Unexpected Expenses In Retirement

Join David and Travis Shepherd of Shepherd Wealth Solutions inside the Financial Lab Saturday at 10am on WJBO Newsradio 1150 AM & 98.7 FM to get a better understanding of the financial issues you could face preparing for and in retirement!

Visit shepherdwealthsolutions.com or call [phone] to learn more!

Episode Transcript

(00:10):
Happy a Memorial Day weekend to you. We appreciate you joining us here of
course for the financial lab with Davidand Travis Shephard. The phone number two
two five four six five ten sixtyfive. That's two two five four six
five ten sixty five. The websiteShepherd well Solutions dot com. The number
one fear of planning for retirement isrunning out of money. And of course

(00:30):
the number one question you guys areasked all the time is how do I
know I've saved enough? Can Ihave guaranteed income for life? Well,
it turns out annuities they offer aguaranteed income stream for life. But what
if you need extra money besides thatmonthly check due to unexpected expenses, maybe
a medical emergency, or can youclear up whether you can safely withdraw that

(00:51):
cash from the annuity? Guys,Yeah, you know, and that's a
great question because we get to askthat all time. And the answer to
that question is yes, you canmake withdrawals from an annuity ash withdrawls,
and so most annuities will allow youduring a term period. So what does
the term period? Well, annuitiesare sold like CDs. They can be
a three year, five years,seven year, ten year, twelve year,
fifteen year. During the term periodthey limit you on your withdraws.

(01:15):
Free withdrawals you can you can takewithdrawls as much as you want, but
some of them aren't free. Sothe free withdrawals allow you to take out
ten percent each year during your termperiod, so you can have ten percent
withdrawls. Palm annuities allow you totake out a little bit more. I've
seen them as high as twenty percent. If you need liquidity, you get
one of the more liquid annuities.But for the most part, annuities are

(01:36):
there to produce income. You know, and when you invest for a purpose,
if the purpose is to get themoney out of the market, put
it in a safe place. Annuitiesare very good because their interest rates and
their yields are very good right now. But they do allow you to make
withdrawls. So answer the question isyes, you can make withdraws from annuities.
The means job of most annuities,as far as how most people understand
to use them is just like they'relike rental income, right, I mean,

(02:00):
it's mailbox money. The money comesin the mail, hit your deposit,
it hit your account. The exactsame time every month. It's only
the only reason it's better than rentalmoney is you don't have to chase people
and you don't have to fix toilets. What right, nice, clean,
simple, easy mailbox money, right, that all the extra work, you
know. The other side of theannuity question is where Dad's getting into is

(02:20):
and your question, Jessica is andif I'm taking income, can I still
cash out of the annuity or canI get the cash out of annuity?
The answer is yes, But reallythat comes down to proper planning, and
a lot of people kind of missthe target on this. They tend to
treat an annuity like it's like thesilver bullet of retirement. Right, But
we're not hunting werewolves. We're makingretirement plans. Okay, So, yeah,

(02:40):
you want some extra income, somedependable you want that mailbox money and
nuity. He's great at that.You know what else, it's great at
creating a market volatility buffer. Weall know, yeah, right, we
all know when the market's up,we can go take our money from the
market for these extra expenses or thisfun money stuff we want to do,
trips or emergencies, whatever it maybe. But when the market's down,
Well, then what do you do. Well, you should buy right,

(03:04):
you should be able to buy buythis year, you're asking me. But
what you really need to do ina proper plan is you should have another
account another part of your strategy that'sset up so the market's going down,
it's not losing money. So ifyou have an emergency or you have something
you want to do, you cango access that money without drawing down on
top of market losses. That's whereannuity can act as a market volatility buffer,

(03:25):
so you don't have to have agarage sale. You can actually pull
some money out of your annuity.Maybe you got one that has a ten
or twenty percent withdrawal, take thatmoney out and buy on these depths yep,
and then the real money and yourother annuity keeps paying the income like
it always has, and you don'tupset your income. So I mean,
it's the best of both. Itreally is. Knowing how to use an
annuity at a pro level makes allthe difference in the world. The problem

(03:47):
is you just don't run into awhole lot of people that use it at
a professional level. It's usually abreak glass in case of in case of
fire, type of thing. Yeah, I see a lot of brokers out
there. They don't know what they'redoing though. They'll sell or they'll put
someone in just one annuity. Whata mistake. That is, all right,
you should have several annuities. Theyshould be coming like CD ladders.

(04:09):
Remember the old CDs. We usedto ladder them. Okay, So if
I came to in this office andsay, hey, David, I got
two hundred and fifty thousand dollars,I need to put it in some annuities,
so blah blah blah. We wouldnot put all that money in one
annuity. That gentleman, a femalewould have four or five annuities. Why
because we might turn on income fromone. We might use the rest of
them for free with fralls our marketbuffers. As Travis was saying, Yeah,

(04:32):
at the end of the day,the best way to keep it simple.
Your annuities can fulfill two purposes right. Number one, they can be
like rent money, except you don'thave to chase people and you don't have
to fix toilets. Number two,they can help protect you from when the
market is down and still have accessto cash. So if you want to
learn more about how to use themin those two ways. You know how
to use an annuity at a professionallevel. Give us a call, spend

(04:53):
fifteen minutes on the phone with you. We'll talk to you about whether that
something you should slid out. Considerthat phone number two two five four to
six five ten sixty five. Againtwo two five four to six five ten
sixty five, call right now forthat fifteen minute conversation, or if you
want to commit for that financial labWithin that, there's also an annuity stress
test. You'll be able to putthat together as well. Two two five
four to six five ten sixty five. You guys. I recently ran across

(05:15):
some advice in market watched their financialwebsite. It describes a couple that retired
six years ago. In January oflast year, they had five hundred thousand
dollars, but by December they hadlost one hundred thousand dollars. They called
their advisor and asked why and youknow what was going on? And during
the meeting they were told they couldlose another one hundred grand by the end

(05:38):
of the year. The reader's questionis should I stay with this advisor or
should I go? What are yourthoughts? I would run run for the
Hills. I'm with you hours,damn door, I'm getting all out of
here. Seriously, Hey, you'velost one hundred thousand. By the way,
hold on tight. It might happenagain. Absolutely not. Well didn't
you say you went in with fivehundred thousand? How much would they can
start with five hundred? And theylost one hundred and four and now they're

(06:00):
gonna go down to three before thisadvisor fixes anything. Get the hell out
of it. Nine of the threeanother twenty five percent. That means they're
going to two fifty. Well butstill so you know, talking about get
the hell out of there. Yeah, it tells you they have an SMP
five hundred based model plan O SMPwas from two th October two thousand and
seven to February two thousand and nine, fifty six percent draw down. This

