L V Plummer Jr. #1

"Vehicles for your Financial Road Trip" with Laurence Plummer Jr., Certified Financial Planner Practitioner and LPL Wealth Strategist on The Bev Johnson Show on WDIA Radio.

Episode Transcript

Speaker 1 (00:03):
Memphis probably presents the Beam Johnson Show.

Speaker 2 (00:08):
Let me say.

Speaker 3 (00:09):
Bathe me first, let me you say.

Speaker 4 (00:21):
She's gone Memphis.

Speaker 5 (00:22):
Okay, no matter of the problem, she can have.

Speaker 4 (00:32):
So a phone and a normal thing of mine.

Speaker 3 (00:38):
She was there, Jimmy d in the hair by challing
you to just keep the thing.

Speaker 2 (00:48):
Went around pegging out the chosing show. Because we've got
talking there. You can hear every day you d I ain't.

Speaker 4 (01:02):
My bell got me a missed hoping?

Speaker 3 (01:48):
Good morning, good morning, good morning, and welcome into w
d i A The BEB Johnson Show.

Speaker 2 (01:55):
I'm BEV.

Speaker 3 (01:56):
It is indeed a pleasure I have you with us
once again on this Tuesday, September sixteenth, twenty twenty five.

Speaker 2 (02:05):
Enjoyed this fabulous day to day.

Speaker 3 (02:08):
Get ready to put your ears on as we start
first star with our certified Financial Planner Practitioner lp L
Wealth Strategist Lawrence Plummer Junior, better known to us as LB.
We'll be speaking with us this day about all your finances.

Speaker 2 (02:29):
Second hour, we'll get.

Speaker 3 (02:31):
Some final planning with mister Willie Jacobs of the Jacobs
Final Expense Planning Agency, So stick for that.

Speaker 2 (02:42):
When it's your turn to talk, you know you can nine.

Speaker 3 (02:44):
Zero one five three five, nine three four two eight
hundred five zero three nine three four two eight three
three five three five nine three four two will get
you in to me. And if this day, this day, Tuesday,

(03:12):
September sixteenth, twenty twenty five, is your birthday like my
beloved cousin, what a cousin Maryland, Joyce Kennedy's up, Maryland,
Joyce Kennedy.

Speaker 2 (03:26):
Happy birthday, cousin.

Speaker 3 (03:29):
From your sisters, your nieces, your nephews, your friends, and
your cousin, everybody who loves Maryland, Joyce Kennedy, the folks
on your job.

Speaker 2 (03:40):
Yeah, you should have took off today.

Speaker 3 (03:45):
Happy birthday, cousin Maryland, Joyce Kennedy. Be birthday sister, and
all of you all out there who may be celebrating
your birthday on this day.

Speaker 2 (03:55):
You know what we say.

Speaker 3 (03:57):
Go out of y'all, go out and sell them, break
your life.

Speaker 2 (04:02):
You better, you better.

Speaker 3 (04:06):
When we come back, we'll talk with our certified Financial Planner,
practitioner and lp L West Wealth Strategist, Lawrence Plummer Junior,
better known as l V. Next with Me Bev Johnson
on the Bev Johnson Show.

Speaker 2 (04:24):
On w d I.

Speaker 3 (04:27):
A welcome back to w d I A the Heart

(04:52):
and soul of Memphis. It is Tuesday, September sixteenth, twenty
twenty five, a beautiful day in Memphis, Tennessee, and I
hope it's beautiful where you are as well. Before we
get started, let me remind you that securities and advisory
services offered through LPL Financial, a Registered Investment Advisor member

(05:15):
FINNRA Sipsey. The opinions express are those of Laurence Plumber,
Junior Certified Financial Planner Practitioner, LPL Wealth Strategist LV and
Plumber Wealth Strategists. We'll be offering a complementary consultation to
the first five five y'all today, only five callers and

(05:36):
the first five people.

Speaker 2 (05:37):
Who book online.

Speaker 3 (05:39):
For those who may be at work and cannot call,
just go to Pwsplanning dot com send them an email
by clicking the contact us button to schedule your complementary
consultation with LV. The phone number y'all is nine zero
one seven four eight zero zero five zero nine zero one.

Speaker 2 (06:01):
Seven four eight zero zero five zero.

Speaker 3 (06:04):
Email email LV at LV at PWS Planning dot com.
Service at Pwsplanning dot com. Also note that you can
navigate to their website Pwsplanning dot com and once again
we'd like to say good morning and welcome back to

(06:25):
LB Plumber Junior. We know him as LV. That's Large
Plumber Junior. Good morning, LV.

Speaker 2 (06:31):
How are you.

Speaker 4 (06:33):
I'm doing good? How are you?

Speaker 2 (06:35):
I'm doing well today? I can't complain. LV.

Speaker 4 (06:39):
Awesome, awesome, good day. Good to be back. I feel
like we just spoke like three or four days ago.
I can't believe it's ready been a whole month. So
glad to be back and looking forward to to you know,
going over what I wanted to go over today and
helping out as many people as we can.

Speaker 2 (06:51):
It sounds good. I'm ready to roll. Well, we're gonna
rock and roll.

Speaker 4 (06:55):
LV, absolutely, Ben Hey. One thing to start out the show,
if you don't mind, I want to give a shout
out to every single client that's been so supportive of
our firm and BEV. I don't even tell you. I
don't know if you saw the press release or not,
but we've been getting so much support and we've been
really growing at a breakneck pace with our firm with
you know, Plumber Wealth Strategists and LPL Financial. But we

(07:16):
just got recognized actually by Forbes at the best in state,
top next gen wealth Advisor. So again, none of that
will be possible at all about you know, without our clients,
our existing clients, our clients that are listening on the show, BEV,
my team, and my family. So just wanted to make
sure I started out today with a much deserved just
moment of gratitude because this is overwhelming and surreal. As

(07:37):
far as the support we've been getting, Oh, thank you all,
and even for those that are not clients, thank you
just for listening and just for the support and BEV
your platform is second to none, and your partnership has
also been integill with our growth as well. So thank
you personally and professionally for allowing us to be on
your show for the last seven years.

Speaker 3 (07:53):
It's been an honor, great, great, great well that I'm
so happy for you all.

Speaker 2 (07:59):
Congratulate LV.

Speaker 4 (08:00):
That's a big thank you. It is it is, and
it was one thing that was a kind of on
a bucket list of goals of mine by the time
I turned at least fifty, and thank god, by forty
thirty five, I've been able to get on the Forge list.
So we're we're grateful for that.

Speaker 2 (08:14):
That's good.

Speaker 4 (08:15):
Hopefully we'll knock a few more goals off and our list.
And again, our main goal for everyone that's new to
us is we just try to help out as many
people as we can provide great information and again, you know,
just being a source of information financial guidance the best
we can. So thank you all for just a simple opportunity.

Speaker 3 (08:31):
Great, great, well, lv I know today you want to
talk about a topic of conversation, Vehicles for your financial
road trip.

Speaker 2 (08:42):
Vehicles for your financial road Trip. I love that, great title,
lv I love that.

Speaker 3 (08:48):
So what is it you hope to accomplish on today's show?
And what is that that I love that? Vehicles for
your financial road Trip?

Speaker 4 (09:00):
Yeah, yeah, and you know, Bell and I appreciate it.
You know. It's one of those things where it was
on my spirit for this show to really kind of
drill down more than I usually would, right. And what
I mean by that is this because I've been getting
a lot of good feedback from your show, BEV, from
clients and even just referrals that come with if you're
seminars and whatnot. But the one thing that I hear
about is DELV. You know, get you know, in this
world it's so easy to talk about the macro right.

