Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:03):
Welcome back to Investing in Trading Live sponsored by Trade Academy.
As always, I am your most Josh Lilquist on the
airwaves all across the metro weekdays and weekends. Make sure
to stay tuned. Every single week we talk about stocks, options,
futures for its, income strategies, retirement strategies, and how to
make smart investing in financial decisions within your life. If
(00:26):
you miss seats for that free Investing in Trading workshop
that we do locally live here at the Academy and
all across the Metro, simply just text the word investing
to the number two ten, two ten and that'll be
for two seats, one for you and a friend. Most
people bring their spouse or significant other. Text investing to
the number two ten two ten, or go straight to
our website Trading Academy dot com and you can pick
(00:49):
your own seat and date there. As I mentioned earlier.
If you're old school like al and I, just call
nine five two eight one four forty four ten. That's
nine five two eight one four forty four to ten
and we'll make sure we get you a seat and
date for the times that work best for you. Follow
and subscribe to the podcast, Investing and Trading Live wherever
(01:11):
you listen to your podcasts a A podcast, iHeartRadio and Spotify.
We appreciate all of our YouTube live viewers as well.
Just go to the Josh Lilquist YouTube page. So with
all these different opportunities in these markets out there's still
a lot of people. As you mentioned in that deal
Bar study, I believe it was most people just are
not getting the returns that they need, and it's really unfortunate.
(01:34):
That's a lot in retirement accounts. People have retirement accounts.
They work all their lives, twenty thirty, forty fifty years,
sometimes sixty seventy ors some people, but they just don't
have enough. They want to be able to build a
future for themselves and their families, which is great. We're
seeing more and more people want to be able to
build a legacy for their families that are coming to
(01:55):
the academy here. But there are a lot of challenges
with the four one K, you know, the four to
one K. It's great because it's helped people learn how
to save, but if that's what everybody has and the
stats are all there, We've talked about this a few
times over the last couple of months. Most people don't
have enough money in their retirement in their four o
(02:16):
one k is there's got to be some sort of
problem because of that. So you've been meeting lately with
a lot of people that have came to these investing
and trading workshops that we do here at the Academy,
and they have questions about those four to one k's.
What can they do differently? Now you have the typical
approach out there. Al you have the the simple buy something,
(02:36):
buy a crazy mutual fund, which are the most devastating
things in a retirement account, and just hold it long
term and time in the market. And you just got
to have it in the market because blah blah blah.
Well we talked about in the first or second segment
it was today about yeah, well cool. You say, you
make a little bit of money in there, but your
dollar is being devaluate, be devalued day after day, year
(02:59):
after year, so you can do less with those dollars.
By the time you want to retired, the dollar has
devalued eighty percent or ninety percent since fifty There you go.
So there's a problem with what you're doing, and it's
not your fault. It's what you're being conditioned and told
to do. Now when people are coming to these investing
(03:19):
in trading workshops here at the Academy, l what are
some of the questions that people have and what differentiates
Trading Academy from old school methods to a new school
what's actually real nowadays?
Speaker 2 (03:32):
Yeah, Well, a lot of people that we're seeing recently
are either getting ready to retire or have just retired,
or maybe been of retirement for a while, and they're
really concerned because they thought, by listening to Wall Street
they were going to be in great shape when it retired.
Speaker 1 (03:49):
Who's Wall Street?
Speaker 2 (03:50):
Wall Street? Are the big firms like Goldman, Sacks, Jape, Morgan, Merrill.
Speaker 1 (03:54):
Lynch, Swabs, Fidelities even right?
Speaker 2 (03:57):
Absolutely?
Speaker 1 (03:57):
Yeah, Yeah, the companies people know and they quote unquote
they feel like they trust them, but they're just they're salespeople,
is but they are Yeah, well, those companies are in
business to no company in particular, By the way, I'm
not putting anybody down. I'd hate to have somebody come
after us now.
Speaker 2 (04:12):
No, No, you know, those companies are all in business
to make money, and one of the ways that they
can do that is to keep people in the market
as long as possible the four to one case. One
of the problems with the four to one K is
that you're almost forced to stay in it because you
pay a penalty if you take money out before you
reach fifty nine.
Speaker 1 (04:30):
And a half. So here's here's a question I have.
Let's just say somebody has a million bucks. You got
to pay to get your own money?
Speaker 2 (04:38):
You do?
Speaker 1 (04:39):
Boy, that just sounds like a rig system to me.
There doesn't it?
Speaker 2 (04:42):
How you who's benefiting from?