(06:23):
advisor must be handling people that arethirty five, forty five, and fifty
years old. He's not handling folksin their sixties and sixty five seventies.
That's the last thing you want tohappen in your retirement right there. I
think this kind of question is somethingthat's great for radio listeners to hear,
because we hear this stuff all dayand we talk about the financial lab and
what's your maximum draw down? Anddo you know what your maximum pain threshold

(06:44):
number is? Your draw down number? This is it when Jessica just read
to you. Is the exact questionwe get asked. Because everybody in their
mama has heard about how much moneysomebody can make for you. But those
same people that tell you about howmuch money they can make for you will
never ever ever tell you how muchmoney you can lose. And you shouldn't
know both parts of the story.That way you can figure out is it

(07:05):
a book you want to keep readingor you want to close this chapter and
move on with your life somewhere else. Without knowing the downside risk, you're
just setting yourself up for failure.Oh yeah, because markets go up and
they go what they go down,you go down. Here's the problem.
Margarets go up slowly over a longperiod of time. You know how long
it takes them to fall very fast? Jump out the window, yep,

(07:27):
that's right, Take the stairs upand the window out. That's how it
goes. So you've got to beable to manage that risk because that risk
develops slowly over time, and thenall of a sudden all at once,
boom risk going. This is agreat example of that. You know,
I would, I would kind ofyou know, let's walk listeners through this
real quick. You know, howwould you solve this different? Well,
Number one, we talk about extrastrategy whenever we're in the market. I'd

(07:49):
say us, hold, we're inour labs, we're talking about this.
This is one of the top thingswe talk about. Maybe we're in the
first thing to talk about is yourpaying threshold and what are we gonna do
with the market goes down we getclose to your pain thrush show. And
by the way, what does ouroption to be an option? So's
a simple example. Yeah, let'ssay this person is a fifty fifty person.
Right, this person comes in andsay, hey, Travis and David,
I'm I'm what the Wall Street peoplecall a moderate investor. For us,

(08:13):
we don't use those terms. Wemake you take a math test.
Sorry to break the news, butyou think a little math tests. You
don't have to do a whole lotof math. It's just a lot of
looking at numbers and say, hey, I don't like losing that much money.
That's where I want to stop.But let's just say this person comes
in and say, you know,David and Travis, I'm a moderate investor.
I really don't want to take morethan like a fifteen percent draw down
on my money. It would makeme very nervous to go from five hundred
thousand dollars to you know, fourhundred and twenty five thousand. I'd be

(08:39):
super nervous, and I'd probably be, you know, wanting to do something
about that. How can I fixthat? Well? All right, mister
and missus Smith. Have you everconsidered, um, you know, the
stock markets go up somewherelet's go down. That's where you can get the most
growth for your money. Yeah,ever familiar with that? Okay? Have
you ever heard of using an annuityas a market volatility buffer? No?
What does that mean? Well,inside this fixing next annuity, you can
participate with market growth we won't getat all, right, but we're going

(09:01):
to give up some of that growthin order for certain assurances. As in,
when the market goes down it hasa negative year, we don't take
a loss from market volatility. Soif the markets negative ten, fifteen,
twenty five, whatever it is,we get a zero zero as your hero
as here as your hero. Soyou're saying I can make ten fifteen percent,
but if the market went down twentyfive percent, I'm not gonna lose
anything. What about the money Ijust made? That's right, it's been

(09:24):
it's been locked in. If itif it locked in the last year,
and then it's locked in usually soit's a fixed accounts. It can't go
down, that's right. So it'sa market volatility buffer. So what we're
really concerned about so much is ifyou make ten percent, that's fantastic.
If this thing does, you know, three and a half to five percent
on average, you're you're winning,right seven. I'm happy because here's the
best point when this happens, Likein this story where mister and mister Smith

(09:46):
they're losing twenty five to fifty percentdown. If they had an account then
they never lost any money in.What can they do with that other money
that they can't do right now?All their money's in the market. I
think I might consider if I hadto take a whift draw from the one
that didn't lose money, right probably, and not only take away a draw,
but if you're not going to spendit, what opportunity do you have?
I could buy back into the marketof two twenty five or fifty percent

(10:07):
discount, and then you know whatyou could do every year after that,
keep buying in when the market ralliesup. Now who makes more money.
This is a way that you canuse an an annuity at a professional level
in order to help defy the oddsagainst a sequence of returns, which is
taking a big losses up front yourfirst five to seven years of retirement and
the morn out of money. Right, you can buffer through that sequence of

(10:28):
return by dollar costs averaging your wayin. Or you can just be smart
as a smart tactical investor and havea percentage your money mark for growth,
a percentage your money that's safe,and when that market recessions and market corrections
happen, you can tactically take advantageof it from your safe money by pulling
your money out and buying in themarket lows and making more money over time.

(10:48):
We all know how to make moneyin the market. You buy low
and you sell high. Why don'tmore people do that because they are all
their moneys in the market and theylost it, so they don't have the
money to buy in. So thisis the way of putting money on sidelines,
not in cash. It's still makingmoney and then moving some of it
for opportunity buying is what you're talkingabout. That's absolutely right. This makes

(11:09):
you a smarter investor because you understandthe behavior the tools you're using to grow
your wealth. You know, yourmama likes to sale anything on sale.
She loves it, so stocks wouldbe on sale. I need to show
where this technique shaded. Get aconvince your to we can start making money
on these sale prices. Look atit this way. This couple's over here
and they're worried about whether they're goingto rount the money. Right. The

(11:30):
couple we just do describe that useda fifty fifty approach with the market volatility
buffer. You know what they're like, They're like sitting there the markets down,
they can still go on this cruisethat they want to go on,
right, and they're just waving attheir buddies from the ship deck. Hey
see you later. You know wheretheir buddy is on the couch on the
iPhone, you know, doing theFaceTime mark. I wish we could have
been with you, but markets aredown twenty five to fifty percent. We

(11:52):
left all our money. They're basedon our advisor's advice. We'll see you
in seven years when it's back up. Do you want to go with the
freedom to still be able to choosingdown market how you're gonna live your life
for you and go with the ideawhere the market gets to dictate your lifestyle.
I'll go with I want to choosemy own way, and if you
want to learn how to set thatup for yourself creative retirement plans. To
be confident, have consistent, reliableincome, buffer yourself from market volatility.

(12:15):
Lee can show you how to protect, grow, and reduce taxes on your
wealth. You owe it to yourselfto figure out how to do that,
and it all starts with the financiallab call right now two two five four
to six five ten sixty five Againtwo two five four to six five ten
sixty five as to sit down withDavid and Travis and put together your very
own customized financial lab. The websiteShepherd well Solutions dot com Coming up next.

