Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome to the hidden world of wealth, where secrets of
the affluent become accessible to you. You are listening to
Your Money Matters, the most provocative financial radio show on
the airwaves. You are about to start your educational journey
here on Your Money Matters with your host, Drew Prescott,
(00:22):
President of Prescott Private Wealth and Chartered Retirement Planning Counselor.
Drew will unlock the complexities of the financial landscape with straightforward,
powerful insights. Whether you're planning for retirement, managing in a state,
or looking to grow your wealth. Consider this your exclusive invitation.
Turn up the volume, lean in closer. Let's navigate the
(00:45):
hidden paths of prosperity together. Your financial enlightenment begins now.
Securities off produce a Terror Financial Specialists LLC Member fin
the SIPC reservices offered through Setara Investment Advisors LLC. SATERA
firms are under separate ownership from any other named entity.
(01:05):
Four five to one WHO six Street, Troy, New York
one two one eight zero.
Speaker 2 (01:14):
And now the end is new, And so I face
the final Coursain my friend, I'll say it clear, I'll
state my case of which I'm servain.
Speaker 3 (01:39):
Welcome, back.
Speaker 4 (01:40):
Everybody. You are listening to your money matters, and I'm
your host, Drew Prescott, chartered Retirement Planning counselor, accredited wealth
management Advisor and President of Prescott Private Wealth, located here
in Troy, New York at four fifty one. Who's extreet.
The phone number here is five one eight two zero
three one nine eight three one eight two zero three,
(02:01):
nineteen eighty three.
Speaker 3 (02:03):
And for those of you who have been.
Speaker 4 (02:07):
Dedicated listeners, this is the final curtain for me on
the radio. So, as I've been telling you, I would
love for you to follow me on my podcast. You
can just make your way over to PRESCOTTPW dot com,
go under media and you'll see our podcast there and
YouTube channel. Do me a favor, would you subscribe to
(02:30):
that and follow that. Let me tell you there's gonna
be some incredible information and it's gonna be readily available.
So the goal is not to just go on for
an hour on those podcasts. They're gonna be like twenty minutes,
but they're gonna be packed with good stuff and timely
delivery of important information. Also, make sure that you go
(02:53):
on our website and sign.
Speaker 3 (02:56):
Up to UH.
Speaker 4 (02:58):
Actually the first pop up there. Just go ahead and
put your name and email in there. That'll put you
on our follow up email. And for those of you
who have done that in the past, you would have
gotten the letter that I sent out last week. And
it was after the show had aired and I had.
Speaker 3 (03:15):
Sent out a letter. Let's see, I guess first.
Speaker 4 (03:17):
Thing on Monday morning actually just talking about the war
and that was going on, and thank God that's all
over with. It seems like, yeah, that's been tamp down
and we're not going to have to worry about that
again anytime soon, Lord Willing. But it also just kind
(03:38):
of talked about the opportunities that exist during times like this.
I really believe we're living in historical moments here where
these events are going to be talked about for decades,
if not centuries here, okay, And I just want to
thank you for always giving me the opportunity here. You know,
(04:00):
I've been on the radio on w g Y for
a few years on w t R. I'm sorry, what
a try forgive me picks one O six ESPN. And
the time has come that I fine tune my messaging
to go on YouTube and podcasts. I really think I
can be much more effective in that channel, and I
(04:23):
would hope that I've brought you enough value that you
would follow me through there. It's a tough ask because
most of you are just you know, you've got the
radio plan on Sunday. But I do believe I'm going
to bring you a lot of value. So I'm very
excited about this. But you know, this last week, can
I get personal with you for a second here? There
(04:47):
has been moments in my professional career that have been
very touching, rewarding, and very difficult as well.
Speaker 3 (05:01):
And I'll tell.
Speaker 4 (05:02):
You the first, I think the first major event in
my professional career was I had a couple that I
had wrote a life insurance policy on a young couple
when I first got into the business, and the wife
(05:26):
got diagnosed with breast cancer and she was going through
treatment and we had what's called a waiver of premium
writer on her life insurance policy. And what that means,
if you're not aware of it, is that if you
become disabled, the insurance company will pay for the premium
(05:47):
on the policy until you get back on your feet,
or if you.
Speaker 3 (05:53):
Can no longer work, it.
Speaker 4 (05:54):
Would continue on and if you pass away then they would,
you know, obviously they would make the premium payments until
you passed away. And that being said, this was a
couple that I had met when I was young and
I was in the car business, and I'd sold them
a car as well, and to be able to help
(06:16):
them through that.
Speaker 3 (06:18):
I remember that just.
Speaker 4 (06:20):
That was only about a year intwo me working in
financial services, and I remember feeling like, Wow, I made
a tremendous difference in their life, and that's a great feeling.
The next time was again another insurance related thing. Was
(06:40):
I had sold a life insurance policy to a fella
who had three children and a wife that was home
with the children. And when he had bought his life
insurance policy, it was a little bit of a rest
on match because he definitely wanted to cover himself, but
(07:03):
he he really just wanted to get like two hundred
thousand dollars worth of life insurance. And I had kind of,
you know, I stuck in there, stuck in the ring
to help him to see that his family really needed
more than that. And unfortunately, the good Lord called him
(07:25):
home and his family received about a million and a
half of death benefit, and that was enough to take
the wife and the children into the next chapters of
life and.
Speaker 3 (07:42):
So but.
Speaker 4 (07:45):
That's that's a rewarding feeling to know that, you know,
this family could have had a couple hundred thousand dollars,
but thankfully.
Speaker 3 (07:55):
I had the I guess, the audacity, if you would,
to really kind of.
Speaker 4 (08:04):
Argue with this fella about the level of coverage that
he needed. And I'm thankful that I did, and I'm
sure that the family's thankful for that as well.
Speaker 3 (08:13):
Well.
Speaker 4 (08:13):
This last week was very touching for two reasons. One,
one of my clients had passed away this week. Well
I shouldn't say this week, it was last week, and.
Speaker 3 (08:33):
You know, we.
Speaker 4 (08:35):
Knew that it was coming. And she was just such
a wonderful lady. And she was referred to me by
her physician. And she was a retired nurse and she
was a widow. Her husband had passed away and left
her some wealth, and when I met with her, she
(08:58):
had some investments, but just was not comfortable with what
she had. She did not have any education on the
topic and didn't understand what she owned. So when we
first met, what I did was I took her through
an education to teach her what risk is. We walked
(09:21):
through a questionnaire to see what she felt comfortable with
for risk, and then I showed her the different ways
that someone can invest between bonds, CDs, stocks, mutual funds,
you name, and I just gave her a nice overview.
And when we first got started, she said, Oh, none
(09:43):
of this is going to make any sense to me.
I'm just gonna check out and I'm just gonna trust you.
And I said, I always say to people, I really
truly appreciate the fact when you say that you trust me,
but let me give you a reason to trust me first.
And I believe that comes with education. So I educated
her and she she got it. It was so nice
to see when it clicked and she said, I understand
(10:04):
what you're saying, and this makes sense, and which made
a wonderful time for reviews because when somebody understands what
they own, why they own it, and what they're trying
to do, boy, the review process just it just feels
so much better. And you know, we developed a friendship
(10:26):
over the years, and one I was telling her niece
this story, and one time I went over to her
house and she had this I honestly, I have never
seen a peanut butter cup.
Speaker 3 (10:41):
This size, and so I said, hey, so and so.
Speaker 4 (10:46):
Boy, that's a big peanut butter cup. I said, I
got to tell you, I said, I love Reese's peanut
butter cups. I said, but that looks awfully big. And
I'm just curious. Does it still have flavor when it's
that size? And she laughed and she said, oh, oh yeah,
it's This is just as good. She says, I'll give
you one, but this is the only one that I have.
(11:06):
And I said, well, of course I don't want to
take that. And I said, are you gonna eat that
all one sitting? And she laughed and she says, oh,
absolutely not. The thing looked like a little It looked
like a baby pie.
Speaker 3 (11:17):
It was so big.
Speaker 4 (11:19):
And she says, no, I'll nibble on this for a
couple of weeks. And she was. She was just this
dainty little lady and just so sweet. She just you
knew she had a heart of gold from all the
years that I had worked with her. But what was
really moving was I went to her wake. And for
(11:41):
those of you who are nurses, maybe doctors know this too,
I don't know, but they had this what was called
nightingale nurses.
Speaker 3 (11:51):
Okay, and they had.
Speaker 4 (11:55):
They brought with them like it looked like a little
oil lamp and in the front they put a candle
and the candle was burning, and they they recited this
beautiful almost like I don't know, what do you call it,
like a almost like a little like poem, and what
(12:17):
it said was it said, when a patient was in pain,
she was there. When a patient was.
Speaker 3 (12:27):
In fear, she was there.
Speaker 4 (12:30):
And it just was so moving because there was about
ten nurses that took time away from their family to
go to this wake and to read this nightingale nurses,
I don't know, like a prayer almost, you know, And
and I get moved to tears pretty quickly, if I'm
being completely honest. And they they held up the lamp
(12:57):
and they blew out the candle and they said, you're
relieved of your duties. And then they went on to
talk about how sweet she was, and boy, it was
just so moving. And she had such a caring heart.
