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Why This Investment System Can Help Retirees Worry Less About Their Retirement Plan

I want to share an investment system for retirees to hopefully assist you as you're thinking about and planning for your retirement we're also going to look at how to prepare your retirement for the multiple potential potential economic Seasons that we may be headed into so we want to look at the multiple seasons and then the Easy System that's going to help lower taxes and then lower risk as well now if I haven't met you yet I'm Dave zoller and we help people plan for and Implement these retirement strategies really for a select number of people at streamline Financial that's our retirement planning firm but because we can't help everyone we want to share this with you as well so if you like retirement specific videos about one per week be sure to subscribe so in order to create a proper investment plan in system we want to make sure that we build out the retirement income plan first because without the income plan it's much harder to design the right investment strategy it's kind of like without the income plan it's like you're guessing at well 60 40 portfolio sounds good or you know May maybe this amount in the conservative bucket sounds reasonable you already know and and you feel that as you get close to retirement that goal of just more money isn't the the end-all goal that we should really be aiming for for retirement it's more about sustainability and certainty and then really the certainty of income and possibly less risk than before the last 30 years uh the things that you did to be successful with the financial side are going to look different than the next 20 or 30 years now if you need help defining the the income plan a little bit then look at the DIY retirement course below this video now once you do Define your goals for retirement and then the income needed to achieve those goals then creating the investment system becomes a lot easier and within the investment plan we really know that we can only control three things in all three things we actually want to minimize through this investment system the first thing we can minimize or reduce is how much tax you pay when investing we had a a client who was not a client of streamline Financial but of a tax firm coming to the the CPA firm in March to pick up his tax return and he was completely surprised that he had sixty thousand dollars of extra income on his tax return that he had to pay tax on right away before April 15th and it was due to the capital gains being recognized and other distributions within his investment account and he said but I didn't sell anything and the account didn't even go up that much last year and I got to pay tax on it but he was already in the highest tax bracket paying about close to 37 percent on short-term capital gains and dividends and interest so that was an unpleasant surprise and we see it happen more often than it should but this can really be avoided and here's two ways we can control tax so that we don't have to have that happen and really just control tax and pay less of it is the goal and I'll keep this at a high level but it'll get the the point across number one is the kinds of Investments that you own some are maybe funds or ETFs or individual uh equities or things like that the funds and ETFs they could pass on capital gains and and distributions to you each year without you even doing anything without you selling or or buying but it happens within the fund a lot of times now we would use funds and ETFs that are considered tax efficient so that our clients they can decide when to recognize gains rather than letting the fund company decide now the second way is by using a strategy that's called tlh each year there's many many fluctuations or big fluctuations that happen in an investment account and the strategy that we call tlh that allows our clients that's tax loss harvesting it allows them to sell an investment that may be down for part of the year and then move it into a very similar investment right away so that the investment strategy stays the same and they can actually take a write-off on that loss on their taxes that year now there's some rules around this again we're going high level but it offsets uh you know for that one client who are not a client but who had the big sixty thousand dollars of income he could have been offsetting those capital gains by doing tlh or tax loss harvesting that strategy has really saved hundreds and thousands of of dollars for clients over a period of years so on to the next thing that we can control in our investment plan and that's cost this one's easier but many advisors they don't do it because it ends up paying them less now since we're certified financial planner professionals we do follow the fiduciary standard and we're obligated to do what's best for our clients so tell me this if you had two Investments and they had the exact same strategy the same Returns the same risk and the same tax efficiency would you rather want the one that costs 0.05 percent per year or the one that costs 12 times more at point six percent well I know that answer is obvious and we'd go with a lower cost funds if it was all the same low-cost funds and ETFs that's how we can really help reduce the cost or that's how you can help reduce the cost in your investment plan because every basis point or part of a percentage that's saved in cost it's added to your return each year and this adds up to a lot over time now the last thing that we want to minimize and control is risk and we already talked about the flaws of investing solely based on on risk tolerance and when it comes to risk a lot of people think that term risk tolerance you know how much risk can we on a scale of one to ten where are we on the the risk factor but there's another way to look at risk in your investment strategy and like King Solomon we believe that there's a season for everything or like the if it was the bird song There's a season for everything and we also believe that there's four different seasons in investing and depending on what season we're in some Investments perform better than others and the Four Seasons are pull it up right now it's higher than expected inflation which we might be feeling but there's also a season that can be lower than expected or deflation and then there's higher than expected economic growth or lower than expected economic growth and the goal is reduce the risk in investing by making sure that we're prepared for each and every one of those potential Seasons because there are individual asset classes that tend to do well during each one of those seasons and we don't know nobody knows what's really going to happen you know people would would speculate and say oh it's going to be this or this or whatever might happen but we don't know for sure that's why we want to make sure we just have the asset classes in the right spots so that the income plan doesn't get impacted so the investment system combined with the income system clients don't have to worry about the movements in the market because they know they've got enough to weather any potential season I hope this has been helpful for you so far as you're thinking about your retirement if it was please subscribe or like this video so that hopefully other people can be helped as well and then I'll see you in the next one take care thank you

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RETIREMENT PLANNING TIPS FOR AGE 59+

Are you planning for retirement and  you're just not sure of the next step.   By the end of this video,  you will have received seven   crucial tips to help you plan for  a successful, secure retirement. To learn more about securing your retirement  and all the different elements you need to know,   subscribe to our channel and hit the bell so  you'll be notified of every episode posted on   Mondays. We have helped hundreds of our clients  with these exact seven tips on planning for   their retirement, and they tell us they've never  been more confident about their retirement plan.   Now it's your turn. Let's dive in. Tip number one, understand your spending. This  is really important. Now, what you do not want   to do here is to think about what your salary is  currently, while you're working.

You want to think   about what is your bring home pay after you've put  money in your 401(k), after you've been able to   pay health insurance, or whatever that might be,  that comes out of your paycheck. Think what comes   home on a monthly basis. Now, do you save any of  that money that goes into your savings account   at the bank? Take that out. What we really want  to know is how much do you actually spend every   month? By the way, if you have a mortgage or some  payment that's going to go away by the time you   retire, subtract that.

That will let you know what  your spending will be when you're in retirement. Tip number two, break income needs into three  different areas. You have your essential needs,   your wants, and then your giveaway money. It  may seem simple, but it's really important   to understand what those actually are. Your  essential needs are the basics, paying the bills,   keeping the lights on, staying  fed, staying relatively happy.   Your wants are going to be things that you want  to do. I know we work hard to get to retirement,   we don't want to give up our wants so we  want to plan for those as well. Things like   having that membership to a golf club or a  health club, being able to travel in retirement,   so being able to take those vacations  that you've been looking forward to. Being able to spoil your grandkids or family  members. These are all wants that we want to   have planned into the budget for retirement. And  then the last is giveaway money. So whether you   want to be gifting throughout retirement or  whether you want to be donating to charity,   or whether you just want to have a plan in place  for what you're going to leave behind, that   really comes into the giveaway money.

So three  major topics, when it comes to your expenses,   your essential income needs, your  wants, and then your giveaway money. Tip number three, list all of your guaranteed  income that will be there after you retire.   Now, it's really important now that you  understand it needs to be guaranteed. So   what are we talking about? Well, that's  going to be things like social security,   a pension, if you have one, or  if you've secured an annuity.   It's really important that they be guaranteed  because this part of your income plan is what's   going to help take care of those essential needs  in retirement. You do not want to count things   like rent or dividends. While they're nice and  they might be secure, they're not guaranteed.

