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November 20, 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 academic truths,
abottom missing always representing Main Street andnot Wall Street. Team. It's your
Son Money team and this is theSound Money Investment Show with Drawn Financial Advisors.

(00:25):
Hello and welcome to the Sound MoneyInvestment Show with Brown Financial Advisors.
I'm Greg Brown and I'm James Worth, and we are a registered investment advisory
firm. We are independent. Wedo work for clients and not companies.
To receive your complimentary and personalized financialincome plan. Gives a call it five
one three, five seven, fivenine sixty five to four, whether you're
seeking advice on old four one Kfour to three B, some type of

(00:49):
employer sponsor plan, perhaps even inany way analysis. Here's the point about
all this. If you're no longerwith the company, then as a rule,
your money shouldn't be there either,So we can help you roll that
out into a tax neutral IRA takecontrol of your money. Give us a
call five one three, five seven, five nine sixty five four. This
is our website, Brownfinancial Advisors dotcom. Email show your thoughts to team

(01:11):
at Brownfinancial Advisors dot com. Ourhomeoficis in Milford, but we also have
locations in blueh Westchester and Florence,greg Well. To get started today,
this subject is pretty important, Iwould say retirement and income planning. Someday
the finish line will be retirement.And retirement is a new beginning. It's
really the first, I guess periodof time in your life that you are

(01:34):
constructively unemployed. You're going to worknowhere, You're going to work on pursuing
the dreams and goals and ambitions tobe more the version of the idol you.
But we find that's to the contrary, people have never been busier.
In fact, they oftentimes tied thatdon't know how they ever had enough time
to work. Well, those peoplethat are happiest are the ones that have

(01:56):
a plan and that plan includes incomebecause retirement is cash flow. And what
kind of plan should they have?What kind of plan? Should you have
a custom plan? And what doesit mean to have a custom plan?
And do you have a plan?James tell us, does everyone have a
plan? Oh no, it's likethe failure to plan is a plan to
fail? There you have it,so you might have one, just may

(02:20):
not like the outcome. So whatdoes a true financial plan look like?
Well, the most important components ofa solid plan, well, they would
be something that you would be lookingfor because it'd be about you, right,
so better Yet, if you don'thave a plan, but you simply
have investments, do you think that'senough? How do you organize them?
Which buckets of money do you use? First? What you use for cash
flow, what do you use forgrowth, what do you use for emergencies,

(02:43):
what do you use for just chasingthose toys or those places and things.
It all matters, and it's bestto have a plan. Now we
tend to What we tend to findmost of the time is people think that
they have a plan, but whenthey break it down to examine it,
they on further analysis, they moreor less have kind of a report,
kind of a one page picture ofsomething. There's more details, I guess.

(03:07):
Even if you were to reverse engineera paint by numbers picture and you
peel back the layers, you dofind the underpinnings beneath the colors, the
organization and sequence by numbers that tiespecifically two colors, so that when you
finally accomplish this and you lay outthe plan or the image, you have
a rather beautiful picture. Very samehere. So otherwise, if you just

(03:30):
stumble into the average let's say,investment place offering so called financial services and
advice, what you likely walk inand out of is a cooker cutter situation
where for you it's a hammer andfor you, let me see what happened
toolbox? A hammer. Wait,you're pretty unique, you're special. Let's

(03:50):
see here another hammer. You mightneed a screwdriver assaul. I mean,
we oftentimes in public seminars just kindof joke about have you ever try to
screw a nail with a hammer?Or hammer a screw right vice versa.
I mean, you need to writetools. You just need the right tools
and without the right plan, andit shouldn't be cookie cutter. So let's

(04:11):
build a custom plan together. Whatwe offer is an opportunity for you to
come in either call us five onethree five seven five nine six five four
five seven five nine six five fouror email us team at Brownfinancial Advisors dot
com or go online. Brownfinancial Advisorsdot Com is our website, and there's
a place there, a little formyou can say, hey, i'd like

(04:31):
to have one of those complimentary appointmentsand other options. You could have dinner
on us or dinner with us.If you go to the seminar section at
the top of our menu of ourwebsite, you can click there and you
can you can kind of go downa decision tree. One is you don't
want to sit with a bunch ofstrangers in a public seminar and eat a
state dinner with your new best friend. You could just opt to come in

(04:55):
for the appointment here. We'll spendtime looking at everything you have. We'll
have you back with all the recommendations, the plan, all the everything,
without holding anything back. We wantyou to have clear recommendations and guidance,
all complimentary without any obligation. Itwill still send you out you and your
significant other for a state dinner orthe other option has just come join us
at one of our evenings of food, Fund and Finance at one of the

(05:16):
local restaurants, where we'll just speakabout all things retirement and challenge you and
then ask you to come in anddo something special for you and that would
be put together conference and planned.We'll cover investments, insurance, estate planning,
income planning, cash flow, pensionselection and maximization. Social security maximization
is pretty important and so many ofthese things. When it wills right down