All of her planning that we did together, it was
(13:20):
so selfless. She had no children, she was a widow,
but she wanted to make sure that her niece was
well taken care of. And we did some exceptional work
on her state planning and when a client leave, passes
(13:40):
away or leaves you know, you'd never know are you
as the advisor? Will you keep those assets? Will you
be able to continue this race with the next generation.
And thankfully, my client had spoken highly enough about me
through her living years to her niece that when I
I had asked the niece, well, basically what I said was,
(14:02):
I said, you know, I don't know what your plans are,
if you plan on working with me or not, but
I would tell you I'd be highly honored if you
would consider letting me continue on with the work that
I started with your aunt. And she said, I'm so
thankful that you asked, and I would love that.
Speaker 3 (14:19):
What a high.
Speaker 4 (14:22):
High praise really for me personally to know that I've
made a difference and that not only did the client
know it, but her family knew it, and that was
just that was a wonderful win for me professionally. Now,
the other thing that really touched me this week was
(14:43):
that I had a couple that came in maybe about
it was about six months ago, and actually, as a
matter of fact, we did a zoom conference. We didn't
meet face to face, and they were referred to me
by actually by three other clients, and when we did
the initial meeting, we set up everything to gather their
(15:05):
information to put together a financial plan. We got started,
and then life happened a little bit and they were
gonna reschedule, and unfortunately, between our meeting and about a
month and a half ago, I hadn't heard from them. Well,
(15:29):
they had reached out and the wife had said that
her husband has been going through cancer treatment. And for
any of you that are going through any type of
medical conditions or cancer treatments or whatever, just know that
I'm going to be praying for you here when I
get done recording the show. And life changes awfully quick,
(15:53):
doesn't it. And sometimes life can go from good to
bad in a hurry. And what I experienced with dealing
with this couple has really lifted my spirits and again
(16:15):
just another rewarding moment. Let me tell you why that is.
Because when we first started working together, he had just
the husband had just retired. So we gathered their budget
and everything, gathered all the information from the wife's pension
and the retirement plans and so on, and they were
(16:35):
concerned that they may not be able to meet the
lifestyle goals that they have set for themselves, and we
put together a plan. And one of the things that
I explained to them was that your financial plan needs
to take into account taxes and healthcare, which a lot
(16:56):
of other people just look over. We had the right
numbers for that.
Speaker 3 (17:01):
Okay.
Speaker 4 (17:02):
Then we really drilled down on their budget and we
came up with a budget of X per month, and
I explained to them, hey, based upon this, you have
about a ninety percent success rate in retirement, and say
(17:22):
that falls inside of what we call the safety zone.
But I'm a conservative individual. I like to do conservative plans.
And that was with a reduced rate of return, but
it was also with a flat number for a need
of income. So I explained to them, you know, in life,
(17:45):
what I have noticed is that when people first retire,
whether that's age sixty, whether it's sixty five, seventy, but
in the first you know, if you're younger when you
do this, but in the first few years, let's just
say you get out to about seventy five, Okay. My
(18:07):
experiences that when people get to seventy five, you know,
they may still golf, they may still quant vacation and
so on, but they do slow down a little bit.
So typically they do not need the same level of
income unless they're a very wealthy individual. But for your
average family, typically we see that that income need shrinks
(18:33):
at about age seventy five. Then from seventy five to
eighty five it keeps about the same, but around eighty
five you need even less. And so we took all
of that into consideration and I ran a few different
options for them in retirement to look at, and everything
(18:56):
turned out great. And when we reviewed that, I looked
across the table and I saw the wife's eyes well
up with tears, and in that moment, I knew that
those tears were saying, I'm so thankful that this is
(19:19):
one less thing that I have to worry about right now,
because the most important thing is for me to get
my husband through this battle. And what a reward to
be able to be there with a family, and just
such a compliment for them to invite me into their
(19:39):
life to be there for them through these different seasons.
And that's what we did.
Speaker 3 (19:45):
With the nurse as well. That I was just explaining.
And so.
Speaker 4 (19:50):
When you work with a financial advisor, I would encourage
you to one make sure that you have a financial plan.
And number two, make sure that when you see that
person face to face that you enjoy spending time with them.
Because for my clients, I am so much more than
(20:12):
just a mathematician. I've helped them in different areas of
their life. We help them find vehicles, we help them
get discounts on their vehicles, find the right contractors, help
them with mortgages. There's so many different things that your
(20:32):
financial advisors should be doing for you. So take your
time and see who you're dealing with. Okay, so great week.
Professionally picked up several new clients. And this year I've
promised myself. In the years past, I've taken on a
(20:56):
few too many new clients in one year, and this
year here, I'm going to limit my.
Speaker 3 (21:03):
Practice to.
Speaker 4 (21:07):
About fifteen additional clients and that's about it in order
for me to do this the right way. And so
if you're if you're looking for somebody, please reach out.
Speaker 3 (21:18):
Let's talk.
Speaker 4 (21:19):
We'll see if it's a good fit for each of us.
And I would love to have the opportunity to talk
to you. That being said, I have a lot to
share with you today and I spend a lot of
time there telling you some stories. So I am going
to try to play catch up here all right now.
(21:42):
Truth be known, I do have notes that I go
off of, and with that being said, I might jump
around a little bit, okay, but nonetheless there's information here
that I want to get to you.
Speaker 3 (21:55):
Starting with this.
Speaker 4 (21:58):
As I said, I have been on WGY Troy Picks
one oh six ESPN Radio and I just want to
thank all the producers and the engineers that have helped
me through this over the years. And most of all,
I want to thank you the listener, because you've let
me into your home, into your car, into your earbuds,
(22:22):
and that trust is never anything that I will take lightly.
So truly, I truly mean it from the bottom of
my heart.
Speaker 3 (22:30):
Thank you.
Speaker 4 (22:31):
Thank you for giving me the opportunity. It is a tremendous.
Speaker 3 (22:38):
Honor.
Speaker 4 (22:39):
Okay, thank you. And for years, your Money Matter has
been about more than just dollars and cents. It's been
about empowering you to take control of your financial future,
whether you're managing a portfolio or you're just starting with
five dollars in a dream. And that message, that mission,
(23:03):
it continues. So I've gotten value from this show. I
want you to stay with me. Okay, I hope you
have gotten value from this show, so please follow my podcast,
subscribe to the YouTube channel, and both can be found
on my website under the media section. And this community
(23:26):
is not going to any place. It's just simply moving
with the times.
Speaker 3 (23:29):
That's it.
Speaker 4 (23:30):
And hey, don't be a stranger. Okay call me five
one eight two zero three nineteen eighty three email me
Drew at PRESCOTTPW dot com and if you don't remember that,
go on PRESCOTTPW dot com later on send me a message.
And uh, even if it's a Hey, Drew, thanks so much.
I've really enjoyed listening to you over the years. But
(23:52):
anything love to hear from you. Okay, So let's start
talking about building wealth even if you are start darting
from zero dollars, because I've always said you don't need
to be rich to start investing. You just need a plan.
And one of the most powerful rules I can teach
(24:13):
any client is the five dollars rule. So every time
that you spend five dollars on something that you don't need,
match it by investing five dollars in your future. And
over time, this simple act builds discipline, and wealth. So
you see, money is emotional, so don't let anyone ever
(24:38):
tell you it's not. It truly represents our hopes, it
represents our fears, freedom and our security, and for a
lot of people it's also it also represents guilt or shame.
And I should have started earlier is typically what people say,
(25:00):
or they say, I don't make enough money to invest
or I'm bad with money. But here's the truth. Wealth
isn't about what you make. It's about what you keep
and what you do with that money. And that's why
financial empowerment starts with knowledge. And I'm honored that this
show has helped thousands of you take the first step.
(25:22):
And some of you remember when I first broke down
how the compound interest works, and some of you still
remind me about the episode where I said the best
time to invest was yesterday, the second best time is today,
and you know what, that still holds true. So even
(25:44):
as we say goodbye to this platform, the core message remains.
Start where you are, use what you have, and do
what you can. And let's break down how anybody, even
with modest means, can start building wealth today. Step one
is where you want to start. That would be automate
(26:05):
your savings. You want to treat investing like a bill,
so set it and forget it. Step number two. Don't
chase trends. The headlines will always shout, but your long
term goals whisper, and you need to listen to your
long term goals. Step three, understand your why. Are you
(26:27):
investing for retirement? Are you investing for a home, your
kid's education? Because your why is what keeps you steady
when the markets get wobbly. And if you're listening today
thinking well, it's too late for me, you know I've
got news for you.
Speaker 3 (26:44):
It's not.
Speaker 4 (26:46):
I've worked with clients that are in their fifties, sixties,
and even seventies who have taken their first steps and
seen it payoff. The only regret is that they didn't
do it sooner. And for the young people tuning in,
this is your moment. So don't wait until you're in
your forties to get serious about money. You've got something
(27:07):
more valuable than cash, and that's your time. And the
beauty of this farewell show today is that it's not
really goodbye, but it's an invitation. If you've enjoyed these talks,
you've if they've helped you feel more confident about your
financial future. Please follow me on my podcast, hit subscribe
(27:30):
on YouTube, and join our growing community. Because this financial
world is changing awfully fast. With inflation, AI, geopolitics, they
all play a role today, but the principles of smart
investing they do not change, and I'll be covering them
all in depth on the podcast. Now, before we move
(27:54):
on to the next segment, I want to say this,
thank you for allowing me to be part of your routine.