Tip number four, don't rely on the 4% rule. You  may be asking yourself, what is the 4% rule?   Well, very simply, it's basically saying you  can take out 4% of your assets. So for example,   let's say by the time you get to retirement,  you've accumulated a million dollars. 4% of that   is $40,000. The rule, and this is a rule of thumb  by the way, the rule says that you could live off   of $40,000 a year for the rest of your life and be  okay.

Now, we see a couple of flaws in this rule. What if you're invested in  the market and your million   falls because of market volatility. So go to a  2008 scenario where the average investor loss,   anywhere from 30 to 50%. What if you  lost 50%? Now your million is 500,000.   Are you still going to be able to withdraw 40,000  a year to keep up with your living expenses?   Probably not. So that is something that's  very important that we realize that we   cannot rely on the 4% rule and we need a plan  that is structured for our specific situation. Comment below and let us know, what is your  biggest retirement planning question? Tip   number five, make a list of all of the different  types of accounts you have. Now, why are we saying   types of accounts? What does that even  mean? Well, you're going to want to list,   do you have a 401(k), 403(b), a traditional IRA,  a Roth IRA, or a brokerage account or a savings   account in the bank? You want to list all of  those account types and the reason why is because   they get taxed differently.

And so when you're  building out your retirement income plan, taxes   are extremely important. So make sure you make  a list of all the different types of accounts. Tip number six, consider how you feel about  investing during retirement. Let's talk about   this, how would you feel if you lost 10% of  your entire retirement nest egg? Well, when I   say 10% and you may say, "Well, that doesn't feel  like much." But let's put it to a dollar amount.   Let's say you have a million dollars saved up and  you lose 10% of that.

Well, that's a $100,000.   That may feel a bit more than just saying 10%,  right? So let's think about that. When you're   working and you're putting money into these  retirement plans, like a 401(k), typically you   started young and you set up an allocation that's  probably pretty aggressive, and you just set it   and forget it. You're putting money in and it's  making money, you don't really think about it.

But then you get down the line closer to  retirement, and you're still invested that way   when you should be considering your risk exposure  more and more, as you get closer to retirement.   So that's something that we have to think  about as we are transitioning into this phase.   Now, what we talk about is, you got to know  your risk tolerance and you got to understand   how you're currently invested. So many times when  we talk to people, they come in the door and they   don't even realize how much risk they have  on their overall portfolio. So that's why we   talk about always looking at alternatives that  are going to fit your investment personality. Tip number seven, don't overly worry about the  question, do I have enough to retire? Well,   why did we say that? Well, we have clients that  have a few 100,000 and we have clients that have   a few million dollars. And sometimes clients  that have a few million dollars do not have   as good of a plan as the person who has a few  100,000.

Why is that? Well, if you're spending   so much money that you're draining your accounts  too rapidly, you're at a threat to run out of   money, no matter how much you have. So what's  the bigger issue? Our spending plan. We need to   really understand how we're spending money and how  that's going to play out throughout retirement. So, as you're thinking about your retirement,  focus on your spending plan, more than being   worried about, do I have enough to retire? Well,  that's our seven tips to help you get started   down the path to secure your retirement, but what  else is needed? Well, there's a lot of different   moving parts when it comes to planning for,  and living through retirement. We have created   a mini video series called Four Steps to Secure  Your Retirement. These videos walk you through   step-by-step so that you will know exactly what  you need to do to secure your retirement. We also   have a podcast called Secure Your Retirement. You  can subscribe to our podcast with the link below.

For more detailed retirement tips, watch these  videos, create your retirement income plan,   investing during retirement, buy and hold or  active management. If you like this video,   hit the like button and be sure to  subscribe and share it with your friends.
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Step 1 of Retirement Success Plan: Investment and Portfolio Analysis