(05:36):
to it, you want to getit right the first time. You know,
retirement does not come with doovers.And this isn't our first rodeo.
We've seen thousands of homes households overthe years and it's been a really awesome
benefit to see the various dynamics andthe outcomes and we know what works,
what works really well, what worksless well, and what's going to be

(05:59):
a collision core for your personal financialfailure. So you don't have to risk
getting it wrong the first time,because you only get the one time.
So let's help you. Let ushelp you by just contacting us James.
Thought provoking questions about custom retirement andincome planning. Oh, absolutely, the
thought provoking questions that tie into today'sshow. So, for starters, what

(06:23):
exactly are your financial objectives? Arethey measurable? Are they written down?
Are they just maybe ideas floating aroundin your head? And for the individual
you versus the collective view, isthe spouse part of these conversations? Are
they involved in the decision making processin planning for your retirement, your income,
maybe even your legacy plan on theend of your days. Right,

(06:46):
what do you need your money todo for you? Here's what that means.
Do you have a specific job titleor description for your various different investment
accounts. You might have one that'stailored more for future growth, one that's
tailored more for current income, oryou could try to do two things at
one time and get neither one done. What are the main priorities for your
retirement, as in, what doyou feel like you either want to or

(07:09):
need to accomplish. What are yourlife goals is kind of another way of
phrasing that, do you have sufficientincome or cash flow to support your lifestyle?
Your lifestyle that you have now theone that you want to project into
retirement, and maybe perhaps not justagain the individual you, but also the
collective view. From which accounts willyou draw income and in what sequence?

(07:31):
So if you need additional cash flowin retirement, where's it going to come
from? What bucket of money haveyou? As Greg mentioned earlier about maximizing
different types of sources of income,whether it be from social security or pensions,
or taking if you have a pensionoption, taking the lump sum versus
the innuitized version of the pension.To what degree are you at risk for

(07:54):
maybe running out of money at leastprior to running out of life. Are
your investments properly aligned with your personalrisk tolerance? What is your risk tolerance?
Is that the same answer now asit was, say last year or
five years ago. You know,we hear this oftentimes when the market's pulling
back suddenly, I want to beconservative, and then when the market's doing

(08:15):
well, well, that's when Iwant to be aggressive. The problem is,
you wait until the market's not doingwell to then become conservative. You
wait until the markets have done well, and then you become aggressive. So
timing the market does not really workin that direction because you wind up chasing
the returns instead of capturing the returns. Yeah, you know on that you
might get lucky if you walk awaywith a win. You need to understand

(08:37):
that probably statistically you just experienced anoutcome driven by luck and not likely a
repeatable process. So therefore to catchthat it's not a process at all,
it's scientifically disproven to be a process. And becoming more conservative does that mean
necessarily replacing equities with bonds in yourportfolio or is there maybe a more effective

(08:58):
bond replacement strategy that you should lookat instead. Do you have a plan
to properly address inflation risk? Yes, going back a couple of years,
we heard that inflation was transitory untilit wasn't. Have you factored in the
potential for a healthcare and I'll saythe word emergency. This could be something
short term, it could be somethinglong term. Think the difference is an

(09:20):
acute short term issue versus a chroniclong term issue. We normally think of
nursing home when it comes to achronic long term issue. Do you have
a financial advisor to help provide guidancewith the planning process. So the last
one is where this all you know, the rubber meets the road, if
you will, the having an actualfinancial advisor who was well suited for all

(09:43):
these different areas of need, whetherit be for investments, retirement planning,
income planning, even tax planning,and it all fits together and at the
end is legacy planning. But again, don't wait till it's too late to
do your legacy planning. Very true, a financial advisor who's multi disciplinary,
like wealth coach, all of thethings, like you've probably heard this many

(10:05):
times. We look at ourselves asthe Mayo Clinic of financial services because it's
all inclusive, it's holistic, andthat matters. James, a plan,
like you said, financial advisor herebeing the last item here out of some
ten things that we've discussed here inprovoking questions, you could turn this upside
down. Everything lines up with havinggood advice, you know, having a

(10:28):
goal. Personally, I think I'vecome at a crossroads in life where and
when we hear it with clients too, they reach an end of some goals
and they've reached many and fail toset new ones that are meaningful and keep
on keeping on. And if youthink about stepping in retirement, most people
have reached the pinnacle of most oftheir goals and objectives and need to then

(10:52):
transition into some new goals and objectives. So your plan is really a series
of goals that have a series ofsteps, and some of those steps might
be to avoid market timing and otherthings mentioned in other things that we're going
to mention as we continue to discusscustomize financial planning and income planning for you.
Our fund with Office five one,three, five, seven, five,
nine, sixty five to four callswe can help. Let's stay tune.