(09:22):
We talk about the economy, we talk about politics that nauseum,
we talk about you know, motivational financial tips stuff we
see on TikTok and Twitter and all these other platforms.
But the one thing that I really wanted to do
today was really kind of drill from the macro to
the micro right and talk about Okay, like all these
things that we talk about, and people hear about annuities,
mutual funds, ETFs, roth accounts, right, you know, you hear

(09:44):
this stuff pretty much every day, all day whenever you're
looking at all these social media fundits and you know
everyone that talks about finance on podcasts. So really, today, Bev,
I don't want to get to fancy. I really wanted
to keep it simple today and just give good, direct,
specific information on just some of the vehicles that people
utilize on their financial road journeys, right with us and

(10:06):
of course even outside of us. So really my goal today, Bev,
and for those that listen where I'm going to give
out these definitions and you think this is something you
want to talk more about, that's what those consultations are for.
And I want to make sure I preface today's show
with a quick statement. I will not go into specific
products on this Okay. I know a lot of people
want to talk about annuities and individual stocks and things

(10:28):
like you know, roth IRA's, but I'm not going to
go through like the companies that we favor, because you remember,
we can't give blanket advice on the show, as you
already know, Bev. Yeah, So I'm going to really stick
to concepts on this show and really kind of basic
definitions just for people to jot down some good notes,
you know, do some research on their own independently, and
then if you want to call your local advisor if
you work with one, or call us if you want

(10:49):
to work with us, and we can help figure out
kind of how these vehicles can fit on your chessboard
as far as your financial planning and to figure out
if it's the right strategies for you. So today is
really about definitions, concepts, and just really making sure I'm
specific and direct about things like annuities like Rawsira's like
four one ks HSA's SMAs. Right, there's an alphabet super

(11:10):
things out there and it can get very overwhelming for
a lot of people. So I really wanted to just
stick to the basics today and just give some great
definitions and kind of even some case scenario studies of
kind of the when we think one of these strategies
would be applicable to someone's situation. So I want to
do a few analysis with everyone on the air waves
today and just kind of say, Okay, this is the
style of advice that we give, and really the reasons

(11:32):
and rationallysis to why we recommend certain things like ETFs,
mutual funds, sector funds, annuities. So we'll go over that
today for sure, just to give as much information as
we can.

Speaker 2 (11:42):
Sounds good.

Speaker 3 (11:42):
I like it all, right, LV, So do you want
to start off with your usual market update? Wow, and
there's a lot happening out there in the world today.

Speaker 4 (11:53):
My god, my god.

Speaker 1 (11:54):
Yes, So you know, by now this could be a
whole show as far as what's happening today, So you know,
and you're right, but and you know, we usually start
with the money minute, right, just kind of going over
stocks and everything.

Speaker 4 (12:06):
I'll go over that end about twenty seconds. But you know,
as everyone knows that's listened to me for the last
seven years, BEV. I don't go into politics and I'm
not going to today. I'm going to stay neutral. But
my god, this is probably one of the most headline
driven times we've ever seen in Wall Street. I'm talking
from politics. Of course, we have the country that's extremely

(12:26):
divided right now. I won't get into that. Everyone's kind
of letting the political realm steep over into the financial
realm where I am and you know, other advisors are.
So it's a really weird place we're in right now.
And my thing is this, you know, just cutting to
the chase. There's a lot happening. There's a lot of division,
there's a lot of talk, there's a lot of controversy.
And the one thing I can tell you bev You

(12:47):
know me by now, I am always going to cut
it and shoot it straight despite everything, the rhetoric everyone's
hearing from all sides of the aisle and the political spectrum.
Right now, I will say is the voice of reason.
Hopefully the more markets are still strong, right, We're still
in a good place right because I'm going to stick
to what I know, and that's money. So in the
world of money, because I can't tell you that people
are coming to the office just thinking the world is

(13:09):
ending and we're going into a recession, and there's so
much political stuff happening right now. Objectively speaking, things are
still good, right. I can't speak for tomorrow, I can
speak for today, and the stock markets are healthy right.
Corporate earnings are strong across the board. Household consumer spending
is strong, retail sales are strong. There's some little economic
indicators that we don't like right now, but the broad

(13:31):
macro indicators that we look at to really gauge the
health of the economy and the stock markets is actually
favorable and it's actually good. So I just wanted to
start to recall with that because there's so much happening
right now that I won't get into. But bottom line
is this, despite the events, SMP five hundred is up
about twelve point three percent year to date since January,
NASDAK has popped up to about fifteen point seven percent

(13:54):
for the year, and of course the dal Jones is
about up about seven point four percent year to date.
So those are the main indicies we look at as
far as gauging the domestic stock markets health, and I
like what I'm seeing, and again can't speak for tomorrow,
but I can see for today. This year, despite the volatility,
despite the uncertainty, despite the fear, despite the political division.

(14:15):
Right now, everything is marching ahead on Wall Street. So
do not go to your portfolios and start selling thinking
the world's gonna end. Right now, in my opinion, things
are good. So again not for tomorrow, not a prediction
of tomorrow, but just an assessment of today. So I
did want to start out with those words bet and
again everyone, you know, just try to keep your cool.
A lot of things going on right now and a
lot of Facebook and social media headlines that are trying

(14:38):
to spill over into the stock markets. Just right now, again,
stay looking at the fundamentals. If you trade on your
own or if you're micromanaging your own portfolios, do not
let those headlines drive your investment decision making. And again
that's what advisors are for, so we can coach you
off the ledge if we think something doesn't make sense
as far as adjusting your investment. So right now, just remember,
if you don't hear anything else, things are still pretty

(14:59):
solid despite you some of the headlines that you're seeing.
So just wanted to start off on that. NOEVEV very good.

Speaker 3 (15:05):
Very good, LB okay lv so let's dive in and
start off with one of the most popular vehicles mutual
funds exchange traded funds, and why are these so popular
for investors, whether you're old or young.

Speaker 4 (15:21):
LB Yep, absolutely great question. So that's where I wanted
to start because I think, honestly, in my experience, this
is usually the very first investment that the majority of
young people and really just honestly first time investors jump into.
So right, so, and everyone that I talk about mutual
funds and ETF so much, I think everyone forgets about
just the basic definitions. And if I were to put

(15:42):
my own LV stamp on a definition of those mutual funds,
BEV think of it like this. You're buying, as I've
said in my very early shows with you that I
haven't gone back to in a while. You know, you're
buying a basket of diversified investments. Right Whenever you buy
a mutual fund and you're four one K or on
your own Fidelity or Schwab wherever you do your training,
remember you're not buying individual names. You're not buying Apple Stock,

(16:05):
you're not buying Amazon and Nvidia and Google. You're buying
a basket that's being professionally managed and diversified by again
a multitude of companies in Wall Street that do that
for their clients. And the great thing about those mutual
funds and ETFs which again stands for exchange straded funds,
they're very Again you don't have to do the work
on your own to pick the investments that populate that
basket of investments, right, so you hire a third party

(16:28):
manager to select the stocks. And remember with a mutual fund,
that's why it's called mutual. You take your own money,
you put into a pot of billions of dollars that
Wall Street firms managed, like John Hancock and Fidelity and Schwab,
all the big boys in Wall Street. They take those
multiple billions of dollars, and then in that basket they
buy shares of companies across the global landscape, right, they

(16:48):
buy shares of Google and Disney and Microsoft and Apple.
And the great thing about that bead is you don't
have to do the day to day research and you
don't have to pick anything on your own. You're on
a bus with millions of other investors and you have
a Wall Street pro that does that for you at
the institutional level. So really that for those that are
listening that haven't started their investment journey. I'm a fan
of ets and mutual funds like that where you can

