Latest / Financial Survival Network / Maximizing Wealth Through an Integrated Approach -- Andrew Winnett #6030

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Maximizing Wealth Through an Integrated Approach -- Andrew Winnett #6030 · Financial Survival Network

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The real wealth builder is holding it so that it can accumulate. In our
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area, real estate's accumulating at eight to ten percent, which is unbelievable.
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You're going to beat inflation. There, you are listening to Carrie Leutz's Financial
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gift. Financial Survival Network now more than ever. And welcome. You are
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listening to and watching the Financial Survival Network. I'm your host, Carrie Lutz.
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Well, we all know inflation is here. It's here to stay.
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The numbers have been coming in higher than the so called experts we're expected.
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The only thing this expert is done by is the fact that they admitted that
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inflation is coming in higher than expect it. Well, we've got a really
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good guest on today, Andrew Winnett. You're look, you've been around Hollywood
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literature, finance, you produced, You produced movies like The Retirement Deception and
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The Baby Boomer Dilemma, So you're an expert on this. So inflation.
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First, where does inflation come from? I mean, I know that most
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of you out there know it, but it never hurts to refresh and get
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a different view on that. Andrew, thanks for coming on. And oh,
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if you've got a question for Andrew or myself, shoot me an email
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kl at Karrie LUTs dot com. So, Andrew, it's great to have
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you on Where does inflation come from? You know, like if you listen
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to the politicians, they just can't figure it out. They have no idea.
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But you and I know differently, don't we, Well you do,
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Carrie. It's great to be with you. So there's a lot of problems
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that we're experiencing in our economy right now. Inflation is clearly one of the
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biggest. You know, we're I don't want to kick a dead horse,
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but you know, to oversimplify, when we elect dead horses in this country,
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we don't kick them. That's true. That's that is true. Hopefully
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we don't do that again here in a couple of months. But so when
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we print too much money, obviously it's going to have an inflationary effect.
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You know, if you look at our present debt, which is you know,
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across thirty four trillion dollars. We're on a run rate of ten trillion
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per year through twenty thirty. I mean, we're talking colossal amounts of debt.
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Now, the inflation problem. You know, if you go back to
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Jerme Powell, which is kind of like the Wizard of Oz, he's the
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guy in the behind the scenes who's pushing all the levers, and he has
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a big part to play in this inflation issue. And you know, the
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Federal Reserve, they really only have a couple of tools in their tool bell,
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and oftentimes it just takes us on this merry go round dealing with inflation
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and then combating inflation by raising interest rates, and the interest rates to destroy
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the economy and we go into a recession. And then we lower interest rates
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essentially quantitative easing, printing money, and the cycle starts over. And so
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we're in another cycle. But the problem is is that this merry go round
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can only go around so many times before this debt is unsustainable. What I'm
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concerned about is not just inflation, but it's also how is the stock market
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going to perform in the long term. We are going to have inflation.
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In fact, if you were to look at back in the late seventies and
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eighties, you know, the Paul Wolker era, when we had double digit
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inflation. You know, back then, they were factoring in food and energy
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into that CPI number. And they're being honest about it. Right last year.
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You know, for for a long long time, the definition of a
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recession was two quarters of negative GDP. Well we had that last year,
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and then all of a sudden, they're like, no, no, no,
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no, no, we're going to change the definition. I know we
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had two quarters of make EDP. We're going to change the definition. That's
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not what a recession is anymore. They're doing the same thing with inflation now.
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They're extracting food and energy out of the CPI numbers, which is forty
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percent of the entire metric. And so the numbers that we're getting are flawed,
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they're skewed, they're manipulated. You know, their goal is a two
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percent inflation rate. That's never going to happen. And even then, you
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know, we're having a hard time at the three percent three point one to
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three point two, the sticky inflation. I'm concerned that inflation is going to
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continue to go up. And as it goes up, what is the Fed
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going to have to do there. We're going to have to keep rates higher,
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and something's going to break. Banks are not out of the woods yet.
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We're going to have a lot of problems moving forward. And I'll end
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it with one other thought. You know, right now the stock market is
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at essentially all time highs. I mean, it's been an unbelievable ride.