(11:15):
You're listening to the Sound Money InvestmentShow with Brown Financial Advisors shoreing fifty
five krs DE Talk Station. Opinionsexpressed are solely those of Brown Financial Advisors
and should not be interpreted as specificadvice. Materials presented are believed to be
from reliable sources and no representations canbe made as to its accuracy. All
ideas and information should be discussed indetail with one of our qualified investment advisors

(11:37):
prior to implementation. Market based investmentsinvolve risk, and past performance is no
guarantee of future results. Insurance basedinvestments offer guarantees based upon the claims paying
ability of the issuing company. Allinsurance, tax and mortgage services are offered
through Brown Insurance and Tax Advisors LLC. Brown Financial Advisors and Brown Insurance and
Tax Advisors are affiliated companies and mayonly transact business in those states in which

(12:01):
registered or were otherwise legally permitted.Welcome back to the Sound Many Investment Show.
Brown Financial Advisors. I'm Greg Brownand I'm James Boortham. We are
a registered investment advisory firm. Weare independent. We do work for clients,
not companies. That's Main Street andnot Wall Street. Our funder b
with the office five one, three, five, seven, five nine sixty
five to four, website, BrownfinancialAdvisors dot Com, email team at Brownfinancial

(12:24):
Advisors dot Com, and our homeoffices in Milford, but we also have
locations in Blue Ash, Westchester andFlorence. Greg Well, let's we cruise
along with this subject today, creatinga custom retirement and income plan. So
what does it mean to have acustom plan? And do you have a
plan? James said, if youyou have a plan, whether it's to

(12:45):
succeed or to fail, guess whichone we want to help you with today.
I'm reminded of a song lyric andthis is I think rush, but
it goes collect this. If youchoose not to decide, you still have
made a choice. Yes, Sodon't be today's Tom Sawyer. Yeah something
all right? Well that was anawesome band, three guys and they just

(13:05):
and they went all the way inuntil Neil the drummer just couldn't go anymore.
What anyway, Gosh, I wastoo young to even appreciate that music
at the time, but that drumming, see, that was the cue.
We're talking eclectically about the past andthe sirens who are remind us to keep
moving forward. Run from this iron. So here we go. What about

(13:28):
a custom plan for you? Today'sgoal? Here? We're simple with this.
Here's the problem. A lot ofplans that we've seen people bring into
us either don't exist their single page. They're just an investment statement and say
here's the stuff I own, andI'm diversified because I own lots of stuff.
Ouch, a little misguided, needsome help or best cookie cutter plans
not good enough? We need todo better. So what do you think

(13:52):
some of these have in common?Well, James, share some thoughts as
we go forward here, since today'sshow is all about planning, income needs,
cash flow, understanding, risk tolerance, inflation protection, meeting it,
seating inflation so you can have enoughcash flow to actually spend some of your
money too and still have it lastas long as you do not outliving your
money. I mean, the listgoes on. Those Those are objectives that

(14:16):
are built into the overall goal ofplanning. James, we see it all
the time. The goal is tohave a successful retirement. Great, you're
retired now, is it just goingto be automatic? Know? What's your
plan? Well, I plan tohave enough money each month, you know,
pretty much make it how long lifetime, overcome what inflation? At what
risk level? Hopefully the correct one. Do your investments line up with your

(14:37):
risk they better or you'll react,you'll market time. Uh, just it
goes on and on. So there'sreally more, you know, drilled down
elements to an actual plan. That'swhy the one pager in the cookie cutter
just won't work. James. Yeah, So as far as having a financial
plan, and maybe this is theimportance of why you should have one.

(14:58):
And let's kind of, you know, backtrack just a little bit, because
you hear the term thrown around quitea bit, kind of loosely at that
as you hear it all the timeas seemingly on the internet, it must
be true. If it's on internet, it's on the news. Financial planners,
advisors, salespeople talk about it,their marketing refers to it as well.
So you need a financial plan.But that's the resounding message. But

(15:22):
maybe the question is why. Well. According to a recent Tedmator Trade study
called Goal Planning Survey, fifty sixpercent of Americans age twenty five and above
feel that they have a good graspon their investments and understand how their assets
are allocated. Now that means ofthose who actually have a plan, fifty
six percent. That means forty fourpercent do not. So you can always

(15:45):
say the positive is more than halfand the negative is well almost half.
Forty four percent don't have a plan. And of those, again who actually
have a plan in place, theyare the ones who feel that they have
a good grasp on their investments andthey understand how their assets are allocated.
That's like saying what do you ownand why do you own it? So
again, those with the plan alsotend to have a higher savings goal,

(16:07):
and part of the savings is theinvestment goal for retirement. Yeah, I
was just thinking. I was justthinking about the optimism and some numbers,
I know, some of these arelike statistics. Yeah, and then thinking
of optimism, you knowe the otherday at the copier when it wasn't working
and it was about you know,toner and some percentage of it being empty,

(16:30):
and it looked like, you know, was acting like it was empty.
And then Julie in our office comesalong. She says this, She
says, James, it still showsthat it's more than half full, And
I thought, did you catch that? That's that optimism. We get so
deep into numbers and things that Idon't know if we're always as optimistic as
we should be. We just getso into the black and white. You

