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November 13, 2023 • 44 mins
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(00:01):
In your corner, saving one investorat a time, working for clients,
not companies, all while bullyproofing portfolios. Totally committed to sharing your academic truths
abottom missing always representing Main Street andnot Wall Street team, It's your Son
Money team and this is the SoundMoney Investment Show with Drawn Financial Advisors.

(00:26):
Hello and welcome to the Sound MoneyInvestment Show with Brown Financial Advisors. I'm
Greg Brown and I'm James Morton.We are a registered investment advisory firm.
We are independent. We do workfor clients, not companies, and receive
your complimentary and personalized financial income plan. Gives a call five one three,
five to seven, five nine sixty, five to four. Perhaps you're seeking
an advice, individual advice at thaton an old four one K four to

(00:49):
three B, some type of employersponsored plan and for some out there even
in any way analysis here's the point. If you're longer with the company,
then as a rule, your moneyshould not be there either, So we
can help you roll that out,whether it be into a tax neutral I
ray or take control of your moneyand split it with the NUA. Give
us a call five one three,five seven, five nine sixty five to

(01:11):
four. Visit our website Brownfinancial Advisorsdot com, email show your thoughts to
team at Brownfinancial Advisors dot com andour home offices in Milford, but we
also have locations in Blue Ash,Westchester and Florence. Greg Let's look at
today's topic, which is going tobe finding the right advisor in the current
retirement age. Now. Knowing theright questions to ask an advisor or a

(01:33):
perspective advisor, especially in today's changingretirement landscape, can be critically important.
It seems as those media focuses on, let's say, creating the questions they
want you to ask because they havethe pre canned, pre selected, predetermined,
preordained, pre anointed, et cetera, et cetera responses that drive you
down a tunnel, like in mostlet's say marketing today, a tunnel or

(01:57):
a channel or a funnel straight intotheir hands. Kind of like, you
know, there once upon time therewas this what would you call it a
wolf? And it wasn't in cheapclothing. It was more in grandma's linen's,
you know. And there's this littlelittle lady, little red riding hood
stepped right into it. She justknew something was up like you know something's

(02:19):
up with Wall Street, right,you just sense it. Well, your
spidy senses are pretty correct, andit is critically important that you are equipped
with the correct questions. Sometimes thequestions beyond the question, you match it
to the actual need. Excuse me, it's like, what is it you're
really out to accomplish? And workbackwards from there and develop your questions and
you'll find that we in our positioningis we are well positioned to take care

(02:45):
of all your holistic needs. Holisticmeaning insurance, investments, investment management,
the financial planning. James just mentionedcomplimentary income plan. You know, because
excuse me, retirement so much aboutcash flow when you boil it down a
state plan, if you fogged themirror you have in a state, you
need to deal with these things.Oftentimes we kind of treat it like you
can we kick down the road,but inadvertently we don't really mean to.

(03:07):
Some of these we just recognize arecritically important and we do intend on getting
to them. So beyond the question, what are the right questions and what's
most applicable to you? What gainsthe most traction for your purpose, and
we will provide a complementary assessment exactlywhere you are where you want to be.
Help you fill in and back fillin the gaps between here and there

(03:27):
with the right investments, the correctcorrection, and say an adjustment to your
existing investments, some outright replacement,excuse me, tweaking, modification, whatever's
necessary, and make sure you're goingto have that cash flow that you're needing.
But there's so much more in thepuzzle and the puzzle pieces that need
to come back together to configure thepicture that your life, your roadmap.

(03:50):
It could be health insurance, Medicarebenefits, so security, pension maximization,
and pension decisions lump some monthly checkcombination, how to properly invest, how
to plan for you tomorrow? Whatabout inflation? Hedging and outperforming inflation.
We're providing the cash flow you need. What about preparing for college? Maybe
it's not college for adult children,maybe it's the grandchildren. What do you

(04:11):
want to affect, change in andachieve? That is all what we want
to help you with in a complementarybasis means you come in. It's all
about you get your facts on thetable. Then have you back to share
all the findings, all the analysis, all the recommendations, holding nothing back
to share with you exactly what webelieve you should do, and there's no
meter running. A little bit ofyour time or time and resources come together

(04:33):
to present you what you need toknow, and then you determine if you
see a fit to work together,and we work together from there on,
actually taking on the management of allthat so you can go do what you
do best as we do what we'redoing quite well. Also, so you
know, as a future retiree ora retiree, it used to be pretty

(04:53):
simple. The formula was achieving retirementin a way that you and envision by.
Let's say step one reach age sixtyfive. You reach age sixty five,
and you know, maybe a lothappened. You would stop working number
two. Number three start collecting apension check from the old company. It
replaced a majority of what was yourannual working income prior to retirement, just
the week prior, just one payperiod earlier, and here you are fully

(05:15):
retired one pay period later with acheck that mostly emulates or replicates what was
your paycheck for your career. Notso much anymore, right, how about
number four starting the collection of yourSocial Security benefits? Little additional income that
you kind of stashed away and UncleSam's coffers, hoping that trust fund would
have more than paper IOUs when itcame to the day to pay you back