Thank you to those who have called in for emailing
questions and for letting me help you navigate one of
life's most confusing but crucial topics, and that's money. And
you've made this journey very special for me and my family,
(28:17):
and you're the reason that I keep going. You know,
one of the greatest honors of my life has been
sharing this microphone with you week after week, rain or shine,
and you know, we've had a lot of rain Bowler
bear Market. We've met here every Sunday, right on the
(28:37):
airwaves to talk real money, real lives, and real possibilities.
Speaker 3 (28:42):
So whether you.
Speaker 4 (28:44):
Are sipping coffee on a Sunday morning, stuck in traffic
on a weekday, or streaming the replay during a lunch break.
Thank you, Your Money Matters has been part of your journey,
and I appreciate that. So this show is not about
(29:04):
flashy stock picks or get rich quick schemes. It's about education.
It's about clarity in a world that too often makes
finance feel like a foreign language, and I wanted to
change that. I wanted to make it simple, relatable, and actionable,
and based on your emails, calls, and stories, I think
(29:24):
we accomplished that goal. And I remember one caller who
called in and told me, said, Drew, I never thought
that I could understand investing, but after listening to you
for a few months, I opened a new account and
you're the one that encouraged me to do that. So
(29:46):
that's it right there. That's the mission. That's what the
show was always meant to do, was to help people
move from fear to confidence, and listen, confidence doesn't come
from knowing everything. It really comes from simply taking the
first step from being willing to learn to knowing that
(30:11):
you're not alone. And that's why my podcasts and the
YouTube channel are here to keep walking with you week
after week, new format, same goal, make finance human again,
and I will be answering your questions. So don't be lazy,
don't be afraid to send me a message. Fire it in.
(30:34):
We will cover that topic. I love, love, love when
listeners and viewers send me a message. It really helps
me to know that I'm hitting the mark, or that
there's a topic that you need an answer to that
you think you would like the way that I would
deliver that answer. So please don't be a stranger. You know,
(30:56):
when I started doing this, started off with a podcast.
What year would that have been. I think it was
like twenty fourteen, that's about right. I think it was
twenty fourteen. And what I did was I got a microphone,
(31:19):
I recorded the show. I remember bumping around trying to
get all the approvals through my compliance department at the time,
and it just seems so overwhelming. But when I got
a handle on it, it just seemed to go. Then
I thought, you know something, you know, I'm a pretty
(31:41):
decent looking fella. The uh looks good. Trained didn't pass
me by too badly, So I thought.
Speaker 3 (31:49):
You know, maybe i'll put my mug on the.
Speaker 4 (31:51):
Video as well. Maybe that'll be nice. Maybe people think
that's a little bit more personable. So I did that,
and you know, I think back to all the topics
that I had covered through there, and all of the
political leadership changes and the fears of different people through
(32:17):
different presidencies and the current administration, and I have been
able to cut through all of that noise and ease
a lot of pain and a lot of nerves. And
I'm looking forward to continuing to do that.
Speaker 3 (32:34):
And you know, the thing with the.
Speaker 4 (32:36):
Podcast and the videos is that it's it's a little
quicker because frankly, on Sundays, I get a little bit
bored of covering things that happened from Monday, Tuesday, Wednesday, Thursday.
They just seem like old hat at that point, like
why cover it on a Sunday, right, And very few
(32:57):
times is there opportunities to have foresight on a weekend.
So I'm excited about that. I remember covering different conflicts,
different times that we've bombed countries, and people were wondering
what's going to happen with the market through those times,
(33:22):
through the Obama years, through Trump's presidency, Biden's Trump's second presidency,
and going through COVID and all of these different things,
and they've all been super exciting, nerve wrecking during the moment,
but nonetheless just a wonderful opportunity. So I'm really looking
(33:45):
forward to getting this out to you in relevant time
in such a wonderful way. So what I want to
do is let me cover something here. I want to
dig into what really works in twenty twenty five, because
with so much noise out there, you see TikTok, stock picks,
(34:09):
reddit trends, ai bots making trades, and what should the
smart investor actually be doing during this time?
Speaker 3 (34:18):
Well, let's start with.
Speaker 4 (34:20):
Something simple, passive investing in a world that is completely
obsessed with day trading. Passive investing may sound boring, but
let me tell you something. It works, and here's why.
Passive investing means that you're not trying to time the
(34:40):
market or you're not trying to beat it, but you're
buying broad diversified index funds or ETFs that track major
markets like the S and P five hundred. It's low cost,
low drama, and statistically it beats most active investors over
(35:01):
the long haul. Now there's a keyword inside of their
most Now you see day trading. Here's the thing. It
sounds sexy, right, it's flashy. It feels exciting, but the
data shows that over ninety percent of day traders underperform
the market, and many even lose significant money.
Speaker 3 (35:26):
Why why is that?
Speaker 4 (35:28):
That's because they're chasing gains, they're reacting emotionally, and they're
trying to outsmart algorithms with human instincts. And I gotta
tell you that's not a great combo. It really isn't.
It's not a good combo. And in contrast, passive investing
really keeps your money working while you sleep. It's not
(35:51):
about timing, it's about time in the market. And here's
the kicker. Okay, SIV, that doesn't mean lazy. It means
smart asset allocation, rebalancing, tax efficiency, and long term strategy.
(36:12):
It means understanding your risk tolerance and letting your investments
match your goals and not your impulses. And speaking of
smart strategies, let's talk bonds for a second. Yes, bonds,
they're back after years of low yields. Rising interest rates
(36:33):
have made bonds more relevant again in twenty twenty five.
But not all bonds are created equally, so let's simplify this. Okay,
So think of bonds as loans. You're the lender. You
give your money to a government or a company and
in return they pay you interest over time. Well, what
(36:55):
is the key benefit there. It's stability because bonds they
tend to be less volidle than stocks, and in times
of market uncertainty, they act as a cushion. They're like
that seat belt in your financial car. You can hope
you don't need it, but you're awfully glad that you
(37:15):
have it in a crash. And right now, short term
treasuries and high quality corporate bonds and even some municipal
bonds are offering competitive yields and for retirees or conservative investors,
they're a crucial part of a well rounded portfolio. And
just remember bonds come with risk too, okay. They come
(37:38):
with interest rate risk, credit risk, inflation risk, and even
reinvestment risk. So diversify wisely and match your bond choices
to your time horizon. So you know that being said,
bonds have not been the same as what they were
(37:59):
in the years past. Okay, So I am still a
big proponent of people being invested in equities, even though
they're viewed as riskier. I believe that with the right
asset allocation, we can use some equities tied in with
(38:23):
your bonds to still help cushion you and to have
a well diversified portfolio with some very cash rich stocks.
Companies are kicking off dividends and dividend growers. There's some
opportunity there. So let's get tactical for a second. All right,
(38:44):
let's talk about ROI, which is return on investment. It's
one of the most misunderstood financial metrics. Everyone throws around ROI,
but few actually calculated directly.
Speaker 3 (39:01):
So let's do a quick education.
Speaker 4 (39:05):
ROI isn't just did I make money? It's how much
did I make relative to what I put in and
how long it took me to get it.
Speaker 3 (39:17):
So let's do a quick example.
Speaker 4 (39:19):
Let's say you invest one thousand dollars and a year
later it's worth twelve hundred dollars. Your ROI is twenty percent.
Speaker 3 (39:29):
Right.
Speaker 4 (39:30):
Sounds great, right, But what if you had to spend
forty hours researching, managing, and monitoring that investment. Suddenly your
time now becomes part of the cost. And that's why
I always say true ROI includes mental bandwidth. Sometimes that
(39:52):
seven percent gain that you get from a simple index
fund is better than the twenty percent gain that eats
you up at nights and weekends. That's the philosophy that
I share in my practice, and it's what I'll keep
teaching on my podcast. So let me summarize this segment
(40:12):
with three takeaways. Number one, passive investing beats the hype.
It's not lazy, it's strategic, and you need to stay
the course with it. Number two, bonds matter again. Learn
which types fit your financial portfolio in twenty twenty five
in your goals. And three, ROI isn't just money, it's
(40:38):
time and energy too, so know your personal trade offs.
And before we move on, let me remind you I
want you to subscribe to my podcast my YouTube channel.
Both are linked on my website under media, and I'll
be diving deeper into these topics with real life examples,
tools and interviews that are going to help make you
(41:02):
feel educated enough to make smarter choices. And I want
to cover another topic here for you. Okay, this topic
I think is very meaningful and I think that it
is the right thing to pay attention to right now.
