April 8, 2025 • 13 mins
What investments are dragging down your portfolio? Jon Hicks explains how to clean out your investments and eliminate underperformers such as TDFs to maximize gains. He discusses the option of rolling over your 401k into a self-directed IRA at 59 and a half to gain more control of the assets to invest in. Jon also touches on other investments to avoid, such as high-dividend ETFs that pose more risk than people may realize. Schedule your complimentary appointment today: RetirementSolutionShow.com Follow us on social media: YouTube | Facebook | LinkedInSee omnystudio.com/listener for privacy information.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
This is the Retirement Solution Podcast with financial advisor John Hicks,
founder of Jay Haagen Capital.
Speaker 2 (00:07):
It's that time of year. We have sprung forward. The
days are longer, the pollen is all over everything.
Speaker 3 (00:13):
I was gonna say, I haven't sneezed in the last
two seconds. That's a record today.
Speaker 2 (00:17):
Give it a moment, give it a hold on.
Speaker 3 (00:20):
Hold on, I think.
Speaker 4 (00:23):
But also you might be cleaning out your closet. You
might be cleaning out the garage. People love to do
spring cleaning because the flowers are blooming.
Speaker 2 (00:30):
It's a time for the fresh season to come in.
Speaker 3 (00:33):
I take do people enjoy spring? I love My wife
likes to yell at me, oh to spring clean. Now.
I know she loves that. I think she just this
is her favorite time of year. I love spring clean
wise around the house on her broomstick and screams.
Speaker 2 (00:48):
Don't you dare? Tanila is lovely. You're a lucky man.
Speaker 3 (00:52):
Oh no, I'm very lucky. Very lucky doesn't change the situation. Uh.
Speaker 4 (00:56):
This is John Hicks, founder of ja Haagen Capital.
Speaker 2 (00:58):
I will give you his direct.
Speaker 4 (00:59):
Phone number if you care to comment, of course at
ja Haygen Capital. Helping Folks Day and day out, understand
their options as they head into this next very exciting
time of life, their second phase of their financial life,
and focusing on what they get to finally do with
their time, things they want to do because they're leaving
the working world behind and headed into retirement and it
should be all about having a good time. But if
(01:21):
you want to have a good time, you got to
make sure your money is in order, and that's what
you are here for. So Retirement solutionshow dot com is
where to start the conversation with John and his team.
We also have links posted in the show notes. The
analogy though, the parallel of spring cleaning and cleaning out
and the work that we don't regularly do when it
comes to our investments and our financial portfolio is very real.
(01:43):
But I loved did you read this stat that I
sent you.
Speaker 2 (01:46):
I emailed you about the.
Speaker 4 (01:48):
Key thing alone that the average person, if you take
a look at their key ring, they've got nine keys
on their key ring and they don't even know what
three of them are.
Speaker 2 (01:58):
Four they're just walking around with extra keys in their pocket.
Speaker 1 (02:01):
I do that.
Speaker 3 (02:02):
I'm like, my I was just looking for it. Thank
goodness is not in here. It's worse than a janitor's keyching,
you know there's because at least theirs is like one
of those like along rope, like those retracting your bands.
Mine is just like twelve huge keyfob things. Don't ask me,
don't know. I have a staff and people that give
(02:23):
me their keys in case that has to be moved
around the office. Yeah, it's it's the whole thing. But
there's probably like nine, ten, eleven, no joke like house
type keys, And I'm like, I have no idea. What
it's too is that the back door of that place?
Is that the office key? Because I don't remember that.
What is that too?
Speaker 2 (02:40):
What is this too? And you don't want to throw
it away in the event that I need to get.
Speaker 3 (02:45):
Into a door, And I'm like, I don't know. I
got twenty seven keys to try.
Speaker 4 (02:48):
Suddenly you'll find out which one it was that you
that's the one you finally threw away. You went through,
you had a fun shway attack and you threw everything out.
Speaker 3 (02:55):
It's literally the day that I would throw it away.
My wife would say, honey, do you have the key
to that one girl?
Speaker 2 (03:01):
That one storage, oh.
Speaker 3 (03:05):
The one that had all of our most important family
memorabilion all of the thing, and your grandmother's crystal in it,
many of those things. I was like, oh, we both,
But then they would say, hey, which which which storage unit?
Isn't like, I don't know, I have no idea. They
all look the same.
Speaker 2 (03:20):
They you sounds like you do need to do some
spring clean. It's a good thing to do.
Speaker 3 (03:23):
A lot of.
Speaker 2 (03:24):
You know what though, we.
Speaker 3 (03:25):
All have spring dumping.
Speaker 2 (03:26):
We all have we all have roles in this life.
Speaker 4 (03:28):
Maybe you're not that great at organizing and cleaning, but
you're good with the finances, and so let's flux focus on.
Let's focus on your skill set today. This is not
a place I can hire someone to spring clean. Get
Marie on the phone.
Speaker 3 (03:42):
Cleaning to me means throwing away. It means dumping, got it,
spring dumping. So it's like, here go, honey, I'm gonna
make you really happy. I got two minute a truck
and they put a dumpster up front. So just take
anything you want.