Speaker 1 (04:44):
How convenient? I think it's common sense if you really
break it down, you got to pay to get your
own money.
Speaker 2 (04:52):
Yeah, the longer you stay in the market. Let's say
with the four to win K, which is that's what
everybody is kind of conditioned to, is the go to
for a retirement. You put your money every time you
get a paycheck, some of it is taken and put
in the four one K. Maybe your company matches part
of it, which is cool. That's cool. That's free money.
So it's the free money part, and as you mentioned,
(05:13):
it forces people to do something.
Speaker 1 (05:15):
Well, it's not technically free money because you've still got
to work there. You still got to put your time
in for that your time is worth a lot.
Speaker 2 (05:22):
That's that's true. But the real problem is that you're
forced to stay into something that has mediocre returns at best,
and that has high fees, you know. And the simple
fact is that most of the FAW and K plans
out there are just too expensive, you know. And an
ordinary American household now with two working adults, they're going
(05:42):
to probably cough up over one hundred and fifty five
thousand dollars in four and K fees over a lifetime.
That's according to think tank demos. And then here's the
interesting thing, Josh, over seventy percent of the people hold
didn't even realize they were paying fees.
Speaker 1 (05:59):
Amazing, and we.
Speaker 2 (06:00):
Talk about these in the class. I think people are
are are really kind of shaken by the fact that
they're paying fees that are much higher than even if
they know their fees, they think that they're much lower.
Speaker 1 (06:11):
Let's break that down a little bit though, well, because
I don't know if you have the stat on what
the average four O one K is. If you have that,
give me a thumbs up and we'll continue that. But
I think about this. What else said is the average
pulse is paying over one hundred thousand fees fifty So
over one hundred and fifty five thousand fees, do you
have the average four one k? What they say?
Speaker 2 (06:32):
Yeah, it varies, but you figure you know, some of
this stat that one hundred and fifty five thousand, I
think was based on a two percent fee.
Speaker 1 (06:42):
It doesn't sound like a lot, but it's a lot.
Speaker 2 (06:44):
And it's actually very conservative. Most people are paying much
more than that. In fact, if you look at just
mutual funds in general, the fee, the average fee for
a mutual fund is closer to maybe three and a
half percent to find in a retirement plan for a
half percent in a non retirement.
Speaker 1 (07:02):
Okay, that being said, out, I don't mean to cut
you off, but I did cut you off like an
interrupting cow move. But we have a lot of people.
I want to make sure people realize and understand that
we have free investing in trading workshops to uncover this
and unpack this a little bit. You can come to
one of those by texting the word investing to the
number two ten to ten to learn more about those fees.
And for one case, but what differentiates what we do
(07:25):
here at Trading Academy, So you're not in that boat. Well,
we're thinking essentially.
Speaker 2 (07:30):
Yeah, exactly. Well, first of all, we want you to
understand what's in your forward case. Most people don't remember
what's in their forward case. Most people don't even know
what they put their money in. They put it into
something that had kind of a fancy sounding name, and
they think that just because the S and P five hundred,
for example, goes up maybe ten eleven percent on an
(07:51):
annual basis, that they're going to get the same things,
maybe because they're in what's called an S and P
five hundred index mutual fund.
Speaker 1 (07:59):
So what you're saying is most mutual funds, I think
the stat is ninety percent und underperform the market.
Speaker 2 (08:05):
They underperformed the index that they're supposed to perform with.
And there's a couple of reasons. What is the fees
that are being taken out If you look at just
the returns of an index, there's no fees being taken
out of that index number. And then also transaction fees.
The S and P five hundred doesn't keep the same
five hundred companies forever, they're continuously changing, and then there's
(08:25):
transaction fees there.
Speaker 1 (08:26):
So what are some of the things at the workshops
that do we talk through that might be a little
bit different to minimize those fees well.
Speaker 2 (08:34):
Self directing, for example, and even within your four wind K,
there may be some things in there that have lower
fees than you're paying, but you need to understand what
they are first of all. So let's find out what
you're in your forewin ks. Maybe what you want to
do is instead of continuing to put money into four
oro on and K after that match has been met,
where you get the free money, why don't you look
(08:56):
at setting up a self directed IRA. That way you
have many more choices. There's no fees, there's no charge
for most brokers to have that for that self directed IRA,
but you can invest in many things that you don't
have access to within a four to one K plus
and this is really critical. You can have protection on
your assets in a self directed IRA. It's almost impossible
(09:19):
to do that in a four to one K. So
with the four one K you were basically accepting the
fact that when the market crashes or cracks, you're just
going to write it down and then hope that it
comes back quick enough. Where if you're in retirement, you
live long enough to see your portfolio return to where
it was maybe five or ten or fifteen years ago.