(41:26):
So I want you to understand why markets move. So
let's look at retail earnings, job reports, interest rate news,
and spending habits because these indicators, as they get released,
(41:49):
these shape what happens next and whether any rally has
legs in the next quarter. You see, this year, we're
watching a few trends very closely. The first is consumers
are spending their money more selectively. We're also seeing that
(42:13):
retailers are discounting earlier and deeper, and travel demands is strong,
but airfare and hotel prices here are fluctuating. And the
fourth thing here is we're still seeing technology continue to
drive earnings. Now, if you're a trader, okay, I want
(42:37):
you to be careful because as we're coming into the
second half of the year, volatility can be brutal if
you don't have a clear exit plan and if you're
thinking about trying to I should say, if you're thinking
about trying your hand at trading, let me say this
(42:57):
as clearly as I possibly can, because here's how to
trade without losing everything. First, never invest money that you
cannot afford to lose. Also, look into using stop loss
orders to manage your risk. Limit your position size, and
(43:19):
don't go all in on anything. And stick to a
system because like I said, emotion is your enemy. And
learn from small trades before you start placing big ones.
And honestly, for most people, I'll tell you this, trading
isn't necessary because you can build real wealth through disciplined,
(43:44):
diversified investing. But if you do have that bug where
you want to trade, if you do trade, trade it
like a side project, not your retirement plan. Okay, And
I want to share a quick story hear about this.
I had a fella who was a client of mine
(44:05):
in his early thirties and last year they jumped into
trading and they felt so.
Speaker 3 (44:13):
Good about it.
Speaker 4 (44:14):
They watched so many YouTube videos. They subscribe to all
of these different channels, and we're getting tips of the day.
And at first he made money, so he felt, you know,
he felt incredibly proud of what he was doing. A
little humorous was there, but I was concerned, and I said, hey,
(44:38):
you know, I'm glad you're doing well with it. But
you know, he had asked about taking some money out
of his account with me to do that, and I said,
I'm not gonna. I'm not gonna put a steel wall
up in front of you. If you want to do that,
you can, but I'd like to just warn you. And
so he really thought he had it figured out. He
thought that he had the alg rhythm for solving the
(45:01):
Rubik's cube, and I couldn't hold him back from accessing
the money that he had with me, so he put
it in play, and he lost nearly sixty percent of
the gains that we had picked up over the last
five years prior. And the problem was not intelligence, it
(45:22):
was impulse. So together we build a plan today that
that that plan is back on track. But that was
a big, huge side step for him and he's now
over that and we're focused on long term investing again
(45:44):
and that helped him sleep better. So what should you
do if you're considering doing some day trading? I would say,
reassess this, rebalance your portfoit, and reflect on it a
little bit longer, because I want you to look at
(46:05):
your portfolio through the lens of reality, not hope. Are
you too exposed to one sector, are you overweight on
hypestocks or on crypto? And is your risk tolerance still accurate?
And ask yourself if the market dropped fifteen percent next month,
(46:25):
what would I do? And your answer to that question
will tell me more about your financial health than any
asset that you own. And I want to just share
these other thoughts on volatility here. Now, for those of
you who are a client or have signed up for
(46:47):
our newsletter, you got a letter from me last weekend
or I should say not last weekend on Monday. Keep
on saying that, and it was about that volatility creates
opportunity for those that have a plan. Okay, Fear is
not a strategy and neither is denial. And the market
always recovers, but not everyone does. So stay educated, stay invested,
(47:14):
and stay balanced. And as always, as I said earlier,
subscribe to the podcast, follow me on YouTube channel, and
check the website under media. I'm not going to any place.
We're really just getting started. It's just this is the
next chapter.
Speaker 3 (47:30):
This is where.
Speaker 4 (47:31):
People are, Okay. So what I would like for you
to do is take a moment when we finish up
the show here, go on my website and go under
media and click the podcast and YouTube, and please.
Speaker 3 (47:50):
Subscribe to both of them.
Speaker 4 (47:51):
You'll get reminders, little notifications when a new show has
come out, and I know you're gonna love it. I'm
really looking forward to this. I'm very cited about the
content that I can bring to you and some of
the areas.
Speaker 3 (48:04):
Let me just tell you.
Speaker 4 (48:07):
Some of the ones that we're going to be jumping
on here. We're going to talk about some retirement myths,
like how much you really need to invest in, how
to find the right financial advisor. We're going to talk
about what would a million dollars do in retirement for you?
What's the right number for Social Security? Should I take
it at sixty two? Should I take it at sixty seven?
(48:28):
Should I take it at seventy? What's the right year
to do this? And help me understand health insurance? Right,
everyone always needs to understand Medicare, and everyone thinks it
covers everything. Well, it's not true. It doesn't cover long
term care, it doesn't cover dental, it doesn't cover vision,
(48:50):
and it doesn't cover most prescription drugs. If you haven't
factored healthcare into your retirement budget, then you have not
done planning yet.
Speaker 3 (49:02):
You just have not.
Speaker 4 (49:04):
And then one of the other shows I'm going to
cover is a myth that's out there that it's too
late for me. So let me say this clearly, it's
never too late to get smarter and more organized or
more intentional with your money, whether you're thirty five or
sixty five, you can still make changes that impact your
(49:25):
future and forget the rule of thumbs, focus on your goals.
You want to ask what kind of life do I
want to have in ten, twenty, and even thirty years
from now? And what will it cost to get me there?
What's the gap between what I have now and what
(49:47):
I need? And then how do I get there? Can
I reverse engineer a saving strategy? You know, you may
only need to save two hundred dollars more month to
get there, or you may need another two thousand a month.
It's personal and that's why personalized advice matters. Now, this
(50:10):
reminds me of.
Speaker 3 (50:11):
A story where.
Speaker 4 (50:14):
Just last week, we're doing a financial plan for a
very wealthy younger couple and he was saving money into
accept ira through his business, and he had some old
iras and so on, and part of the planning that
(50:34):
we did was we talked about establishing a plan where
annually we would check in with him and his accountant
to see what would be the right number to convert
from an ira into a roth ira and that would
(50:54):
save him future taxation. And the numbers that we ran
showed that it would save a minimum of about one
point three million dollars, and he had said.
Speaker 3 (51:07):
You know, I don't know.
Speaker 4 (51:09):
I don't know about this. This just doesn't make sense.
I don't think it's right. I just you guys are
talking about the complete opposite stuff that everybody else is saying.
How can this possibly be beneficial? So I started off
with this, I said, so and so, what you're referring to.
Speaker 3 (51:30):
Is the masses.
Speaker 4 (51:34):
If you've heard that someplace that is what they're teaching
the masses, well you're worth over fifty million dollars and
that does not pertain to you and your family. And
I explained to him, I said, I say a lot
of things on the radio each week that is designed
(51:57):
to reach the masses. So, but your situation is different. So,
even those of you who are clients of mine, when
you listen to this radio show, you may say, you know, Drew,
that's different than what you told me. Well, remember shows
are designed for the masses. Planning is designed for the individual, right,
(52:21):
and that's what you need to understand.
Speaker 3 (52:24):
So for you to feel.
Speaker 4 (52:26):
Empowered is wonderful and it gives you a place to start,
But for you to truly have your ducks in a row,
you need to meet with me or a financial advisor
that has the proper credentials. I'm a chartered retirement planning
(52:48):
counselor a credited wealth management advisor, and I'm working on
a new fiduciary certification as well and a Business Exit
Strategist certification. Those are my two new certifications that I'm
working on. So you need to ask somebody, are you
(53:10):
a fiduciary? Will you put my interest ahead of your own?
Speaker 3 (53:14):
And legally?
Speaker 4 (53:15):
And how do you get paid fees commissions? Because transparency
is key? And tell me what your investment philosophy is,
how do you communicate with me? What are your specialties right?
And find the right person to work with. So today
has been great. It's the final show, as you know,
(53:40):
That's why I started it off with I did it
my way like Frank Sinatra. Because of this show, I've
done it my way. I have not tried to be
like anybody. I never will. God has blessed me with
a unique personality and unique gifts and is my goal
and my hopes that I get to share that with
(54:01):
you on a professional and a personal level, because all
professional relationships and up turning personal. So thank you again
for all the time that you've committed to me over
the years. Please continue on this journey with me. Follow
my podcast. First of all, go on Facebook. Would you
(54:21):
go on Facebook and LinkedIn? Follow me there because every
single show, every single podcast, YouTube, video, you name it, it's
going to be on there. Okay, And go on media
on PRESCOTTPW dot com follow us there. If you want
to set a meeting, go right down on the homepage
(54:42):
schedule a time with us. Would absolutely love.
Speaker 3 (54:45):
To talk to you.
Speaker 4 (54:45):
Like I said, we're looking to bring out about fifteen
new clients. Love to talk to you. See if it's
a good fit for both of us. Again, not only
do I want you to look forward to talk to me,
but I want to look look forward to talking to you.
When I pick up the phone, I want to be
very excited to hear your voice. So it's important that
(55:06):
we have a mutual agreement up front. And thank you
so much for listening, and I hope to talk to
you soon.
Speaker 3 (55:15):
Okay.
Speaker 4 (55:17):
Until then, may God bless you and God bless your family. Again,
Thank you so much. It's been an absolute honor to
share my knowledge with you and my wisdom.
Speaker 2 (55:31):
Five hundred twenty five thousand, six.
Speaker 3 (55:34):
Hundred five hundred twenty.
Speaker 1 (55:38):
Five thousand moments, five hundred twenty five thousand and six
hundred mess How.