I'm giving you a choice of two Investments investment a and investment B both of them return 10 over the previous year which one would you rather have been invested [Music] oftentimes when I ask this question to a prospective client I'll get the response Troy it doesn't matter they both return 10 Give Me A or B but when it comes to retirement planning and this is why step one of the rrsp is so important the allocation meeting it's not about the return necessarily it's about how much risk did we have to take to get that return investment A and B both had a 10 percent return but this is just one outcome in an infinite set of possible outcomes remember these are two distinct Investments with different characteristics possibly different purposes so even though they return the same the question is how much risk did we take to earn this return are we being compensated enough from a reward standpoint based on the risk that we're taking so with a high degree of statistical confidence we could analyze and say investment a had a likely downside scenario of somewhere between five to fifteen percent if a different set of outcomes or circumstances occurred that's the risk profile but invest B had a possible downside of negative 20 to negative 40 percent now with that new bit of information which investment would you choose investment a or investment B all individual Investments or combination of Investments could be plotted somewhere along this chart this is what we call the efficient Frontier over here we have the return the expected return and over here we have the risk that we're taking so ideally we have Investments that are more to the left which represents lower risk and higher up the y-axis which represents higher return so if you own five different stocks that portfolio in and of itself could be plotted somewhere on this graph if you have one security let's say you're fully invested in your company stock you could plot it right here on this graph now if you have 20 or 30 or 50 different mutual funds or ETFs or individual stocks once again that set of Investments can be plotted somewhere on this graph so when we plot investment a and investment B on the graph here we can clearly see that they have a similar return profile but investment a has less risk so this makes it easier to identify as an investment that we would rather place our dollars now down here I have investment C could be a portfolio of stocks this could be maybe if you have a lot of money invested in your company stock but we clearly see that we're taking more risk without being rewarded for that risk that we're taking another way to think about this is think of your skills and the capability that you have in your current job or in your former job if you're if you're retired would you take a salary that was much much lower than Market in order to do that same job with those same responsibilities no you probably would not I know you would not that's what we're doing here with investment C essentially we are taking risk or taking on responsibilities in that example while not being compensated for it okay so think of these letters investment a investment being investment C this was the one we wanted to be in this is the one that we took a little bit more risk for the same return and over here we just don't want to be in I want to liken this to GPA grade point average because we're all pretty familiar with that either you from your schooling experience you have kids or grandkids an a investment or set of Investments kind of I put a in air quotes here that's the GPA so what we want to do with your portfolio in retirement is increase its GPA we want to reduce risk and increase expected return now that you have a good understanding of risk and return and how every set of Investments can be placed somewhere on that graph it's now important to tie that into retirement planning so the allocation determines how much income you can take how much money will be left later in life it determines how much tax you'll pay in retirement it can also impact your health care strategy or long-term care strategy and it definitely impacts your overall estate plan so those are the five steps of the RSP and this is why the allocation is so critical it's step one because it impacts everything else when you reach out to us for the first time all we do on that first visit is get to understand who you are and what's important to you we're going to gather some of the objective data under of course understand what your vision is for retirement your goals but the objective data is the current portfolio the financial statements the tax information how much we want to spend in retirement in between that first and the second visit we're going to go through an analysis to see where your portfolio falls on that Spectrum in order to understand if there's congruence between your willingness to take risk for the expected return that your portfolio can provide and where you currently are we first have to identify what is that willingness that you have to take on risk so we have to first understand your willingness to take risk so this is a pretty simple questionnaire here simply saying over the next six months you're comfortable risking this in order to make this potential return now this is what we call a symmetrical risk return profile we're essentially risking one dollar to earn one dollar but really what we're trying to identify here is what is your comfort zone on the downside because what we're going to try to do is create a portfolio that has an asymmetrical risk return profile so less risk to achieve more potential return so are you comfortable losing seven percent over the next six months in a recession or are you fine to let it stay invested and you believe long-term capital markets are going to do just fine so you're more comfortable in the short term possibly a 13 loss there's no right or wrong answer here but everyone's personal willingness to take risk is different so we have to identify that because if you have a portfolio that has too much risk that is the one thing that will absolutely be certain to blow up a long-term retirement plan if the market goes down you call us up panicking and say Troy I need to get out of the market I can't take it anymore well you most likely won't be in there for the rebound and all the planning that we've done up to that point can be significantly impacted because we were expecting the risk profile based on the conversations that we had to be structured properly and if it's not and the markets go down then we get out well all of a sudden everything is completely messed up so this is why your risk willingness is such an important concept because if we're putting a plan together we need to know that you're going to stick with it because markets will go down one other thing to point out here I like to focus on the dollar amount because percentages can be deceiving I had a client a long time ago or a prospective client come in and say Troy I'm comfortable losing about 10 percent he had two million dollars so I said okay if the market goes down and you lose 200 000 you're okay with that he said no I fire you instantly so there was a disconnect between the 10 percent and the two hundred thousand dollars so I like to talk about risk in terms of dollars because percentages seem just they don't really drill down into our willingness to take risk whereas if we focus on the dollar amount that hits home okay so this would be coming back on a second visit and we're looking at your actual portfolio and this is very similar to what we see someone maybe told us that they're they're comfortable let's say with about 50 stock but when we do the analysis what we often find is that there's more risk inside the portfolio but on top of there being more risk oftentimes it's not the most efficiently structured so we see down here we actually have bringing the GPA back a 3.1 so this means that it's not the most efficient from a risk-adjusted return standpoint means we're we're not where we want to be on that graph an annual range 3.42 so for taking this much risk we don't want to be rewarded with an annual range midpoint here of only 3.42 percent over the next six months now we also see with the potential risk and reward over the next six months there's a 95 percent probability that this portfolio to the downside could lose 16 percent over a six-month period and the upside is plus 19 so these are very very wide guard rails okay if we extrapolate that out over the course of one year we have a negative 32 percent and a plus 38 so most of our clients aren't comfortable losing potentially 38 percent in a single year so for this level of risk based on the questionnaire that we asked earlier and they come in around a 50 risk score this is not only too much risk inside the portfolio but it's really poorly constructed from an analytical standpoint and the guardrails are far too wide we're not being compensated for the risk that we're taking and that's what this GPA right here is telling us that's the analysis that we go through between the first and the second visit and that's often what we see it's not efficiently structured the portfolio possibly too much risk and oftentimes that GPA is a lower number meaning we're not being compensated with enough expected return for the risk that we're taking so in between that first and the second visit that's what our team is doing looking at your particular situation now once you become a client and we go through that allocation visit this is step one of the RSP what we're trying to do is to create a proposed portfolio that brings first and foremost the risk number in line with that questionnaire that we asked you before we're also trying to create some asymmetry in regards to the risk that we're taking in the expected Return of the set of Investments that we've put together so now what we've done is we've lowered the overall risk score of the portfolio to be more in line with the questions that we were asking in regards to that that slider that we had on the screen if you're not comfortable with potentially losing 19 percent in a six-month period we need to bring the risk score down in the portfolio so that's the first thing that we're trying to do the second thing is we're trying to create asymmetry here so you see this we're risking nine for the potential of 15.

This is over a six month period so we extrapolate that out over 12 months it's minus 18 for plus 30. that's asymmetry when it comes to the risk return profile additionally we've increased the GPA of the portfolio so the maximum according to the software is a 4.3 so this means we're being properly compensated for the risk that we're taking the expected return is the proper compensation for that risk now anything can happen Marcus can go up or down but what we've done is we've created an efficient portfolio that when markets are up or when markets are down our potential returns are in line with our willingness to take risks but also when we've tied this into your income plan tax plan and the rest of the RSP it's all creating a much more congruent financial planning experience also the expense ratio over here I don't know if you noticed before but we had an expense ratio in the mutual funds and that current portfolio in the proposed portfolio we've eliminated those fees so in summary here during the first visit we get to know where your willingness to take risk is in between the first and the second visit we're going through and doing an analysis of your current portfolio identifying the risk score see if there's any disconnect between your willingness to take risk in the actual risk inside your portfolio but then also looking at the potential return what is the GPA what is the expected return what is the Symmetry between these two once you become a client and we go through the allocation meeting here's where we look at the proposed portfolio where we get the risk number of the portfolio in a line with an alignment with your willingness to take risks try to increase the asymmetry between the risk and the potential return increase the GPA of the portfolio and increase the expected return now all of this is a shortened version of what the actual allocation visit looks like but it hopefully conveys how important this step is because it not only determines the amount of risk or the potential downside you could see to your values in retirement it also of course contributes to the potential return which then dominoes into your income for retirement the taxes the health care plan and also the estate strategy so step one allocation extremely critical when it comes to the retirement success plan this is why we do it first [Music] thank you

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Retirement Planning During Bear Markets – Especially if It’s Your First One In Retirement