(17:10):
buy you know, you can buy different flavors of baskets.
You can buy a tech mutual fund, you can buy
a financial mutual fund that invest in banks. You can
buy one that focuses on AI or tech or pharmaceuticals. So,
if I have a client that really wants to focus
on diversification and getting into great investments without having to
pay a very high cost in my opinion, for beginner
investors and those that are kind of just starting out

(17:31):
their journey, that's usually the best place to start in
my opinion. Right, And again, ease of management. Right, you
don't have to select those stocks. Usually they're pretty low costs. Right.
It's like Fidelity has a lot of funds that are
almost no costs you can get into as far as
the management fees. And again, you don't have to really
have that rigorous, you know, experience and expertise to select
those investments. You pass the ball to a third party

(17:53):
company and they do that stuff for you. So again,
for those that are investing in four one K is
one quick note as I've spoken about a lot of
four to one k companies that you manage, which again
the vast majority of our clients do have employer sponsored
plans like four to one k's and raw four three
B things like that. Remember, you know, it's always better
for you to work with the advisor because remember mutual
funds and ets, they come in so many different flavors

(18:15):
and there's so many different kinds with so many different companies.
So remember a lot of your money is concentrated in
those employer sponsored plans. Make sure you do it a
good service to yourself, or work with a third party
advisor to go into your four to one k's and say, okay,
what are those investments that around the menu? What kind
of mutual funds can I hand select for myself to
make sure that I'm properly invested for my goals? And

(18:37):
I see that a lot of that, and I've spoken
about that a lot on the show. You know a
lot of times if you don't go to your employer
and say, hey, just drop me into anything that you got,
they're going to push you into those little cookie cutter
target date funds that are just based on your age,
and it's managed by like an algorithm. I'm not a
fan of those investments. So remember you want to go
in there and see all the different mutual funds and
ets that around the menu that your job or your

(18:59):
employer allows you to invest in it. That's where usually
I come in because a lot of people don't want
to sit their computer on a weekend and look in
research all the investments in their four one So so
remember you know, that's the benefit of working with an advisor,
sitting down with somebody look in and see, Okay, what
are those investments that are at my disposal? Is there
real estate mutual funds I can invest in? Are there tech?

(19:19):
Are there AI? Is there international stocks? Usually there's a
big menu, hopefully in most four one k's that we see,
but you've got to really stop and tell your employer, hey,
how do I log in and make sure that can
invest based on my goals and really maximize the growth
of the biggest most used vehicle, which is that four
to one K. So just remember that if you're taking
notes mutual funds and ETFs, I like them for the

(19:40):
benefits of diversification, professional management, usually relatively low cost and
again the only negative in my opinion of those is
that you pay tax sometimes on those earnings, and you
know sometimes in those accounts like mutual funds, you don't
really have the flexibility to choose your own stocks and bonds.
So if you like one, if you're a DIY type investor,

(20:01):
that's not who that's for. Those are for people that
want to pass it off to a manager and just
make sure that overall a Wall Street firm can do
this stuff for them. So that's really the main thing.
It's an easy way to get access to a lot
of different investments across the globe as far as mutual
funds and ETFs. One more thing that and I'll be
done until we get to the next question. Okay, I'm
seeing a lot of notes and a lot of a
lot of questions about artificial intelligence right now, right great companies,

(20:24):
in my opinion, I can't doubt you know, AI has
taken over the world right now, right A word to
the wise. You know, there's a lot happening in that space,
and there's not a day that goes by where clients
don't ask me about my thoughts on AI. And and
and I'll be honest. You know, AI is an area
or a space that we are heavily favoring right now
due to it being in intendency. But I can tell
you this, if you're one of those that doesn't have

(20:46):
thousands of pump thousands of dollars or millions of dollars
to invest in stocks, you know that we're looking at
you know, like in video and broadcom. You know the
usual suspects, and you want to dip your toe into
the AI space with you know data, you know, data
enter stocks, machine learning, you know, you know a lot
of different spaces, be like about artificial intelligence. If you

(21:06):
want to kind of dip your toe in there, I'm
a fan. If you're you know, okay with some of
the risk of investing in young industries like AI. There
are what's called and if you take notice, it's called
a sector fund. Right. Sector funds are basically mutual funds
that come in the form of different industries. Right, So
you can have an AI sector fund. You can have
one that focuses on I don't know, aerospace and military defense.

(21:28):
You can find a fund that invests only in maybe
big pharmaceutical companies. So just remember sector funds or I
think very overlooked. If you have a particular interest in
a certain industry like AI, and you know, sector funds
are usually pretty low cost. You hire a manager to
just find the best of the best companies in those
respective industries and then of course you know it can
be managed on your behalf for a very low cost.

(21:50):
And a lot of our clients want to get in
and buy all these very expensive stocks that are really
booming right now, but they may not have all the
money to buy like a single share of each of
these companies. So in my opinion, the best to that
is to buy a good sector fund. And you can
do this that many different platforms. If you literally google
sector funds, you can find a whole bunch of companies
around the country that'll do those types and again AI,

(22:11):
big tech, pharmaceutical, real estate, and you can find a
sector fund for any industry that does peauk your interest.
And if you need help, remember I'm not recommending this
to everybody. That's what your advisor is for us, so
you can call and get custom advice and what's going
to be best for you. But I do love the
Alec Harte's nature of sector fund because a lot of
people are really exhibiting a lot of interest and kind
of the things that are really booming right now. So

(22:31):
it's a great thing to know.

Speaker 2 (22:32):
Very good that was. That was good?

Speaker 3 (22:34):
Yeah, well, Elvi, you know, next, let's go to annudities.
We've we've heard a lot about I can't say the word,
I heard a lot about these vehicles in the past
and the present, and you know, some good things and
there are some bad things that I've heard, but I know,
I'm gonna let you talk about it. How do you
implement these vehicles into the advice that you give?

Speaker 4 (22:57):
Oh controversial? Yeah, you know those moinges back in the seventies,
eighties and even nineties. Right, So let me let me
say this, and I've said this I think a few
years ago with you bet. I always try to give
people all the information that's needed for them to make
good informed investment decisions. So so my thing is this,
I do want to make sure that people know, with

(23:20):
pretty much any investment, right, there's good, there's bad, there's ugly.
You know, there's there's so much that goes into this
role which makes it very hard for people to make
good informed decisions. And that's where you know good advisors
are really thriving, is just to educate people as much
as possible on this stuff. Now. I wanted to talk
about a newies today because I say that word a lot,
and I think most people are like, hey, welv what
in the world of annuities?

Speaker 2 (23:41):
Right?

Speaker 4 (23:41):
And here you do a lot And that's why I
was on my spirit today is kind of like just
go back to the basics on this. So okay, So
put it this way. You know how people ask you,
you know, hey, what's your credit score? Right? Right? This
is this is very analogous to what I'm talking about.
You know how when someone asked that question, which I
think is kind of a weird question. But you know,
when someone asks you what's your credit score? There is

(24:03):
no such thing as your credit score, like a singular
definitive you know score of like hey, I'm six eighty
or I'm seven four. You don't have one score. You
have actually a lot of different scores. You have different
Fycal scores and Equifax, and you have a whole bunch
of things that really kind of factor into the formula
based on the type of debt and credit you're looking

(24:24):
to get from an institution like a bank. Right, So
you don't have one definitive score. You got a multitude
of scores. It's the same thing with annuities.