Speaker 2 (55:48):
Do you measure? Measure in day nights, in sunsets, in
being nice and coy
Speaker 1 (56:00):
Eight miles of rot
Welcome to the hidden world of wealth, where secrets of
the affluent become accessible to you. You are listening to
Your Money Matters, the most provocative financial radio show on
the airwaves. You are about to start your educational journey
here on Your Money Matters with your host, Drew Prescott,
(00:22):
President of Prescott Private Wealth and Chartered Retirement Planning Counselor.
Drew will unlock the complexities of the financial landscape with straightforward,
powerful insights. Whether you're planning for retirement, managing in a state,
or looking to grow your wealth. Consider this your exclusive invitation.
Turn up the volume, lean in closer. Let's navigate the
(00:45):
hidden paths of prosperity together. Your financial enlightenment begins now.
Securities off produce a Terror Financial Specialists LLC Member fin
the SIPC reservices offered through Setara Investment Advisors LLC. SATERA
firms are under separate ownership from any other named entity.
(01:05):
Four five to one WHO six Street, Troy, New York
one two one eight zero.
Speaker 2 (01:14):
And now the end is new, And so I face
the final Coursain my friend, I'll say it clear, I'll
state my case of which I'm servain.
Speaker 3 (01:39):
Welcome, back.
Speaker 4 (01:40):
Everybody. You are listening to your money matters, and I'm
your host, Drew Prescott, chartered Retirement Planning counselor, accredited wealth
management Advisor and President of Prescott Private Wealth, located here
in Troy, New York at four fifty one. Who's extreet.
The phone number here is five one eight two zero
three one nine eight three one eight two zero three,
(02:01):
nineteen eighty three.
Speaker 3 (02:03):
And for those of you who have been.
Speaker 4 (02:07):
Dedicated listeners, this is the final curtain for me on
the radio. So, as I've been telling you, I would
love for you to follow me on my podcast. You
can just make your way over to PRESCOTTPW dot com,
go under media and you'll see our podcast there and
YouTube channel. Do me a favor, would you subscribe to
(02:30):
that and follow that. Let me tell you there's gonna
be some incredible information and it's gonna be readily available.
So the goal is not to just go on for
an hour on those podcasts. They're gonna be like twenty minutes,
but they're gonna be packed with good stuff and timely
delivery of important information. Also, make sure that you go
(02:53):
on our website and sign.
Speaker 3 (02:56):
Up to UH.
Speaker 4 (02:58):
Actually the first pop up there. Just go ahead and
put your name and email in there. That'll put you
on our follow up email. And for those of you
who have done that in the past, you would have
gotten the letter that I sent out last week. And
it was after the show had aired and I had.
Speaker 3 (03:15):
Sent out a letter. Let's see, I guess first.
Speaker 4 (03:17):
Thing on Monday morning actually just talking about the war
and that was going on, and thank God that's all
over with. It seems like, yeah, that's been tamp down
and we're not going to have to worry about that
again anytime soon, Lord Willing. But it also just kind
(03:38):
of talked about the opportunities that exist during times like this.
I really believe we're living in historical moments here where
these events are going to be talked about for decades,
if not centuries here, okay, And I just want to
thank you for always giving me the opportunity here. You know,
(04:00):
I've been on the radio on w g Y for
a few years on w t R. I'm sorry, what
a try forgive me picks one O six ESPN. And
the time has come that I fine tune my messaging
to go on YouTube and podcasts. I really think I
can be much more effective in that channel, and I
(04:23):
would hope that I've brought you enough value that you
would follow me through there. It's a tough ask because
most of you are just you know, you've got the
radio plan on Sunday. But I do believe I'm going
to bring you a lot of value. So I'm very
excited about this. But you know, this last week, can
I get personal with you for a second here? There
(04:47):
has been moments in my professional career that have been
very touching, rewarding, and very difficult as well.
Speaker 3 (05:01):
And I'll tell.
Speaker 4 (05:02):
You the first, I think the first major event in
my professional career was I had a couple that I
had wrote a life insurance policy on a young couple
when I first got into the business, and the wife
(05:26):
got diagnosed with breast cancer and she was going through
treatment and we had what's called a waiver of premium
writer on her life insurance policy. And what that means,
if you're not aware of it, is that if you
become disabled, the insurance company will pay for the premium
(05:47):
on the policy until you get back on your feet,
or if you.
Speaker 3 (05:53):
Can no longer work, it.
Speaker 4 (05:54):
Would continue on and if you pass away then they would,
you know, obviously they would make the premium payments until
you passed away. And that being said, this was a
couple that I had met when I was young and
I was in the car business, and I'd sold them
a car as well, and to be able to help
(06:16):
them through that.
Speaker 3 (06:18):
I remember that just.
Speaker 4 (06:20):
That was only about a year intwo me working in
financial services, and I remember feeling like, Wow, I made
a tremendous difference in their life, and that's a great feeling.
The next time was again another insurance related thing. Was
(06:40):
I had sold a life insurance policy to a fella
who had three children and a wife that was home
with the children. And when he had bought his life
insurance policy, it was a little bit of a rest
on match because he definitely wanted to cover himself, but
(07:03):
he he really just wanted to get like two hundred
thousand dollars worth of life insurance. And I had kind of,
you know, I stuck in there, stuck in the ring
to help him to see that his family really needed
more than that. And unfortunately, the good Lord called him
(07:25):
home and his family received about a million and a
half of death benefit, and that was enough to take
the wife and the children into the next chapters of
life and.
Speaker 3 (07:42):
So but.
Speaker 4 (07:45):
That's that's a rewarding feeling to know that, you know,
this family could have had a couple hundred thousand dollars,
but thankfully.
Speaker 3 (07:55):
I had the I guess, the audacity, if you would,
to really kind of.
Speaker 4 (08:04):
Argue with this fella about the level of coverage that
he needed. And I'm thankful that I did, and I'm
sure that the family's thankful for that as well.
Speaker 3 (08:13):
Well.
Speaker 4 (08:13):
This last week was very touching for two reasons. One,
one of my clients had passed away this week. Well
I shouldn't say this week, it was last week, and.
Speaker 3 (08:33):
You know, we.
Speaker 4 (08:35):
Knew that it was coming. And she was just such
a wonderful lady. And she was referred to me by
her physician. And she was a retired nurse and she
was a widow. Her husband had passed away and left
her some wealth, and when I met with her, she
(08:58):
had some investments, but just was not comfortable with what
she had. She did not have any education on the
topic and didn't understand what she owned. So when we
first met, what I did was I took her through
an education to teach her what risk is. We walked
(09:21):
through a questionnaire to see what she felt comfortable with
for risk, and then I showed her the different ways
that someone can invest between bonds, CDs, stocks, mutual funds,
you name, and I just gave her a nice overview.
And when we first got started, she said, Oh, none
(09:43):
of this is going to make any sense to me.
I'm just gonna check out and I'm just gonna trust you.
And I said, I always say to people, I really
truly appreciate the fact when you say that you trust me,
but let me give you a reason to trust me first.
And I believe that comes with education. So I educated
her and she she got it. It was so nice
to see when it clicked and she said, I understand
(10:04):
what you're saying, and this makes sense, and which made
a wonderful time for reviews because when somebody understands what
they own, why they own it, and what they're trying
to do, boy, the review process just it just feels
so much better. And you know, we developed a friendship
(10:26):
over the years, and one I was telling her niece
this story, and one time I went over to her
house and she had this I honestly, I have never
seen a peanut butter cup.
Speaker 3 (10:41):
This size, and so I said, hey, so and so.
Speaker 4 (10:46):
Boy, that's a big peanut butter cup. I said, I
got to tell you, I said, I love Reese's peanut
butter cups. I said, but that looks awfully big. And
I'm just curious. Does it still have flavor when it's
that size? And she laughed and she said, oh, oh yeah,
it's This is just as good. She says, I'll give
you one, but this is the only one that I have.
(11:06):
And I said, well, of course I don't want to
take that. And I said, are you gonna eat that
all one sitting? And she laughed and she says, oh,
absolutely not. The thing looked like a little It looked
like a baby pie.
Speaker 3 (11:17):
It was so big.
Speaker 4 (11:19):
And she says, no, I'll nibble on this for a
couple of weeks. And she was. She was just this
dainty little lady and just so sweet. She just you
knew she had a heart of gold from all the
years that I had worked with her. But what was
really moving was I went to her wake. And for
(11:41):
those of you who are nurses, maybe doctors know this too,
I don't know, but they had this what was called
nightingale nurses.
Speaker 3 (11:51):
Okay, and they had.
Speaker 4 (11:55):
They brought with them like it looked like a little
oil lamp and in the front they put a candle
and the candle was burning, and they they recited this
beautiful almost like I don't know, what do you call it,
like a almost like a little like poem, and what
(12:17):
it said was it said, when a patient was in pain,
she was there. When a patient was.
Speaker 3 (12:27):
In fear, she was there.
Speaker 4 (12:30):
And it just was so moving because there was about
ten nurses that took time away from their family to
go to this wake and to read this nightingale nurses,
I don't know, like a prayer almost, you know, And
and I get moved to tears pretty quickly, if I'm
being completely honest. And they they held up the lamp
(12:57):
and they blew out the candle and they said, you're
relieved of your duties. And then they went on to
talk about how sweet she was, and boy, it was
just so moving. And she had such a caring heart.