(12:39):
Are you keeping your emotions in checkwhen looking at your retirement plan?
We'll talk about it. Stay withus. Imagine trying to play a game
that has hundreds of rules. Nowimagine that there are multiple possible combinations for
all of those rules. Sounds complicated, right, Well, that's similar to
what you'll face when it comes timeto file for your Social Churity benefits,

(13:00):
and one mistake could literally cost youtens of thousands of dollars over the course
of your retirement. That's money you'llnever see unless you make the right decisions
on when and how to claim yourbenefits. David and Travis, the father's
son duo of Shepherd well Solutions,are here to help. They study the
Social Security rules and can help youdecide what kind of filing strategy works best
for you. Then you'll take homea customized Social Security report to help maximize

(13:24):
your monthly benefits. Call two twofive four six five one zero six five
today. That's two two five fourto six five one zero six five or
visit Shepherd Wealth Solutions dot com.When you're reading news in the financial world,
lots of popular headlines include terms likeinflation and four oh one K,
and of course taxes. But itall comes back to the fear of running

(13:46):
out of money. If you're closeor in retirement, you have two big
jobs protect your life savings and createincome for retirement. So how do you
do that? First, you callthe Father's Son team David and Travis Shepherd
at Shepherd well Solutions, and youput together a customized financial lab. Almost
every financial lab that we're running rightnow is revealing to people that they have

(14:07):
more risk in their investments than theyoriginally thought. But we're helping to show
them which are their accounts or whichare their funds has the most risk of
loss if we do go on anotheraccession, while helping them to understand how
rising rates are going to hurt theirbond portfolios. Start checking the boxes of
income for life, tax free,retirement, and much more. Call today
two two five, four, sixfive ten sixty five two two five,

(14:28):
four, six, five ten sixtyfive. Visit Shepherd Wealth Solutions dot com
for more details. The Land ofthe Free, Grandfather shoved them World War
Two and the Home of the Brave. We love you. Thank you to
our men and women in uniform thesacrifice that they make for us, our
fire and fire, police, policeand EMSMS. Happy Memorial Day. We

(14:54):
appreciate you joining us here today forthe financial lab. Of course, talking
about all sorts of stuff today,so there's something we don't get too that's
been keeping you up at night,or maybe you want more information about a
topic that we have discussed today,you can always give a call two two
five four six five ten sixty five. It's two two five four six five
ten sixty five. The website,of course, Shepherd well Solutions dot com.

(15:15):
I'm gonna take you back to twentynineteen. We had a lot of
fun discussing billionaire Ray Delio's statement thatcash is trash. Recently he has flipped
on that, telling CNBC that cashis a better investment than stocks and bonds.
You've got a cash rate that's relativelyhigh. Cash used to be trashy
passes. Trash is what you usedto say, Yes, negative one half

(15:37):
two percent real rates terrible. Nowcash is relatively attractive. Yeah, you
always hear that saying cash is king. So guys, do you agree on
this? I mean, isn't thisa great example of why we need a
financial advisor? I mean, yes, yeah, one, thanks for sure,
thanks will change right, So,yeah, with volatility, you won't
cash. You don't want to haveone hundred percent of your money in the

(15:58):
market with it going down out right, So volatility cash it's king again.
You know, when the market ispredictable, cash just trash. You wanted
in the market making money. Soand another thing, interest rates are going
on. It's right, so cashcan be put into something that actually makes
the money, that actually works anddoesn't lose to inflation. And that's what
Dally was talking about right there.He was some of those negative one percent

(16:18):
rates real rates of returns because hetook your interest rate you're getting paid let's
just say two percent, and inflationwas running at three. Well, you
just lost one percent. The worstpart is if you had an attax bob
account you had to pay taxes onit too, that'd be even worse.
But yeah, you know that wasJoe. We're talking about this off air,
you know, with some things thatyou've switched to reversed one here lately.
Strategies. I think one of thebiggest ones for US is fixed annuities.
We use fix index and nuties allthe time, and here's talking about

(16:41):
them almost every weekend. But youdon't hear US talk a lot about fixed
annuities. And one of the reasonsfor that is because fixed annuities pay a
fixed rates based off treasury yields,and treasury yields have been trashed for many
mini many years. You know,it wasn't until right here in March of
last year, in twenty twenty two, that federal, the FED chairman Power
decided to put on his big boypants and started jacking up rates, you

(17:03):
know. And he's just been pumppump pumping them up. And man,
that's it. There's fixed talking aboutnow paying four or five I think you
found one for six and a halfpeven seven. Yeah, So the deal
is all things change easy, Yeah, yeah, And you're right, you
know, things change. That's whatI was saying earlier. I mean,
if you had to talk to ustwo years ago, there's no way we'd
put you in a fixed annuity ora fixed CD with a two and a

(17:25):
half one and a half two percent. Now that we can lock in six
and three quarters. Aren't six pointseven five or seven or seven point one
and locking in for seven years oreight years? Oh my god, that
changes things. So yes, absolutely, things do change, can lock don't
be set in your ways. Andyou know what a lot of our older
clients love these things. Yeah,they've been asking about him for five years.

(17:48):
I'm like, well, we can'tuse them. They're only paying less
than two percent. Now we canstart using them again and locking those interest
rates at the high level so thatwhen they start coming back down, we've
got these things still paying six sixpoint seven five or whatever. We put
term limits determined how much you geton your accounts. So so I mean,
yeah, absolutely. And then theother side of that Dally was talking

(18:10):
about here is, you know,and Dad was mentioned this too, is
just raising that cash up in yourportfolios. Because you know, markets go
up and markets go down. Youknow you're in a bearer market. When
the market jumps up by four orfive percent a month like that, that's
typical bearer market behavior. Use thoserallies to raise some cash, you know,
even if you take a little bitof a loss. Remember this and
the Eye and the Land of theBlind, The one eyed Man is King.

(18:30):
So if you got cash what wasthat again, Yeah, Land of
the Blind, the Land of theblind, The one eyed Man is king.
You know, if you got allyour money in shares, right,
and the market sells off another tentwenty percent, you can't do nothing about
it. You're there for the ride. I hope you like roller coasters because
you want it right, You're notgetting off now. But if you raise
some cash, well, then youcan go shopping on discount, just like

(18:52):
Mama Duel likes, you know.And here's here's a little secret for everybody
listening. It's not the amount ofmoney your shares are worth that compounds your
wealth the greatest. It's amount ofshares you own. So if you can
buy on discount, when those stocksrally, you will compound and grow wealth
like you've never done it before.Buying and holding is just waiting to break

(19:14):
even. Yes, Tactically managing youat your allocation to cash and market volatility
is how you compound wealth. Ifyou want to learn how to compound your
wealth, you want to learn howto protect, grow and reduce taxes on
your money, give us a call. We'll show you how to manage your
assets tactically so when those buying opportunitiescome around, instead of just getting back
to break even, your compounding wealth. Again. That phone number for that

(19:37):
financial lab two two five four tosix five ten sixty five two two five
four six five ten sixty five forthat financial lab. Find out about the
compound well to find out how youcould have income for life. I mean,
these are all questions that you guysfeel to each and every single day.
Two, two, five, fourto six, five, ten sixty
five. Of course the website ShepherdWealth Solutions dot com. Life is full