Speaker 5 (24:32):
There is, in my.

Speaker 4 (24:32):
Opinion, there's so many different flavors of annuities. Right. There's
fixed annuities, there's variable, there's you know, registered index linked annuities,
there's income annuities, deferred immediate annuities. There's a million types
out there, and there's no definitive. Hey, like, you know,
put my money into an annuity that that is Like
that doesn't even make any sense because there's so many
different types. So what I wanted to do, I wanted

(24:55):
to just break down in a few minutes, just what
are those main types that I can say that we
favor as an advisory firm to help people get a
little bit of knowledge about why we recommend them, right,
because you're right back in the day, if you remember,
in the eighties and nineties, there was a lot of
I won't even say crime, there was just a lot
of there's a lack of transparency around annuities. There was
a lot of I'll be honest, there was a lot

(25:15):
of fraud in that space. Right. There was a lot
of lack of regulation by the government. It kind of
was like, you know, like reverse mortgages that kind of
leave a bad taste in people's mouths when they say it.
It was, you know, back then, before Wall Street knew
what it was doing, it was not a good place
to invest if you ask me, just based on my
own research, even though it was born in nineteen ninety,
I read a lot about it. So it's just, you know,
it's one of those things where I think if people

(25:37):
stay in the past on those nudies, they're missing out,
in my opinion, on a lot of different opportunities and
benefits that you know, more modern contemporary annuities offer, right,
So I wanted to break down at least three or
four of them and why we recommend them, and kind
of just make sure people knew, you know, it's not
for everybody, but it is for, in my opinion, a
lot of those that are looking to grow and protect

(25:57):
their wealth. So real quick, here the ones that we like.
If you're taking notes personally, I love what's called the RILA, right,
that's URLA. That's called a Registered index Linked annuity, right,
a RILA. So my clients know very well what that
is because we recommend them pretty much every single day. Now.
The best thing about Riyla's right. It's an annuity. And
remember everyone, when you hear the word annuity, think about

(26:18):
the word contract. I think that makes it a lot
more simple. It's also an investment, but think about it's
a contractual promise for a major annuity or insurance or
investment company to either promise you a guaranteed rate of return,
a guaranteed income right like a pension, or guaranteed protection right.
So they all come in different flavors. But remember when
you do an annuity, you get some kind of promise

(26:41):
contractionally from these companies and carriers. So I am a
growth advisor best. Everyone knows that my goal. I know
we talk about planning and all that stuff, which is
vitally important. But my best days are when the market's
like right now, are booming and everyone is smiling saying, man,
I'm making some good money.

Speaker 5 (26:57):
Right.

Speaker 4 (26:58):
I love that. I love good reviews. I love showing people, hey,
you're up ten twenty percent of your portfolio, you're to date.
So I'm a growth advisor first because I just think that,
you know, there's no point in even talking about this
world if you're not growing your wealth with a solid
investment strategy. So for me, in addition to the big
picture planning, I love making sure that we strategically position
clients' assets for growth, and the RILA, in my opinion,

(27:19):
is one of my personal favorite vehicles to do. So
what I love about those basically think of that annuity
that reds are in index Leege annuity. What I love
about them A lot of the ones who recommend bed
number one, you have a diversified you know, think of
it as an empty shell, right this annuity you can
invest in a lot of different things, so you can
invest in the SMP, the NASDAK, the DOB or everything
we talk about. The great thing about those ryolets, especially

(27:41):
for those that are maybe above their fifties the sixties
and getting ready for retirement, those vehicles allow you to
grow your wealth without usually without paying management fees, so
there's no feed drag on your portfolio. And they usually
grow tax free as well, so it's a nice snowball
mechanism you can really use to build your portfolio without
fees or taxes driving your money, U drag your money
down and eating way at your returns. And on top

(28:03):
of that that, my favorite thing about Ryla's is that
they do have protection features on them. So I think
I've said that before in previous shows, and my staff
knows that I'm a huge fan of this. But you know,
they have basically what I have clients and they're kind
of in their fifties and going on sixty and getting
ready for retirement. They still have a few years left
until they retire, and they're building up their wealth for
that final finish line. But they want to still grow,

(28:26):
but have something in the back of their you know,
in the back of their portfolio as a defensive mechanism
to make sure they minimize and mitigate losses if the
markets crashed before they retire. Right. So what I love
about RYLA is a lot of them do offer what's
called buffers and floors where basically those companies will absorb
and eat losses for you. I mean, honestly, even up
to negative forty fifty percent. So if the market's crashed,

(28:47):
the good thing is you have your your bases covered.
They'll protect you from from losses up to a certain amount,
or they'll even have a floor where your money cannot
go below a certain amount if the markets, you know,
have a really bad recession, or if we have a
depression or pull back in the market. So it's a
great way to make money in the good days and
then protect your money in the bad days. And typically
there's no fees on the management side for those types

(29:09):
of bryelows. So that's why I'm a big fan of those,
and that's why I recommend them virtually every week to
clients because there's a great way to grow and protect
the money that you built so far. So Ryla is
probably my number one right now. I will say another one.
I love that we talk about this a lot. I
know everyone talked about fixed annuities and things like that,
but I am a fan of clients that say, helv,

(29:29):
I really want to just make sure I never lose
a dime in my investments. Right, I'm going to roll
over my retirement plan, and I want one thing and
one thing only. I want to protect my money and
I want to convert it into a paycheck so I
don't have to work ever again. Right. So I am
a big fan of what's called the FIA as well.
That's a fixed index anuity. Again, many companies, many different flavors.

(29:51):
There's a whole bunch of different kinds. But in concept,
when you put your money into a fixed indexinuity. What
I love about it, you put that company whoever is
offering that annuity into the corner contractually, right, So that
money the good thing. You drop a million into an FIA,
that company has to pay you just like a pension,
just like a Social Security check. They have to pay
you until the day God calls you home. And sometimes

(30:12):
they'll even put your wife or your husband on that
as a spouse and they have to pay him or
hurt after you passed away as well. So that's the
one thing that you know. There's not a lot of
promises in our world, especially in Wall Street. But the
good thing about those fixed index and nuities. They can't
promise you high returns. They can't promise you fees will
be you know, low for the rest of your life.
But one thing they have to give you is the

(30:33):
promise that you'll never run out of income.

Speaker 2 (30:35):
Right.

Speaker 4 (30:36):
That money will last for the rest of your days,
as long as you and your spouse live, and it's
a guaranteed monthly payoff that replaces the check you're losing
when you retire and again along the road. The good
thing about them is not going to be a super
attractive growth vehicle. But they do offer good guaranteed interest
rates you know that may reset every year, and they
give you some opportunities to grow your paycheck throughout the
years through again very specific details that depend on the company.

(30:58):
But what I love about it is peace of mind saying, hey,
I'm going to roll my life savings or a portion
of it into this vehicle. It's going to tame me
out two to three grand a month to replace my
check every month, and I can go live my life
and just enjoy my time with my family. It's a
great certainty vehicle, not a great growth vehicle, but a
great one to make sure that you never run out
of paycheck ever.

Speaker 6 (31:16):
Again.