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But you know, there's that old adage and obviously we all listen to the
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same experts, but if you show me your demographics, I'll show you your
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future. You know, predicting the stock market on the short term is extremely
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difficult, right It takes a really big braining to look at the trends and
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predict, you know, what the stock market is going to do on a
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day to day basis. Oftentimes, when people do that, they end up
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becoming a chain smoking, you know, day trader and they're stressed out of
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the find losing their hair. But predicting the stock market on the long term
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is actually very easy because it's all demographically driven. Right. So, right
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now we have such a swelling elderly pop population that they call the silver haired
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tsunami that around twenty thirty we are going to have so many people retired or
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retiring, we're not going to have enough workers or taxpayers to cover the rising
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costs of social security, social security, disability, Medicare, and Medicaid.
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And we're not the only country in this predicament. The entire messy yeah,
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Western world is in this predicament. Right, I've seen the charts. They're
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scary, they are terrifying. You're absolutely right. Carry you look at Germany.
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Germany's in just as bad a shape as we are. China, similar
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situation. They're one child policy backfired big time. Then you look at Japan.
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Japan is the worst in the entire world for their demographic problems. And
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once the demographics get off kilter or out of whack, the stock market flatlines.
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If you look at Japan as an example, because of their demographic issue,
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their stock market and I'm oversimplified, but their stock market has been stagnant
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for three decades. You look at Europe, They're an older country, same
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thing. Their stock market has been relatively flatlined and stagnant for two decades.
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As we in America go into this new season with this demographic problem, the
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stock market is not going to perform like it has like we've enjoyed, and
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when that happens, inflation is going to punch harder. It's going to hit
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us even worse because we don't have our accounts right, our stocks balls mutual
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funds that are combating inflation. So we're facing some big problems. And then
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one little cherry on top. Stanford Research recently came out and said, well,
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by twenty fifty, the average lifespan will be a century long with AI
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technology and with modern medicine, so people are going to be living longer.
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The stock market is not going to perform as well. Inflation is going to
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be a consistent problem because of our massive debt. I mean, it's kind
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of a recipe for disaster. You're just a bundle of optimistic, cheery thoughts
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today, aren't you, Andrew. Well, we have solutions. We have
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solutions, and if you'd like, I'd be happy to kind of tell you
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always looking for solutions. Okay, So I'll tell you a quick story when
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I was when I was dating my now wife Jazz. We were on our
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I don't know, second or third date, We're getting to know each other,
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and I decided, you know what, I'm going to take her to
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a batting cage, right like, you know, to you know, hit
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baseballs. I don't know how romantic, oh, I know, I just
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want you know. I was trying to show off. I'm pretty athletic,
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but I never played baseball. You know. I thought, oh I could
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do this. You know, I'm going to show where manly I am.
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So we go to this batting cage and again we're getting to know each other.
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And I did not know this, but my you know, now to
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be wiped. She got a full Righte scholarship for playing softball, So I
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mean she wiped the floor with me. She crushed it. Every ball she
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hit out of the bark and I can't hit a stink in baseball. It
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was so embarrassing. I had to surrender my man card. It was humiliating,
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as you're right, you see, that's what happens when you're when you
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make assumptions about the fairer sex. That's true. Yeah, I made a
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great error there. But winning the game of retirement is a lot like winning
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the game of baseball. Okay. The way you win the game of baseball
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they call it small ball, and small ball is you hit singles and doubles
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and you never strike out. It's the fundamentals, right, don't try to
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hit the home run. It's singles and doubles and never strike out. Well,
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at our firm, my personal belief is how you win the game of
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baseball is how you win the game of retirement. If you can earn five
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to seven percent net okay, so net of fees, net of you know,
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any loss, and you never strike out, you never go backwards,
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you're gonna win the game of retirement. So you don't win baseball by strikeout,
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strikeout, home run, strikeout, strikeout, strikeout, home run.
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That's not how you win. It's singles and doubles and never striking out.
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I believe in retirement as you get older, right, it's not so much
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about how much do you learn, it's how much do you not lose.