(19:59):
of emotions and finding somebody that youtrust and that you want to handle your
basically your life savings right and planfor your retirement. That is the ultimate
trust in its ultimate emotional roller coasterthat a lot of people go down.
And but we've talked before about howthey can interfere with retirement planning. There
was a study by Nobel Peace winningpsychologists. He showed we make financial decisions

(20:21):
based on ninety percent emotion only tenpercent logic. So, first, you
guys find this to be true.And if so, how do you handle
it when the clients get too emotional? Well, you're talking to two guys.
I was just gonna say, emotions. Don't let him lie. Do
you know they want us to talkto you about emotions. You know what?
Mind compromised every here? When Ilose money, I have emotions,

(20:42):
emotional problems. Okay, If anybodyever tells you they don't feel anything when
they lose money, they just lieto you. Yeah, nobody likes lose
money. I don't care if they'retwenty forty fifty seventy eighty one hundred years
old. Nobody likes much, butyou're not trying. Some people get emotor
in the wrong business. Oh yeah, yeah, but don't a lot of
people get emotionally attract to certain things. Let me give you an example.

(21:03):
I've got some guys. I'm notsaying Xion is a bad stock or any
of the plants down here, butthey treat their they think of their stocks
as their children. All you'd betternot be partnering one share of that stock,
you know. Yeah, I gotto have all these shares, you
know. You think about that.They're not diversifying. That's a problem,
that's right. You know. Thearticle you're talking about is like the book.
We read, the book Thinking Fastand Slow, and it talks about

(21:26):
that. In fact, one ofthe things they won the New Boe Prize
for it was called recency bias.And people will do this all the time.
Oh, it worked in the past, so it'll work again this time.
So to pick on Xon for aminute, do you know what everybody
holds on Xon stock because it usedto split. Oh yeah, remember that
it's split every so often, andpeople were making money, and now they
think it's a split in years.Yeah, and they think it's a dividend

(21:47):
stock and it pays its okay dividend, But it's not a dividend stock.
It will pay dividends, don't getme wrong, it's just not one of
the higher pan dividends. No,it's not, you know, and you
make it a high divienden pain stock. When it sells off by thirty or
forty percent, you buy a bunchback with cash and she raised because you
know, instead of being tiger kingor cash king. Right, So if
you're getting in a half price insteadof a four percent devin and you're getting

(22:07):
like not, that's right four Andthat's what we did with clients back in
twenty twenties, so I mean thirtyone. But no, absolutely that this
article is great. We need topost this on our Facebook page and uh
and link it. But if you'reout there listening, you're you're you're you
got a good enough memory or you'refast enough to write this down. Uh.
Thinking Fast and Slow is a reallygreat book. Annie Dukes, who
makes great who's behavioral psychologists? Who? Um? Who wrote a book about

(22:30):
her experience playing professional poker. Infact, um, Jessica, did you
ever see the movie Crazy Rich AgentAsians. Of course I did. All.
My wife loves that. That's anythat that that that lady who's in
there? That that character, that'sany Duke. Oh wow, the game
game theory. Wow, that's theprofessor. Yeah, I mean that's not
her her, but the idea isthe same. It's the same thing that

(22:51):
she studied, um and she.I mean, that is a great book.
If you want to get a bookfor your grandkids or your kids or
somebody like that who you really wantto help making really good decisions in their
life, especially around money, getthem that book. Go get any any
Duke's book. It is fantastic.I can't think of any of the same
of my life right now. Butif you pain us on Facebook or call
us up and mention it, wellwe'll get the name of it out to
you. But thinking fast and slow, it is a great book. I'm

(23:11):
gonna tell you right now. It'sa doorstop of a book, though,
so get the cliff notes stick.But yeah, if you don't want to,
if you can get your emotions incheck, and I'm gonna tell you
right now you're not. You're notgonna get your emotions he checked. If
all you do is focus on youremotions. What you have to do is
you have to focus on putting rulesaround your emotions so you can start to

(23:32):
figure out, Okay, I'm gettingreally nervous because the market is doing X,
Y, and Z. Have apre planning decision in there. We
have the rule of twenty. You'veall heard this on the rating if you
haven't heard it before, the ruleof twenty is very simple. It's based
on a Bearer Market definition from WallStreet. If you're twenty percent down from
your high, you sell. Whybecause cheap gets cheaper? Right? If
I got one hundred dollars a shareof stock and it goes down to eighty

(23:53):
dollars, bear market sell it backdown to fifty dollars, buy it back.
All emotions stays in motion, doesn'tit. All emotion stays in motion.
Momentum is a real thing. Stocksare dropping, Your stocks dropping,
It probably gonna keep dropping. Soif you take that eighty dollars and you
buy shares at fifty cents to share, guess what you're gonna get. You're
gonna have more. You're gonna havemore shares. I like more. So

(24:14):
when that share gets it back upto one hundred dollars. If you've got
a two for one deal, let'sjust say, all right, all right,
not quite you got one point six. But anyways, it gets back
to one hundred dollars and you've gotmore than one share. Guess how much
more money you have. That's right, ladies and gentlemen, you have more
money. Hey, mama likes thatshe uses that out my all time.
You get more of them, youget more sounds like how you do the
bogo right right? The cereal?Yeah, that's it, that's it.

(24:37):
It's ill. We all go tocostco right, put some rules in place.
Understand why you have those rules.It's gonna make you a better investor.
You know. If you want tosee how we use rules at a
professional level and maybe see those applyto you. A great thing to do
is to have fifteen in a phonecall. I ask about the rule twenty.
Come into the office, do thefinancial lap. I'll do a real
wife, I'll do a real lifeand you know what's the word I'm looking
for example of how the rule oftwenty works. I'll walk you through the

(25:00):
high level view, and I'll breakit down to as close to fractional geometry
as you want to, but atthe end of the day, keep it
simple. Come in, bring inyour statements, bring in your taxes,
please, please please, it's taxseason. Come finally do the thing you've
been putting off thirty years and learnhow to read a tax return because you're
gonna make better decisions with your money. It's all about education and making those
decisions. Also. Guys, bythe way, it's a partnership when you

(25:22):
work with David and Travis and theteam at Shepperwell Solutions. It's a partnership
when you put together this financial laband you really start making those plans for
your retirements. Again that phone numbertwo two five four to six, five
ten sixty five two two five fourto six, five ten sixty five again.
The website shepherdwell Solutions dot com.Hey, y'all's Travis Chever from Sheperwell

(25:42):
Solutions. Come on out June's secondswing on by walk on on Airline Highway
between three and six. That's thelocation out there, the gun Zalis Purval
area. Come out and meet ateam. We'll be out there hanging out
watching Little LSU baseball and answering somequestions. Hope to see you there and
go Tigers where they're sacrificed and fortheir service or this Memorial Day, thank