Speaker 1 (09:37):
Yeah, there was a show back in the nineties some
people that are probably in their thirties and probably forties
right now know what I'm talking about if you're listening
right now, called Saved by the Bell. And there was
a little slogan they were talking about in this case
they were talking about and you know, say no, it's drugs,
And the slogan was what I use in one word,
what I use dope Nope. I'm going to change that
(09:59):
a little bit. I'm going to think saved by the
bell or giving me this idea and one word what
I use hope Nope. And that's what you got to
do is not use hope in your retirement accounts. Have
a strategy that might be able to do things what
you want to do, and that by doing that is
self directing, making your own decisions. And that's why we
have these free investing and trading workshops here at the Academy,
(10:22):
is to learn what you can do to make your
own decisions. That way you can make smart decisions for
what you need to accomplish. Not a stranger to come
into one of these classes. Simply just text the word
investing to the number two ten two ten for two
seats for a free trading and investing workshop on self
directing or four to one K management essentially your wealth
(10:43):
or retirement accounts. Al let's hit them up with today's
tip of the week.
Speaker 2 (10:47):
Well, you know, just you don't wake up one day
and your life is suddenly exactly how you imagined it. No,
you wake up one day and you decide to make
it that way. You've got a choice, so why not
choose the lifestyle that you imagine. You have to take
the responsibility for the change you want. By the way,
you have to take action, because nothing is going to
change unless you do. There's a difference between people that
(11:10):
achieve their goals and those that don't, and that's those
who achieve their goals simply took action. The choice is yours.
This might be the best time in your life to
make that change.
Speaker 1 (11:20):
I like that. Sometimes you got to make choices, but
to make to do better things, you got to make
the right choices. But you've got to do that today.
Come into one of these investing in trading workshops by
texting the word investing to the number two ten, two ten,
or call nine to five two eight one four forty
four ten for that free class Trading Academy. Invest differently, smarter,
skillfully as always, same time, same place, next week. Until then,
(11:44):
retire young, my friends,
Welcome back to Investing in Trading Live sponsored by Trade Academy.
As always, I am your most Josh Lilquist on the
airwaves all across the metro weekdays and weekends. Make sure
to stay tuned. Every single week we talk about stocks, options,
futures for its, income strategies, retirement strategies, and how to
make smart investing in financial decisions within your life. If
(00:26):
you miss seats for that free Investing in Trading workshop
that we do locally live here at the Academy and
all across the Metro, simply just text the word investing
to the number two ten, two ten and that'll be
for two seats, one for you and a friend. Most
people bring their spouse or significant other. Text investing to
the number two ten two ten, or go straight to
our website Trading Academy dot com and you can pick
(00:49):
your own seat and date there. As I mentioned earlier.
If you're old school like al and I, just call
nine five two eight one four forty four ten. That's
nine five two eight one four forty four to ten
and we'll make sure we get you a seat and
date for the times that work best for you. Follow
and subscribe to the podcast, Investing and Trading Live wherever
(01:11):
you listen to your podcasts a A podcast, iHeartRadio and Spotify.
We appreciate all of our YouTube live viewers as well.
Just go to the Josh Lilquist YouTube page. So with
all these different opportunities in these markets out there's still
a lot of people. As you mentioned in that deal
Bar study, I believe it was most people just are
not getting the returns that they need, and it's really unfortunate.
(01:34):
That's a lot in retirement accounts. People have retirement accounts.
They work all their lives, twenty thirty, forty fifty years,
sometimes sixty seventy ors some people, but they just don't
have enough. They want to be able to build a
future for themselves and their families, which is great. We're
seeing more and more people want to be able to
build a legacy for their families that are coming to
(01:55):
the academy here. But there are a lot of challenges
with the four one K, you know, the four to
one K. It's great because it's helped people learn how
to save, but if that's what everybody has and the
stats are all there, We've talked about this a few
times over the last couple of months. Most people don't
have enough money in their retirement in their four o
(02:16):
one k is there's got to be some sort of
problem because of that. So you've been meeting lately with
a lot of people that have came to these investing
and trading workshops that we do here at the Academy,
and they have questions about those four to one k's.