All of her planning that we did together, it was
(13:20):
so selfless. She had no children, she was a widow,
but she wanted to make sure that her niece was
well taken care of. And we did some exceptional work
on her state planning and when a client leave, passes
(13:40):
away or leaves you know, you'd never know are you
as the advisor? Will you keep those assets? Will you
be able to continue this race with the next generation.
And thankfully, my client had spoken highly enough about me
through her living years to her niece that when I
I had asked the niece, well, basically what I said was,
(14:02):
I said, you know, I don't know what your plans are,
if you plan on working with me or not, but
I would tell you I'd be highly honored if you
would consider letting me continue on with the work that
I started with your aunt. And she said, I'm so
thankful that you asked, and I would love that.
Speaker 3 (14:19):
What a high.
Speaker 4 (14:22):
High praise really for me personally to know that I've
made a difference and that not only did the client
know it, but her family knew it, and that was
just that was a wonderful win for me professionally. Now,
the other thing that really touched me this week was
(14:43):
that I had a couple that came in maybe about
it was about six months ago, and actually, as a
matter of fact, we did a zoom conference. We didn't
meet face to face, and they were referred to me
by actually by three other clients, and when we did
the initial meeting, we set up everything to gather their
(15:05):
information to put together a financial plan. We got started,
and then life happened a little bit and they were
gonna reschedule, and unfortunately, between our meeting and about a
month and a half ago, I hadn't heard from them. Well,
(15:29):
they had reached out and the wife had said that
her husband has been going through cancer treatment. And for
any of you that are going through any type of
medical conditions or cancer treatments or whatever, just know that
I'm going to be praying for you here when I
get done recording the show. And life changes awfully quick,
(15:53):
doesn't it. And sometimes life can go from good to
bad in a hurry. And what I experienced with dealing
with this couple has really lifted my spirits and again
(16:15):
just another rewarding moment. Let me tell you why that is.
Because when we first started working together, he had just
the husband had just retired. So we gathered their budget
and everything, gathered all the information from the wife's pension
and the retirement plans and so on, and they were
(16:35):
concerned that they may not be able to meet the
lifestyle goals that they have set for themselves, and we
put together a plan. And one of the things that
I explained to them was that your financial plan needs
to take into account taxes and healthcare, which a lot
(16:56):
of other people just look over. We had the right
numbers for that.
Speaker 3 (17:01):
Okay.
Speaker 4 (17:02):
Then we really drilled down on their budget and we
came up with a budget of X per month, and
I explained to them, hey, based upon this, you have
about a ninety percent success rate in retirement, and say
(17:22):
that falls inside of what we call the safety zone.
But I'm a conservative individual. I like to do conservative plans.
And that was with a reduced rate of return, but
it was also with a flat number for a need
of income. So I explained to them, you know, in life,
(17:45):
what I have noticed is that when people first retire,
whether that's age sixty, whether it's sixty five, seventy, but
in the first you know, if you're younger when you
do this, but in the first few years, let's just
say you get out to about seventy five, Okay. My
(18:07):
experiences that when people get to seventy five, you know,
they may still golf, they may still quant vacation and
so on, but they do slow down a little bit.
So typically they do not need the same level of
income unless they're a very wealthy individual. But for your
average family, typically we see that that income need shrinks
(18:33):
at about age seventy five. Then from seventy five to
eighty five it keeps about the same, but around eighty
five you need even less. And so we took all
of that into consideration and I ran a few different
options for them in retirement to look at, and everything
(18:56):
turned out great. And when we reviewed that, I looked
across the table and I saw the wife's eyes well
up with tears, and in that moment, I knew that
those tears were saying, I'm so thankful that this is
(19:19):
one less thing that I have to worry about right now,
because the most important thing is for me to get
my husband through this battle. And what a reward to
be able to be there with a family, and just
such a compliment for them to invite me into their
(19:39):
life to be there for them through these different seasons.
And that's what we did.
Speaker 3 (19:45):
With the nurse as well. That I was just explaining.
And so.
Speaker 4 (19:50):
When you work with a financial advisor, I would encourage
you to one make sure that you have a financial plan.
And number two, make sure that when you see that
person face to face that you enjoy spending time with them.
Because for my clients, I am so much more than
(20:12):
just a mathematician. I've helped them in different areas of
their life. We help them find vehicles, we help them
get discounts on their vehicles, find the right contractors, help
them with mortgages. There's so many different things that your
(20:32):
financial advisors should be doing for you. So take your
time and see who you're dealing with. Okay, so great week.
Professionally picked up several new clients. And this year I've
promised myself. In the years past, I've taken on a
(20:56):
few too many new clients in one year, and this
year here, I'm going to limit my.
Speaker 3 (21:03):
Practice to.
Speaker 4 (21:07):
About fifteen additional clients and that's about it in order
for me to do this the right way. And so
if you're if you're looking for somebody, please reach out.
Speaker 3 (21:18):
Let's talk.
Speaker 4 (21:19):
We'll see if it's a good fit for each of us.
And I would love to have the opportunity to talk
to you. That being said, I have a lot to
share with you today and I spend a lot of
time there telling you some stories. So I am going
to try to play catch up here all right now.
(21:42):
Truth be known, I do have notes that I go
off of, and with that being said, I might jump
around a little bit, okay, but nonetheless there's information here
that I want to get to you.
Speaker 3 (21:55):
Starting with this.
Speaker 4 (21:58):
As I said, I have been on WGY Troy Picks
one oh six ESPN Radio and I just want to
thank all the producers and the engineers that have helped
me through this over the years. And most of all,
I want to thank you the listener, because you've let
me into your home, into your car, into your earbuds,
(22:22):
and that trust is never anything that I will take lightly.
So truly, I truly mean it from the bottom of
my heart.
Speaker 3 (22:30):
Thank you.
Speaker 4 (22:31):
Thank you for giving me the opportunity. It is a tremendous.
Speaker 3 (22:38):
Honor.
Speaker 4 (22:39):
Okay, thank you. And for years, your Money Matter has
been about more than just dollars and cents. It's been
about empowering you to take control of your financial future,
whether you're managing a portfolio or you're just starting with
five dollars in a dream. And that message, that mission,
(23:03):
it continues. So I've gotten value from this show. I
want you to stay with me. Okay, I hope you
have gotten value from this show, so please follow my podcast,
subscribe to the YouTube channel, and both can be found
on my website under the media section. And this community
(23:26):
is not going to any place. It's just simply moving
with the times.
Speaker 3 (23:29):
That's it.
Speaker 4 (23:30):
And hey, don't be a stranger. Okay call me five
one eight two zero three nineteen eighty three email me
Drew at PRESCOTTPW dot com and if you don't remember that,
go on PRESCOTTPW dot com later on send me a message.
And uh, even if it's a Hey, Drew, thanks so much.
I've really enjoyed listening to you over the years. But
(23:52):
anything love to hear from you. Okay, So let's start
talking about building wealth even if you are start darting
from zero dollars, because I've always said you don't need
to be rich to start investing. You just need a plan.
And one of the most powerful rules I can teach
(24:13):
any client is the five dollars rule. So every time
that you spend five dollars on something that you don't need,
match it by investing five dollars in your future. And
over time, this simple act builds discipline, and wealth. So
you see, money is emotional, so don't let anyone ever
(24:38):
tell you it's not. It truly represents our hopes, it
represents our fears, freedom and our security, and for a
lot of people it's also it also represents guilt or shame.
And I should have started earlier is typically what people say,
(25:00):
or they say, I don't make enough money to invest
or I'm bad with money. But here's the truth. Wealth
isn't about what you make. It's about what you keep
and what you do with that money. And that's why
financial empowerment starts with knowledge. And I'm honored that this
show has helped thousands of you take the first step.
(25:22):
And some of you remember when I first broke down
how the compound interest works, and some of you still
remind me about the episode where I said the best
time to invest was yesterday, the second best time is today,
and you know what, that still holds true. So even
(25:44):
as we say goodbye to this platform, the core message remains.
Start where you are, use what you have, and do
what you can. And let's break down how anybody, even
with modest means, can start building wealth today. Step one
is where you want to start. That would be automate
(26:05):
your savings. You want to treat investing like a bill,
so set it and forget it. Step number two. Don't
chase trends. The headlines will always shout, but your long
term goals whisper, and you need to listen to your
long term goals. Step three, understand your why. Are you
(26:27):
investing for retirement? Are you investing for a home, your
kid's education? Because your why is what keeps you steady
when the markets get wobbly. And if you're listening today
thinking well, it's too late for me, you know I've
got news for you.
Speaker 3 (26:44):
It's not.
Speaker 4 (26:46):
I've worked with clients that are in their fifties, sixties,
and even seventies who have taken their first steps and
seen it payoff. The only regret is that they didn't
do it sooner. And for the young people tuning in,
this is your moment. So don't wait until you're in
your forties to get serious about money. You've got something
(27:07):
more valuable than cash, and that's your time. And the
beauty of this farewell show today is that it's not
really goodbye, but it's an invitation. If you've enjoyed these talks,
you've if they've helped you feel more confident about your
financial future. Please follow me on my podcast, hit subscribe
(27:30):
on YouTube, and join our growing community. Because this financial
world is changing awfully fast. With inflation, AI, geopolitics, they
all play a role today, but the principles of smart
investing they do not change, and I'll be covering them
all in depth on the podcast. Now, before we move
(27:54):
on to the next segment, I want to say this,
thank you for allowing me to be part of your routine.