(26:03):
you for your service. We rememberall those who have made the ultimate sacrifice.
God bless all of them, gonebut never forgotten. Having a Memorial
Day weekend to you, we appreciateyou joining us here, of course for
the financial lab with David and TravisShephard. The phone number two two five
four six five ten sixty five.That's two two five four six five ten
sixty five. The website Shepherd wellSolutions dot com. The number one fear

(26:29):
of planning for retirement is running outof money. And of course the number
one question you guys are asked allthe time is how do I know I've
saved enough? Can I have guaranteedincome for life? Well, it turns
out annuities they offer a guaranteed incomestream for life. But what if you
need extra money besides that monthly checkdue to unexpected expenses, maybe a medical
emergency, or can you clear upwhether you can safely withdraw that cash from

(26:52):
the annuity? Guys, Yeah,you know, and that's a great question
because we get to ask that alltime, and the answer to that question
is yes, you can make withrawls from an annuity cash withdraws and so
most annuities will allow you during aterm period. So what does the term
period? Well, a nuities aresold like CDs. They can be a
three year, five years, sevenyear, ten year, twelve year,
fifteen year. During the term period, they limit you on your withdraws.

(27:15):
Free withdrawals you can. You cantake withdrawls as much as you want,
but some of them aren't free.So the free withdrawals allow you to take
out ten percent each year during yourterm period, so you can have a
ten percent withdraws PSALM annuities allow youto take out a little bit more.
I've seen them as high as twentypercent. If you need liquidity, you
get one of the more liquid annuities. But for the most part, annuities

(27:37):
are there to produce income. Youknow, and when you invest for a
purpose, if the purpose is toget the money out of the market,
put it in a safe place.Annuities are very good because their interest rates
and their yields are very good rightnow. But they do allow you to
make withdraws. So answer the questionis yes, you can make withdraws from
annuities. The means job of mostannuities as far as how most people understand
to use them is just like they'relike rental income, right, I mean

(28:00):
mailbox money. The money comes inthe mail, hit your deposit, it
hit your account the exact same timeevery month. It's only the only reason
it's better than rental money is youdon't have to chase people and you don't
have to fix toilets. What right, nice, clean, simple, easy
mailbox money, right without all theextra work. You know, the other
side of the annuity questions where Dad'sgetting into is and your question, Jessica

(28:21):
is and if I'm taking income,can I still cash out of the annuity
or can I get the cash outof annuity? The answer is yes.
But really that comes down to properplanning, and a lot of people kind
of miss the target on this.They tend to treat an annuity like it's
like the silver bullet of retirement.Right, But we're not hunting werewolves,
we're making retirement plans. Okay,So, yeah, you want some extra

(28:41):
income, some dependable you want thatmailbox money. A nuity's great at that.
You know what else, it's greatat creating a market volatility buffer.
We all know, yeah, right, we all know when the market's up,
we can go take our money fromthe market for these extra expenses or
this fun money stuff we want todo, trips or emergencies, whatever it
may be. But when the marketsdown, well, then what do you
do. Well? You should buyright, you should be able to buy

(29:03):
buy this year, you're asking me. But what you really need to do
in a proper plan is you shouldhave another account another part of your strategy
that's set up so the market's goingdown, it's not losing money. So
if you have an emergency or youhave something you want to do, you
can go access that money without drawingdown on top of market losses. That's
where annuity can act as a marketvolatility buffer, so you don't have to

(29:25):
have a garage seal. You canactually pull some money out of your annuity.
Maybe you got one that has aten or twenty percent withdrawal. Take
that money out and buy on thesedepths. Ye, and then the real
money and your other annuity keeps payingyou the income like it always has,
and you don't upset your income.So I mean, it's the best of
both, it really is. Knowinghow to use an annuity at a pro
level makes all the difference in theworld. The problem is you just don't

(29:47):
run into a whole lot of peoplethat use it at a professional level.
It's usually a break glass in caseof in case of fire type of thing.
Yeah, I see a lot ofbrokers out there. They don't know
what they're doing though. They'll sellor they'll put someone in just one annuity.
What a mistake. That is,all right, you should have several
annuities. They should be coming likeCD ladders. Remember the old CDs.
We used to the ladder them.Okay, So if I came to in

(30:11):
this office and say, hey,David, I got two hundred and fifty
thousand dollars, I need to putit in some annuities, blah blah blah,
we would not put all that moneyand want annuity that gentleman. A
female would have four or five annuities. Why because we might turn on income
from one. We might use therest of them for free with for alls
our market buffers. As Travis wassaying, Yeah, at the end of
the day, the best way tokeep it simple. Your annuities can fulfill

(30:33):
two purposes right Number one, Theycan be like rent money, except you
don't have to chase people and youdon't have to fix toilets number two.
They can help protect you from whenthe market is down and still have access
to cash. So if you wantto learn more about how to use them
in those two ways, you knowhow to use an annuity at a professional
level, give us a call,spend fifteen minutes on the phone with you.
We'll talk to you about whether thatsomething you should slid un consider that
phone number two two five four tosix five ten sixty five. Again two

(30:56):
two five four to six five tensixty five, call right now for that
fifteen minute conversation, or if youwant to commit for that financial lab Within
that there's also an annuity stress test. You'll be able to put that together
as well. Two two five fourto sixty five ten sixty five. You
guys, I recently ran across someadvice in market watched their financial website.
It describes a couple that retired sixyears ago. In January of last year,

(31:19):
they had five hundred thousand dollars,but by December they had lost one
hundred thousand dollars. They called theiradvisor and asked why and you know what
was going on? And during themeeting they were told they could lose another
one hundred grand by the end ofthe year. The reader's question is should
I stay with this advisor or shouldI go? What are your thoughts?

(31:40):
I would run, run for thehills. I'm with you hours day,
I'm getting all out of here.Seriously, Hey, you've lost one hundred
thousand. By the way, holdon tight. It might happen again.
Absolutely not. Well, didn't yousay you win in with five hundred thousand
and how much? Did they canstart with five hundred? And they lost
one hundreds and an other than fourand now they're going to go down to
three before this advisor fixes anything.Get then another three, another twenty five

(32:01):
percent. That means they're going totwo fifty. Well but still so you
know, talking about get the hellout of there, and yeah, it
tells you they have an SMP fivehundred based model plan. SMP was from
two October two thousand and seven toFebruary two thousand and nine, fifty six
percent draw down. This advisor mustbe handling people that are thirty five,
forty five, and fifty years old. He's not handling folks in their sixties

(32:23):
and sixty five seventies. That's thelast thing you want to happen in your
retirement right there. I think thiskind of question is something that's great for
radio listeners to hear because we hearthis stuff all day and we talk about
the financial live and what your maximumdraw down and do you know what your
maximum pain threshold number is? Yourdraw down number? This is it when
Jessica just read to you. Isthe exact question we get asked. Because