Speaker 4 (31:17):
So bottom line on those two beds, you know, I
like diversifying. I like to put some money in a
growth ryla like I talked about, to really grow and protect.
But I also like to say, hey, fine, no matter
what happens in the stock markets, we have a segment
or component of your wealth that we know is going
to deliver a monthly check to you and to the
day you pass away. So you know, and that's why
one last thing I'll say that's kind of controversial. Best

(31:38):
if you've ever gotten advice and I see this a lot,
which is why I wanted to talk about it. If
you've ever guide advice from an insurance agent or an
annuity agent, there's someone that is captive with a company
where they're taking your entire life savings at retirement and
dropping it into just one of what I just described,
Then you need to run away because you should not
have all your eggs in one basket when it comes
to this. There's a very specific level of play in

(32:00):
a specific dollar amount that you should be putting towards
these vehicles. And remember you never want to dump all
your eggs in one basket and dump your whole life
savings into one thing. And I see that a lot better.
That's why you got to make sure you see a
CFP or someone that has a fiduciary that can really
give you advice based on your situation and not lock
your money up for seven to ten to twenty years
like I see in some of these contracts. So very

(32:21):
important again not giving blanket advice, but you have to see,
you know, good advisor that can really tailor that advice
to you to say, hey, this is what should go
into mutual funds. This should go into a newdies. This
goes into your RYLA for growth. You want to have
different buckets, which I've spoken about before, to make sure
you're diversified in your plan is really built to be
weather proof, right for the good, the bad, and the ugly,
and that you know when you retire, you could you

(32:43):
know your money is taken care of and protected and
still growing and can give you a paycheck to live
off of until God calls you home. So those are
only two annuities I wanted to go over for the
note takers you know, and to those that are listening again,
the rylas and the fixed index and nudies. There's plenty
of other ones, but for today, I wanted to just
make sure everyone had a definition of those member their contracts.
Some are for growth, some are for income. And remember

(33:05):
it's up to you and your advisor on what's going
to be the appropriate mix based on your goals and
then based on what's best for you.

Speaker 3 (33:12):
Sounds good, Hold on, LV, we are off to a
great start.

Speaker 2 (33:16):
We're gonna pause, take a break.

Speaker 3 (33:18):
If you've just tuned in this day, we are talking
with LV Plumber, our certified financial planner, practitioner lp L
Wealth Strategist, and LV is offering free complimentary consultation for
the first five people who call nine zero one seven
four eight zero zero five zero or the first five

(33:42):
people who book online. Go to Pwsplanning dot com send
them email by clicking the contact us button to schedule
your complementary consultation with LB. We're talking money, Vehicles for
your financial road trip with l V Plummer Junior.

Speaker 2 (34:04):
Me BAB Johnson on do w d i.

Speaker 5 (34:09):
A Got something to say? Say it next? With Tennessee
Radio Hall of Famer BEV Johnson on do w d
i A The Bev Johnson Show.

Speaker 4 (34:46):
Kevin, you did I A the fame.

Speaker 3 (34:55):
Mean?

Speaker 2 (34:56):
I'm telling him everyone, Bab talking.

Speaker 4 (35:07):
Everyone.

Speaker 3 (35:11):
Good morning and welcome back to w d i A.
We are talking with our certified financial planner practitioner lp
L well Strategist, Lawrence Plummer Junior, better known as l V.
We're talking about vehicles for your financial road trip and
l V. As we go to our next question I

(35:33):
have for you and everybody likes this. Hey, let's talk
retirement plans. The ones you talk about are the four
one k's, I R a's you talked about Ralph's. Which
are your favorite vehicles.

Speaker 2 (35:47):
In y l V?

Speaker 4 (35:50):
Yeah? Any know, Bev, I just don't want any shows
to go by without me, you know, really reaffirming why
I am the way I when it comes to Roth accounts, right,
I think everyone that's my client that you know it's
come from the show and beyond, knows how much of
a fan and proponent I am a Roth. So put
it this way. To say something bold here, I think

(36:11):
that I don't give blanket advice, as I always try
to preface, but I think the majority of Americans need
to make sure they go look themselves in the mirror
and say, hey, do I have Wroth investments? Yes or no?
If you say yes to yourself, I think that's a
great thing. If you say no to yourself, I can't
say that it's for you because I have to know
your situation. But I think if you do not have

(36:32):
Wroth money, that is a mistake for the majority of Americans. Right.
And then what I'm going to say is this, if
you were not making if you would not consider yourself
a high income earner. To answer your question, Roth accounts
are my favorite, whether it's a Roth ira or a
raw for a one K or after tax account whatever,
I think for the vast majority of people that are
doing themselves a massive disservice, especially if you're younger to

(36:55):
not be investing in tax free roth IRA accounts. So
I just don't want to show to go bile that
saying that, because right now that still is my favorite,
most kind of predominant investment I recommend. And for those
that never have heard me before that may be in
your show, BEV and that hasn't heard previous shows, just remember,
if you're not making in my opinion, depending on your
tax rate and your you know your federal income tax bracket.

(37:15):
In my opinion, I'm ana throw a number against the wall.
If you're not making over two hundred thousand dollars plus
maybe even a little higher, depending if you're married or not.
Then I really do think that roth should be the
only thing I'll say again, not blanket advice, but I'm
thinking should be the only thing you should be putting
your money into. Because think of it like this, When
you put money into that rock account, bev that money again,

(37:36):
you do bypass that tax deduction if you put the
maximum seven to eight thousand today into a roth IRA
or a ROTH at your job and your four one K.
Remember you don't get it right off today, but remember
that money is for your future self. It's not for
a current you, it's for future you. That money goes
into that ROTH account. And remember, if you have a
good ROTH plan at your job or you have an
IRA with your advisor, you can invest in a complete

(37:59):
open seat box of investments with you know, individual stocks,
hopefully real estate bonds, sixty income investments ets like those
sector funds I talked about earlier. So you know, you
can invest in a myriad of things in that ROTH account.
Whether it's at your job or whether you have it
in the IRA with your advisor or just managed by yourself.
The money you make in that rock will grow without

(38:20):
Uncle Sam seeing or touching any of it. Right, It's
a tax sheltered investment vehicle. So bottom line, you put
one dollar into a ROTH, and let's say you hit
it big and turn that one dollar into a million dollars.
The best thing about it that money goes to that
million dollars without paying any taxes. And then when your
older future self is now ready to start consuming that
million dollars, member Uncle Sam will not tax you on

(38:41):
a dime of your principle or your earnings that you
made in in that rock. So for that example, that
nine hundred and ninety nine thousand dollars in profit. Right,
So you know, so that's the thing to think about.
Tax free growth, tax free withdrawals. And I just don't
want everyone to underestimate the power of that. And I
say I say it before, or I said it before.
Most people don't realize how important that is until they

(39:02):
get to their retirement age. I run their analysis, I
show them their tax bill, and they panic because you're
going to be if you do the opposite of that,
which is pre tax investing, which the fast vast majority
of people do when they're working for their four to
one ks, then you build up yourself same million dollar scenario.
Instead of that million dollars being tax free when you're retired,
now that money is pre tax and you have to

(39:22):
pay tax at your respective tax bracket or rate at
that point for the rest of your life. Right, every
time you pull money out of Uncle Sam's right there
waiting for you, and even worse, when you die, if
your money has not been taxed, Uncle Sam didn't get you.
So he's gonna go get your kids and your grandkids
when they inherit that money when you pass away. So
it's better for you and it's better for your next

(39:42):
generation to have Roth tax cleansed, tax free money that
you can live off of and then pass on to
your next generation. So so again to answer your question,
bev Roth Roth Roth. The one thing I never want
to have a show go by. That's my favorite vehicle.
And again, as far as those vehicles we're talking about,
one of those that says Helv, I am in the
higher income tax bracket. I need my ride offs today

(40:05):
and I can't afford to defer taxes for the future,
and you're making over two three four hundred grand a year.
One thing that I do talk about a lot bit is,
you know, looking at what are vehicles out there that
I know for the hire income earners or things that
we can really keep Uncle Sam off of right now today.
So I go back to my previous examples. I am
a fan of growth annuities for younger kind of more.