Thank you to those who have called in for emailing
questions and for letting me help you navigate one of
life's most confusing but crucial topics, and that's money. And
you've made this journey very special for me and my family,
(28:17):
and you're the reason that I keep going. You know,
one of the greatest honors of my life has been
sharing this microphone with you week after week, rain or shine,
and you know, we've had a lot of rain Bowler
bear Market. We've met here every Sunday, right on the
(28:37):
airwaves to talk real money, real lives, and real possibilities.
Speaker 3 (28:42):
So whether you.
Speaker 4 (28:44):
Are sipping coffee on a Sunday morning, stuck in traffic
on a weekday, or streaming the replay during a lunch break.
Thank you, Your Money Matters has been part of your journey,
and I appreciate that. So this show is not about
(29:04):
flashy stock picks or get rich quick schemes. It's about education.
It's about clarity in a world that too often makes
finance feel like a foreign language, and I wanted to
change that. I wanted to make it simple, relatable, and actionable,
and based on your emails, calls, and stories, I think
(29:24):
we accomplished that goal. And I remember one caller who
called in and told me, said, Drew, I never thought
that I could understand investing, but after listening to you
for a few months, I opened a new account and
you're the one that encouraged me to do that. So
(29:46):
that's it right there. That's the mission. That's what the
show was always meant to do, was to help people
move from fear to confidence, and listen, confidence doesn't come
from knowing everything. It really comes from simply taking the
first step from being willing to learn to knowing that
(30:11):
you're not alone. And that's why my podcasts and the
YouTube channel are here to keep walking with you week
after week, new format, same goal, make finance human again,
and I will be answering your questions. So don't be lazy,
don't be afraid to send me a message. Fire it in.
(30:34):
We will cover that topic. I love, love, love when
listeners and viewers send me a message. It really helps
me to know that I'm hitting the mark, or that
there's a topic that you need an answer to that
you think you would like the way that I would
deliver that answer. So please don't be a stranger. You know,
(30:56):
when I started doing this, started off with a podcast.
What year would that have been. I think it was
like twenty fourteen, that's about right. I think it was
twenty fourteen. And what I did was I got a microphone,
(31:19):
I recorded the show. I remember bumping around trying to
get all the approvals through my compliance department at the time,
and it just seems so overwhelming. But when I got
a handle on it, it just seemed to go. Then
I thought, you know something, you know, I'm a pretty
(31:41):
decent looking fella. The uh looks good. Trained didn't pass
me by too badly, So I thought.
Speaker 3 (31:49):
You know, maybe i'll put my mug on the.
Speaker 4 (31:51):
Video as well. Maybe that'll be nice. Maybe people think
that's a little bit more personable. So I did that,
and you know, I think back to all the topics
that I had covered through there, and all of the
political leadership changes and the fears of different people through
(32:17):
different presidencies and the current administration, and I have been
able to cut through all of that noise and ease
a lot of pain and a lot of nerves. And
I'm looking forward to continuing to do that.
Speaker 3 (32:34):
And you know, the thing with the.
Speaker 4 (32:36):
Podcast and the videos is that it's it's a little
quicker because frankly, on Sundays, I get a little bit
bored of covering things that happened from Monday, Tuesday, Wednesday, Thursday.
They just seem like old hat at that point, like
why cover it on a Sunday, right, And very few
(32:57):
times is there opportunities to have foresight on a weekend.
So I'm excited about that. I remember covering different conflicts,
different times that we've bombed countries, and people were wondering
what's going to happen with the market through those times,
(33:22):
through the Obama years, through Trump's presidency, Biden's Trump's second presidency,
and going through COVID and all of these different things,
and they've all been super exciting, nerve wrecking during the moment,
but nonetheless just a wonderful opportunity. So I'm really looking
(33:45):
forward to getting this out to you in relevant time
in such a wonderful way. So what I want to
do is let me cover something here. I want to
dig into what really works in twenty twenty five, because
with so much noise out there, you see TikTok, stock picks,
(34:09):
reddit trends, ai bots making trades, and what should the
smart investor actually be doing during this time?
Speaker 3 (34:18):
Well, let's start with.
Speaker 4 (34:20):
Something simple, passive investing in a world that is completely
obsessed with day trading. Passive investing may sound boring, but
let me tell you something. It works, and here's why.
Passive investing means that you're not trying to time the
(34:40):
market or you're not trying to beat it, but you're
buying broad diversified index funds or ETFs that track major
markets like the S and P five hundred. It's low cost,
low drama, and statistically it beats most active investors over
(35:01):
the long haul. Now there's a keyword inside of their
most Now you see day trading. Here's the thing. It
sounds sexy, right, it's flashy. It feels exciting, but the
data shows that over ninety percent of day traders underperform
the market, and many even lose significant money.
Speaker 3 (35:26):
Why why is that?
Speaker 4 (35:28):
That's because they're chasing gains, they're reacting emotionally, and they're
trying to outsmart algorithms with human instincts. And I gotta
tell you that's not a great combo. It really isn't.
It's not a good combo. And in contrast, passive investing
really keeps your money working while you sleep. It's not
(35:51):
about timing, it's about time in the market. And here's
the kicker. Okay, SIV, that doesn't mean lazy. It means
smart asset allocation, rebalancing, tax efficiency, and long term strategy.
(36:12):
It means understanding your risk tolerance and letting your investments
match your goals and not your impulses. And speaking of
smart strategies, let's talk bonds for a second. Yes, bonds,
they're back after years of low yields. Rising interest rates
(36:33):
have made bonds more relevant again in twenty twenty five.
But not all bonds are created equally, so let's simplify this. Okay,
So think of bonds as loans. You're the lender. You
give your money to a government or a company and
in return they pay you interest over time. Well, what
(36:55):
is the key benefit there. It's stability because bonds they
tend to be less volidle than stocks, and in times
of market uncertainty, they act as a cushion. They're like
that seat belt in your financial car. You can hope
you don't need it, but you're awfully glad that you
(37:15):
have it in a crash. And right now, short term
treasuries and high quality corporate bonds and even some municipal
bonds are offering competitive yields and for retirees or conservative investors,
they're a crucial part of a well rounded portfolio. And
just remember bonds come with risk too, okay. They come
(37:38):
with interest rate risk, credit risk, inflation risk, and even
reinvestment risk. So diversify wisely and match your bond choices
to your time horizon. So you know that being said,
bonds have not been the same as what they were
(37:59):
in the years past. Okay, So I am still a
big proponent of people being invested in equities, even though
they're viewed as riskier. I believe that with the right
asset allocation, we can use some equities tied in with
(38:23):
your bonds to still help cushion you and to have
a well diversified portfolio with some very cash rich stocks.
Companies are kicking off dividends and dividend growers. There's some
opportunity there. So let's get tactical for a second. All right,
(38:44):
let's talk about ROI, which is return on investment. It's
one of the most misunderstood financial metrics. Everyone throws around ROI,
but few actually calculated directly.
Speaker 3 (39:01):
So let's do a quick education.
Speaker 4 (39:05):
ROI isn't just did I make money? It's how much
did I make relative to what I put in and
how long it took me to get it.
Speaker 3 (39:17):
So let's do a quick example.
Speaker 4 (39:19):
Let's say you invest one thousand dollars and a year
later it's worth twelve hundred dollars. Your ROI is twenty percent.
Speaker 3 (39:29):
Right.
Speaker 4 (39:30):
Sounds great, right, But what if you had to spend
forty hours researching, managing, and monitoring that investment. Suddenly your
time now becomes part of the cost. And that's why
I always say true ROI includes mental bandwidth. Sometimes that
(39:52):
seven percent gain that you get from a simple index
fund is better than the twenty percent gain that eats
you up at nights and weekends. That's the philosophy that
I share in my practice, and it's what I'll keep
teaching on my podcast. So let me summarize this segment
(40:12):
with three takeaways. Number one, passive investing beats the hype.
It's not lazy, it's strategic, and you need to stay
the course with it. Number two, bonds matter again. Learn
which types fit your financial portfolio in twenty twenty five
in your goals. And three, ROI isn't just money, it's
(40:38):
time and energy too, so know your personal trade offs.
And before we move on, let me remind you I
want you to subscribe to my podcast my YouTube channel.
Both are linked on my website under media, and I'll
be diving deeper into these topics with real life examples,
tools and interviews that are going to help make you
(41:02):
feel educated enough to make smarter choices. And I want
to cover another topic here for you. Okay, this topic
I think is very meaningful and I think that it
is the right thing to pay attention to right now.