(16:52):
should have fun with this. Allthose numbers you just heard, you should
take away there's a positive outcome foryou waiting to happen by having a custom
plan for you doing all the thingsingredient wise that make a wonderful recipe that's
pleasing to the palate. And itcan be a fun process filled with optimism,
hope, and a lot of thingsthat drive good health, wellness,

(17:15):
prosperity. And if you're a littlelate to the party of being an optimist
and a happy person with a bouncein your step, can I invite you
to start today and do it alignedwith your retirement opportunity, because that's really
part of your plan too, isto live long and prosper prosper means more
than money, and many of youknow that, so let's just make sure

(17:37):
we're doing that. So when welook at taking all this a bit further
and taking and applying some of thatresearch and having some confidence in dealing with
numbers and making them real for you. Like James says at the end of
every show, you know, thesethings are true and possible for you.
Just because things sometimes sound too goodto be true. The old cliche is,

(17:59):
then it can't be no no,you know, sometimes, darn it,
things can be good enough to betrue and true for you. So
let's look at But on the otherside, if you listen to too much
of the negativity, you know,some of this seems almost biblical. You
know, there's the adage about there'salways going to be wars, and rumors
of wars sound familiar. It's beenhappening, not just now, but it's

(18:19):
happened in the past decade, hashappened fifty years ago. It's going to
happen fifty years into the future aswell. That doesn't mean just simply ignore
everything. It just maybe take itwith a grain of salt. When it
comes to what you see on theevening news or whatever time of the day
that you're watching, it would notbe on the news if they did not
want you to be unsettled about what'sgoing on in the world around us.

(18:42):
Yeah, there's such a float offlood of information. If it's not provocative
in some way, it's just notgoing to capture your attention or imagination.
Unfortunately. I think we can dosome more positive things like this one.
Do you know we can captivate andcapture the facts of your reality as it
relates to money, and that's financeand planning, and feel that you need

(19:02):
a plan that holds together your diversifiedfinancial world. Again all together helps you
understand your situation better, solidify yourgoals, your objectives. Kind of sets
you your money and your family onthe right track, kind of gives you
the financial freedom and the mindfulness tobe okay about feeling okay, you know,

(19:22):
confident and secure. So what shouldyour financial plan cover, you might
ask, Well, here's some generalareas, pretty important areas. Number one,
income planning, cash flow right,try to retire without cash flow?
To be specific, your foundational incometypically is from social security or maybe you
know you have a pension, notmany of those, at least much anymore,

(19:44):
and enough of this perhaps to payyour bills. Okay, so you
can slow down on starting to drawfrom your investments. Or what if you
don't have enough foundational income you havea specific monetary need for cash flow in
a mone in flea basis in yourfoundational or other sources forces of income.

(20:07):
Foundational sources forces are insufficient, leavinga gap. So with this gap we
need to use these other assets bucketsof money correctly invested properly, the right
risk, for the right duration,the right purpose. Everything should align with
the job description kind of stuff toget you that income. Some of your
money will be will be dedicated towardsthe income objective. Other money will be

(20:29):
for liquidity. Other money will befor the longer term growth the hedge meaning
meat and beat inflation over long periodsof time, so you'll have ample money
and resources later to continue to drawfrom. Okay, now, what's that
part of? What's income planning partof and overall comprehensive financial plan investment planning?
Have you defined your risk tolerance foryour plan? Has it changed?

(20:51):
Do you know for a fact,a mathematical fact, something called the sequence
of returns could be your worst enemyif you do the same type of investing,
Even if you've done quite well throughthe accumulation phase and you try to
do that in retirement, randomness cancome and swipe enough of your money through
sequence of returns and markets that noneof us control and could have you run

(21:12):
out of money before you run outof life, and you'll be standing there
wondering what you did wrong. Ijust did what I've always done and it
always worked. Telling you in distributionphase, everything changes. You can't do
it the same way. You needto come see us, and you need
to move away from brokerage firms andbanks and these sources of non real financial
advisory information. You know, forexample, do you still go see a

(21:33):
pediatrician? No? Probably not,And you shouldn't see these generalists in these
other areas of financial services either becauseyou're not going to get the care that
you need. So what impact wouldbe in the wrong risk level in different
full market cycles? What's a fullmarket cycle? It's bear to bull to
bear, or it's bull bear bully. It's a sequence which comes first,

(21:59):
that the bear hits you first.Early in retirement, your mathematical outcomes of
your sustenance, your maintaining of yourwealth through all seasons of your retirement is
challenged with a headwind that could beof hurricane wind force, and you will
not succeed. So it won't benecessarily anything you did wrong except not have
the right plan with the right mixture, the right tools, for the right

(22:21):
purpose, for the right outcome.So are you paying too much in investment
fees? Total cost of ownership iswhat you need to understand, not just
fees, but all the cost andthat's what will bring your attention to make
sure that you're not pricing your investmentsin properly. Anyway, We'll continue yes
on the fees, think of direct, indirect, overlaps, redundancies, inefficiencies,

(22:42):
et cetera, et cetera. There'smore, there's much more off funderbot
the Office five one three, five, seven, five nine sixty five to
four. Call us. We canhelp, but stay tuned. Listening to
the Sound Money Investment Show with BrownFinancial Advisors here on fifty five KRC Detox
Station. Welcome back to the SoundMoney Investment Show with Brown Financial Advisors.