(32:45):
everybody in their mama has heard abouthow much money somebody can make for you.
But those same people that tell youabout how much money they can make
for you will never ever ever tellyou how much money you can lose.
And you shouldn't know both parts ofthe story that you can figure out.
Is it a book you want tokeep reading or you want to close this
chapter and move on with your lifesomewhere else without knowing the downside risk,

(33:07):
you're just setting yourself up for failure. Oh yeah, because markets go up
and they go what they go down, you go down. Here's the problem.
Markets go up slowly over a longperiod of time. You know how
long it takes them to fall?Very fast? Jump out the window,
yep, that's right. You takethe stairs up and the window out.
That's how it goes. So you'vegot to be able to manage that risk
because that risk develops slowly over timeand then all of a sudden, all

(33:30):
at once, boom risk going.This is a great example of that.
You know, I would, Iwould kind of you know, let's let's
walk listeners through this real quick.You know, how would you solve this
different? Well, number one,we talk about extra strategy whenever we're in
the market. I'd say, houshold, we're in our labs, we're talking
about this. This is one ofthe top things we talk about, maybe
even the first thing to talk aboutis your pain threshold and what are we

(33:52):
gonna do if the market goes downwe get close to your pain threshold.
And by the way, what isour option to be an option? So
it's a simple example. Yeah,let's say this person's a few fifty person,
right, This person comes in andsay, hey, Travis and David,
I'm I'm what the Wall Street peoplecall a moderate investor. For us,
we don't use those terms. Wemake you take a math test.
Sorry to break the news, butyou can take a little math tests.
You don't have to do a wholelot of math It's just a lot of

(34:13):
looking at numbers and say, hey, I don't like losing that much money.
That's where I want to stop.But let's just say this person comes
in and say, you know,David and Travis, I'm a moderate investor.
I really don't want to take morethan like a fifteen percent draw down
on my money. It would makeme very nervous to go from five hundred
thousand dollars to you know, fourhundred and twenty five thousand. I'd be
super nervous and I'd probably be,you know, wanting to do something about
that. How can I fix that? Well? All right, mister and

(34:36):
missus Smith. Have you ever considered, um, you know, the stock
markets go up somewheret's go down,that's where you can get the most growth
for your money. Yeah, ye, ever familiar with that? Okay?
Have you ever heard of using anannuity as a market volatility buffer? No?
What does that mean? Well,inside this fixing nex annuity, you
can participate with market growth. Wewon't get at all, right, but
we're gonna give up some of thatgrowth in order for certain assurances. As
in, when the market goes downit has a negative year, we don't

(34:59):
take loss from market volatility. Soif the market's negative ten, fifteen to
twenty five, whatever it is,we get a zero zero as your hero,
zero as your hero. So you'resaying, I can make ten fifteen
percent, but if the market wentdown twenty five percent, I'm not gonna
lose anything. What about the moneyI just made. That's right, it's
been it's been locked in. Ifit if it locked in the last year,
then it's locked in usually, soit's a fixed accounts. It can't

(35:21):
go down, that's right. Soit's a market volatility buffer. So what
we're really concerned about so much isif you make ten percent, that's fantastic.
If this thing does, you know, three and a half to five
percent on average, you're you're winning, right seven. I'm happy because here's
the best point. When this happens, like in this story where mister and
mister Smith they're losing twenty five tofifty percent down. If they had an
account, then they never lost anymoney in What can they do with that

(35:44):
other money that they can't do rightnow all their money's in the market.
I think I might consider it ifI had to take a withdrawal from the
one that didn't lose money, right, probably, and not only take it
with a draw. But if you'renot going to spend it, what opportunity
do you have. I could buyback into the market. I have twenty
five or fifty percent discount, andthen you know what you could do every
year after that, keep buying inwhen the market rallies up. Now,
who makes more money? This isa way that you can use an annuity

(36:07):
at a professional level in order tohelp defy the odds against a sequence of
returns, which is taking a biglosses up front your first five to seven
years of retirement and then the morningout of money. Right, you can
buffer through that sequence of return bydollar costs averaging your way in. Or
you can just be smart as asmart tactical investor and have a percentage your
money mark for growth, a percentageyour money that's safe, and when that

(36:29):
market recessions and market corrections happen,you can tactically take advantage of it from
your safe money by pulling your moneyout and buying in the market lows and
making more money over time. Weall know how to make money in the
market. You buy low and yousell high. Why don't more people do
that because they are all their moneysin the market and they lost it,
so they don't have no money tobuy in. So this is the way
of putting money on the sidelines,not in cash. It's still making money

(36:52):
and then moving some of it foropportunity buying, is what you're talking about.
That's absolutely right. This makes youa smarter investor because you understand the
behavior the tools you're using to growyour wealth. You know, your mama
likes to sale anything on sales.She loves it, so stocks would be
on sale. I need to showwhere this technique ship. Let it get
a convince you to we can startmaking money on these sale prices. Look

(37:15):
at it this way. This couple'sover here and they're worried about whether they're
going to rount the money. Right, the couple we just do describe that
used a fifty fifty approach or themarket volatility buffer. You know what they're
like. They're like sitting there themarkets down. They can still go on
this cruise if they want to goon, right, and they're just waving
at their buddies from the ship deck, Hey see you later. You know
where their buddy is on the couchon the iPhone, you know doing the

(37:36):
FaceTime mark. I wish we couldhave been with you, but markets are
down twenty five to fifty percent.We left all our money. They're based
on our advisor's advice. We'll seeyou in seven years when it's back up.
Do you want to go with itthe freedom to still be able to
choose and down markets how you're gonnalive your life, or you and go
with the idea where the market getsto dictate your lifestyle. I'll go with
I want to choose my own wayand if you want to learn how to
set that up for yourself. Creativeretirement plan should be confident, have consistent,

(37:59):
reliable in come, buffer yourself frommarket volatility. Lee can show you
how to protect, grow, andreduce taxes on your wealth. You owe
it to yourself to figure out howto do that, and it all starts
with the financial lab call right nowtwo two five, four six five ten
sixty five Again two two five,four, six five ten sixty five as
to sit down with David and Travisand put together your very own customized financial

(38:22):
lab. The website Shepherd well Solutionsdot Com coming up next. Are you
keeping your emotions in check when lookingat your retirement plan. We'll talk about
it. Stay with us. You'redriving long when you're realize, oh,
I've got to get over. Ohmy gosh. Sorry, you didn't see
him, did you? He wasin your blind spot. You can also

(38:42):
have a blind spot when it comesto your retirement. That's where the father
and son team of David and TravisShepherd at Shepherd Wealth Solutions comes in.
David and Travis know about a littleblind spot called taxes. Social Security,
your pension, your investments all canbe taxable. Look, you don't want
to end up wondering, well,a're you writing huge checks to the government
when I retire? Don't get blindsidedby taxes. Call today for your complementary