bear markets can feel a lot different when you're retired and you're no longer earning income from work especially if this is your first bear Market since you stopped working when you were younger you know you had time on your side you know you may have even seen drops in the market as an opportunity because it gave you additional time and you got to purchase more shares well things were on sale so to speak but now most likely that's not the case the relationship between our money and our accounts now are of money going out versus money going in to put it simply and plus you may have noticed that there's this psychological component now around money and not wanting to mess things up because the decisions we make really carried much more weight now when we're close to or in retirement and it's really that's not only psychological or emotional it's true because planning the distributions is much more complex than the the planning around around saving and putting money into the investment accounts what led to our investment success the last 30 years is a lot different than what's going to lead to success the next 20 or 30 years or at last that's at least what we've been seeing at streamline Financial since 1998 since we've been around so I want to share how to endure through bad markets if you're close to retirement or you're already retired and then what you can do to actually take advantage of of this even if you're already retired and you're no longer saving money and we're going to do that because we know a universal law of physics that can't be disproven and we can actually apply it to our retirement and make it a little bit better if you're thinking Dave what the heck are you talking about here's a brief explanation so Newton's third law of motion is that every action there's an equal and opposite reaction right you've heard that before so the way that I see it is there's a positive to every negative and the same thing there's a negative to every positive it's the law of polarity so I want to share what the positive is to take advantage of during bad markets and by the way if I haven't met you yet I'm Dave zoller and Tim and Luke and I and Sean we run streamline Financial it's a retirement planning firm and we've been around like I had said since 98 so we've seen clients really go through it all the.com bust the financial crisis and then covet and then all the things in between all those uh you know those mini panics that we've had so we created this channel to share what's working and what has worked for them and so that you can hopefully glean some wisdom from them and then apply it to your your own life so the first thing we need to be aware of is that the previous 30 years there were four bear Market Corrections so that's a drop of 20 or more and then the 30 years before that there was a total of five bear Market Corrections so the main takeaway is we need to expect these bear markets to happen during our retirement during that next 20 30 years right the second thing is we don't want to make a change solely on an emotion right and it's not not just making a drastic change like selling everything and putting everything under the mattress right it's we were just talking to someone yesterday and emotions can cause us not to take an action when we know doing so is actually the Smart Financial thing to do for instance during March of 2020 when it wasn't easy to rebalance your accounts it was very difficult to do but if you did follow through and and do the correct rebalancing system or strategy if you were looking back now it could have made a lot of sense the third thing is update your income plan because that helps guide us and make really good planning decisions around our investment plan so it's really start with the income plan you've heard that before and that helps us make the investment decisions versus the other way around and updating your income plan during bad markets that can also give you some confidence as well as you're looking at where we are today and then looking at over the next few years and and seeing that things maybe aren't as bad as it might seem at least when you've got those two things of the unknown and then the known updating the plan is the known and you can get a little bit better picture on what the future might look like for you now to the two things that maybe could give us an advantage during a time like this this is back to the law of polarity so the possible things that we might be able to use here are well first before I say it as always this is not specific advice to you so we're not looking at your your plan together so before you do anything just talk to a financial professional but idea number one to think about is tax loss harvesting that could be a way to write off some of the losses while still keeping your investment strategy intact and I talk about this concept a lot more in other videos so I'm not going to go into details on it today but just keep that in mind the one thing to to really pay attention to though when we're we're talking about the law or talking about tax loss harvesting is that wash sale rule right so look for the other videos or talk to that Financial professional before thinking about doing that the second thing that could be a possible opportunity for really the first time in a very long time is that ability or option to lock in higher yields in that conservative bucket as you know the the bucket strategy you've seen that before where we've got the possible three buckets and having that conservative bucket here is a great way to plan out and prepare for for bad markets and now at the time of this recording some of those historically conservative asset classes are paying a higher interest a higher yield than what we've seen really over the last decade which could be a silver lining during this period of time so those are just two things possible things to look at which maybe could be taken advantage of by you for for your benefit so those are just two things to think about during this period of time that we're in right now if that short video was helpful please like this and then share it with others if you think it could help them too and if you'd like to talk more about your plan feel free to reach out to me in the in the description below or go to our website streamlinedplanning.com for get you click on the get started button we don't always have space available but you'll hear back from me either way so I hope that was helpful and then I'll see you in the next video

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Why This Investment System Can Help Retirees Worry Less About Their Retirement Plan

I want to share an investment system for retirees to hopefully assist you as you're thinking about and planning for your retirement we're also going to look at how to prepare your retirement for the multiple potential potential economic Seasons that we may be headed into so we want to look at the multiple seasons and then the Easy System that's going to help lower taxes and then lower risk as well now if I haven't met you yet I'm Dave zoller and we help people plan for and Implement these retirement strategies really for a select number of people at streamline Financial that's our retirement planning firm but because we can't help everyone we want to share this with you as well so if you like retirement specific videos about one per week be sure to subscribe so in order to create a proper investment plan in system we want to make sure that we build out the retirement income plan first because without the income plan it's much harder to design the right investment strategy it's kind of like without the income plan it's like you're guessing at well 60 40 portfolio sounds good or you know May maybe this amount in the conservative bucket sounds reasonable you already know and and you feel that as you get close to retirement that goal of just more money isn't the the end-all goal that we should really be aiming for for retirement it's more about sustainability and certainty and then really the certainty of income and possibly less risk than before the last 30 years uh the things that you did to be successful with the financial side are going to look different than the next 20 or 30 years now if you need help defining the the income plan a little bit then look at the DIY retirement course below this video now once you do Define your goals for retirement and then the income needed to achieve those goals then creating the investment system becomes a lot easier and within the investment plan we really know that we can only control three things in all three things we actually want to minimize through this investment system the first thing we can minimize or reduce is how much tax you pay when investing we had a a client who was not a client of streamline Financial but of a tax firm coming to the the CPA firm in March to pick up his tax return and he was completely surprised that he had sixty thousand dollars of extra income on his tax return that he had to pay tax on right away before April 15th and it was due to the capital gains being recognized and other distributions within his investment account and he said but I didn't sell anything and the account didn't even go up that much last year and I got to pay tax on it but he was already in the highest tax bracket paying about close to 37 percent on short-term capital gains and dividends and interest so that was an unpleasant surprise and we see it happen more often than it should but this can really be avoided and here's two ways we can control tax so that we don't have to have that happen and really just control tax and pay less of it is the goal and I'll keep this at a high level but it'll get the the point across number one is the kinds of Investments that you own some are maybe funds or ETFs or individual uh equities or things like that the funds and ETFs they could pass on capital gains and and distributions to you each year without you even doing anything without you selling or or buying but it happens within the fund a lot of times now we would use funds and ETFs that are considered tax efficient so that our clients they can decide when to recognize gains rather than letting the fund company decide now the second way is by using a strategy that's called tlh each year there's many many fluctuations or big fluctuations that happen in an investment account and the strategy that we call tlh that allows our clients that's tax loss harvesting it allows them to sell an investment that may be down for part of the year and then move it into a very similar investment right away so that the investment strategy stays the same and they can actually take a write-off on that loss on their taxes that year now there's some rules around this again we're going high level but it offsets uh you know for that one client who are not a client but who had the big sixty thousand dollars of income he could have been offsetting those capital gains by doing tlh or tax loss harvesting that strategy has really saved hundreds and thousands of of dollars for clients over a period of years so on to the next thing that we can control in our investment plan and that's cost this one's easier but many advisors they don't do it because it ends up paying them less now since we're certified financial planner professionals we do follow the fiduciary standard and we're obligated to do what's best for our clients so tell me this if you had two Investments and they had the exact same strategy the same Returns the same risk and the same tax efficiency would you rather want the one that costs 0.05 percent per year or the one that costs 12 times more at point six percent well I know that answer is obvious and we'd go with a lower cost funds if it was all the same low-cost funds and ETFs that's how we can really help reduce the cost or that's how you can help reduce the cost in your investment plan because every basis point or part of a percentage that's saved in cost it's added to your return each year and this adds up to a lot over time now the last thing that we want to minimize and control is risk and we already talked about the flaws of investing solely based on on risk tolerance and when it comes to risk a lot of people think that term risk tolerance you know how much risk can we on a scale of one to ten where are we on the the risk factor but there's another way to look at risk in your investment strategy and like King Solomon we believe that there's a season for everything or like the if it was the bird song There's a season for everything and we also believe that there's four different seasons in investing and depending on what season we're in some Investments perform better than others and the Four Seasons are pull it up right now it's higher than expected inflation which we might be feeling but there's also a season that can be lower than expected or deflation and then there's higher than expected economic growth or lower than expected economic growth and the goal is reduce the risk in investing by making sure that we're prepared for each and every one of those potential Seasons because there are individual asset classes that tend to do well during each one of those seasons and we don't know nobody knows what's really going to happen you know people would would speculate and say oh it's going to be this or this or whatever might happen but we don't know for sure that's why we want to make sure we just have the asset classes in the right spots so that the income plan doesn't get impacted so the investment system combined with the income system clients don't have to worry about the movements in the market because they know they've got enough to weather any potential season I hope this has been helpful for you so far as you're thinking about your retirement if it was please subscribe or like this video so that hopefully other people can be helped as well and then I'll see you in the next one take care thank you