(23:08):
I'm Greg Brown and I'm James Boorton. We are an independent RIA that's a
registered investment advisory firm working for clientsand not companies. And it does it
does all start with the plan.That means having a plan, knowing what
you own and why you owned it. So when you're seeking advice on an
old four one K four three BIRA rollover, investment planning, retirement planning,

(23:32):
income planning, tax planning, socialistcomurunity maximization at Roth, conversion analysis
for some, perhaps even INUA analysisand an in service rollover. All those
and more we can help five one, three, five, seven, five,
nine, sixty five four. Ourwebsite Brownfinancial Advisors dot Com, email
team at Brownfinancial Advisors dot Com,and our home office is in Milfuribile also

(23:53):
locations in Blue Ash, Westchester andFlorence. GREG tax is working with investments,
work with financial planning, and aholistic firm such as ours. You
can go from tax trapped to taxfree and anywhere in between more tax friendly
as part of your overall plan.You know that's taken for granted a lot
too. So as we're kind ofcontinuing and we're on income planning and investment

(24:15):
planning. Well, before we getback to the topic of today, what
is or what are maybe some ofthe reasons GREG for people to visit our
websites. Well, our website hasa lot of information like easy access to
us on a complimentary without any obligationbasis to get you fully assessed where you're
at, what you hold, whatit really is, look at the spread
speeds, margins, loads and expensesthat you might be paying. The total

(24:37):
cost of investing, which might bemight might very well be higher than that
you realize. And to break itall down, then pivot and show you
a show you the way produce andcreate together your financial plan with all the
investments and recommendations, nothing held back. You make a decision based on good,
cold hard facts. You understand exactlythe cost, and you see if

(24:59):
there's a reason for us to continueto work forward. Also, on our
website, go to seminars. There'sa tab there or a button or something
on there for seminars. Choose adate. We have upcoming dates each month
where we have food, fund andfinance and we get together and just share
some things, make some challenges.Hopefully have you come on in and visit
us, and then you can alwayscatch our podcast. You might not be

(25:22):
listening to this show live, probablynot, but you can catch us on
podcasts anytime. What are some ofthe sources for podcasting, Well, besides
our website, Yeah, you cango because we're going to have the five
most recent shows listed on our website, but you can you can go to
Apple, Spotify, places like thatas well, so that's a little information.
We're steering you back to our websitefor a reason. Yeah, because

(25:45):
there's good information. So income planningand investment planning big components of the overall
financial plan. Why you need cashflow. Once you know your foundational income
soci security may be pension versus howmuch you need on a monthly basis,
we establish your gap through the gapin your financial plan. We go to
work with the right investments to meetthose gaps in every other aspect component of
your plan, which can include alot from the taxes to understanding how you

(26:10):
take a requirement of distributions that moneyyou have to take from your irase over
time, to the legacy planning.You know, there's two components of legacy.
There's this side of eternity and theother side. You want to be
prepared for both and even the areasof long term health care. Think about
that. The two top I guessthings about getting older and money and retirement

(26:32):
that worry people. Really it's three, but it's the top two is not
having enough money to last a lifetime. Number two is going to a nursing
home. Number three is just healthcare needs and challenges and the ability to
afford healthcare throughout all of the yearsof your remaining life, right, So
those are biggies. Nonetheless, whenit comes to income planning, you know,

(26:56):
last year was a very bad yearfor bonds. The bond market to
recovery, that's all good, butyou need to be aware of some alternatives.
So if you're out there and youhave some dormant cash, so number
one, you just have cash,that's what collecting dust. Pretty much,
we have a stable value fund thatyou could expect two to four percent currently.
Now you know, I promise offuture returns. It's not a compliant

(27:18):
statement. I'm giving you a range. It changes dynamically to time, depending
when you're listening to this. Justgive us a call. The point is
you don't have to have dormant dustcollecting cash and it can stay fully liquid.
That's key. You don't have totie it up. But if you're
out there shopping for CDs and you'rekind of looking for some safe, safe
money, we have cash opportunities forthree years more than five percent, five
years, five point six, fiveseven, even touching upon five eight here

(27:42):
soon somewhere in that range, andthey're more liquid than CD's to the bank
they pay better than CD's the bank. We call them CD type nuities,
so I stay in tax deferral.They don't hit your tax return every single
year. And maybe here's the hierarchyof interest rates. So if you look
at who's going to pay what,So the CD shoppers out there listen to
this. Banks will pay the worst. Credit unions might pay a little bit