(05:36):
with your own money that you hadbeen so disciplined about on an involuntary basis
contributing. Right, It's like youhad a choice five rely on your retiring
health benefits from your past employer.Does that even sound familiar unless you're a
teacher, fireman, public servant,and government worker. That is just SI

(05:56):
five to most of us. Numbersix have your Medicare benefits filling the rest
like a perfect coverage somewhere, likea donut that has no hole in it.
You just got it all all covered. Well. That sounded pretty simple,
and once upon time it was aboutthat simple and terrific, right,
But not so much now, right, not at all. We've got to
put this together together and that's whatmakes the most sense, and the right

(06:20):
advisory can help you with all theabove, not just components, so you're
not left running all over town,all over the surface of the planet,
trying to figure this all out.About the time you got one thing taken
care of, It's like a gameof wackamo, something else pops up and
it tries to get you. Wewant to manage that with you and for
you, working with you together forthe many years to come. And in

(06:41):
our firm, we're we're also positionedas a multi generational company of family office
effect where we're helping with every aspectof the retirement and financial service picture,
kind of like the Mayo Clinic offinancial services itself. So with all the
planning that you have done, maybethe planning left to be done the retirement
today, this just doesn't consist ofsitting around eating bomb bombs. Right,
You want to travel, play gooff, James calls it where every day

(07:04):
is a Saturday, you know,and that can be kind of expensive,
right James, when you think aboutif every day is a rerec day,
all the things you like to doon weekends and you kind of budget for
and spend more, and you lookback on Mondays say wow, it was
an expensive week, but we suremade some memories. Try that every day
and try to run a budget withit. Well, we want to help
you do just that. So regardlessof the landscape having changed, and as

(07:25):
mentioned today our show, we wantto explain what the current retirement age looks
like the age as it is anepic you know, epoka genre. And
how to find the right advisor andhelp you get along successfully and get to
and through retirement by asking the rightquestions, finding out what those questions are
the right advisor to go with itand enjoy the journey and do so successfully.
And speaking of questions, oh yeah, the thought provoking questions to tie

(07:48):
into today's show. So for starters, how is retirement different today than it
was even just ten or maybe twentyyears ago, you know back in the
day. Right, Why are somany cup not just going away from pensions
but have already gone away from pensions? In other words, are changing from
the defined outcome to define contributions.Now what happens to your contributions is completely

(08:11):
undefined. That's up to you onhow you invest and how wisely you invest.
What questions should you be asking theadvisor or your perspective advisor to make
sure that he or she is agood fit not just for maybe the individual
you, but the collective you.For example, how exactly do financial advisors
get paid? Who do they represent? Who do they actually represent? Are

(08:35):
they captive? Are they independent?Do they have a fidiciary duty of responsibility.
In other words, are you theirnumber one client or is the company
the mothership their number one clients?Will your advisor hold money at their firm?
That's like asking who is the actualcustodian of your money? Where exactly
will it be located? How approximately, I'd say, how far out should

(08:58):
you know preparing for retirement? Howfar out? How many years should you
start before the actual retirement? Shouldyou really start planning for retirement and building
a plan. That's like saying,are you in retirement or are you at
least planning for retirement? When areyou planning for retirement? Are you waiting
till you're in your fifties or earlysixties? Is that soon enough? What's

(09:20):
the difference between the fiduciary duty andthe suitability duty or the standard? What
type of investment philosophy should you lookfor an advisor? Are you a good
fit philosophically and also maybe in otherways too, How should you prepare for
healthcare and the potential of long termcare expenses in retirement? And what type

(09:41):
of investment, retirement and income planshould you have or help to create with
your advisor? And turn this aroundon your retirement plan. Does that include
the investment plan and the income plan, because when you transition into retirement,
part of your plan should absolutely includethe income plan. Greg any thoughts,

(10:03):
oh, I just fidiary duty ispretty important. It's critically important. It's
kind of like an advisor that's onduty. We'll have a fidisiary duty.
Every other advisor's off duty. Asfar as it relates to the transparency and
the integrity of the advice, minusany bias that can complicate and wrinkle maybe
work against you. As James mentioned, it leaves it to the advice and

(10:24):
what's the purpose for the best served. The mothership, the organization, the
brokerage firm, the bank group,the insurance brokerage group, not necessarily the
health of your wealth critically important.Who works for you, doing things with
you versus things to you. Thesetypes of conflicts of interest should absolutely be
disclosed. There's more, there's muchmore off funder about the office five one,

(10:48):
three, five, seven, five, nine, sixty five four calls
we can help Butt's stay tune.You're listening to the Sound Money Investment Show
with Brown Financial Advisors here on fiftyfive KRS. The detalk station opinions expressed
are solely those of Brown Financial Advisersand should not be interpreted as specific advice.
Materials presented are believed to be fromreliable sources and no representations can be
made as to its accuracy. Allideas and information should be discussed in detail