(41:26):
So I want you to understand why markets move. So
let's look at retail earnings, job reports, interest rate news,
and spending habits because these indicators, as they get released,
(41:49):
these shape what happens next and whether any rally has
legs in the next quarter. You see, this year, we're
watching a few trends very closely. The first is consumers
are spending their money more selectively. We're also seeing that
(42:13):
retailers are discounting earlier and deeper, and travel demands is strong,
but airfare and hotel prices here are fluctuating. And the
fourth thing here is we're still seeing technology continue to
drive earnings. Now, if you're a trader, okay, I want
(42:37):
you to be careful because as we're coming into the
second half of the year, volatility can be brutal if
you don't have a clear exit plan and if you're
thinking about trying to I should say, if you're thinking
about trying your hand at trading, let me say this
(42:57):
as clearly as I possibly can, because here's how to
trade without losing everything. First, never invest money that you
cannot afford to lose. Also, look into using stop loss
orders to manage your risk. Limit your position size, and
(43:19):
don't go all in on anything. And stick to a
system because like I said, emotion is your enemy. And
learn from small trades before you start placing big ones.
And honestly, for most people, I'll tell you this, trading
isn't necessary because you can build real wealth through disciplined,
(43:44):
diversified investing. But if you do have that bug where
you want to trade, if you do trade, trade it
like a side project, not your retirement plan. Okay, And
I want to share a quick story hear about this.
I had a fella who was a client of mine
(44:05):
in his early thirties and last year they jumped into
trading and they felt so.
Speaker 3 (44:13):
Good about it.
Speaker 4 (44:14):
They watched so many YouTube videos. They subscribe to all
of these different channels, and we're getting tips of the day.
And at first he made money, so he felt, you know,
he felt incredibly proud of what he was doing. A
little humorous was there, but I was concerned, and I said, hey,
(44:38):
you know, I'm glad you're doing well with it. But
you know, he had asked about taking some money out
of his account with me to do that, and I said,
I'm not gonna. I'm not gonna put a steel wall
up in front of you. If you want to do that,
you can, but I'd like to just warn you. And
so he really thought he had it figured out. He
thought that he had the alg rhythm for solving the
(45:01):
Rubik's cube, and I couldn't hold him back from accessing
the money that he had with me, so he put
it in play, and he lost nearly sixty percent of
the gains that we had picked up over the last
five years prior. And the problem was not intelligence, it
(45:22):
was impulse. So together we build a plan today that
that that plan is back on track. But that was
a big, huge side step for him and he's now
over that and we're focused on long term investing again
(45:44):
and that helped him sleep better. So what should you
do if you're considering doing some day trading? I would say,
reassess this, rebalance your portfoit, and reflect on it a
little bit longer, because I want you to look at
(46:05):
your portfolio through the lens of reality, not hope. Are
you too exposed to one sector, are you overweight on
hypestocks or on crypto? And is your risk tolerance still accurate?
And ask yourself if the market dropped fifteen percent next month,
(46:25):
what would I do? And your answer to that question
will tell me more about your financial health than any
asset that you own. And I want to just share
these other thoughts on volatility here. Now, for those of
you who are a client or have signed up for
(46:47):
our newsletter, you got a letter from me last weekend
or I should say not last weekend on Monday. Keep
on saying that, and it was about that volatility creates
opportunity for those that have a plan. Okay, Fear is
not a strategy and neither is denial. And the market
always recovers, but not everyone does. So stay educated, stay invested,
(47:14):
and stay balanced. And as always, as I said earlier,
subscribe to the podcast, follow me on YouTube channel, and
check the website under media. I'm not going to any place.
We're really just getting started. It's just this is the
next chapter.
Speaker 3 (47:30):
This is where.
Speaker 4 (47:31):
People are, Okay. So what I would like for you
to do is take a moment when we finish up
the show here, go on my website and go under
media and click the podcast and YouTube, and please.
Speaker 3 (47:50):
Subscribe to both of them.
Speaker 4 (47:51):
You'll get reminders, little notifications when a new show has
come out, and I know you're gonna love it. I'm
really looking forward to this. I'm very cited about the
content that I can bring to you and some of
the areas.
Speaker 3 (48:04):
Let me just tell you.
Speaker 4 (48:07):
Some of the ones that we're going to be jumping
on here. We're going to talk about some retirement myths,
like how much you really need to invest in, how
to find the right financial advisor. We're going to talk
about what would a million dollars do in retirement for you?
What's the right number for Social Security? Should I take
it at sixty two? Should I take it at sixty seven?
(48:28):
Should I take it at seventy? What's the right year
to do this? And help me understand health insurance? Right,
everyone always needs to understand Medicare, and everyone thinks it
covers everything. Well, it's not true. It doesn't cover long
term care, it doesn't cover dental, it doesn't cover vision,
(48:50):
and it doesn't cover most prescription drugs. If you haven't
factored healthcare into your retirement budget, then you have not
done planning yet.
Speaker 3 (49:02):
You just have not.
Speaker 4 (49:04):
And then one of the other shows I'm going to
cover is a myth that's out there that it's too
late for me. So let me say this clearly, it's
never too late to get smarter and more organized or
more intentional with your money, whether you're thirty five or
sixty five, you can still make changes that impact your
(49:25):
future and forget the rule of thumbs, focus on your goals.
You want to ask what kind of life do I
want to have in ten, twenty, and even thirty years
from now? And what will it cost to get me there?
What's the gap between what I have now and what
(49:47):
I need? And then how do I get there? Can
I reverse engineer a saving strategy? You know, you may
only need to save two hundred dollars more month to
get there, or you may need another two thousand a month.
It's personal and that's why personalized advice matters. Now, this
(50:10):
reminds me of.
Speaker 3 (50:11):
A story where.
Speaker 4 (50:14):
Just last week, we're doing a financial plan for a
very wealthy younger couple and he was saving money into
accept ira through his business, and he had some old
iras and so on, and part of the planning that
(50:34):
we did was we talked about establishing a plan where
annually we would check in with him and his accountant
to see what would be the right number to convert
from an ira into a roth ira and that would
(50:54):
save him future taxation. And the numbers that we ran
showed that it would save a minimum of about one
point three million dollars, and he had said.
Speaker 3 (51:07):
You know, I don't know.
Speaker 4 (51:09):
I don't know about this. This just doesn't make sense.
I don't think it's right. I just you guys are
talking about the complete opposite stuff that everybody else is saying.
How can this possibly be beneficial? So I started off
with this, I said, so and so, what you're referring to.
Speaker 3 (51:30):
Is the masses.
Speaker 4 (51:34):
If you've heard that someplace that is what they're teaching
the masses, well you're worth over fifty million dollars and
that does not pertain to you and your family. And
I explained to him, I said, I say a lot
of things on the radio each week that is designed
(51:57):
to reach the masses. So, but your situation is different. So,
even those of you who are clients of mine, when
you listen to this radio show, you may say, you know, Drew,
that's different than what you told me. Well, remember shows
are designed for the masses. Planning is designed for the individual, right,
(52:21):
and that's what you need to understand.
Speaker 3 (52:24):
So for you to feel.
Speaker 4 (52:26):
Empowered is wonderful and it gives you a place to start,
But for you to truly have your ducks in a row,
you need to meet with me or a financial advisor
that has the proper credentials. I'm a chartered retirement planning
(52:48):
counselor a credited wealth management advisor, and I'm working on
a new fiduciary certification as well and a Business Exit
Strategist certification. Those are my two new certifications that I'm
working on. So you need to ask somebody, are you
(53:10):
a fiduciary? Will you put my interest ahead of your own?
Speaker 3 (53:14):
And legally?
Speaker 4 (53:15):
And how do you get paid fees commissions? Because transparency
is key? And tell me what your investment philosophy is,
how do you communicate with me? What are your specialties right?
And find the right person to work with. So today
has been great. It's the final show, as you know,
(53:40):
That's why I started it off with I did it
my way like Frank Sinatra. Because of this show, I've
done it my way. I have not tried to be
like anybody. I never will. God has blessed me with
a unique personality and unique gifts and is my goal
and my hopes that I get to share that with
(54:01):
you on a professional and a personal level, because all
professional relationships and up turning personal. So thank you again
for all the time that you've committed to me over
the years. Please continue on this journey with me. Follow
my podcast. First of all, go on Facebook. Would you
(54:21):
go on Facebook and LinkedIn? Follow me there because every
single show, every single podcast, YouTube, video, you name it, it's
going to be on there. Okay, And go on media
on PRESCOTTPW dot com follow us there. If you want
to set a meeting, go right down on the homepage
(54:42):
schedule a time with us. Would absolutely love.
Speaker 3 (54:45):
To talk to you.
Speaker 4 (54:45):
Like I said, we're looking to bring out about fifteen
new clients. Love to talk to you. See if it's
a good fit for both of us. Again, not only
do I want you to look forward to talk to me,
but I want to look look forward to talking to you.
When I pick up the phone, I want to be
very excited to hear your voice. So it's important that
(55:06):
we have a mutual agreement up front. And thank you
so much for listening, and I hope to talk to
you soon.
Speaker 3 (55:15):
Okay.
Speaker 4 (55:17):
Until then, may God bless you and God bless your family. Again,
Thank you so much. It's been an absolute honor to
share my knowledge with you and my wisdom.
Speaker 2 (55:31):
Five hundred twenty five thousand, six.
Speaker 3 (55:34):
Hundred five hundred twenty.
Speaker 1 (55:38):
Five thousand moments, five hundred twenty five thousand and six
hundred mess How.
Speaker 2 (55:48):
Do you measure? Measure in day nights, in sunsets, in
being nice and coy
Speaker 1 (56:00):
Eight miles of rot
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