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You know Ted Betta, the founder of the four to one k he's in
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my first movie. He talks about the danger zone, which is five years
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before retirement and five years after. And if you're in that danger zone and
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you lose twenty percent he said this, I didn't say this. If you
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lose twenty percent in that danger zone, he said, you would never recover
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it. Now that's sobering because we have a beer market, or at least
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we should one out of every four or five years, right, So that
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is a big problem. So if you can are five to seven percent and
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never go backwards, you're going to win the game of retirement, just like
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you'd win the game of baseball singles and doubles, never strikeout. I'm every
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now and then you get a Grand Slam and you really clean up. So
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right, but now you got to do a little bit better because of inflation.
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Right, that's right, yep, And that is a big problem.
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And that's why for us at our firm. Okay, this is pretty unconventional,
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but when we're looking forward the next fifteen years, we're trying to factor
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in inflation, we're trying to factor in the risk of the stock market,
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okay, the stock market not performing as well as it has. We're trying
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to factor in longevity risk because this is going to be a big issue.
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In fact, the National Bureau of Economic Research, this is in twenty and
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twelve. Okay, in twenty and twelve, they came out with this report
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that fifty seven percent of single, divorce and widowed individuals will run out of
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money before they run out of life, and forty six percent of married couples
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will run out of money before they run out of life. Now it's even
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worse. It's literally one out of two. It's a coin flip, right,
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heads, you don't run out of money. Tails, you got to
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go back to work at Low's or Home Depot or Starbucks, you know,
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and have some weird boss with face tattoos and purple hair. It's brutal.
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I don't like those statistics, but the odds are stacked against us, and
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so you have to have a conservative approach when it comes to planning for your
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future. I'll give you another quick metaphor. Have you climbed Mount Everest?
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Kerrey? No, It's on my bucket list, but I'm sixty six.
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I think it's going to have to wait for the next life. Andrew gotcha,
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Okay, I haven't either. One of these days, I'm going to
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get somebody who says, yes, I didn't know this, but more people
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die going down Mount Everest than going up. Now. When I first heard
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that, I'm like, what, that doesn't make any sense. But as
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I discovered more, you know, when you're going up the mountain, you
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know you wake up early at base camp. You ate your weedies that morning,
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you've got your eye on the prize. You're excited. You get to
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the top of the mountain, you plant your flag, and this is where
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all the mistakes happen. You know, you stay up there too too long,
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you take too many selfies, you get outageing sickness, and then you're
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disoriented, you're tired, you slip on a crevass and you end up passing
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away. And the fatality rate for climbing Mount Everest is about four percent,
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which is brutal. Well, saving for your future, we'll call a retirement
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is a lot like climbing Mount Everest. When you're going up the mountain,
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Okay, this is your accumulation years, your twenties or thirties or forties or
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fifties, maybe even into your sixties. Right, you're saving money. You're
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putting it in the stock market. You're kicking butt. And it doesn't matter
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if the stock market crashes. Why because you have time to recover and time
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to recouprate. You've got a paycheck coming in. You're good. But as
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you get towards the top of the summit, this is where the mistakes happen,
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and going down the mountain. This is your decumulation years, where you're
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enjoying what you've saved and Carrie, this is where all the mistakes happen.
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And I often tell people that the shirpah quote unquote, or the financial advisor
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or the way of investing that got you up the mountain is rarely the right
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shirba or financial advisor or way of investing to get you safely down. Why
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going down the mountain takes a different skill set. You know, most people
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have financial advisors in those accumulation years, and they're good at growing your money.
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The wealth management guys, that's important. It's good, right, Maybe
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you're doing it on your own, that's awesome, But as although it's good,
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it's often incomplete on the downhill side of the mountain because there's more pieces
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of the puzzle that you've got to consider. For example, you need to
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have long term care planning. Seven out of ten people will find themselves in
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a long term care situation before they pass. What about a state planning.