(11:09):
with one of our qualified investment advisorsprior to implementation. Market based investments involve
risk, and past performance is noguarantee of future results. Insurance based investments
offer guarantees based upon the claims payingability of the issuing company. All insurance,
tax and mortgage services are offered throughBrown Insurance and Tax Advisors, LLC.
Brown Financial Advisors and Brown Insurance andTax Advisors are affiliated companies and may

(11:31):
only transact business in those states inwhich registered or were otherwise legally permitted.
Welcome back to the Sound Many InvestmentShow with Brown Financial Advisors. I'm Greg
Brown and I'm James Boortan. Weare an independent RIA that's a registered investment
advisor firm. We do our forclients, not companies. That's Main Street
and not Wall Street. Our fundnumber five one, three, five,

(11:52):
seven, five, nine, sixtyfive to four. Website Brownfinancial Advisors dot
com email team at Brownfinancial Advisors dotCom offic in Milford, but we also
have locations in Blue Ash, Westchester, and Florence. Greg well this subject
of finding the right advisor in thecurrent retirement age and knowing the right questions
to ask an advisor, a perspectiveadvisor with the challenging environment we have today

(12:15):
in the retirement landscape that is beforeus. So as you get closer to
retirement, do you sense a feelingof stress that it might be presenting?
Maybe you're already retired, you realizeit's not as simple. It's just choosing
a retirement date and walking right throughthat portal of reality into the next.
It can be, it can bea scenario that we It's kind of like

(12:37):
so many other things in life.We're going to experience it right one way
or another. We're going to runinto this moment, this event, and
we're all going to experience it.What your experience is going to be,
like, how prepared will you be? You can take that about any way
you want, physically, financially,spiritually, it's just all and some of
these are like also they're cross pollinated, because that's going to say emotionally too,
It's kind of a mental thing.But you need to be mentally,

(13:00):
emotionally and financially prepared so you canphysically endure both f I CEO and you
know phys ic a L L Y, you know, physically physically got it
together to do this thing. Retirement'sone of the largest milestones after all of
your life. Just one of them, I knows a lot of them,
is a pretty big one. Andthis milestone it will last. Well,

(13:20):
we hope twenty to thirty years.Lord Willing and parents of yours mine might
have had a different approach, differentworld, different time, different reality.
As things change, need to getmuch more proactive. Got to tell you
that you've got to get more proactive, and it needs to be a game
plan approach, just like a coachrun aroundside the field has that game plan

(13:41):
based on alterations, changes, thingsthey confront, you know, different formations.
You've got to have a plan ofattack ready to run with. And
then you have these other life issues. You know, what if what if
you're having a health crisis. Whatif you needed some dental work? Right,
you see a doctor, you seea dentist. Well, apply the
same logic and discipline to retirement.Come see the experts when it comes to

(14:03):
like, you know, financial doctors, but in this case, we don't
want a doctor most equip most skilledto handle all the aspects of your condition
or your disease state or your challenge. Of course you would, and that's
why we implore you to seek theguidance of affirm such as ours, with
advisors such as us that are infact financial fishery, putting your interests first

(14:24):
in every situation and holistically inclined tohelp with all aspects of what might be
the condition that you experience. Again, investments, insurance, it's going to
be the financial planning aspects, healthcare decisions, social security maximization, pension
decisions, and maximization, state planning, next generation planning, if you will,

(14:46):
all of that brought together. Taxefficiency, tax preparation, tax advisory.
How much efficiency inefficiency can you experienceand loss of money through poort investing
leading to unfavorable tax results, andparticularly in a fixed income and retirement money
saved money earned money is still inyour well in purse because you didn't give

(15:07):
it to the government unnecessarily. Soa lot of challenging moments it might be
ahead you had them in the past. You know your life filled with getting
married, starting a family, thengrandchildren, you know, school decisions,
moving from place to place, alot of different decisions, and this is
a pretty big one. James,Well, this is maybe i'd say,

(15:30):
maybe more like a philosophical question aboutand typically it's kind of starting with this.
You know, we are willing tohelp those are willing to be helped,
and not everyone is willing to beled or to work with a financial
advisor. There are a number ofpeople who very simply they're do it yourselfers,
and it's a very difficult thing tokind of get through that particular mindset

(15:52):
to have someone else help or evento guide or have you know, the
advisory role when it comes to yourinfast your retirement, and sometimes it's the
husband or the wife who you know, one of them's on board and one
of them's not so much on board. So it is important that for especially
husbands and wives out there the couple, that you do have both people involved

(16:18):
in the process and on board withwhat the process is going to be.
You know, that's kind of wherewe start is are you a good fit
for us? Much like are wea good fit for you? Sometimes that's
the philosophical question to be addressed beforewe start, or you decide who or
what you're going to work with.Now, when it comes to the quote
unquote old school retirement and how andwhy it's ending, it kind of starts

(16:42):
with this pensions. They're becoming morelike the dinosaurs, if you will,
very scarce comparatively speaking to what theywere not just ten but twenty years ago.
But right now I'd say it's approximatelyten percent, which is kind of
surprising, it's still that high,but ten percent of the workers out there
will have access to a pension uponretirement. Pension kind of goes like this,