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Step 1 of Retirement Success Plan: Investment and Portfolio Analysis

I'm giving you a choice of two Investments investment a and investment B both of them return 10 over the previous year which one would you rather have been invested [Music] oftentimes when I ask this question to a prospective client I'll get the response Troy it doesn't matter they both return 10 Give Me A or B but when it comes to retirement planning and this is why step one of the rrsp is so important the allocation meeting it's not about the return necessarily it's about how much risk did we have to take to get that return investment A and B both had a 10 percent return but this is just one outcome in an infinite set of possible outcomes remember these are two distinct Investments with different characteristics possibly different purposes so even though they return the same the question is how much risk did we take to earn this return are we being compensated enough from a reward standpoint based on the risk that we're taking so with a high degree of statistical confidence we could analyze and say investment a had a likely downside scenario of somewhere between five to fifteen percent if a different set of outcomes or circumstances occurred that's the risk profile but invest B had a possible downside of negative 20 to negative 40 percent now with that new bit of information which investment would you choose investment a or investment B all individual Investments or combination of Investments could be plotted somewhere along this chart this is what we call the efficient Frontier over here we have the return the expected return and over here we have the risk that we're taking so ideally we have Investments that are more to the left which represents lower risk and higher up the y-axis which represents higher return so if you own five different stocks that portfolio in and of itself could be plotted somewhere on this graph if you have one security let's say you're fully invested in your company stock you could plot it right here on this graph now if you have 20 or 30 or 50 different mutual funds or ETFs or individual stocks once again that set of Investments can be plotted somewhere on this graph so when we plot investment a and investment B on the graph here we can clearly see that they have a similar return profile but investment a has less risk so this makes it easier to identify as an investment that we would rather place our dollars now down here I have investment C could be a portfolio of stocks this could be maybe if you have a lot of money invested in your company stock but we clearly see that we're taking more risk without being rewarded for that risk that we're taking another way to think about this is think of your skills and the capability that you have in your current job or in your former job if you're if you're retired would you take a salary that was much much lower than Market in order to do that same job with those same responsibilities no you probably would not I know you would not that's what we're doing here with investment C essentially we are taking risk or taking on responsibilities in that example while not being compensated for it okay so think of these letters investment a investment being investment C this was the one we wanted to be in this is the one that we took a little bit more risk for the same return and over here we just don't want to be in I want to liken this to GPA grade point average because we're all pretty familiar with that either you from your schooling experience you have kids or grandkids an a investment or set of Investments kind of I put a in air quotes here that's the GPA so what we want to do with your portfolio in retirement is increase its GPA we want to reduce risk and increase expected return now that you have a good understanding of risk and return and how every set of Investments can be placed somewhere on that graph it's now important to tie that into retirement planning so the allocation determines how much income you can take how much money will be left later in life it determines how much tax you'll pay in retirement it can also impact your health care strategy or long-term care strategy and it definitely impacts your overall estate plan so those are the five steps of the RSP and this is why the allocation is so critical it's step one because it impacts everything else when you reach out to us for the first time all we do on that first visit is get to understand who you are and what's important to you we're going to gather some of the objective data under of course understand what your vision is for retirement your goals but the objective data is the current portfolio the financial statements the tax information how much we want to spend in retirement in between that first and the second visit we're going to go through an analysis to see where your portfolio falls on that Spectrum in order to understand if there's congruence between your willingness to take risk for the expected return that your portfolio can provide and where you currently are we first have to identify what is that willingness that you have to take on risk so we have to first understand your willingness to take risk so this is a pretty simple questionnaire here simply saying over the next six months you're comfortable risking this in order to make this potential return now this is what we call a symmetrical risk return profile we're essentially risking one dollar to earn one dollar but really what we're trying to identify here is what is your comfort zone on the downside because what we're going to try to do is create a portfolio that has an asymmetrical risk return profile so less risk to achieve more potential return so are you comfortable losing seven percent over the next six months in a recession or are you fine to let it stay invested and you believe long-term capital markets are going to do just fine so you're more comfortable in the short term possibly a 13 loss there's no right or wrong answer here but everyone's personal willingness to take risk is different so we have to identify that because if you have a portfolio that has too much risk that is the one thing that will absolutely be certain to blow up a long-term retirement plan if the market goes down you call us up panicking and say Troy I need to get out of the market I can't take it anymore well you most likely won't be in there for the rebound and all the planning that we've done up to that point can be significantly impacted because we were expecting the risk profile based on the conversations that we had to be structured properly and if it's not and the markets go down then we get out well all of a sudden everything is completely messed up so this is why your risk willingness is such an important concept because if we're putting a plan together we need to know that you're going to stick with it because markets will go down one other thing to point out here I like to focus on the dollar amount because percentages can be deceiving I had a client a long time ago or a prospective client come in and say Troy I'm comfortable losing about 10 percent he had two million dollars so I said okay if the market goes down and you lose 200 000 you're okay with that he said no I fire you instantly so there was a disconnect between the 10 percent and the two hundred thousand dollars so I like to talk about risk in terms of dollars because percentages seem just they don't really drill down into our willingness to take risk whereas if we focus on the dollar amount that hits home okay so this would be coming back on a second visit and we're looking at your actual portfolio and this is very similar to what we see someone maybe told us that they're they're comfortable let's say with about 50 stock but when we do the analysis what we often find is that there's more risk inside the portfolio but on top of there being more risk oftentimes it's not the most efficiently structured so we see down here we actually have bringing the GPA back a 3.1 so this means that it's not the most efficient from a risk-adjusted return standpoint means we're we're not where we want to be on that graph an annual range 3.42 so for taking this much risk we don't want to be rewarded with an annual range midpoint here of only 3.42 percent over the next six months now we also see with the potential risk and reward over the next six months there's a 95 percent probability that this portfolio to the downside could lose 16 percent over a six-month period and the upside is plus 19 so these are very very wide guard rails okay if we extrapolate that out over the course of one year we have a negative 32 percent and a plus 38 so most of our clients aren't comfortable losing potentially 38 percent in a single year so for this level of risk based on the questionnaire that we asked earlier and they come in around a 50 risk score this is not only too much risk inside the portfolio but it's really poorly constructed from an analytical standpoint and the guardrails are far too wide we're not being compensated for the risk that we're taking and that's what this GPA right here is telling us that's the analysis that we go through between the first and the second visit and that's often what we see it's not efficiently structured the portfolio possibly too much risk and oftentimes that GPA is a lower number meaning we're not being compensated with enough expected return for the risk that we're taking so in between that first and the second visit that's what our team is doing looking at your particular situation now once you become a client and we go through that allocation visit this is step one of the RSP what we're trying to do is to create a proposed portfolio that brings first and foremost the risk number in line with that questionnaire that we asked you before we're also trying to create some asymmetry in regards to the risk that we're taking in the expected Return of the set of Investments that we've put together so now what we've done is we've lowered the overall risk score of the portfolio to be more in line with the questions that we were asking in regards to that that slider that we had on the screen if you're not comfortable with potentially losing 19 percent in a six-month period we need to bring the risk score down in the portfolio so that's the first thing that we're trying to do the second thing is we're trying to create asymmetry here so you see this we're risking nine for the potential of 15.