(28:03):
better, but insurance companies will bebetter paying better than all of those above.
Yep. So if you're looking forbetter rates, you need to shop
with something that will be something calledan annuity. I know that can be
a scary word for some people outthere, but what we're talking about is
a short term annuity that lasts fromtwo years to three years to five years
your choice on all of these.It's a fixed interest rate. It's called

(28:25):
a multi year guaranteed annuity. Everyyear the interest rate is guaranteed. Yeah,
so if you're a CD shopper,this is an upgrade for you.
So you have the liquidity of thestable value to make something you have the
fixed guaranteed return highly competitive in theCD quote unquote type annuity. And then
we kind of morph into some marketstrategies. James take us through one or

(28:47):
two of these, and these arelook at these as hybrid investment solutions.
You might consider annuity killers. Soif you're out there doing the dinner circuit
and you're in front of these insurancesales termites getting pounded about why you should
have fixed index annuity. There aresome good ones and good purpose. But
right now we have some market basedalternatives that are just literally smoking gun annuity

(29:08):
killers, and then some bond replacementstrategies too that kind of give you the
world the upside of equities with thereduction of downside risk or even the elimination
of it. But James Well marketbased strategies remember this, there's always some
degree or measure of risk in amarket portfolio. But what we're doing is

(29:29):
we're trying to mitigate or at leastmostly eliminate the amount of risks that you're
taking. So the concept is calleda buffered index portfolio and the buffered index
and this is just our marketing namefor the product is a buffered index portfolio.
And these are real what we havefor offerings currently today. The we
we have concepts called the CAP andthe buffer cap. Think of the CAP

(29:52):
as your upside potential buffer is yourdownside protection. And we have two different
offerings right now that have a onehundred percent downside protection. Yes, one
hundred percent downside protection. Now here'sa tradeoff for the upside potential. There's
a cap and for one of ourstrategies, we have a twelve month buffered
index that has a cap of ninepoint two five percent. We also have

(30:17):
another one that has a twenty fourmonth maturity, so two years, with
a cap of twenty two over twentytwo percent. So door number one,
commitment of time is one year.Door number two, commitment of time is
two years. What's the tradeoff?The first one has a cap of right
around nine percent, the second onehas a cap of right around an annualized
figure of eleven percent, So twentytwo over two eleven if you annualize over

(30:40):
one. Yeah, so that nineand a quarter percent in one year.
So if the SMP or the DOW, which are the lesser performed the two
went up ten percent, you wouldget nine in a quarter over the two
year product we're offering strategy, itwould be well, the twenty two point
two five percent cap to the upsidewould mean literally you would get if the

(31:00):
market was up twenty three, youwould get twenty two point twenty five it
was down twenty, you'd be downzero. And then you might call those
the pessimistic approaches. What if you'rean optimist, you think two years out
the market's going to be higher.What might be good for that person who's
more optimistic? James Well, Iwould say, if you're just asking me,
how about an uncapped opportunity to theupside? An uncapped opportunity upside?

(31:23):
What does that mean? Well,this one would be dual directional. Now
this is adding a third layer.Don't mean to get complicated, because it's
really not followed. This the lesserperforming the s and p ror the Dow's
results after two years. So twoyears later we open up our Christmas present
and see what the results of theindices were. If they're up, you
make money, well, how muchmoney? Well, if it's up twenty,
you get twenty, it's up thirty, you get thirty. It's uncapped

(31:45):
to the upside. What's the catch, Well, this one doesn't have a
one hundred percent downside protection, butit has something you probably don't have in
your market investments already downside, someprotection shock absorption. This one has a
buffer of fifteen percent cap to theupside, and it absorbs the first fifteen
percent of any downside. So ifthe outcome was negative twenty, you'd be

(32:06):
down five the fifteen percent, firstfifteen percent absorbed. Here's something interesting.
If it's a negative result between zeroand negative fifteen, that buffer amount a
negative becomes a positive, So anegative fourteen becomes a positive fourteen. So
that's why it's called duel. Youcan duly. You can make money two
ways on the upside of a market, and in certain ranges of outcomes negatively

(32:30):
become positive. These are things.This is This is differentiation time one oh
one. This is why we're different. You don't get this from brokerage firms.
You can't get it from insurance agentsacting like financial advisors. You need
to know there are options. Ourtoolbox has a lot of different tools in
it. We joke about the mothershipputs one or two tools in every tool
bag, and then no matter whatyou get, you always get the tools

(32:52):
that the mothership put in the toolbag when you actually need a whole other
set of tools from a whole largerarray of tools and a toolbag. These
are just some examples. So dormantcash solution for fixed needs and fixed interest
rates for the CD minded person.Solutions for the person that wants to reduce
or eliminate downside risk but have amarket strategy that's boutique in nature and exclusive

(33:14):
and unique in terms of proprietary solutions. We have solutions traditional investing, all
kinds of solutions, really cool equitystrategies, fund base strategies using ETFs that
are low cost, low redundancy,just a lot of solutions, all wrapped
in a financial plan, income planthat's customized for you. And one more,