(17:04):
the company has some type of benefitbuilt into you that is similar in
some ways to a four one Kin that the money has typically not been
taxed yet, and when you startdrawing it out, that's when you pay
taxes to Uncle Sam. Now asfar as the pension goes, as far
as the benefits, that's where itdiffers between the four one K versus the

(17:26):
pension. The four one K isa defined contribution plan. The pension is
to define benefit plan. And whycompanies are going away so dramatically from this
is because really two words unfunded liabilitiesor maybe not quite unfunded but underfunded liabilities,
So the responsibility that the company has. They're looking to offload these responsibilities

(17:49):
and shift that burden back to theemployee soon to be the investor to have
responsibly invested their moneies, their preretirement moneies through out there working years.
So our call to action, ifyou're faced with a pension buyout offer,
because again companies are looking to offloadthese responsibilities, call us. Come see

(18:10):
us. We can help you analyzewhat your options are really, how to
judge what the payout factor is andhow does that relate to the guarantees versus
the non guaranteed versions of what youcould receive versus maybe what you should receive,
especially for those who have maybe aspouse to protect, as far as
some type of level of protection thatmeans some level of beneficiary designation fifty seventy

(18:32):
five one hundred percent protection x numberof years for your payout versus a lump
sum that if someone dies too soon, that lump sum suddenly goes away,
goes right back into the company's coffers. If you will so our vone number
five one three, five seventy fivenine to sixty five four call us we
can help Greg. Well, rememberback to school, Rodney Dangerfield. These

(18:56):
aspects that affect pensions and payouts andlongevity and the length of your retirement,
how you should plan, how muchmoney should set aside, and all those
considerations. People living longer. Iknow you hear this often, and we
have all kinds of numbers. Whatdo you believe pre pandemic post pandemic.
How much of a shift was thereactually in male female longevities in the United

(19:21):
States in particulars are concerned versus abroad. But living longer equals, bottom line,
more money needed for those extra years. Okay, population sixty five and
older was sixteen point five percent andtwenty nineteen. Now that's projected to reach
twenty two percent by twenty fifty.Even if we took a bit of a
hit on longevity pandemic post pandemic,you know, by twenty fifty, maybe

(19:42):
get trended back on track with enoughhealthiness for the trend to stay remaining in
a direction of growth from sixteen anda half and twenty nineteen to twenty two
percent by twenty fifty. But whatdoes that mean to you and me?
It just means that since twenty ten, there's an increase of thirty percent on
the time that we're going to beleft on the planet having to fend ourselves
financially, buying the things we needto survive another day, another week,

(20:03):
and try to have a good timewhile we're doing it. Right back to
that, let's make every day aSaturday to whatever extent that makes us happy.
Retirees, and since people may verywell be living longer, it's critical
to make sure the retirement income,the cash flow is in place to address
that. Now people are working longer. Here's another thing to consider. A

(20:26):
lot of reasons for this. Butaccording to a brokerage firm survey of a
major platform once TD Maria Trade nowSchwab, one in three, thirty three
percent of Americans that are age fortyplus planned to have a job in retirement
now forty plus. Big whoop,Right, everyone forty plus should be working
in doing something at their time.We just can't get in trouble when you're

(20:48):
sixty something. It's more discretionary.Do you want to do you not want?
You wants to engage, You wantto find something to do, exchange
time for money, Fine, youneed to get the house a little bit
more. Just whatever that makes sense. But forty plus I don't even where
that number come from. Of course, thirty three percent or more people forty
posts can be working. Most peopleforty to fifty are in fact just working.
Don't really like the stat but here'swhat that minds that thirty three percent

(21:10):
of the people feel like they willnever be able to retire. Yeah,
get in the mind, getting thepsychology of it, and that that's right.
Lean into the fact that there's afear factor, the anxiety that you're
just not prepared going into your fortyis still not prepared. Now, that's
a good statistic to see and bereminded of. Have you seen that out
there? Usually do to you know, you'll be flipping around, you know,
through your phone or whatever, andyou'll see some thing that says x

(21:32):
percent of Americans don't have more thanten thousand dollars in savings at any given
time and couldn't get that together ifthey had to. Those are some scary
numbers. But this tells you themindset. You don't feel ready, What
can you do to feel better?You might be ready, James. We
see people all the time in bettershape than they realize. They just need
someone to come alongside, confirm projectplan, to take assurance absolutely and then

(21:52):
get you on track if you're slightlyoff on track, if you're way off,
and then stay out track thereafter.So you know, because I'm a
statistic but tay, seventy two percentof retirees that are unretired yet said that
they would stay or return to workto keep mentally fit and I like those
those purposes, while fifty nine percentsaid it would be tied to just making

(22:15):
ends meet, just some thoughts there. Yeah, there's more, there's much
more. Our fun number five onethree five, seventy five nine to sixty
five four call us we can help, but stay tuned. Listening to the
Soundmi Investment Show with Brown Financial Advisorshere on fifty five KRC, the Attack
Station. Welcome back to the soundMany Investment Show with Brown Financial Advisors.