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You know, you saved your whole life, you worked hard, how are
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you going to pass it on longevity risk? What if we have another lost
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decade like we did in the SMP, where if you parked one hundred thousand
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in two thousand in the SMP, you didn't see that same hundred thousand until
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twenty fourteen. That's fourteen years of lost time because we had two crises in
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there, the dot com bubble, global financial crisis. So how are you
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going to factor at all tax planning? Right? You may see a couple
16:03
million bucks in your IRA, but the IRA is an io you to the
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irs. You don't get to keep all that money. So having a strategy,
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then we go to the lovely inflation, how are you going to keep
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up? Right? What about required minimum distributions at seventy three? Right in
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twenty thirty three, you'll jump up to seventy five. So if there's inflation
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that you're dealing with, and the market happens to be down, and then
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the irs Uncle Sam says, Carrie gets time to take out two hundred grand
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and pay taxes on it. If the market's down, you realize the loss.
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So there's going to work to the puzzle than just growing your money.
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And that's where we want to help help our clients. Okay, so how
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do we do this here? How do we get this done? How do
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I push these goals. Yes, it's a great question. So I discovered
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a strategy. This may blow you away by reading a story in the Book
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of Genesis. It's actually the story of Joseph in the Bible. Many people
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are probably familiar, whether they believe in God or not. It's a fascinating
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story. And there's five principles in that story of Joseph that we base our
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entire firmon. And you know, there's that old saying, if it's new,
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it's not true. If it's true, it's not new. This is
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thirty five hundred year old wisdom that stood the test of time. But one
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of the strategies in there, we call it this silo strategy. Okay,
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imagine if you would, that you're looking at for silos right next to each
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other. The first one on the very left is safety or emergency fund.
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Okay. The second one from the left, so the one immediately to the
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right is income, the one the third one to the right is growth,
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and the fourth one is long term care slash estate planning. Okay, we'll
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go back to the first one, and it's in order of importance from left
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to right, So safety is the most important, then income, then growth,
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then long term care slashes, stay planning with safety. On a typical
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portfolio, you want to have five to ten percent of your overall portfolio invested
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in something liquid safety, you know, checking saving these money market so to
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use round numbers, to use easy math. If you've got a million bucks,
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you want to have at least fifty to one hundred grand in a checking
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your savings account that you can get access to in a pinch. Right,
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if Fluffy gets sick, it's a big deal. The heating and air unit
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goes out, the transmission explodes, whatever, you need access to cash.
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But once that five to ten percent is good, then we go to income.
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Now again, you may be retired for thirty to forty years. Maybe
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not us guys we die early, but our spouses, right, they may
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be retired for thirty to forty years. They need an income that they can
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count on. So fifty to seventy percent of that overall portfolio is going to
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be ear art for income. Now, this could be social security. This
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could be not as well, call social insecurity, I mean talk about that
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later. But real estate, income, pensions, you know, annuities,
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whatever the case may be, is providing you at income you can count on
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fifty to seventy percent. One stat is satisfied and you can count on it
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covering your bills, your fund money, and any sort of gifts or donations,
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benevolence, whatever. Then you go to growth. Now this is going
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to vary depending upon the person and their risk tolerance. This could be ten
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to twenty percent. Okay, now this one you can be a little bit
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more risky with it because if the market crashes, it's all good. You've
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got a steady income coming in that you can count on. Right. And
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then finally long term care slash death benefit. This one varies the most depending
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upon your goals, dreams, desires, conserves, and objectives. This is
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zero to twenty percent. So safety, income, growth, and estate planning.
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When it comes to income, we want to make sure that your income
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is going to increase to help offset inflation. We want to make sure it's
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in the safest institutions in our country. We want to make sure it's got
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to proven track record and it's been around since the dinosaurs, and we want
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to make sure that no matter what happens in our economy, barring armageddon,
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that is, it is predictable, it's reliable and you can count on it.
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Once that's achieved, then the growth you can be more risky. You
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can put it in the S and P, you can put it in bitcoin,
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you can put it in high risk investments. It's okay if you see
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some fluctuation there, because you're not going to be living under a bridge because
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that income's covering everything. And then find if you have more disposable income.
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That's long term care slash of state planning. Obviously, there's many strategies that
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you can utilize, but when it comes to retirement, which is who we
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usually deal with, that is a silo strategy that we base everything upon,
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and it is bulletproof. If we provide a written down income plan, we
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factor in a one third reduction in social security. So Olivia Mitchell, who's
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the foremost expert of social security in our country and really in the world.
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Other countries have their own version of social security. They don't call it that.