(33:34):
because those that we have just mentionedare design for future growth. We
also have a portfolio design for currentincome called the Design Income Portfolio, and
what that is designed to do isprovide a steady stream of income while not
depleting the underlying nest eck. There'smore details, There's much more off fund
number five, one, three,five, seven, five, nine,
sixty five to four calls we canhelp, but stay tuned listening to the

(33:58):
Sound Money Investment Show with Brown FinancialAdvisors. You're on fifty five KRC DETUC
station. Welcome back to Sound ManyInvestments Show with Brown Financial Advisors. I'm
Greg Brown and I'm James Fortan.We are an independent registered investment advisor firm.

(34:22):
We do work for clients companies.That's Main Street on not Wall Street.
Our fun number five one, three, five, seven, five nine,
sixty five to four. Website BrownfinancialAdvisors dot com. Email team at
Brownfinancial Advisors dot com. Our homeoffices in Milfort, but we also have
locations in Blue Ash, Westchester andfloren Shaw. Continuing with creating a customer

(34:43):
retirement and income plan kind of justarrived at some other components talked about income
planning investment planning. We took alittle detour there and covered some alternative solutions
should be aware of. And thenJames, what with income always comes this
other thing called what oh? Taxplanning? And guess what? It's always
tax season. I know it seemsmore busier than other times of the year,

(35:05):
especially now, But tax planning thinkdollars and also tax rates. So
can you increase your tax efficiency orat least to mitigate the taxation on things
like your Social Security benefits? Notpay more on your Medicare premiums if you're
age sixty five plus or at leaston Medicare. How does the different type
of income get taxed. That meanscapital gains tax rates versus ordinary tax rates.

(35:27):
We also dovetail into iras. Thatmeans R and D planning, and
this is where maybe the income thecash flow needs intersect. What are the
repercussions, pros and cons of doingqcds? That stands for qualified charitable distributions.
So perhaps if you don't have anadvantage in your taxes of donating to
your favorite charity usually church, butto your favorite charity from your checking in

(35:51):
savings account. Again, there's notax deduction for many people to do it
that way, so perhaps replace thatwith deductions or donations directly from I'm your
IRA that count towards your R andD but do not count as income.
That's known as a qualified charitable distribution. Legacy planning. What's going to happen?
Not if, but when you die? Will your errors and your loved

(36:13):
ones, hopefully your loved ones inherityour stuff in the most tax efficient ways
possible? What will be your legacy? Long term care? Do you have
a plan for a potential long termcare stay? So long term is like
saying long term health, long termcare? As far as staying at home,
how's that going to work. Sometimesthe best policy is to have a
long term care policy. Sometimes thebest policy is to have a plan called

(36:37):
an asset based protection plan that addressesthese needs. But again, every part
of an overall retirement plan should atleast address the potential for a long term
care stay. Greg any thoughts,Oh, just that those requiredment distribution ages
have changed with that secure at twozero two dot zero dot A, I'm

(36:58):
waiting for a two point one yesright now. The new age for R
and DS, the start date isage seventy three and what seems like in
about a decade or so it's goingto ramp up to age seventy five.
So initial steps needed to create acustomized plan. You know, all the
things we described here are needed ina plan, and at the very least
they need to be discussed and fullyaddressed. Now when it comes to retirement

(37:20):
and creating that plan, always buildthe foundation of income planning component. First,
the amount of income you're going toreceive versus the amount you need.
Determine the gap, and then weget to work on the appropriate approach.
Whether you want some IOSO money,green fully insured guaranteed income for life to
fill that gap and then invest yourmarket risk dollars in such a way that

(37:40):
you don't have a dependency or needfor income from them. Or if you
want to use a market approach anduse some of the things we describe and
kind of blend them together, havea multi thinged approach. It's always good
too, and we tap into someof that by a certain amount to give
you the cash flow you need tofill that gap and keep growing your money
while you're using your money and enjoyyour money too. So it's just that's

(38:01):
what gets into the custom aspect,and we just need to understand your situation
better, see what you have now, make sure we get it all cleaned
up, tightened up, appropectly,aligned with your objectives, and cast that
forward and projected as an actual planfor you. James, Well, the
plan itself, the foundation is cashfhow the foundation is the income plan and

(38:22):
retirement at least it's supposed to bemore about doing what you want and less
about what you have to do.But once again, you're once versus the
needs. They kind of have tobe balanced out, so you have to
be able to spend confidently but alsowithin your overall budget, having a budget,
having a plan that requires you toknow what you spend and to make
sure that you have again enough cashflow, enough income to do that.

