value is growing. You know what happens, Well,
30:49
Speaker 3: you say, well, one day I'll sell it and cash out.
30:51
Speaker 3: If it goes up in value, you still have to
30:53
Speaker 3: buy a house. The only way you realize any cash
30:57
Speaker 3: is if you downsize. Kind of investment makes you downsize.
31:03
Speaker 3: You know, essentially that house has become a store of value,
31:07
Speaker 3: but it's not really an investment. Now, if you buy
31:10
Speaker 3: an apartment building and rent it, that's an investment because
31:14
Speaker 3: that has an income stream attached to it and you're
31:16
Speaker 3: not paying for it out of your pocket like the
31:21
Speaker 3: like the house. So there's all kinds of confusion with
31:25
Speaker 3: with housing, and that fifty thirty twenty kind of helps
31:28
Speaker 3: put a guardrail around it to at least give you
31:33
Speaker 3: a high level check to see if you're out of
31:37
Speaker 3: line in any of those categories.
31:39
Speaker 2: Yeah, go over those again. What is the fifty thirty twenty.
31:41
Speaker 3: Is fifty percent? It can be spent on your needs, shelter, food,
31:47
Speaker 3: you know, healthcare, transportation, those type of things. Now I
31:52
Speaker 3: say things like transportation, it's like, well, just like with
31:55
Speaker 3: the house. You know, you can buy a five thousand
31:59
Speaker 3: dollars used car, you can buy a new BMW. Well,
32:04
Speaker 3: the BMW would go into the want category, right, because
32:08
Speaker 3: that's not you know, that's more than transportation. So you
32:12
Speaker 3: have to be honest with yourself as you're as you're
32:14
Speaker 3: looking through these numbers. And it's okay sometimes if you
32:18
Speaker 3: want to overspend it, as long as you're aware of
32:22
Speaker 3: the decision you're making. It's like, oh, you know, I
32:24
Speaker 3: do want to buy that car, and it might put
32:27
Speaker 3: me over budget here, but I'm willing to take it
32:30
Speaker 3: from my want budget and maybe that means I go
32:32
Speaker 3: out to eat less or go out to You know,
32:34
Speaker 3: it's your money. You're you're able to spend it the
32:38
Speaker 3: way you want to spend it, but you have to
32:40
Speaker 3: be aware of it because if you're not aware of it,
32:43
Speaker 3: that money will go away and you'll not end up
32:47
Speaker 3: with the appropriate amount of going to savings and investment.
32:51
Speaker 2: And then you can get out the plastic and start
32:55
Speaker 2: building the debt and it'll swallow you up absolutely.
32:59
Speaker 3: And just like the power of compound interest working for
33:03
Speaker 3: you and your retirement account. You know, most folks out
33:06
Speaker 3: there that have have saved and invested, you know, ten
33:09
Speaker 3: years or more are finally seeing that. You know, initially
33:14
Speaker 3: you do all the work. You know, you're putting the
33:17
Speaker 3: money in, and compound interest doesn't seem like it's doing much. Well,
33:20
Speaker 3: it's not because it's on a small dollar amount, But
33:23
Speaker 3: as that dollar amount grows, it starts to pick up momentum.
33:27
Speaker 3: And after about ten years of diligently saving, you start
33:30
Speaker 3: realizing that, you know, over time, my investments are making
33:34
Speaker 3: more than I'm even able to save. And then and
33:37
Speaker 3: then it takes off. And that's the way that compound
33:40
Speaker 3: interest works. And when you're talking about the market and
33:45
Speaker 3: a portfolio, you may be talking about long term rates
33:48
Speaker 3: of you know, eight to twelve percent long term rates
33:51
Speaker 3: return and how powerful that is with that growth. What
33:55
Speaker 3: are you paying on a credit card thirty percent? Look
34:00
Speaker 3: at how valuable eight to twelve percent is to you
34:03
Speaker 3: as far as saving. Think about how destructive thirty percent
34:07
Speaker 3: is when you're paying Yeah.
34:10
Speaker 2: Yeah, right, Well, and so we have about a minute
34:12
Speaker 2: and a half here, John and John bradept Worth Avenue Financial.
34:15
Speaker 2: So the best way to get a hold of you
34:16
Speaker 2: to kind of start these conversations.
34:19
Speaker 3: Yeah, I mean we still have the good old phone.
34:22
Speaker 3: At three oh four seven four six seven nine seven seven.
34:27
Speaker 3: That's the best way to reach us quickly. You can
34:32
Speaker 3: also go online or even on our Facebook page and
34:37
Speaker 3: at Fourth Avenue Financial dot com all spelled out FU
34:42
Speaker 3: r THH and book your own initial consultation. If you
34:47
Speaker 3: want to schedule something, schedule a call, well, we can
34:51
Speaker 3: talk for ten or fifteen minutes on a scheduled call
34:54
Speaker 3: and kind of get an overview of your situation what
34:58
Speaker 3: we can do to help you through that and decide
35:01
Speaker 3: if you want to book an appointment.
35:04
Speaker 2: And you want, I mean, you're providing a service. You
35:07
Speaker 2: want to help people, That's why you're in this business.
35:10
Speaker 3: Oh absolutely. I mean there's nothing better than you know,
35:12
Speaker 3: taking taking somebody and and coming up with a plan
35:16
Speaker 3: and see those those dreams and things be fulfilled. So
35:22
Speaker 3: and you know, I've been doing this now for twenty
35:24
Speaker 3: five years, so I've I've been doing it long enough
35:27
Speaker 3: where you know, I see some of those plans actually
35:30
Speaker 3: bear fruit and it's it is pretty satisfying.
35:33
Speaker 2: Yeah, exactly. And our people do you find people retiring
35:37
Speaker 2: at a quicker rate a slower rate?
35:40
Speaker 3: Is it just it really depends. I mean some people
35:43
Speaker 3: want out as quickly as possible, and others they fail
35:47
Speaker 3: at retirement and retire and then go right back to work.
35:50
Speaker 3: So you know, there again, it's an individual thing. And
35:55
Speaker 3: I will say this retirement is more than about money.
35:58
Speaker 3: It's it's about psychologically emotionally. Are you ready for retirement
36:05
Speaker 3: and if you do retire you have a good plan
36:08
Speaker 3: for what you want to do with the next chapter.
36:10
Speaker 2: Yeah, okay, yep, it's planning is good. And take a
36:14
Speaker 2: look at your stuff every once in a while too,
36:16
Speaker 2: yeah yeah, yeah, to make sure it's right. Okay, John,
36:18
Speaker 2: have a good week you too. Take care all right.
36:20
Speaker 2: John's with us and thanks for joining us. This is
36:22
Speaker 2: five eight w u c H as the voice of.
36:24
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Speaker 5: point five Cross Lanes.
36:57
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