(22:38):
I'm Greg Brown and I'm James mooreThan. We are an independent registered investment
advisory firm. We do work forclients, not companies, and it does
all start with the plan. Thatmeans actually having a plan, knowing what
you own and why you own it. So whether you're seeking advice on Old
four one K four three b IRArollover. Investment planning, retirement planning,

(23:00):
income planning, tax planning, socialsecurity maximization are roths conversion analysis, INUA
analysis and for some perhaps even inservice rollover, although some more we can
help five one, three, five, seven to five, nine sixty five
four our website Brownfinancial Advisors dot com. Email team at Brownfinancial Advisors dot Com.
Home offices in Milford, but wealso have locations in Blue West Suster

(23:23):
and Florence shall Well James. Wetalked about living longer. We talked about
the challenges and differences today versus yesteryearwhen it comes to retirement. We talked
about the psychology of what's circulating theminds of people, the angsy anxiety associated
with are they ready? Do theyknow if they're ready? But they like
to be confirmed, affirmed and knowthat they are. And if there's a
gap, wouldn't they like to knowthat to tighten up the gap, get
the advice, get structured on trackto win on purpose. And the answered

(23:48):
most that is yes. But whatabout some aspects. We transition to other
considerations social security. We're go lookat the impact retirement agent. Get to
write to some of the questions thatyou should be asking an advisor, but
James, what about those security Well, for those who've paid into Social Security,
which is about ninety percent of us, and then for others who might
be infected well affected by things likethe windfall elimination provision or the government pension

(24:11):
offset. Those are discussion points thatyou should absolutely come see us about when
it comes to how a pension thatyou have otherwise could affect your Social Security
benefits and how one could offset theother. So historically is looking at social
Security here, it's expected to replaceusually about thirty to forty percent of your

(24:32):
pre retirement income. So that begsthe question about the gap. What about
the other fifty sixty seventy percent ofyour income? How much of that are
you looking to replace? Can youreplace it? Now? Inflation, let's
just look at that. Usually it'saround three to five percent, sometimes a
little bit more, sometimes a littlebit less. Recently has definitely been a

(24:52):
little bit more. For twenty twentytwo, going back to what the COLA
was, for twenty twenty two,the Social Security cost of living adjustment was
five point nine percent. For twentytwenty three it was eight point seven percent.
Now for twenty twenty four, youcan debate about these numbers, but
still the government's forecasting it's going tobe three point two percent. That's like
saying inflation has come way down,which may or may not be exactly the

(25:15):
case, but nevertheless the government numberssay three point two percent. Now,
the bad news, so to speak, is that the standard Medicare Part B
premiums will increase in twenty twenty fourby six percent. Remember that Social Security
increases only three point two Well,for Medicare, the standard premium goes from
one sixty four ninety a month toone seventy four seventy a month. The

(25:37):
good news, here's some good news. There's a provision called the whod Harmless
Provision, which means that for thosewho are already drawing Social Security, the
cola that means the max amount thatthe Medicare premiums can increase can be no
more than what your cola is foryour Social security increase. So what that
means is that a three point twopercent cola for the soci security equals a

(26:00):
maximum three point two percent increase onyour Medicare premiums. So what happens is
that the brunt of these new retirees, these Medicare increases, the brunt is
felt by two different groups of people, if you will, that means new
retirees or new Medicare beneficiaries in twentytwenty four, and also something called IRMA

(26:22):
or those who are impacted by IRMA. IRMA is the monthly what they call
the income related monthly Adjustment amount,and it affects those whose income exceeds one
hundred three thousand. And I'll explainthis a little bit more as we go
along, one hundred three thousand.If you're modified adjusted gross income is above
one hundred three thousand. If you'resingle, head of household and then married

(26:45):
filing separately, and if it's ifit's your married filing jointly, your limit
is two hundred and six thousand.If you go over that number, you
pay more for your Medicare premiums.So modified adjusted gross income, by the
way, is really almost the sameas your adjusted gross income, but you
have to add back in things likeyour tax exempt interest, which if you

(27:07):
ever hear tax free, it's nottax free, it's just maybe at the
federal level, tax exempt. Sowhen it comes to when and where this
affects things, so think about this. Your twenty twenty four Medicare premium is
a calendar year premium. It islooking back at your twenty twenty two tax
year, which is filed during theyear of twenty twenty three. So it

(27:30):
seems like there's a two year gap, but there's really only just a one
year gap. Remember calendar year versustax year. That's a one year difference.
So if you're subject to IRMA,that means your Medicare Part B and
your Medicare Part D could potentially doubleor maybe even triple over what the standard
premiums are. So the bottom linehere's, you know, kind of wrapping

(27:52):
this up. Social Security is stilla really important component of your overall retirement
plan. But that's just it.It's just one component of your plan,
and it should be viewed more asa supplement to your plan, not the
centerpiece. Greg Any thoughts, Yeah, a lot of acronyms there, and
all the government loves acronyms, don'tthey know. And I was just thinking,