(40:27):
You know, higher income clients that we know are building up,
like a lot of my athletes, my doctors that come
out of physician when they're young. I'm sorry out of
residency when they're young. Maybe some of my forty five
to fifty five year old business executives, a lot of
them are in their peak earning years, and guess what,
they don't care about the future. They care about now
because they're in a thirty five percent tax bracket, right,
So we need rados today. So for that being said,

(40:49):
you know, we try to make sure that we max
out those four ones. A lot of clients that work
for you know, the public sector, like for charities or
nonprofits or schools or local governments. That's what the four
or three B is for, which is the same thing
in my opinion as a four one K. So those
are also vehicles that we do like because it's easy.
Every time you get paid, you defer your paycheck or
a percentage of it into that vehicle. It's so easy

(41:10):
to put money into it. And again for those listening,
if you are blessed to have a four to one
K or a four three B with your companies, remember
please because I still see it every data. People are
not taking advantage of the match on those four oh
one gays. If you work for a company, if you
don't know the answer to that question, does your job
offer a matching a free matching contribution. Please call your HR,

(41:31):
ask them what they're matching, and if they say, hey,
we're matching three percent, or hey we're matching six percent
or seven percent, make sure you get that free money
because it will be malpractice for me to even advise
anything else. If you have free money offered by your employer,
please put in enough to get every dollar of that match,
because that's a free doubling your money as long as
you can put enough to get that free match. So

(41:52):
that's why I am a big fan of those employer plans.
And also, let's say one of those listening like a
lot of our clients that come from the show, and
they've already done all this, they've maxed out the four
one K, they've done roth Ie raids, and they still
need vehicles to utilize to really grow their wealth over time.
That's where I can backtrack them and go back to

(42:12):
a nudies because if you've maxed everything out, you can't
get any more deductions. The limitations start to show, and
there's only a few other things we can look into
that aren't very sophisticated. Right, So one thing I would
say would be again using those nudies where you can
put it in an unlimited dollar amount. Even though you
won't get it right off on it today, the good
thing is that you can still grow that money in
those annuities vehicles tax free as you get older, and

(42:35):
there's a lot of advantages from Uncle Sam on that
as well. So if you need additional areas to grow
your wealth, you can look at different growth related to
the nudies right that are right for you, or you
can even look at things like cash value life insurance,
which we'll talk about in a few minutes, where again,
if it's the right policy that's suitable for you, I
am a fan of building up cash value, and you
know people have heard of iu WEL's and v wels

(42:56):
those kind of cash value investment insurance plans. Those could
have a good place in most people's life if it's
a good policy with a good company under a good advisor. So,
but it has to be customized to your needs and
hopefully not too expensive. But but those are those areas
we look at as far as kind of those favorites
that we that we employ. Another one we'll get into
in a minute is also going to be health savings accounts.

(43:17):
Those are some of my absolute favorite vehicles to utilize.
So we'll get into that in a few minutes.

Speaker 3 (43:23):
All right, before I get to my my next question, LV,
I had these two email questions for you, and one
question was LB in a state planning, do you suggest
a will or trust?

Speaker 4 (43:38):
Oh? I was not prepared to talk about that today.

Speaker 2 (43:40):
Okay, okay, okay, you want you want to?

Speaker 4 (43:42):
No?

Speaker 2 (43:43):
No?

Speaker 4 (43:43):
No? Great? Great, great, great question. So I wanted to
talk about life today, not yet, but I will. I will.
But okay, So I'm so sorry who emailed that. I'm sorry, Bev.
You said it was they said what was better? Well?
The question?

Speaker 3 (43:57):
The question was LV and US state planning? Would he
suggest a will or a trust in a state?

Speaker 4 (44:06):
I am you know what I'm you know what I'm
about to say. It does depend I would have to
know your situation, but in concept, I will say to
that person to be honest, I like both. I really
like those two entities to work together for someone to
state planned. And remember this just so we don't spend
too much time, but remember a will is the first

(44:27):
step in my opinion, right, I'm not a legal attorney,
so I can't go too far. On that. But the
will is like your voice, right, and I say that
a lot. The will is your voice. The will is
a simple mechanism you can leave behind to where your
family and your beneficiaries and your heirs if something does
go to probate, or you know, if you have property,
or if you have something, then you have to give guide,
a guide map to the judge to say, hey, everybody,

(44:49):
this is who I want to get. What my cars,
my personal property, my jewelry, my artwork that I collect,
whatever that you built in your life or accumulated in
your life. I like the will. Even though the will
does not avoid probate. Please note that down the will
does not avoid probate, which is a nightmare. It still
will give your family general direction and even like a
will and like a living will, will provide like advanced

(45:11):
healthcare directives to say, you know, if I go into
a coma or if I have Alzheimer's or dementia, not
only would that will cover my stuff and my disposition
of my assets when I pass away, but it also
gives me the power to assign the appropriate power to
my family and friends who I trust with my life,
to say, if I'm gonna you know, if I have
Alzheimer's at age seventy nine, this is who's going to

(45:32):
help me make medical decisions, make financial decisions, and really
act as that. I'll say that trustee over you, over
your estate, and make sure that you're taking care of
an older, more advanced ages. So for those functions, I
do like the will, but just for everyone listening, the will,
in my opinion, for most Americans, is not enough. I
am a fan of trust, and I think trusts are
very misunderstood vehicles where you think you've got to be

(45:54):
like a superstar to have one or be super wealthy.
I like the two to work together because, like I said,
a will is your voice, but a trust is your hand.
The thing about the trust, unlike the will, the trust
avoids probate, right, and I think we talked about probate before, Andy.
Probate's a nightmare. You don't want your family to go
to the courts fighting over your stuff publicly and expensively

(46:16):
to figure out who's getting what and getting into a
massive brawl. So the trust, the good thing about it,
You control that money and that wealth and those assets
from the grave. It's an actual physical vehicle you're leaving
behind to say, hey, no matter what you guys think,
and no matter what there's no judge involved. I'm the judge.
This is who's getting my stuff. This is not only
who's getting my life insurance, my investments, whateveryone put into

(46:39):
that trust. When you die, you can set the rules
and the guide map on who gets what, when they
get it, how they get it. And I do a
lot more trust planning than I thought that because I
think that attracts a lot of people to have control
of their life savings after God's called them home. Because
the last thing you want to do is leave behind
your life savings to a nineteen year old. And I've
been through that, a nineteen year old that has never

(47:01):
seen more than a few dollars in their life, or
hasn't gotten that first job, or really it really isn't
financially mature yet because they haven't really lived enough life
and made mistakes. So the last thing that and the
reason I talk about is so much better is because
you know, I would hate to work with clients for
twenty thirty, forty years. They build up two, three, four
or five million dollars. They've done well, they've they've retired successfully,

(47:21):
they pass away sooner than we expect, right, maybe in
their sixties or seventies, and then all their money goes
to an irresponsible family member that's going to blow it
within two years, when it should have been a generational
transfer of wealth that should last at least two generations. Right.
So that's why I talk about it a lot, because
it's not enough to just plan for your life. I
think everybody listening knows that we have no control over

(47:42):
when our card is pulled and whenever a guy calls
us home. So it's one of those things where don't
go through life thinking that you don't have enough for
a trust. I think if you have family, if you
have miners, if you have grandchildren in the family, and
maybe even that one sister, brother, son, daughter that isn't
really ready yet. You know they may have some financial
issues themselves, or you want to put a little more

(48:03):
control on their inheritance. That's what that trust is for.
And you don't have to have millions to get into that.
So just a great question. I could talk all day
about that, but my answer is both. But I got
to move to the next question. If you want to
talk more about it, just call.