(38:46):
So when you retire, how muchincome will be coming in from different types
of reliable sources That might be calledsocial security, might be pension. And
by the way, social security isnot going bankrupt, not anytime soon.
Not as long as we have PaulTitians who want to be politicians, it's
going to stay intact. Greg anythoughts on that, I would agree they

(39:07):
might change a little this and that, but if they want us still be
elected, they got to keep tellingthe truth the way they see it.
So let's talk about So you haveyour income and now James mentioned how important
is to gather that understand that forwhat it is. Then we need to
determine again if there's a shortfall.So if there's a shortfall, how much

(39:28):
is it? We'll call this againthat income gap, mention it several times
throughout this show. Let's say you'reshort fall after factoring in all the inflows
and outflows on a monthly basis,that your gap is two thousand per month.
Well, you need to consider thefinancial vehicles that will actually help you
bridge that gap and provide the additionaltwo thousand dollars per month, and that's
net, right, not gross likenet pay spendable money. We're talking all

(39:50):
bottom line spendable money. So whenfocusing on the rates of return, looking
at the different investment vehicles, itneeds to be more secondary to the income
development. So in other words,we need to choose a tool that's going
to provide the income by purpose firstand foremost, then look at rates of
return and other aspects of growth.Don't confuse your income with growth. It's

(40:12):
like asking the old adage about peoplewant equity rates to return with treasury risk.
Well, some things are just thisis for income, that's for growth.
This is for dibonends reinvested for growthand cash flow. Certain annuity products
are for guarantees of income, butnot for growth. It's safety and income
versus safety and growth, or adjustedor managed risk for growth. All these

(40:37):
different categories or characteristics. Some investmentsmatter. So does your asset pool,
your collection of goodies, income savingsinvestments support and bridge that income gap?
Currently? Do they do it efficiently? Do they do it tax efficiently?
They do it in terms of whereit's broken down by purpose of money?
What is the withdrawal rate that youneed. What does that mean? Well,

(41:00):
forty thousand dollars a year is afour percent withdrawal rate if you have
a million dollars, So that's thewithdrawal rate. To sustain a withdrawal rate,
you need a sustainable investment to beable to do that while it stays
growing too, because what else isalways happening in the background. Inflation is
fighting for the same dollars you're tryingto use. So hopefully your asset pool

(41:22):
can support the two thousand dollars permonth needed. That's twenty four thousand a
year. So how much money doyou need to be able to throw off
if you will, the fruit oftwenty four thousand a year net after tax.
So here's what is meant by sustainable. If you need an income gap
covered of that twenty four thousand dollarsa year, and you have a million
dollars in a nest egg, thenthirty thousand a year is a three percent

(41:43):
withdraw rate, which is good sustainablerate, no doubt about that. Very
comfortable with that. And if youhave a three hundred thousand dollars nest egg,
then that thirty thousand dollars per yearwould be ten percent withdrawal rate.
Now you're talking something different, verydifficult to sustain all the market cycles that
exist for the rest of you forever. So what is your projected life expectancy?

(42:05):
Uh? Oh, Not only howlong do you need a certain withdrawal
rate off a certain nest egg toproduce a certain amount of cash flow,
it's how long do you have todo it too? Projected life expectancy?
How long do we need to havethe plan in order to supplement the income
gap concept here, Let's say addfive to ten years to that number to
avoid running out of money prior torunning out of life. Obviously, planning

(42:28):
to make sure that you'll have thewithdrawal long enough is key to everything.
Cash Flow is key sustainability. Don'toutlive your money. Let's get together and
get this right now. Another partof this is how to match different types
of financial vehicles or investments to maybehelp meet those objectives. So, for
examples, dividends from securities that meansfrom the stocks, the equities, mutual

(42:52):
funds, ETFs, exchange traded funds, dividends from rates, real estate investment
trusts. We're not a huge fanof the reatsar as. Sometimes the fund
becomes in charge of when you getto buy and sell. That's maybe the
biggest drawback to those. But howabout income from annuities preferably via income writers
not annuitizing the contract, big differenceyield otherwise not as interest from fixed income

(43:15):
that would mean bonds. So ifyou hear the the terminology, I know
English terminology is to say bonds isfixed income, fixed income is bonds.
Bonds, you're just simply buying someone'sdebt. That means government debt, corporate
debt. So whether it be frombonds or bond funds, the interest or
the yield from those. The designedincome portfolio we touched on a little bit

(43:37):
earlier is a clever approach I wouldsay to how you can draw sustainable income
from a portfolio without draining the underlyingnest egg. Very important concept because instead
of just simply killing the fruit tree, you're just picking the fruit off the
tree and leaving the tree intact tothen grow more fruits excellently. Any closing

(43:58):
thoughts, greg was a vital,vital analogy there. Keep your orchard intact,
keep picking fruit. It's very important. Don't break branches and composish your
tree of your orchard, where therewould be no more fruit because of no
no more tree. All right,our founder about the office five one three,
five, seven, five nine sixfive four again five one three,
five, seven, five nine sixtyfive four call us We can help now

(44:20):
on behalf of Greg myself, James, thank you for listening today, Have
a great week and remember this soundmoney, where good things are believable,
achievable and true for you
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