(28:14):
as you're going through the sociecurity increases, we're a pretty conservative bunch of
people around here, and here weare on conservative talk radio, no doubt,
and we oftentimes see a lot ofconservative prospects and clients and have a
lot of conservative clients, a lotof different clients, but including you know,
a lot of conservative clients. Butit's always kind of humorous, tongue
in cheek, where say, priorto retirement, you'll hear, oh,

(28:34):
the government, the government's always taxingtoo much doing this. There's just little
to no faith in the government.And I can't believe we're paying for all
these seniors. And I remember thisparticular person comes to mind with it was
a five point something lash five pointeight percent, what was it increase in
sold security basically six percent, Sothere you had this big increase in I
can't believe we're just going to gobroke paying for all these seniors. And

(28:57):
then just recently saw him, he'sfully retired now and he had just gotten
information to SoC security increases. Hewas glowing. And it's just the irony
of one minute it's over taxed todeath, can't afford all this, and
then the next minute, when youis one, it's like, hey,
this is pretty sweet. I'm gettinga pay increase. My last three years
at work, I didn't get anincrease at all. They kept promises,

(29:18):
bonuses, and they did one ofthose contributions for and when came with the
end of the year, they kindof decide if they're going to do something
or not, and it was anot And here we are and we just
find all these acronyms, I cantell you straight up also related to a
conservative world of talk versus the liberalworld of talk. And if you're a
talk junkie, you're listening to itall plus podcast. Please. One of
the best things we can do isan advisor you can trust is shoot you

(29:41):
straight. If you're into that bricksplus whatever and you think the dollar's being
broken and it's a sinister whatever,whatever, wrong, whoever's telling you that
stuff. Quit listening to them.They're leading you the wrong way. And
pray that they're taking their medication too. I'll just add that. And you
know who I'm talking about. Ifyou listen to enough of this stuff,
then oh, the government's in tocome take the retirees savings away in our

(30:04):
retirement and they're coming for our forearingK's boulder dash. This is just it's
the right leaning conservative crowd that's justtrying to sell you a bill of goods,
just like the left does. Somewherein the middle is the truth,
and you need to live there anddwell there for your own mental health,
because I can tell you we hearthis all the time from people, the
dollar's breaking. Do you know theirony too of this? As conservatives,

(30:27):
we want trade to be fair.We want to sell more of our stuff
to other people and have a tradesurplus. Heaven forbid, we'd have a
surplus, right. But it's thesame breath which you just heard one of
mine, because it takes my breathaway. We're complaining that dollar's going down
in value. Actually it's very strong, thank you for asking. But that
aside that country is trying to breakit. No, they want to buy

(30:48):
our stuff because we have really goodstuff, good quality, and they need
to be able to afford it,and they need a less expensive dollar to
do so. So a lot ofthis is just clamoring countries getting together to
reduce the value of the And ifwe had an administration that had its act
together in terms of commerce and capitalmarkets, they would find a way to
price our goods and services in ourdollar position that other countries could buy our

(31:10):
stuff. It's not really about tradewars. It's about trade deals and having
currencies that work well in together sothat people are foreign and domestic both can
afford to buy our goods and services. Because you can't have it both ways.
You can't complain about trade deficits.And they complain that the dollars getting
devalued by a sinister movement of acollection of countries who want a lower dollar

(31:32):
because they want to buy more stuff. That solves the trade deal. Right,
You've got to pick a horse andride it all the way to dodge.
That's just bottling and good information helps, not as the psychobabble that makes
people just like you and us feelless than good, as we should feel
much better. The things we're sharingis what it's about. It's what's going
to get your retired stay retired andbe happier and maybe dial back on some

(31:55):
of this other information. Mis informationand stuff just make you mentally and physically
sick if you just keep taking itall in, it's toxic. There is
a truth and we all know it, and it's oftentimes somewhere in the middle
is most people upset, and we'dlike to help you with just that.
And that's a part of some retirementdevice. You need to hear from a
coaching perspective, just a thought.But and there's so many thoughts along those

(32:16):
lines when it comes to what you'llhear permeated through the Internet and radio waves
and TB waves, that you needto put on your tin hat, just
like Mel Gibson's family and signs.If you remember that, that was kind
of a cute moment. They're allhuddled up under the stairs with a tin
hat protecting themselves from alien mind control. Okay, are any of that movie

(32:37):
those that the tinfoil hats were actuallynecessary? Absolutely were in fact necessary.
And there's a lot you can dowith the limit of wall. Just google
that one. There's so much morewhen it comes to that. But how
about you know, instead of goingover some of these things about growing at
all costs, growth, you needa certain amount of growth and a certain
amount of risk. Be a headfull of too much misinformation, you can

(32:59):
call should be overtly conservative in away that your money can't meet and exceed
the needs of hedging inflation, providingthe cash flow you need from sufficient growth
of investments over time. And whenit comes to long term care insurance and
concern to go into nursing home,please make a packed amongst your family to
take care of each other first andforemost, and then the children and grandchildren.