Speaker 2 (48:16):
Back, all right, all right, LB, thank you.

Speaker 3 (48:19):
There's a special vehicle type that you often advise your
clients doing the appointments.

Speaker 2 (48:24):
Is it called an SMA. What is that?

Speaker 4 (48:27):
Explain that L Yes, yes, great questions. Yep, yeah, And
we get a lot of questions about SMA. And here's
the thing SMAs are for. They're more exclusive investments. In
SMAs for those taking notes, it stands for a separately
managed account, a separately managed account. So SMAs these are
for clients just in my opinion, we're talking usually fifty

(48:50):
thousand and up right, those that have at least fifty
k and up in their retirement accounts, maybe cashlining around
or just investment portfolio and as they are looking to manage.
What I love about the SMA is put it this way.
It is a private investment. We've been talking about public
investments this whole time. Mutual funds, ETF sector funds, those
are all things that anybody can buy on their cell
phone today. If you are one of those that's higher dollar,

(49:13):
right you have you know again, fifty k's is the
simplest SMAs, but we go as high as ten twenty
million on some of ours. So if you're one of
those where you have more needs and more once and
you want a private wealth manager to do things and
that everybody can do and get into. That's what the
SMA is for so right, So remember this, The key
difference is that unlike a mutual fund and the sector fund,

(49:34):
like we talked about, you're not buying a basket of investments, right,
You're not in that bus with everybody. Mutual funds, ETF
sector funds. Those are like buses where you're sharing the ride,
sharing the profits with millions of other people. With an SMA,
you're in a limo, right, You're in a private vehicle.
It's you and you only, the vehicle that you invest
in that's designed for you and your needs and your

(49:55):
goals and your risk tolerance. That is, it's to you only,
and you don't share any profits with anybody else like
a mutual fund. And again you even own the underlying
investments within that fund. Right. So when you have an
sm you have a specific team that usually me and Goorb.
Your advisors would select across the wall street and they
buy individual stocks, right, So you buy great companies like

(50:16):
Nvidio and Amazon, Apple, all the usual suspects, right, based
on your portfolio and The great thing about it, you know,
you are a direct shareholder in those companies, right, so
you get to enjoy dividends, voting rights, you get tax benefits.
There's a lot of nice little strategies we can employ
because you're having a portfolio directly and wholly owned investments.
And not only on the stock side, but remember even

(50:37):
on the sixth side, you might have you know, eighty
percent stock twenty percent bond in an SMA. The good
thing about it, that's, you know, even on the more
conservative side of an SME, let's say we have again
twenty thirty percent in bonds. You have a bond manager,
not a bond mutual fund, a bond manager that's going
to find and directly purchase bonds for you, right, and
make sure that overall they have the latitude to buy

(50:57):
and sell and hunt down the best interest rates for you.
So you basically employ the services of a dedicated bond
manager that says, hey, you know, we're gonna buy Marriott
Hotels bond to give our client five point seven percent interest.

Speaker 2 (51:09):
Right.

Speaker 4 (51:10):
Let's say that things get a little better out there
over the next year, and you know, you're you know,
your bond is holding that you know, getting that Marriout
for five point seven percent. Let's say Hyatt Hotels has
a bond they're started offering the next year and it's
at I don't know, six point two. Then the good
thing about having an SMA is that that bond manager,
because you're paying a private team to do this for you,
they can sell that old Hiatt bond and go to

(51:31):
the higher yielding Marriout bond instead, and then making sure
that overall you have the highest yield or the highest
returns given the marketplace at that time. So in other words,
it's not a set and forget investment. You have bond
managers and stock managers that are looking and finding the
best opportunities, looking at the markets, buying, selling, trading, actively
finding the best interest rates. It's another level of management,

(51:54):
and again it's not for everybody. That's why you do
sometimes have to have those higher dollar amounts take it
into SMAs. But I like them for a myriad of reasons.
You can manage the taxes more effectively in them, you
get to enjoy dividends, voting rights, you're a direct stockholder.
You have bond managers that can really find the best
income opportunities. For you and as the last note, we
don't talk about it enough. SMAs also offer more flexibility

(52:18):
to buy into things like we like I talked about
maybe about a year ago. They're called alternative investments, right.
We love things like gold, precious metals, currencies. We can
buy things like real estate investment trusts right where we're
buying hotels, condos, medical districts, you know, all those different
real estate investments right to create income, and even things
like you know, private hedge funds and private equity. Those

(52:39):
are awesome investments in my opinion, for a lot of
higher network and higher income clients, just to make sure
you're diversified and you're buying investments that really you know,
it's a little bit more exclusive. So I love those SMAs.
A lot of people can afford them, and they don't
realize they can afford them. And if you have a
good company that you know, like LPL who I'm Under,
depending on who you go with as far as your advisor,

(53:01):
sometimes those can be those minimums are as high as
a million to get into those and even like for us,
the good thing about LPL who I'm Under, we actually
can start as low as fifty K to get into
some SMAs. So again, it's a private higher dollar, more
actively managed, more i'll say, robust portfolio platform to be
able to properly diversify your investments into things that not

(53:22):
everybody can get into. So, you know, but so that again,
I like a mixture of all this, but that personally
is my favorite form of investment management, just because of
the again, the freedom and latitude to make sure that
you have the best possible portfolio in my opinion.

Speaker 2 (53:35):
All right, quick question, LB.

Speaker 3 (53:37):
Do you think people should use life insurance as a
vehicle for their retirement savings?

Speaker 4 (53:43):
Yeah? I guess that. I get that question a lot.
I will not spend too much time on Everyone knows
my feelings on that by now, but I'll say this,
I think it's a viable plan for most people. Yes,
I think it's a viable strategy. And for those that
didn't listen the last time I ranted about this, Yeah,
a lot of insurance agents are kind of going a
little crazy right now with recommending insurance policies as a

(54:05):
replacement for like, you know, a four to one K
or something like that to save for retirement. I'm not
a fan of that. I think that being too cavalier
with life insurance is a massive mistake. I think you
should have diversified components of wealth building. But at the end, again,
I'm not. I don't have a problem with life insurance
being one cog of your machine. But I will say
I'm not. I'm not against it. So and what people

(54:28):
what people hear about iulso v wels when you buy those,
you know, those hash value permanent life insurance policies that
I can't say this loud enough. They're meant for your
death more than your life. In my opinion, I use
them by function and recommend them by function just to
make sure if you die earlier than we expect, that
your family is taken care of, and then you can
pass on generational wealth tax free. Right, That's the whole

(54:48):
point of a life insurance policy, and I stopped there typically,
but as an added bonus, right in these iuls and
vuls they will let you invest and build up cash
tax free over time. So I like that, and that's
a good thing. I just wouldn't get carried away with
putting too much of your wealth into one of these
for the expensive policies. So at the end of the road,
if someone hypothetically were to have I don't know, one
hundred grand at the age of sixty five in one

(55:10):
of those policies. Remember what I'd like about it. You
can use that cash to give yourself a tax free loan.
You can use them to you know, create you know,
create retirement income if you wish. And it's a nice
accessible pool of tax favored money that you can tap
into as either at last resort or as part of
like a tax management plan, so that way you can
have just a nice ser thing to dip into if

(55:31):
you need to. And then remember, if you pass away,
your family gets the faith value of that insurance policy
plus one hundred grand tax free when you die, which
I think is still the best benefit. But anyway, just
don't go crazy with it. The answer is yes, but
don't go But just make sure that overall you know
the ins and outs the tax the tax nature of
your policy, and make sure you work in an advisor

(55:51):
really think about how that can fit into your big
plan to manage taxes and to make sure you have
you know, a nice diversified kind of suite of investments
to attire and live off of.