This is over a six month period so we extrapolate that out over 12 months it's minus 18 for plus 30. that's asymmetry when it comes to the risk return profile additionally we've increased the GPA of the portfolio so the maximum according to the software is a 4.3 so this means we're being properly compensated for the risk that we're taking the expected return is the proper compensation for that risk now anything can happen Marcus can go up or down but what we've done is we've created an efficient portfolio that when markets are up or when markets are down our potential returns are in line with our willingness to take risks but also when we've tied this into your income plan tax plan and the rest of the RSP it's all creating a much more congruent financial planning experience also the expense ratio over here I don't know if you noticed before but we had an expense ratio in the mutual funds and that current portfolio in the proposed portfolio we've eliminated those fees so in summary here during the first visit we get to know where your willingness to take risk is in between the first and the second visit we're going through and doing an analysis of your current portfolio identifying the risk score see if there's any disconnect between your willingness to take risk in the actual risk inside your portfolio but then also looking at the potential return what is the GPA what is the expected return what is the Symmetry between these two once you become a client and we go through the allocation meeting here's where we look at the proposed portfolio where we get the risk number of the portfolio in a line with an alignment with your willingness to take risks try to increase the asymmetry between the risk and the potential return increase the GPA of the portfolio and increase the expected return now all of this is a shortened version of what the actual allocation visit looks like but it hopefully conveys how important this step is because it not only determines the amount of risk or the potential downside you could see to your values in retirement it also of course contributes to the potential return which then dominoes into your income for retirement the taxes the health care plan and also the estate strategy so step one allocation extremely critical when it comes to the retirement success plan this is why we do it first [Music] thank you

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Why Some Retirees Succeed and Others Live in Worry – 5 Retirement Truths

I want to share one of the most valuable pieces of retirement advice that I've ever heard if you're thinking about your retirement and you're wondering if you're doing the right thing or think that you should be doing something different or if you're just worried about all the things going on right now whether it's the economy or the markets or the value of your accounts be sure to watch this video because I'm going to share the retirement truths that every retiree goes through and it's these things right here we're going to cover today and every retiree goes through it and it they experience this in retirement so it's going to go over this and then also what to expect in retirement and then how to give yourself the best chances of maintaining your lifestyle in retirement as well now the negative of these retirement truths that we're going to look at is that many of them lead to increased uncertainty or worry about your retirement one of our goals though as we're thinking about it is really the opposite of uncertainty or worry in retirement it really should be more about confidence right the next years really all the way up until you pass away wait these are the the magic ears these could be the best years of your life and I know that because there's an actual study a research study uh proving this so let me pull that up really quick and show you the results and I'll link to it below people were asked to score their life satisfaction from zero to ten where 10 is the best possible life and then zero is the worst possible life and this is really just the average score by age and I thought it was encouraging to see that life satisfaction tends to increase as you can see as we get older and then it tends to Trail off as we get older but really the area the the period of time we want to focus on is that this is the magic time and we know this to be true as well because we've helped hundreds of pre-retirees move into retirement with confidence and excitement and these were the people who were coming to us that were feeling somewhat unsure or not 100 confident with their money plan and our firm streamline Financial has been around for 24 years and we've made it through quite a few bad Market periods with our clients and by the way if I haven't met you yet I'm Dave zoller and I own streamline Financial with Tim and Luke and Sean and if you're working with an advisor now that's mainly focused on investments and investment planning but doesn't talk about these key retirement strategies like the tax efficient withdrawal planning and income planning or just tax reduction overall feel free to reach out to us through the website now we don't always have time but I'll get back to you either way so let's get into this first truth in retirement it will be common to have that thought of maybe I should be be making a change or should I be doing something different it'll be normal to feel this way in retirement especially when you see the news or you're listening to friends talk about their finances there's this feeling or this thought of really making us doubt our current plan which causes some people to make more emotional decisions instead of making smart financial decisions and a good way to avoid this is really to avoid this feeling is by having an understanding of your plan which really leads to more confidence with what you're doing and having a plan for both the good times and also the bad Mark of times so that you know that you're prepared for either one of those and I'll give you some ways to achieve this coming up in this video now on to the second thing that comes up in retirement that we just have to be prepared for is we need to expect bear markets right you've most likely lived through a lot of them already and really in retirement though they feel a little bit different usually worse but because of the frequency creating a plan with bear markets in mind and really big Corrections built into the plan is a smart thing to do that way you don't have to worry when they eventually come now if you're not sure how to model out these various what-if scenarios or bad Market scenarios for your plan then you may want to talk to a cfp or check out my favorite retirement income planner below this video you should see a link to it it's one of the best consumer facing planners that I've seen and it doesn't cost thousands of dollars like the ones that we use for our clients the next thing to bring up is for pre-retirees who are close to stopping their wage especially if that's during bad markets they may think should I work a little bit longer maybe just one more year to kind of make it through this this difficult period we actually had a client call us up about five months ago and uh no she was five months into retirement and she said something like it seems like so much bad news is out there and what's going on with the markets I'm wondering if I it would have been better if I should have just kept working so we reviewed her plan and because we built in to her plan this expectation of bad markets everything looked great and and really the only reason to keep working would be if she really enjoyed this sort of work that she was doing and it brought her some some purpose but she didn't so it was great it was great confirmation that she was still on the right track so if this sounds like you take a look at another video I recorded I'm gonna either link on this screen or it'll be below and it gives a few real examples of what working an extra year might look like in a financial plan the next thing to know is that no one really knows what's going to happen next it seems like everybody has a prediction on TV or YouTube or at the dinner table with family or with friends and no one really knows what is definitely going to happen we know this uh in a logical way because you know there's that saying if you put 10 economists in the room together and they come up they need to come up with a conclusion they'll come up with 12 of different answers when they walk out knowing that it's important to prepare your investment plan for that four economic Seasons that we may go through in the future since we don't know which one we're going to go through next so just as as an example you've seen it before the four economic seasons are higher than expected economic growth or lower than expected economic growth and then higher than expected inflation or lower than expected inflation and there's asset classes that can do well in each one of those now again we don't know which way we're headed but having asset classes and each one of those potential Seasons that could be beneficial now that's just my opinion and really it's for all of this talk to your own Financial professionals before doing anything like this now on to the next one which really has more to do with human psychology than investment strategy and then after that I'll share the the really the most helpful piece of advice that I've heard related to retirement planning but if you'd like this so far please click on the the like button and and maybe this video can help somebody else going through the same things that that you're looking forward to so the next truth is in retirement we may have a tendency to compare ourselves to others the grass is always greener on the other side of the fence really throughout life that's we've got that tendency to compare it to others but it can harm us in retirement too if we do a video on this channel that mentions a dollar amount as an example we don't want that to really make you feel better or feel worse about your current situation because you know we help high net worth families at streamline Financial we sometimes mention big numbers but we don't want it to be about the numbers we really want to communicate just the principles and the strategies that can can really be applied to to anybody's finances and there's always going to be people with more than us and then there's always going to be people with less than us and the one who wins is the one who's content and at peace most at peace with their current situation you know that saying if I want to be able to practice being content with a little and I want to be able to practice being content with a lot and and you know healthy competition that's okay but comparing ourselves to someone else because uh you know if it causes us a feel of lack or less than that can hurt our retirement plans because that leads really back to that first point that we talked about in uh in this list of feeling like we should be doing something different for example if we see a guy on the internet and he's investing a certain way or he's deciding he's changing up his entire strategy um because of what's happening with the economy then that may cause us to feel like we should be doing something different and then start to increase the emotional level of uh of our decision making instead of staying to strictly logical or financial levels but again it's a normal feeling to feel that worry or fear or anxiety um with what's happening during during current periods but one of the most helpful pieces of advice that I've heard that we can apply to retirement planning is really the difference between those two words fear and anxiety knowing the difference between those two is actually very very helpful as we're planning retirement and talking about money that is if we want to feel better about what we're doing right now when we think about fear and anxiety we might think of them as being the same thing but actually they're completely different things and let me just pull up these two definitions if I can really quickly fear is a caution over a real and present danger and then anxiety is a worry over an imagined future danger now fear if we've got something right in front of us then it's obviously a very helpful tool for us as humans anxiety though is not always a helpful tool as as we're trying to process things partly because these anxieties there's nothing we can do to control or influence them you may have seen this drawing from Carl Richards before about things that matter and then things I can control here's a place to focus and then another way to look at it is we actually sent this to clients not too long ago on a video of what you can't control and what you can control so we can't control the markets and inflation and what they're doing with interest rates or what's happening in the news or the world or tax laws or the elections but a lot of these things actually do relate to things that we can control for instance you know markets are inflation or interest rates your portfolio allocation you can control that you can control when to pay taxes when it's related to in investing you know as we're talking about Roth conversions or the the costs the tax cost tax drag on some of the portfolio and not to get too nerdy about these things but two of the biggest things that we've seen is this idea of not controlling the news but what we can control is news consumption we've seen a big shift with uh some people who instead of someone who wants to consume the news they switch from TV news to reading news where you have a little bit more control of what's coming at you versus TV is just the next thing is coming at you if you know what I mean I don't know if that's if I if I'm explaining that the right way but back to the this video all the things that we mentioned before earlier here um a lot of these can be anxiety-inducing things as well right the severity of a bear Market or not being able to predict what's going to happen next in the world or comparing ourselves and doubting our plan or thinking that we don't have as much as as we wish we had when it comes to to money or the you know what if this happens and what if this happens how is that going to impact my plan and that can lead that sort of thinking can lead to paralysis and really no action being taken but what if you had a plan that was built in to show those different what-if scenarios so instead of the unknown future danger you're able to get more concrete scenarios in the plan as a result that's what I would recommend once you get get it out in the open then it becomes a lot less scary we both know that so either find a great certified financial planner who can show you that and show you the what-if scenarios or check out the the DIY planner or a different planner that helps you put in those what-if scenarios as well so it becomes less scary so don't forget anxiety is it can be the thief of Dreams it takes you away from enjoying the the present moment and it stops you from even taking the right action to make things better in the future because it really just makes you only focused on on the negative as you're you're moving through life that video that I mentioned earlier is called why delaying retirement might not be a good idea if you're pre-retirement and you're thinking you want to work a little bit longer because of what's going on take a look at that one coming up next or below and then I'll see you in the next video take care foreign [Music]