Speaker 2 (03:53):
It's a solution.
Speaker 3 (03:53):
Whatever makes you happy, get rid of it. Just dump
all of the dust with it. We don't have to sweep,
just toss all the To.
Speaker 4 (04:00):
Be honest, though, if only it were so easy to
clean out our financials in that same manner, because it's
just so much more complicated.
Speaker 2 (04:09):
I feel like probably people want.
Speaker 4 (04:11):
To have a better understanding, they want to clean some
stuff out, but they try to get into it and
the legal ease.
Speaker 2 (04:16):
Of all of the documents that have to go through.
Speaker 4 (04:19):
They can't even understand what it is they're trying to understand.
Speaker 2 (04:22):
So we talk about saying what to get rid of
it right exactly.
Speaker 4 (04:26):
And maybe in your twenty thirty forty years of working years,
what you needed then was great. But now as you
head into retirement, something we talk about all the time
on diversification, means an entirely different thing for your retirement
years what you needed in your working years, maybe you
need something totally different.
Speaker 2 (04:42):
So how do you begin? How do you begin.
Speaker 4 (04:46):
Work through and bring to some full sort of conclusion
on with a person who's coming to you saying, hey,
I need some help. I don't know what to do.
I need to clean out my investments. I want to
get ready for retirements.
Speaker 3 (04:58):
I rarely give blanket advice, I know, because I really
don't think that most advice is right for all people.
But I'm going to give some right now, OK, Because
I have found it to be one hundred percent accurate
for every single time I've used. If you're looking at
cleaning out your investment portfolio, or if you will eliminating
some of that financial junk from your trunk, I would
(05:18):
start with target date funds. And I am not even joking. Now.
There are two companies that I've run into over the
past twenty years, really in the last eight or nine
that only allow target date funds, And all I can
say is that I am sorry for you guys, but
for the most of us, target date funds are an
absolute bane to the existence of the financial world. They
(05:39):
underperform consistently. They do not properly balance risk in any
modicum of the way you would want to. They're based
arbitrarily on an age with has nothing to do with
your risk tolerance, or your needs or your income goals.
And frankly, they're more expensive than the alternatives. You could
make them on your own. What's scary it would cost
less money.
Speaker 2 (05:57):
Is how prelevant they are.
Speaker 4 (05:59):
Is prelevant towards I George Bushing at trial, you are strategy.
Speaker 3 (06:03):
We're gonna take these targeted funds and strategically put them,
put them in a place, but they are well, no,
it's till financial institutions can make scads more money.
Speaker 2 (06:11):
But they are so I can't. I'm without words. They
are just everywhere.
Speaker 3 (06:16):
When it comes to one greened into the four. One
case they were built they were built is the ron
po Peel showtime, rotisseriy oven of lazy investors. Hookah hookah hookah,
It dices, it fries, it's Julian. It's the rotissary oven
of the future. Blah blah blah blah blah blah. Why
do I sound like Bernie Sanders. We're gonna make retirement
(06:38):
funds mediocre again? Anyway, I'm not gonna do any Bernie. No.
So so the rot the rotisserie oven, the showtime is
what they've done. They've made an inferior product that takes
up a bunch of counter space that is not good
for almost anyone. You could do that bird thirty different
ways better than how it performs, and it's expensive, right,
so unfortunately, but they built it to be the lazy
(07:01):
man's lazy person's tool to financial planning. It's like, hey,
eat as bad as one thing and you just set
it and forget it. That's why I said rotiss free
of it, set it, and forget it. And that is
almost never a great philosophy for investing. Right, So that
is one blanket and statement on get look for other alternatives.
And if you're gonna look up anything, if you have
(07:21):
a target date fund, just open it up, look at
what's in it, and then go buy the individual things
it owns, which are often available inside that four one
k in the percentage that fits your risk tolerance.
Speaker 4 (07:33):
You say, you say, go buy those things individually, because
when you're fifteen nine and a half, you can take
control and roll it overyone, show an IRA and begin
to make begin to do things like that, make moves
like that.
Speaker 3 (07:43):
Right there you go. So here's what I would say,
Even though I say i'd very rarely make blanket statements,
I just made one. This is not a full blanket
statement because you had to make sure it's better for you.
But the majority of us, the majority of us once
the time we turn fifty nine and a half, it
is a benefit to us to consider rolling that four
one in your own self directed IRA. Why control, flexibility, freedom, cost,
(08:06):
administrative design. You can do any number of things. You
can put it in anything you want and you're not
relegated to those set it and forget it type investments
that so many four to one ks have. So although
I have seen a handfew a handful of situations where
someone would be better staying in their four one K.
For instance, they have a loan against that four one
k as a down payment on a house, or they
(08:27):
bought a car, or they send a kid to college,
and so they have a loan against it. Sometimes it's
prohibitive to get out of that four one K at
that period of time because you can't take a loan
against your IRA very easily. So typically, if you want
to do a loan provision, that's why you'd stay in a
four to one K. But typically by the time you
turn fifty nine and a half, guys, that money belongs
to you. Put it where you can control it. You
(08:48):
can do the exact same things often in a self
directed IRA at Schwab or Fidelity or Vanguard or t
Rowe Price, take your pick, they would do in that
four to one K. The difference is you control it.