(39:07):
tax Lab was David and Travis Shephardat two two five, four six,
five one zero six five two twofive, four six, five ten sixty
five. More details on their websiteShepherd Wealth Solutions dot com. The subject
of retirement has lots of moving parts, and the way you plan for it
is going to be unique to you. That's why we created the Financial Lab

(39:30):
podcast. Download episodes and listen onyour time. Maybe it's in the car
on the way to or from work. Anytime that's convenient, go to the
podcast section of iTunes, Spotify orGoogle Play and look forward The Financial Lab
with David and Travis Shephard. TheLand of the three grandfather served in World
War Two and the Home of theBrave. We love you. Thank you

(39:52):
to our men and women in uniformsthe sacrifice that they make for us,
our fire and fire, police,police and ems this happy Memorial Day.
We appreciate you joining us here todayfor the Financial Lab. Of course,
talking about all sorts of stuff today. So if there's something we don't get
too that's been keeping you up atnight, or maybe you want more information

(40:15):
about a topic that we have discussedtoday, you can always give a call
two two five four six five tensixty five. That's two two five four
six five ten sixty five the website, of course, Shephard well Solutions dot
com. I'm gonna take you backto twenty nineteen. We had a lot
of fun discussing billionaire Ray Delio's statementthat cash is trash. Recently he has

(40:36):
flipped on that, telling CNBC thatcash is a better investment than stocks and
bonds. You've got a cash ratethat's relatively high. Cash used to be
trashy. Cash is trash, iswhat you used to say. Yes,
negative one half two percent real ratesterrible. Now cash is relatively attractive.
Yeah, you always hear that sayingcash is king. So guys, do

(40:58):
you agree on this? I mean, isn't this a great exam ample of
why we need a financial advisor?I mean, yes, yeah, one,
thanks for sure? Things will change, right? So yeah, with
volatil too. You want cash.You don't want to have one hundred percent
of your money in the market withit going down, right, So volatility
cash it's king again. You knowwhen the market is predictable, cash just
trash. You want it in themarket making money. So and another thing,

(41:22):
interest rates are going on, it'sright, so cash can be put
into something that actually makes some money, that actually works and doesn't lose inflation.
And that's what Dally was talking aboutright there. He was one of
those negative one percent rates real ratesof returns because he took your interest rate
you're getting paid let's just say twopercent, and inflation was running at three.
Well, you just lost one percent. The worst part is if you
had an attax bob account, youhad to pay taxes on it too.

(41:42):
That'd be even worse. But yeah, you know that was Joe. We're
talking about this off air, youknow, with some things that you've switched
to reversed one here lately, strategies. I think one of the biggest ones
for US is fixed annuities. Weuse fixed index and nuties all the time.
And here's talking about him almost everyweekend. But you don't hear US
talk a lot about fixed annuities.And one of the reasons for that is
because fixed annuities pay a fixed ratesbased off treasury yields, and treasury yields
have been trashed for many Mini Maniyears. You know. It wasn't until

(42:07):
right here in March of last year, in twenty twenty two, that the
Federal the FED Chairman Powell decided toput on his big boy pants and started
jacking up rates, you know.And he's just been pump pump, pumping
them up. And man, that'sit. Like there's fixed talking about now
paying four or five. I thinkyou found one for six and a half
peven seven. Yeah, So thedeal is all things change easy, Yeah,

(42:29):
yeah, And you're right, youknow, things change, That's what
I was saying earlier. I mean, if you had to talk to us
two years ago. There's no waywe'd put you on a fixed annuity or
a fixed CD with a two anda half one and a half two percent.
And now that we can lock insix and three quarters are six point
seven five or seven or seven pointone and lock it in for seven years
or eight years. Oh my god, that changes things. So yes,

(42:52):
absolutely, things do change. Camelock, don't be set in your ways.
And you know what, a lotof our older clients love these things.
Yeah, they've been asking about themfor five years. I'm like,
well, we can't use them,they're only paying less than two percent.
Now we could start using them againand locking those interest rates at the high
level so that when they start comingback down, we've got these things still

(43:13):
paying seven percent six six point sevenfive or whatever. We put term limits
determined how much you get on youraccounts. So so I mean, yeah,
absolutely. And then the other sideof that Dally was talking about here
is you know, and Dad wasmentioned this too, is just raising that
cash up in your portfolios because youknow, markets go up and markets go
down. You know you're in abearer market when the market jumps up by
four or five percent a month likethat. That's typical bearer market behavior.

(43:35):
Use those rallies to raise some cash. You know, even if you take
a little bit of a loss.Remember this and the eye in the land
of the blind, the one eyedman is king. So if you got
cash, what was that again,Yeah, went to the blind the land
of the blind, the one eyedman is king. You know, if
you got all your money in sharesright and the market sells off another ten
twenty percent, you can't do nothingabout it. You're there for the ride.

(43:58):
I hope you like roller coaster becauseyou want it right. You're not
getting off now. But if youraise some cash, well, then you
can go shopping on discount, justlike Mama Joule likes. And here's a
little secret for everybody listening. It'snot the amount of money your shares are
worth that compounds your wealth the greatest. It's amount of shares you own.

(44:19):
So if you can buy on discountwhen those stocks rally, you will compound
and grow wealth like you've never doneit before. Buying and holding is just
waiting to break even. Yes,Tactically managing you at your allocation to cash
and market volatility is how you compoundwealth. If you want to learn how
to compound your wealth, you wantto learn how to protect, grow and
reduce taxes on your money, giveus a call. We'll show you how

(44:42):
to manage your assets tactically so whenthose buying opportunities come around instead of just
getting back to break even your compoundingwealth. Again, that phone number for
that financial lab two two five fourto six five ten sixty five two two
five four six five ten sixty fivefor that financial lab. Find out about
the compound well to find out howyou could have income for life. I
mean, these are all questions thatyou guys feel to each and every single

(45:06):
day. Two two five four sixtyfive ten sixty five. Of course the
website Shepherd Wealth Solutions dot com.Life is full of emotions and finding somebody
that you trust and that you wantto handle your basically your life savings right
and plan for your retirement. Thatis the ultimate trust and it's the ultimate
emotional roller coaster that a lot ofpeople go down. And but we've talked

(45:28):
before about how they can interfere withretirement planning. There was a study by
Nobel Peace winning psychologists. He showedwe make financial decisions based on ninety percent
emotion only ten percent logic. Sofirst, do you guys find this to
be true? And if so,how do you handle it when the clients
get too emotional? Well, you'retalking to two guys. I was just
gonna say, do you want toask of emotions? Don't let him lie?

(45:50):
Do you want us to talk toyou about emotions? You know what
I'm mind compromised every here when Ilove is money, I have emotions emotional
problems. If anybody ever tells youthey don't feel anything when they lose money,
they just lie to you. Yeah, nobody likes losing money. I
don't care if they're twenty forty fiftyseventy eighty, one hundred years old.
Nobody likes lose money. But youknow some people get in the wrong business.