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Why This Investment System Can Help Retirees Worry Less About Their Retirement Plan

I want to share an investment system for retirees to hopefully assist you as you're thinking about and planning for your retirement we're also going to look at how to prepare your retirement for the multiple potential potential economic Seasons that we may be headed into so we want to look at the multiple seasons and then the Easy System that's going to help lower taxes and then lower risk as well now if I haven't met you yet I'm Dave zoller and we help people plan for and Implement these retirement strategies really for a select number of people at streamline Financial that's our retirement planning firm but because we can't help everyone we want to share this with you as well so if you like retirement specific videos about one per week be sure to subscribe so in order to create a proper investment plan in system we want to make sure that we build out the retirement income plan first because without the income plan it's much harder to design the right investment strategy it's kind of like without the income plan it's like you're guessing at well 60 40 portfolio sounds good or you know May maybe this amount in the conservative bucket sounds reasonable you already know and and you feel that as you get close to retirement that goal of just more money isn't the the end-all goal that we should really be aiming for for retirement it's more about sustainability and certainty and then really the certainty of income and possibly less risk than before the last 30 years uh the things that you did to be successful with the financial side are going to look different than the next 20 or 30 years now if you need help defining the the income plan a little bit then look at the DIY retirement course below this video now once you do Define your goals for retirement and then the income needed to achieve those goals then creating the investment system becomes a lot easier and within the investment plan we really know that we can only control three things in all three things we actually want to minimize through this investment system the first thing we can minimize or reduce is how much tax you pay when investing we had a a client who was not a client of streamline Financial but of a tax firm coming to the the CPA firm in March to pick up his tax return and he was completely surprised that he had sixty thousand dollars of extra income on his tax return that he had to pay tax on right away before April 15th and it was due to the capital gains being recognized and other distributions within his investment account and he said but I didn't sell anything and the account didn't even go up that much last year and I got to pay tax on it but he was already in the highest tax bracket paying about close to 37 percent on short-term capital gains and dividends and interest so that was an unpleasant surprise and we see it happen more often than it should but this can really be avoided and here's two ways we can control tax so that we don't have to have that happen and really just control tax and pay less of it is the goal and I'll keep this at a high level but it'll get the the point across number one is the kinds of Investments that you own some are maybe funds or ETFs or individual uh equities or things like that the funds and ETFs they could pass on capital gains and and distributions to you each year without you even doing anything without you selling or or buying but it happens within the fund a lot of times now we would use funds and ETFs that are considered tax efficient so that our clients they can decide when to recognize gains rather than letting the fund company decide now the second way is by using a strategy that's called tlh each year there's many many fluctuations or big fluctuations that happen in an investment account and the strategy that we call tlh that allows our clients that's tax loss harvesting it allows them to sell an investment that may be down for part of the year and then move it into a very similar investment right away so that the investment strategy stays the same and they can actually take a write-off on that loss on their taxes that year now there's some rules around this again we're going high level but it offsets uh you know for that one client who are not a client but who had the big sixty thousand dollars of income he could have been offsetting those capital gains by doing tlh or tax loss harvesting that strategy has really saved hundreds and thousands of of dollars for clients over a period of years so on to the next thing that we can control in our investment plan and that's cost this one's easier but many advisors they don't do it because it ends up paying them less now since we're certified financial planner professionals we do follow the fiduciary standard and we're obligated to do what's best for our clients so tell me this if you had two Investments and they had the exact same strategy the same Returns the same risk and the same tax efficiency would you rather want the one that costs 0.05 percent per year or the one that costs 12 times more at point six percent well I know that answer is obvious and we'd go with a lower cost funds if it was all the same low-cost funds and ETFs that's how we can really help reduce the cost or that's how you can help reduce the cost in your investment plan because every basis point or part of a percentage that's saved in cost it's added to your return each year and this adds up to a lot over time now the last thing that we want to minimize and control is risk and we already talked about the flaws of investing solely based on on risk tolerance and when it comes to risk a lot of people think that term risk tolerance you know how much risk can we on a scale of one to ten where are we on the the risk factor but there's another way to look at risk in your investment strategy and like King Solomon we believe that there's a season for everything or like the if it was the bird song There's a season for everything and we also believe that there's four different seasons in investing and depending on what season we're in some Investments perform better than others and the Four Seasons are pull it up right now it's higher than expected inflation which we might be feeling but there's also a season that can be lower than expected or deflation and then there's higher than expected economic growth or lower than expected economic growth and the goal is reduce the risk in investing by making sure that we're prepared for each and every one of those potential Seasons because there are individual asset classes that tend to do well during each one of those seasons and we don't know nobody knows what's really going to happen you know people would would speculate and say oh it's going to be this or this or whatever might happen but we don't know for sure that's why we want to make sure we just have the asset classes in the right spots so that the income plan doesn't get impacted so the investment system combined with the income system clients don't have to worry about the movements in the market because they know they've got enough to weather any potential season I hope this has been helpful for you so far as you're thinking about your retirement if it was please subscribe or like this video so that hopefully other people can be helped as well and then I'll see you in the next one take care thank you