(33:20):
They could get some extra part timework from your funds and resources.
We're one of the few economies incountries and nations that really support the long
term care concept being institutionalized and notat home. But you know what,
you need to be retired first,and we need to worry about long term
care second. But we'll worry andwork altogether as a comprehensive plan by just
coming in and talking about it anddoing it. Give us a call our

(33:42):
number five one, three, fiveseven, five nine to sixty five four
calls we can help, but staytuned. Listening to the Sound Money Investment
Show with Brown Financial Advisors show onfifty five krs the Detox Station. Welcome
back to the Sound Many Investment Showwith Brown Financial Advisors. I'm Greg Brown

(34:04):
and I'm James Boorthham. We arean independent RIA that's a registered investment advisor
firm. We do our front clients, not companies, that's Main Street and
not Wall Street. Our fund numberfive one, three, five seven,
five nine sixty five four. WebsiteBrownfinancial Advisors dot com. Email team at
Brownfinancial Advisors dot com. Our homeoffices in Milford, but we also have
locations in Blue Ash, Westchester,and Florence, greg You know, sound

(34:29):
I was a little hard on theword institutionalize equally long term care, but
most families will tell you that theyfeel that's that's what it contrast does versus
being at home, and most professionalsin a long term care setting will tell
you the same. If you cankeep someone at home and nurture and care
for them for as long as youcan, that is most certainly plan A.
That said, there are people whoabsolutely do need a skilled level of

(34:51):
nursing facility care, and it's sucha burden to try and take care of
that. You know, your mom, your grandma, your dad at home.
Sometimes physically it's so taxing on theadult children that it's not fair for
that to be an ask yes,and not even physically an option because of
the medical necessity and things that goalong with that to the point of twenty

(35:13):
four hour care. So your planB becomes this and why avoid the plan
be well at any cost, ifyou might say cost well, certainly because
of cost. In Cincinnati, theaverage cost is ninety six thousand dollars per
year and one hundred and seventeen thousanddollars per year somewhere between, depending on
the level of care that's needed.So if for some folks out there,

(35:34):
it's a decision to be made betweenpreparing for tomorrow's maybe stay at a nursing
home, or every month us havingless cash flow and the retirement and the
living benefits of our life that we'veworked so long to enjoy at this financial
phase, it can be a toughchoice and we need to plan for it.
We need to have a plan forit, We need to have the
discussion, and then likely you needto have the discussion amongst your family adult

(35:57):
children as well, which kind ofleads us to being able to advise you
in all these things. Again,holistically, it's critically important. Don't go
to you wouldn't sit in a oneleggag chair. We don't work with the
one, you know, a singlesolution advisory group, because that's not advice,
that's just a that's just a onetool in the toolbox, and you
need all the tools available to makethings better. So some of the questions

(36:17):
we go through finding the right advisor, James, some questions, Yeah,
so you know, we get thisquestion, what services do we provide,
And when searching for an advisor,you most likely want to work with someone
who can help with the different andthe many different aspects of retirement. Right,
So that means what do we dohere at Brown Financial Advisors? What
services do we provide? What wealso are looking for as well? In

(36:42):
what areas of need do you actuallyhave? So for starters for us,
we we help with this. Wehelp you figure out how much you need
to retire, set up your savings, your investment benchmarks to help you get
there. We help you choose investmentsthat match your risk tolerance, your time
horizon, and also help reduce redundanciesand overlaps in your portfolios. So if

(37:05):
we make your investments more efficient,more efficiency equals better results, better returns
for you. And it also helpsto eliminate the unnecessary fees, margins,
and loads. So once again eliminatingor downsizing as much expense as we can
inside your portfolios, we help youto create a properly balanced retirement and income
plan. What that means also formany people out there, is balancing between

(37:28):
the different colors of money. Redis unmanaged market risk, Yellow is professionally
managed market risk versus green money isinsured investments. We help you with tax
planning, tax preparation, and helpingto create a tax efficient strategy of not
only your investments, but also ofyour income. Help with health insurance with

(37:50):
Medicare options, Medicare supplement, Medicareadvantage, prescription drug plans. We also
help with legacy planning as well aslong term care planning. So those are
just you know, when we say, hey, what can Brown do for
you? These are the things thatBrown can do for you. Greg any
thoughts, Yeah, when you kindof entered that question at Q and A
part what services do you provide yourclients? And you ask too a firm

(38:12):
outward to a firm, I'm thinking, ask a different question, what services
do we not provide that are relevantfor this financial phase? And we would
struggle to answer that. That's agood sign most companies. You do want
to ask what they do provide withus. You might ask us, there
anything that you don't provide for us, and let's say it's all included.
It's the kitchen sink. It's comprehensive. And as James said, we drilled
down into the areas of your greatestneed. But knowing that we're there like

(38:36):
a blanket to keep every inch ofyou hugged and warmed throughout the retirement process.
So second one, does your firmhold money like the person's money and
investments. Do they literally hold it, you know, like Bernie made Off
held money. Well, we areresponsible for the investments, the planning,
the strategy, the advice. Sure, but the money is held in a