(46:13):
Oh yeah, yeah, but don'tdon't a lot of people get emotionally
attract to certain things. Let megive you an example. I've got some
guys. I'm not saying Xion isa bad stock or any of the plants
down here, but they treat theirthey think of their stocks as their children.
All you'd better not be partnering oneshare of that stock, you know.
Yeah, I gotta have all theseshall you know, you think about

(46:34):
that they're not diversifying. That's aproblem, that's right. You know.
The article you're talking about is likethe book. We read, the book
Thinking Fast and Slow, and ittalks about that. In fact, one
of the things they won the NewBoe Prize for it was called recency bias.
And people will do this all thetime. Oh, it worked in
the past, so it'll work againthis time. So to pick on Xon
for a minute, do you knowwhat everybody holds on Xon stock? Because
it used to split. Oh yeah, remember that it's split every so often.

(46:58):
People are making money, and nowthey think it's splitting years. Yeah,
and they think it's a dividend stockand it pays us okay, dividend.
But it's not a dividend stock.It will pay dividends, don't get
me wrong, it's just not oneof the higher pan dividends. No,
it's not, you know, Andyou make it a high divienden pain stock.
When it sells off by thirty orforty percent, you buy a bunch
back with that cash and she raisedbecause you know, instead of the entiger
king, your cash king. Right, So if you're getting in a half

(47:20):
price instead of a four percent dividendyou're getting like not, that's right,
four and out n That's what wedid with clients back in twenty and twenty.
So, I mean, I spota X on thirty one. But
no, absolutely that this article isgreat. We need to post this on
our Facebook page and and link it. But if you're out there listening,
you're you're you're you got a goodenough memory or you're fast enough to write
this down. Uh, Thinking Fastand Slow is a really great book.
Any Dukes who makes great? Who'sbehavioral psychologists? Who? Um? Who

(47:45):
wrote a book about her experience playingprofessional poker? In fact, Um,
Jessica, did you ever see themovie Crazy Rich Agent Asians? Of course
I did. All my wife lovesthat's any that that that that lady who's
in there? That that character?That's any Duke? Oh wow? The
game game theory the professor, Yeah, I mean that's not her her,
but the idea is the same.It's the same thing that she studied,

(48:07):
um and she. I mean,that is a great book. If you
want to get a book for yourgrandkids or your kids or somebody like that,
who you really want to help makingreally good decisions in their life,
especially around money, get them thatbook. Go get any any Duke's book.
It is fantastic. I can't thinkof the name of the same of
my life right now, but ifyou ping us on Facebook or call us
up and mention it, well,we'll get the name of it out to
you. But thinking fast and slow, it is a great book. I'm

(48:29):
gonna tell you right now. It'sa doorstop of a book though, so
get the cliff notes stick. Butyeah, if you don't want if you
can get your emotions in check,and I'm gonna tell you right now,
you're not. You're not gonna getyour emotions he checked. If all you
do is focus on your emotions,what you have to do is you have
to focus on putting rules around youremotions so you can start to figure out.

(48:49):
Okay, I'm getting really nervous becausethe market is doing X, Y,
and Z. Have a pre planningdecision in there. Like we have
the rule of twenty. You've allheard this on the rating if you haven't
heard it before, the rule oftwenty is very simple. It's based on
a bear market definition from Wall Street. If you're twenty percent down from your
high you sell. Why because cheapgets cheaper. Right. If I got
one hundred dollars a share stock andit goes down to eighty dollars, fair

(49:12):
market, sell it back down tofifty dollars, buy it back. Ball
in motion stays in motion, doesn'tit? All? Emotion stays in motion.
Momentum is a real thing. Stocksare dropping, Your stocks dropping,
It probably gonna keep dropping. Soif you take that eighty dollars and you
buy shares at fifty cents to share, guess what you're gonna get. You're
gonna have more. You're gonna havemore shares. I like more. So
when that share gets that back upto one hundred dollars, if you've got

(49:32):
a two for one deal, let'sjust say, all right, all right,
not quite you got one point six, but anyways, it gets back
one hundred dollars and you've got morethan one share, Guess how much more
money you have. That's right,ladies and gentlemen, you have more money.
Hey, Mama likes that. Sheuses that out my all the time.
You get more of them, youget sounds like how you do the
bogo right right? The cereal?Yeah, that's it. That's it's well,

(49:55):
we all go to costco right,put some rules in place. Understand
why you have those rules. It'sgonna be you a better investor. You
know. If you want to seehow we use rules at a professional level
and maybe see those apply to you. A great thing to do is to
have fifteen inte phone call, askabout the rule of twenty. Come into
the office, do the financial lab. I'll do a real life I'll do
a real life and you know what'sthe word I'm looking for example of how
the rule of twenty works. I'llwalk you through the high level of view

(50:17):
and I'll break it down as closeto fractional geometry as you want to.
But at the end of the day, keep it simple. Come in,
bring in your statements, Bring inyour taxes, please, please, please,
it's a tax season. Come finallydo the thing you've been putting off
thirty years and learn how to reada tax return because you're gonna make better
decisions with your money. It's allabout education and making those decisions. Also.

(50:37):
Guys, by the way, it'sa partnership when you work with David
and Travis and the team at ShepherdBall Solutions. It's a partnership when you
put together this financial lab and youreally start making those plans for your retirements.
Again that phone number two two fivefour six five ten sixty five two
two five four to six, fiveten sixty five. Again that website Shepherd
Wealth Solutions dot com. Have agreat breast of the Memorial Day weekend.

(51:00):
Be safe. We'll see you nextweek, Howard. Great Memorial weekend.
And so the gold Star families whocan't thank you enough for your sacrifice,
thank you. Hey, y'all's Travisheverfrom Cherwell Solutions, come on out June's
seconds. Swing on by walk Onson Airline Highway between three and six.
That's the location out there, thegunzals Purvo area. Come out and meet
a team. We'll be out therehanging out watching Little l Shoe Baseball and

(51:22):
answering some questions. Hope to seeyou there and go tires. Travis Shepherd
is an investment advisor representative of RetirementWealth Advisors Incorporated, an SEC registered investment
advisors. Shepherd, Wealve Solutions,Retirement Wealth Advisors and w JBO are not
affiliated. Exposure to ideas and financialdhicol's discussed should not be considered financial advice
or recommendation to buy or sell anyfinancial DFICULF. This information should not be
considered tax or legal advice. Individualsshould consult with a professional specializing in the

(51:43):
fields of tax, legal accounting,or investments regarding the applicability of this information
for their situation. Past performance isnow to guarantee a future results. Any
comments regarding safe and secure products andguaranteed income streams refer only to fixed insurance
products. They do not refer inany way to securities or investment advisory products.
Fixed insurance and a nuityroduct guarantees aresubject for the claims payability of the
issueing company and are count offered byr WA