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Of course, all the Nobel winning economists point to Olivia as the expert
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of experts on that program. What's her name again, Olivia Mitchell? Okay,
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and she's in my first movie, The Baby Boomer Dilemma. But Olivia
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Mitchell talks about how because of the mismanagement and bad stewardship of social security,
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which guys it is a full blown by definition Ponzi scheme. You know,
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you know Bernie Madoff does it as a high at a high level, he
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goes to prison. When you do it at a gigantic level, you get
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reelected. It's ridiculous. So social Security, because of again our demographic issue,
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they we are going to see We weren't going to see a one third
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reduction in twenty forty, well then it got bumped up to twenty thirty five.
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Now, when we filmed the movie a couple of years ago, it's
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twenty thirty four, and today it's twenty thirty three. Barring massive reform,
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we are going to see a one third reduction in social security. How is
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that going to affect everybody here? Social Security is a big piece of the
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puzzle when it comes to retirement. So one of the things that we do
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is we're going to create a Social Security stop gap fund. And what it
22:45
does is it it's a bucket of money that you put aside, that it
22:48
grows, It bakes in the oven at a very nice rate, typically around
22:52
eight percent. And then if and when that happens, you can turn this
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sucker on and you will not experience any reduction in standard of living. Fact,
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in many situations you'll actually make more. So again, not to be
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mister doom and gloom Debbie Downer, but social Security is going. It's headed
23:15
for a cliff carry and unless you know, we hope for the basketball,
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we prepare for the worst. You know, there's that old proverb A prudent
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man foresees calamity and prepares himself for it. But the simple move forward and
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get punished. And so we want to make sure that everybody's in the know,
23:32
that they're aware, so that they can prepare. Hey, I got
23:34
a question for you, So you know, based upon what you're saying here,
23:38
with the Social Security, you know, a cut and I don't know
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if we cut it through inflation or they actually cut it, actually cut benefits.
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I just can't see him doing that. But I guess if you don't
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have a choice, you'd have a choice. Yeah, do you take the
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maximum you can get now? Yeah? Do you wait till you're seven in
24:00
a few years so you get thirty percent more? It's a great question.
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I'll give you two answers. Uh to address the first portion of the question.
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There's really only three, well there's four. There's four ways they can
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solve this problem with social security. Number one, raise taxes. That's highly
24:19
unpopular. It's a political hot potato, and so nobody, you know,
24:22
they kick the can on this thing, right, no one. That's not
24:26
a way to get reelected. So you get raise taxes. Number two,
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you can you can extend the full retirement age, which, by the way,
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we saw what happened when they did that in France. They about burned
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the country to the ground, right, right, that's not popular. They've
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done it. They've already done it. Though. It used to be sixty
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five. Now it's sixty six and six months, and it goes up a
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couple months every every year, right yeah, and it's actually sixty seven,
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so it's it for depending upon your age, you maybe you know sixty six
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and six months, eight months, nine months, but the full retirement age
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moving forward to sixty seven, well, they may have to bump it out
25:07
two years to solve this problem. Well that's two years, you know,
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and most people at sixty seven don't want to wait till sixty nine. So
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they can extend for retirement age they can raise taxes, or they can lower
25:18
cost of living adjustments, which again don't help, which they've done that as
25:22
well. They've done that for years already. It's you know, their definition
25:27
of inflation forget it. Yeah, so it's non key and then it's in
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arrears. Right. So we saw this with COVID when we had nine percent
25:37
inflation at the peak and they didn't adjust the cost of living adjustments for almost
25:42
entire year. So for a year, all of the Social Security benefits were
25:48
being devalued in because of a nine percent quote unquote inflationary rate. And it
25:52
wasn't until the following year that they finally got that cost of living adjustment.
25:56
So again for that year, you kind of got that's screwed again. The
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fourth reason, before I go off on a tangent and my frustration with so
26:06
security, the fourth way you could solve it, and it's actually a pretty
26:10
good idea, and Donald Trump, love him or hate him, you know
26:14
he did come up with this is you could start being a net exporter of
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oil. We have so much natural resource in America that we could actually solve
26:22
that problem with social security and fund it by exporting oil. Drill drill,
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drill. Now, again, that's unpopular with a lot of folks, and
26:33
it you know, who knows if that will ever happen, but it could
26:37
solve that problem. Again, there's a lot of obstacles in the way.