(38:57):
third party custodian. So many peoplethink that a firm they work with is
get to be holding directly their investments. I'd suggest to you they best not
right. Your advisors should not comein contact with your physical assets minus the
fees that are paid to them thatyou preauthorize, which come from your investments
over time, and we make surethey're distributed on a tax neutral, tax
efficient basis. By the way,now, rather a financial advisor you work

(39:22):
with in their advisor firm should becontracted with the reputable custodian we happen to
work with the Charles Schwab institutional platform. That's not the retail side where you
take the keyboard in your own handsand trade zealously forward, hoping to strike
it rich with a few positions andlucky trades. Not at all. It's
institutional side, where we use themachine to transact our strategies, through our

(39:43):
advice, through our planning, throughthe investment collection and strategies that we have
for you and your best interest,with Schwab holding the money, doing the
tax accounting, end of year,monthly statements for checks and balances, but
we will not hold your money directly. No one can run off with your
money. Very important. All investmentsare registered, they're real, the strategies

(40:04):
are legitimate. Schwab would not beyour advisor. We are. They're just
a custodian, just the machine,just the checks and balance, just the
again the word custodian, trustee,et cetera. That's where assets are held,
that's where transactions take place. That'swhere dividends and interests are collected and
payments made into the account. Distributionsare made from again monthly statements, annual
tax documents, and so forth.So that's a custodian. James, Well,

(40:30):
another question, and this is areally important one, is are you
held to a fiduciary duty when providinginvestment advice? So that's a question that
your advisor should be able to answerand hopefully answer is yes. So a
fiduciary duty, by the way,is a legal term that means one party
has the obligation to act in thebest interests of the other party and to
properly disclose any conflicts of interest.That seems like something we should all want,

(40:53):
right and you do want your advisorwho has the obligation to act in
your best interests, not their own. So in this industry, our financial
industry, there are really two differentstandards that advisors are held to. One
is the fiduciary standard. The otherone is the suitability standard. And our
firm, Bround Financial Advisors, we'rean independent registered investment advisor firm, and

(41:16):
our advisor representatives are held to afiduciary duty of care, which means that
we are legally required to work inyour best interests when providing investment advice.
So you know, just kind ofcompartmentalize this. When we make recommendations at
our insurance based the regulatory standard thatapplies is a suitability standard. The insurance

(41:37):
company, by the way, isBrownd Insurance and Tax Advisors, which is
a separately held company. And therecommendations also that when we say the suitability
recommendations, they meet your needs andyour objectives, So it's important that that
is properly disclosed. Greg any thoughts, Yeah, I think it's the difference
between good invest versus good enough?And are you satisfied with good enough?

(42:00):
Do you deserve more? Do youneed your interest served first and foremost?
Do you need some other firm andrelated firms and the motherships and the banks
and the insurance brokerage groups and thosebrokerage firms. Do you need them to
be winning at your money or doyou need to be winning by them investing
your money on your behalf for yourbest interest? Your best interest? I

(42:22):
cannot say that often enough. Sowhat about a fourth one here? How
will you be compensated? As youask an advisory firm that question, Well,
one of the most undervalued questions toask is how they get paid.
Yes, it may seem a littleintrusive being that direct, but you deserve
to know upfront how they'll be compensatedfrom your money for the investing of your

(42:42):
money as a potential financial advisory group. Now, unfortunately, advisor compensation can
seem about as clear as muddy water. Well, ours is straightforward, it's
transparent, it's very accountable and direct. As a matter of fact, it's
so direct to just tell you areit is a fee base approach. Again,
the fees are deductive from your investmentaccount, and we project things net

(43:07):
of any cost. So when yousee our projections and what we're presenting to
you, you're going to see itafter any cost. We believe that that's
the way you should see things.Because there's more than just fee. You
have total cost of ownership. Peoplesometimes will say, well, this fee
is higher than that, I'm goingto go with the least costly fee.
Well, you just might have steppedin to deepend the pool and got yourself
involved in the most costly investment relationshipof your life. Because it's total costs

(43:29):
that matters, we disclose total costand it's consumer friendly. The month following
the end of a quarter, you'llsee a line item on a statement that
shows how much is the deduction forthe fee for that quarter. Okay,
getting straight for it. Don't haveto hunt and gather for it or wonder
what these people are doing to you. It's nothing like that at all.
It might be someplace else not here. The other thing you need to know,

(43:51):
it's based on an average daily balance, not brokerage firm style to where
it might be. The value atthe end of a quarter much different.
So you have these questions, howthey're paid, what's their investment philosophy?
Is it yours or theirs? Imean you just you can go on.
How about how often you touch base? Frequency of meetings? Ours is custom
You want to see each other twicea year, quarterly, annually, at

(44:13):
tax time. You deserve more ofa touch and it can be customized to
your needs. There's more, there'smuch more. Our fun about the office
five one, three, five,seven, five done, sixty five four
again five one, three, five, seven, five done, sixty five
to four calls. We can helpnow on behalf of myself. James and
Greg, we want to thank youfor listening today. Have a great week.
Remember this sound money, where goodthings are believable, achievable and true

(44:37):
for you.
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