Speaker 3 (56:01):
All right, and my last question of the day, LV.
The last vehicle of the day is health Savings Account.
I like that one.

Speaker 2 (56:10):
Why do you favor these vehicles that advise clients to
not to ignore it?

Speaker 4 (56:16):
Yes, great question, great question. So you know the HSA.
I have spoken about that, and I will not let
some of new shows go by where I don't go deeper.
So remember for those HSA help save news account, it's
one of the few vehicles where you have a triple
barreled tax benefit, right, I think don't quote me on this.
I got to see the number now. I think you
can put up to HSA maximum. I think it's about

(56:38):
fourteen thousand a year for a family or for or
a family of anything more than two. So so remember
with an HSA you can drop that money in. You
get a ride off on the front door when you
put that money in from your if you have one
of your employer. You can also grow that money tax free. Right,
So you can build it and you can invest it
and do whatever you want to the AHSA as you're
working and building up your portfolio. And just like a

(57:00):
raw iray, all that money can be used for qualified
medical expenses when you get older. Right, So when I
say qual, I remember it's tax free in the back end.
It's like a ROTH. So it's one of the few
vehicles in America where you get those three benefits, tax
free contributions, tax free growth of capital, and then tax
free distributions when you pass away. So that's why it's
a three pronged monster of a vehicle that I recommend

(57:22):
every single day. And a lot of people have that
counter argument that but like, you know, well, I'm young,
and you know I might need this money. I wish
I could leave it alone, but I need it for
copays and my family, you know. And remember you can
always use it for the now, just like a flexible
spending account in FSA. But in my opinion, I prefer
people to leave that AHSA alone because remember, unlike an FSA,
you can leave that money alone. It's not used or

(57:44):
lose it. So I prefer to use the AHSA as
a long term wealth weapon. Invest in it, builds it,
grow it, and then when you get to sixty seventy
years old, that then you're starting to get you know,
health care costs start to go up. We get older,
we get a little more brittle. You know, you'll have
things like Medicare premiums, the a lot of things like
you know, doctor's visits, you might have a few surgeries.
Not anything can happen when you get older. So the

(58:04):
good thing about it that money will be locked and loaded,
ready to go tax free for not the what if,
but the inevitable healthcare expenses that will happen to us
at some point. Right, we're not going to be perfectly
healthy our entire lives. So that's why it's a good
separate arm of wealth where you can kind of put
that as your defensive component of your plan, while the
rest of your money can be for living life right,
normal income, vacations, travel, buying that beach home. You're off

(58:28):
four one k iras, all that stuff we talked about.
That's for the good stuff. The AHSA is for the
bad stuff. That's the defense part of your portfolio, just
in case whenever those expenses come. Hopefully you have one
hundred grand ready to go tax free for any healthcare
expenses that come up, even those really nefarious expenses like
you know, I hate to say, the nursing homes, long
term care facilities, you know, hospice, all that stuff may

(58:50):
happen as well. So that's a good vehicle, not just
for you, but also for your family for when you
reach those very advanced pages right before you go see
the Lord, right, So that's why you're you know, it's
good so your family won't have to pay for those
costs and you want to have to go to get
Medicaid and all that. It's just a great thing to
protect your living money. And that HSA money is your
defensive money to protect you and your family from financial strain,

(59:10):
not if, but when those healthcare costs, those really offensive
non Medicare covered costs are going to happen, you know
at some point. So again, huge fanada. If you have
access to one, I can almost be a blanket advice
in that and say try to get one, but I
got to talk to every client before recommending it. But
it's usually ninety nine percent of the time a good
idea unless you just know you're going to be perfectly
healthy the rest of your life, which isn't going to

(59:31):
be the case. But if you want to learn more,
remember if you're self employed, you can open one up
on your own. If you have a high deductible health plan.
If you work for a good employer, then usually they
will offer them as well, so make sure you ask
your job if they offer hsas. If you don't, call
your advisor or call us and we can help you
figure out what's the best way to get into it.
But that's up there on my mount rushmore of investment

(59:53):
vehicles in other day. Make sure you know it's just
one of those things that the vast majority of Americans
ignore and mostly don't even know what it is. And
it's one of those very unsung heroes when it comes
to retirement planning.

Speaker 3 (01:00:04):
All right, and LV, this last just just came in
before I let you go from Reggie email and Reggie
wanted to know LV, how do I transition an old
four oh one.

Speaker 2 (01:00:15):
K from Fidelity to l v Plumber Financial.

Speaker 4 (01:00:21):
Come on, come, LV, Hey, we'll gladly sick here of
that'd be ready. Just do me a favor and remember guy,
and for everyone listening, I say that laughingly, we don't.
We don't take our client's money that you will never
come to me. You work with the broger. We work
with a parent company called LPL Financial and it's one of
the biggest best companies in the country that supports advisors.

(01:00:44):
So so yes, rollovers are one of our key areas
that we work in, Reggie, so you had to handle
that with care. So if you can't do me a favor,
call up to the office or email us. Our number
is nine O one seven four eight zero zero five
zero and my team's on standby, so you can call
the off and just set up a rollover appointment and
we'll get you on the calendar sooner than later to
handle that. If it's time sensitive, please let Kristen Whitney,

(01:01:07):
Lenita Ravon let them know that it's time sensitive and
then they'll try to get you in front of the line.
But if you can wait, just still put you on
as soon as possible. So but yeah, call if you can,
or you can email us at just my email LV
at PWS Planning dot com. You can send it to
me and my team will see it and then we
can reach out to you via email if we need
to schedule an appointment on That.

Speaker 2 (01:01:28):
Sounds good, LV, good work today. Any other final thoughts.

Speaker 4 (01:01:33):
No, that's about it, Beth, No, it's gros show. I
appreciate it. I feel like there were so many great
questions that I should have gone into more into those areas.
So next meeting, next time in October, we'll go over
some more things along those lines that I wanted to
talk about, and also we'll talk about horror stories next time,
appropriate for Halloween. So I just wanted to go into

(01:01:53):
storytelling bout next next month, so everyone please don't miss
out on it. I think I said it earlier that
sometimes knowing the crazy stories that we've been through with
clients and knowing what not to do is just as
important as knowing what to do. So that'll be the
theme of the next show, will be kind of going
over some storytelling about just you know, cautionary tales on

(01:02:13):
what to do, and we're not doing things we've experienced firsthand.
So I look forward to that.

Speaker 2 (01:02:17):
Sounds good.

Speaker 3 (01:02:18):
Thank you, LV, look forward to next next month, and
be safe out there, brother.

Speaker 4 (01:02:23):
Thank you you too bad. You have a good one,
okay you bye bye.

Speaker 2 (01:02:27):
Don't forget to call LV.

Speaker 3 (01:02:28):
His number is nine zero one seven four eight zero
zero five zero nine zero one seven four eight zero
zero five zero or email lv LB at p w
S Planning dot com and he will definitely take care
of you. We're getting ready to go to the other

(01:02:49):
side of the BEB. Johnson Show right here on w
D I a whether.

Speaker 6 (01:02:57):
You're in Arkansas, Tennessee, or Mississippi, on Facebook, Twitter, or Instagram.
Thank you for listening to The Bev Johnson Show on
w d i A Memphis.

Speaker 3 (01:03:07):
The Bev Jonson Show