What can they do differently? Now you have the typical
approach out there. Al you have the the simple buy something,
(02:36):
buy a crazy mutual fund, which are the most devastating
things in a retirement account, and just hold it long
term and time in the market. And you just got
to have it in the market because blah blah blah.
Well we talked about in the first or second segment
it was today about yeah, well cool. You say, you
make a little bit of money in there, but your
dollar is being devaluate, be devalued day after day, year
(02:59):
after year, so you can do less with those dollars.
By the time you want to retired, the dollar has
devalued eighty percent or ninety percent since fifty There you go.
So there's a problem with what you're doing, and it's
not your fault. It's what you're being conditioned and told
to do. Now when people are coming to these investing
(03:19):
in trading workshops here at the Academy, l what are
some of the questions that people have and what differentiates
Trading Academy from old school methods to a new school
what's actually real nowadays?
Speaker 2 (03:32):
Yeah, Well, a lot of people that we're seeing recently
are either getting ready to retire or have just retired,
or maybe been of retirement for a while, and they're
really concerned because they thought, by listening to Wall Street
they were going to be in great shape when it retired.
Speaker 1 (03:49):
Who's Wall Street?
Speaker 2 (03:50):
Wall Street? Are the big firms like Goldman, Sacks, Jape, Morgan, Merrill.
Speaker 1 (03:54):
Lynch, Swabs, Fidelities even right?
Speaker 2 (03:57):
Absolutely?
Speaker 1 (03:57):
Yeah, Yeah, the companies people know and they quote unquote
they feel like they trust them, but they're just they're salespeople,
is but they are Yeah, well, those companies are in
business to no company in particular, By the way, I'm
not putting anybody down. I'd hate to have somebody come
after us now.
Speaker 2 (04:12):
No, No, you know, those companies are all in business
to make money, and one of the ways that they
can do that is to keep people in the market
as long as possible the four to one case. One
of the problems with the four to one K is
that you're almost forced to stay in it because you
pay a penalty if you take money out before you
reach fifty nine.
Speaker 1 (04:30):
And a half. So here's here's a question I have.
Let's just say somebody has a million bucks. You got
to pay to get your own money?
Speaker 2 (04:38):
You do?
Speaker 1 (04:39):
Boy, that just sounds like a rig system to me.
There doesn't it?
Speaker 2 (04:42):
How you who's benefiting from?
Speaker 1 (04:44):
How convenient? I think it's common sense if you really
break it down, you got to pay to get your
own money.
Speaker 2 (04:52):
Yeah, the longer you stay in the market. Let's say
with the four to win K, which is that's what
everybody is kind of conditioned to, is the go to
for a retirement. You put your money every time you
get a paycheck, some of it is taken and put
in the four one K. Maybe your company matches part
of it, which is cool. That's cool. That's free money.
So it's the free money part, and as you mentioned,
(05:13):
it forces people to do something.
Speaker 1 (05:15):
Well, it's not technically free money because you've still got
to work there. You still got to put your time
in for that your time is worth a lot.
Speaker 2 (05:22):
That's that's true. But the real problem is that you're
forced to stay into something that has mediocre returns at best,
and that has high fees, you know. And the simple
fact is that most of the FAW and K plans
out there are just too expensive, you know. And an
ordinary American household now with two working adults, they're going
(05:42):
to probably cough up over one hundred and fifty five
thousand dollars in four and K fees over a lifetime.
That's according to think tank demos. And then here's the
interesting thing, Josh, over seventy percent of the people hold
didn't even realize they were paying fees.
Speaker 1 (05:59):
Amazing, and we.
Speaker 2 (06:00):
Talk about these in the class. I think people are
are are really kind of shaken by the fact that
they're paying fees that are much higher than even if
they know their fees, they think that they're much lower.
Speaker 1 (06:11):
Let's break that down a little bit though, well, because
I don't know if you have the stat on what
the average four O one K is. If you have that,
give me a thumbs up and we'll continue that. But
I think about this. What else said is the average
pulse is paying over one hundred thousand fees fifty So
over one hundred and fifty five thousand fees, do you
have the average four one k? What they say?
Speaker 2 (06:32):
Yeah, it varies, but you figure you know, some of
this stat that one hundred and fifty five thousand, I
think was based on a two percent fee.
Speaker 1 (06:42):
It doesn't sound like a lot, but it's a lot.
Speaker 2 (06:44):
And it's actually very conservative. Most people are paying much
more than that. In fact, if you look at just
mutual funds in general, the fee, the average fee for
a mutual fund is closer to maybe three and a
half percent to find in a retirement plan for a
half percent in a non retirement.