26:41
Now, that was the first my first answer. As far as practically when
26:45
changing claim social Security, here's a really good limus test. Okay, if
26:52
you are the quote unquote primary breadwinner, which means you make more to Social
26:56
Security. Maybe your spouse works, but you end up making more over your
27:00
guys' career, then it is more beneficial for you to wait until at least
27:07
full retirement age to claim social Security. Now, your spouse, she can
27:14
turn on her social Security and again you need an expert, you know,
27:18
we can help you with that. But your spouse could turn it on at
27:21
sixty two and then, depending upon how big hers is, she could actually
27:25
get the spousal benefit, which is half of yours at sixty seven. And
27:30
there's some strategies there. But here's the math. Okay, as long as
27:34
you are going to live past age seventy nine, it is more beneficial for
27:41
you to wait until full retirement age. Now, the mortality rate today in
27:45
America for males is eighty four, and for females is eighty seven. So
27:52
as long as you don't have a chronic illness or everybody in your family died
27:56
in their sixties, it is better for you to wait until full retirement age.
28:02
If you're the primary breadwinner, you end up that's the break even point.
28:06
You end up making a lot more, not just for you, but
28:08
for your spouse if you wait until full retirement age as the primary breadwinner.
28:15
Now maybe you're a single individual and so you would be the primary breadwinner.
28:18
Of course, you do want to wait until least sixty seven. You don't
28:23
have to wait till seventy. You end up getting you know, eighty percent
28:26
more per year from sixty seven to seventy, but you're just getting paid on
28:32
the back end. It's no more of a big you know benefit. Sixty
28:34
seven is the number? Okay? Interesting, Yeah, well so sixty seven
28:40
or sixty six and whatever months, but call it sixty sixty seven. But
28:47
if there's really a forty percent cut coming, it is this forty right,
28:53
thirty three, Yeah, in twenty thirty that's only sixty is away now and
29:03
right, so it's twenty thirty three, and it's a great point, Carrie.
29:07
You know, the sentiment is, well, maybe I should turn it
29:10
on at sixty two. You know, I paid into this for super long.
29:15
Let's get it while the getting's good, you know. But the thing
29:18
is is, even if we have a one third reduction, which we're planning
29:23
on it happening. Most advisors, in fact, I've never met another advisor
29:27
that actually I've never I've talked to dozens on this show, hundreds maybe over
29:33
the years. No one ever said they're going to cut. Yes, well
29:38
that's what That's one of the reasons we're different is we're factory in the worst
29:41
case scenario, so and we prepare for it. So if it doesn't happen,
29:45
it's rivers of gravy and retirement. But having said that, the sentiment
29:51
can be, well, I'm going to turn this on. It's going to
29:53
get cut by a third. Yeah, I have the benefit now, but
29:57
if you do the math, one third of a watermelon, you know,
30:03
a one through reduction of a watermelon is still better than a one third reduction
30:07
of rape. Right, you still won't end up making more if you defer
30:11
until sixty seven or four retirement age, whenever it may be for you,
30:15
Right, I still defer that. Yeah, that's a given. You should
30:19
always defer. But the real question is do you take it sixty seven or
30:25
do you take it at seventy and get the thirty percent benefit? And if
30:30
we assume that you are correct, all right, and we have no reason
30:34
not to because it's obvious to many of you out there that this is in
30:40
fact coming here, right, If we are in fact the ten year is
30:47
going to take a one third hit. The question is, and you're going
30:51
to be assuming you're going to live longer than ten years, you could get
30:55
your full retirement now or wait three years? What's worth it? That's the
31:00
question. Well, and this is where the stakes are not so high.
31:03
As long as you made it to full retirement age. It's preference. Right.
31:07
So if you're still working, as an example, and you've got a
31:11
bunch of money coming in and you don't want to get taxed on the Social
31:14
Security because by the way you're going to you can get taxed on your Social
31:18
Security and come up to eighty five percent of whatever Social Security pays you,
31:23
so you get double tax. It's a joke, it's ridiculous. So if
31:26
you want to defer that, if you're making six figures, multiple six figures.