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Retirement Planning During Bear Markets – Especially if It’s Your First One In Retirement

bear markets can feel a lot different when you're retired and you're no longer earning income from work especially if this is your first bear Market since you stopped working when you were younger you know you had time on your side you know you may have even seen drops in the market as an opportunity because it gave you additional time and you got to purchase more shares well things were on sale so to speak but now most likely that's not the case the relationship between our money and our accounts now are of money going out versus money going in to put it simply and plus you may have noticed that there's this psychological component now around money and not wanting to mess things up because the decisions we make really carried much more weight now when we're close to or in retirement and it's really that's not only psychological or emotional it's true because planning the distributions is much more complex than the the planning around around saving and putting money into the investment accounts what led to our investment success the last 30 years is a lot different than what's going to lead to success the next 20 or 30 years or at last that's at least what we've been seeing at streamline Financial since 1998 since we've been around so I want to share how to endure through bad markets if you're close to retirement or you're already retired and then what you can do to actually take advantage of of this even if you're already retired and you're no longer saving money and we're going to do that because we know a universal law of physics that can't be disproven and we can actually apply it to our retirement and make it a little bit better if you're thinking Dave what the heck are you talking about here's a brief explanation so Newton's third law of motion is that every action there's an equal and opposite reaction right you've heard that before so the way that I see it is there's a positive to every negative and the same thing there's a negative to every positive it's the law of polarity so I want to share what the positive is to take advantage of during bad markets and by the way if I haven't met you yet I'm Dave zoller and Tim and Luke and I and Sean we run streamline Financial it's a retirement planning firm and we've been around like I had said since 98 so we've seen clients really go through it all the.com bust the financial crisis and then covet and then all the things in between all those uh you know those mini panics that we've had so we created this channel to share what's working and what has worked for them and so that you can hopefully glean some wisdom from them and then apply it to your your own life so the first thing we need to be aware of is that the previous 30 years there were four bear Market Corrections so that's a drop of 20 or more and then the 30 years before that there was a total of five bear Market Corrections so the main takeaway is we need to expect these bear markets to happen during our retirement during that next 20 30 years right the second thing is we don't want to make a change solely on an emotion right and it's not not just making a drastic change like selling everything and putting everything under the mattress right it's we were just talking to someone yesterday and emotions can cause us not to take an action when we know doing so is actually the Smart Financial thing to do for instance during March of 2020 when it wasn't easy to rebalance your accounts it was very difficult to do but if you did follow through and and do the correct rebalancing system or strategy if you were looking back now it could have made a lot of sense the third thing is update your income plan because that helps guide us and make really good planning decisions around our investment plan so it's really start with the income plan you've heard that before and that helps us make the investment decisions versus the other way around and updating your income plan during bad markets that can also give you some confidence as well as you're looking at where we are today and then looking at over the next few years and and seeing that things maybe aren't as bad as it might seem at least when you've got those two things of the unknown and then the known updating the plan is the known and you can get a little bit better picture on what the future might look like for you now to the two things that maybe could give us an advantage during a time like this this is back to the law of polarity so the possible things that we might be able to use here are well first before I say it as always this is not specific advice to you so we're not looking at your your plan together so before you do anything just talk to a financial professional but idea number one to think about is tax loss harvesting that could be a way to write off some of the losses while still keeping your investment strategy intact and I talk about this concept a lot more in other videos so I'm not going to go into details on it today but just keep that in mind the one thing to to really pay attention to though when we're we're talking about the law or talking about tax loss harvesting is that wash sale rule right so look for the other videos or talk to that Financial professional before thinking about doing that the second thing that could be a possible opportunity for really the first time in a very long time is that ability or option to lock in higher yields in that conservative bucket as you know the the bucket strategy you've seen that before where we've got the possible three buckets and having that conservative bucket here is a great way to plan out and prepare for for bad markets and now at the time of this recording some of those historically conservative asset classes are paying a higher interest a higher yield than what we've seen really over the last decade which could be a silver lining during this period of time so those are just two things possible things to look at which maybe could be taken advantage of by you for for your benefit so those are just two things to think about during this period of time that we're in right now if that short video was helpful please like this and then share it with others if you think it could help them too and if you'd like to talk more about your plan feel free to reach out to me in the in the description below or go to our website streamlinedplanning.com for get you click on the get started button we don't always have space available but you'll hear back from me either way so I hope that was helpful and then I'll see you in the next video

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👉Retirement Planning At 60 in 2024 – 6 Tips💥

imagine this you're approaching your 60s and starting to think about retirement you've worked hard all your life and it's time to enjoy the fruits of your labor but before you kick back and relax it's time to get laser focused on your retirement plan in this video we'll cover six important tips to help you plan for your retirement at 60. tip one assess your financial situation Jane has a woman who's been working as a nurse for 30 years she's always been Frugal and saved as much as she could but she's not sure she's accumulated enough for a comfortable retirement to assess her financial situation she makes a list of all her assets and her expenses she realizes that she needs to save more if she wants to maintain her lifestyle in retirement tip two explore different retirement options Bob's a 62 year old man has been working as an engineer for the last 40 years his employer has a 401k and he's been contributing to it for years Bob also explores other retirement options such as an IRA to maximize his retirement savings tip three diversify your Investments Mike is a 65 year old man who's been retired for a few years he Diversified his portfolio by investing in many different stock and bond index funds by diversifying his Investments might minimize risk and ensure a stable retirement income tip 4 plan for health care costs Sarah is a 63 year old woman who's been working as a teacher for the last 35 years she's healthy now but she knows health care costs can be expensive in retirement to plan for health care costs Sarah bought long-term care insurance to cover any medical expenses that could arise in the future tip five consider your Social Security benefits Tom is a 64 year old man's been working in construction for the last 45 years he's not sure when to start receiving his social security benefits he decides to wait till 67 to start taking his social security so he'll get a higher benefit which will give him a more comfortable retirement tip six have an actual retirement plan in place Lisa is a 61 year old woman has been working as a sales manager for the last 25 years she has a plan in place that includes a budget for her retirement expenses and a plan for Hospital spend her time in retirement Lisa plans to travel volunteer and take up a new hobby in retirement to stay active and engaged following these tips and learning from the experience of others you can ensure a comfortable and fulfilling retirement it's a great idea to consult with a good financial advisor click on the link in the description if you'd like to set a time to talk with us

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