Speaker 1 (07:02):
Okay, that being said, out, I don't mean to cut
you off, but I did cut you off like an
interrupting cow move. But we have a lot of people.
I want to make sure people realize and understand that
we have free investing in trading workshops to uncover this
and unpack this a little bit. You can come to
one of those by texting the word investing to the
number two ten to ten to learn more about those fees.
And for one case, but what differentiates what we do
(07:25):
here at Trading Academy, So you're not in that boat. Well,
we're thinking essentially.
Speaker 2 (07:30):
Yeah, exactly. Well, first of all, we want you to
understand what's in your forward case. Most people don't remember
what's in their forward case. Most people don't even know
what they put their money in. They put it into
something that had kind of a fancy sounding name, and
they think that just because the S and P five hundred,
for example, goes up maybe ten eleven percent on an
(07:51):
annual basis, that they're going to get the same things,
maybe because they're in what's called an S and P
five hundred index mutual fund.
Speaker 1 (07:59):
So what you're saying is most mutual funds, I think
the stat is ninety percent und underperform the market.
Speaker 2 (08:05):
They underperformed the index that they're supposed to perform with.
And there's a couple of reasons. What is the fees
that are being taken out If you look at just
the returns of an index, there's no fees being taken
out of that index number. And then also transaction fees.
The S and P five hundred doesn't keep the same
five hundred companies forever, they're continuously changing, and then there's
(08:25):
transaction fees there.
Speaker 1 (08:26):
So what are some of the things at the workshops
that do we talk through that might be a little
bit different to minimize those fees well.
Speaker 2 (08:34):
Self directing, for example, and even within your four wind K,
there may be some things in there that have lower
fees than you're paying, but you need to understand what
they are first of all. So let's find out what
you're in your forewin ks. Maybe what you want to
do is instead of continuing to put money into four
oro on and K after that match has been met,
where you get the free money, why don't you look
(08:56):
at setting up a self directed IRA. That way you
have many more choices. There's no fees, there's no charge
for most brokers to have that for that self directed IRA,
but you can invest in many things that you don't
have access to within a four to one K plus
and this is really critical. You can have protection on
your assets in a self directed IRA. It's almost impossible
(09:19):
to do that in a four to one K. So
with the four one K you were basically accepting the
fact that when the market crashes or cracks, you're just
going to write it down and then hope that it
comes back quick enough. Where if you're in retirement, you
live long enough to see your portfolio return to where
it was maybe five or ten or fifteen years ago.
Speaker 1 (09:37):
Yeah, there was a show back in the nineties some
people that are probably in their thirties and probably forties
right now know what I'm talking about if you're listening
right now, called Saved by the Bell. And there was
a little slogan they were talking about in this case
they were talking about and you know, say no, it's drugs,
And the slogan was what I use in one word,
what I use dope Nope. I'm going to change that
(09:59):
a little bit. I'm going to think saved by the
bell or giving me this idea and one word what
I use hope Nope. And that's what you got to
do is not use hope in your retirement accounts. Have
a strategy that might be able to do things what
you want to do, and that by doing that is
self directing, making your own decisions. And that's why we
have these free investing and trading workshops here at the Academy,
(10:22):
is to learn what you can do to make your
own decisions. That way you can make smart decisions for
what you need to accomplish. Not a stranger to come
into one of these classes. Simply just text the word
investing to the number two ten two ten for two
seats for a free trading and investing workshop on self
directing or four to one K management essentially your wealth
(10:43):
or retirement accounts. Al let's hit them up with today's
tip of the week.
Speaker 2 (10:47):
Well, you know, just you don't wake up one day
and your life is suddenly exactly how you imagined it. No,
you wake up one day and you decide to make
it that way. You've got a choice, so why not
choose the lifestyle that you imagine. You have to take
the responsibility for the change you want. By the way,
you have to take action, because nothing is going to
change unless you do. There's a difference between people that
(11:10):
achieve their goals and those that don't, and that's those
who achieve their goals simply took action. The choice is yours.
This might be the best time in your life to
make that change.
Speaker 1 (11:20):
I like that. Sometimes you got to make choices, but
to make to do better things, you got to make
the right choices. But you've got to do that today.
Come into one of these investing in trading workshops by
texting the word investing to the number two ten, two ten,
or call nine to five two eight one four forty
four ten for that free class Trading Academy. Invest differently, smarter,
skillfully as always, same time, same place, next week. Until then,
(11:44):
retire young, my friends,
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