31:30
You know your spouse is, you know, still working. Maybe you
31:34
don't need it. Yeah, I defer it. That's fine, but it's
31:37
not it's not going to make or break the overall equation. You made it
31:41
till full repowerment age. If you want to turn it on, would you
31:44
benefit from it? Would it provide more peace of mind? Great? You
31:48
know you have the green light for me because at least you made it to
31:51
full retirement age. Beyond that, that's more preference. Yeah, all right,
31:57
all right, Well, hey, wech covered a lot of it early
32:00
here. Andrew really appreciate your insights mind. Why don't you tell us where
32:05
we find you, how we connect with you on the web. Yeah.
32:08
So, I actually have an offer for every listener. If you go to
32:12
No More Losingmoney dot com No More Losing Money dot Com, you can get
32:17
access to three out of four of my books. Uh, and then you
32:22
also have access to one of my movies, The Retirement Deception, which is
32:25
a wonderful film. It goes over the story of my mom and many others
32:30
across the country who have obtained the retirement of their dreams. There's no actors,
32:35
there's no lines, we fed anybody. It's just good people like you
32:37
and me who are living a dream and what they did to obtain that retirement.
32:42
So no more losing money dot com or you can check on my website
32:45
at Retirement Renegade dot com. Retirement Renegade dot com. All right, hey,
32:52
Andrew, one other thing. Real estate. Yes, housing crisis exactly
32:59
when we're talking retirement, that is going to be people's largest asset generally.
33:05
Yeah, hopefully you've had a mortgage for a while, you paid it down
33:08
or you bought it for cash when it was really cheap, and now at
33:13
the latest housing price inflation, presumably the value of your home's really gone up.
33:19
Yes, what do you do with that? When? Do you like
33:22
get rid of the house? Yeah? Downsize and is it worth it if
33:25
you've got to get a mortgage anyway? Now? Well, also, I'll
33:29
tell you this, I am a gigantic fan of real estate. I am
33:32
buying as much as I possibly can. We bought about five and a half
33:37
million bucks in real estate last year. We'll buy twenty more renolds this year.
33:42
Huge fan because it's a tangible asset that typically keeps up with inflation.
33:46
Now where I'm at in the Nashville area. This is a booming area,
33:52
a booming area, and so that demand is driving prices up. As far
33:58
as when you're retired and let's see, you're sitting on a ton of equity.
34:01
You know, that's a complicated conversation. You know, most people in
34:06
my area the average house is one to one and a half million, and
34:10
so most and most people have it completely paid off. So it's like,
34:15
well, you could downsize, but where youre going to go, right?
34:17
I mean, we live at such an amazing area. Maybe you drive an
34:22
hour into town and you buy a house for four hundred grand and you pocket
34:25
the million. You could do that. But wealth is really built on holding.
34:30
It's it's it's long term holding. You know, even even renolds,
34:36
which most retirees you know have dabbled with at some point in their life.
34:40
You don't make money on the cash flow. Typically, that just allows you
34:44
to hold on to it for longer. The money eOne else to pay the
34:47
debt if there is any debt, right, that's right. But the real
34:52
wealth builder is holding it so that it can accumulate. You know, in
34:55
our area, real estate's accumulating at eight to ten percent, which is unbelievable.
35:00
You're going to beat inflation there so, but if it if it keeps
35:06
up, that's the big if, right, Yes, yes, but I'm
35:09
a huge fan of real estate. Okay, Hey, we'll leave it at
35:13
that. Ah kl at Carrie LUTs dot com. If you have any questions,
35:17
link to Andrews sites in the show notes to this interview on Financial Survival
35:22
Network dot com. Please sign up for your free newsletter Andrew really a pleasure.
35:28
We're going to have you back. You're on our list as a retirement
35:30
Expert extraordinaire and we'll talk to you again real soon. Thank you, Thank
35:36
you, thanks for listening to Carrie Letz's Financial Survival Network, your solution to
35:42
today's trying times. For the latest, go to Financial Survivalnetwork dot com.
35:46
Financial Survival Network now more than ever.