You completely control It's your money. I think you should
control it, or you can hire someone else to help
you control it. But regardless, take it it belongs to you,
(09:09):
all right.
Speaker 4 (09:10):
So spring cleaning one, we got to look for TDFs,
We got to think about sweeping those out. Two if
for fifty nine and a half, we got to look
into and consider options to roll over into an IRA.
What else should we consider?
Speaker 3 (09:22):
Another big one. I've been seeing this over and over
and over recently a lot of people have gotten hung
up in divid in paying exchange traded funds. Okay, so
they're out there and they're looking and say, hey, I
want something sexy. I want someone's gonna pay me a
bunch of money. I see that's exchange traded fun out there.
I googled it up, man, I googled that sucker up,
and it's gonna give me thirteen fourteen, fifteen percent annualize
(09:42):
dividend streams. Which may be true, it may be true maybe,
but listen, let's just take a little let's just take
a little Unfortunately, pop pop the balloon a little bit here,
deflate it just a hair because last year I had
a gentleman that talked about how great this dividend fun was,
and I'm like, no, no, no, I think it's perfectly acceptable.
As you understand, you know, there's market risk to it,
(10:03):
and blah blah blah blah blah bla blah blah. The
way that his dividend fund produced that income because it
was panning like fifteen percent. Okay, the way he was
doing that it was using leverage and using things like
volatility control indexes, which I know the whole point. The
point is is like, if we're listening to me, going,
what is that he didn't understand that either. Unfortunately, I'm
(10:24):
going to say a couple months after we just had
the conversation, he told me it's pan fifteen percent. I'm like,
that's a really that's a really good income. You could
do a similar thing by making by selling your own puts,
writing your own put options on a cash portfolio. You
could do a very similar thing, and you could control
the downside and control you own Unfortunately, from that point
in time that I had that conversation, that gentleman lost
(10:46):
and was thirty eight percent, and that exact same fund,
so he may have been earning fifteen as a payment
that he was down nearly forty at the same time.
So those things exist. Be very, very very careful. The
industry has done a tremendous mark marketing job creating things
that look like they're so special and fascinating and sexy,
(11:06):
like to set it and forget it retisserie oven. But
the problem is is that it may not be what
you need. Like, for instance, what if you're allergic to chicken.
You wouldn't want the thing, even though that they try
to sell it to you in the first place. So
there are many better ways, like using a controlled put
options where you can control so many things you can
basically replicate cheaper often, but more importantly than that, with
(11:29):
more safety nets because you can choose them by creating
your own dividend strategy. If you can use options, those exist,
So be very careful. So if you're looking at cleaning
out your portfolio, make sure you understand if something looks
like it pays a really psycho amount of money, it
may it may it may look better than it actually is.
You just don't want to lift up the veil and
find out, wow, that is not that is not what
(11:50):
you thought you owed.
Speaker 4 (11:51):
But when it comes to cleaning things out, lifting up
the veil is part of the process. Really you have
to do pulling the curtain back on what you have
worked so hard to earn. And save, truly educate yourself,
truly understand what's going on with in your portfolios. Retirement
Solutions Show dot Com is our website and where you
can head to begin this conversation. If you want to
(12:11):
know better about what you're doing with your money and
the direction that you are headed, John and his team
are here to help you gain that understanding. Offer you
opportunities to educate yourself. Look for things like TDFs, should
you get them out of your portfolio? Do you understand
your role of options after age fifty nine and a half?
Are you invested in things that you think are wonderful
but could actually come around and really bite you in
(12:32):
the took us?
Speaker 3 (12:34):
This is the toocus, theocus you.
Speaker 2 (12:37):
Brought up burning I'm and I'll wrap it up.
Speaker 3 (12:39):
That's what I'm talking about, the took us.
Speaker 4 (12:42):
These are always the things that John and his team
looking to help every single person that comes into the
office with and can help you with as well. So
again it's Retirement Solutions Show dot com or just click
on the links we got posted in the show notes.
Speaker 2 (12:53):
Let's get to work helping you lean it out.
Speaker 1 (12:56):
Thanks for listening to the Retirement Solution Podcast with John Hicks.
Begin the conversation about your savings plan with John and
the team at Jayhagen Capital by visiting Retirement Solution Radio
dot com. Be sure to listen to John's radio show,
The Retirement Solution Saturdays at eight am and Sundays at
nine am on NewsRadio eight forty Whas.
Speaker 3 (13:17):
Jahigen Capital Incorporated is not licensed in all fifty states.
To find out if Jayhigan Capital Incorporated is licensed in
your state, please call five zero two six nine oh
fifty six thirty five. J Higgan Capital, Incorporated is not
affiliated with, nor endorsed by the Social Security Administration or
any other government agency, and does not provide legal or
tax advice. By contacting house, you may be provided with
information about insurance and annuity products offered through Jahiggen Capital
(13:38):
LLCNPN number one eight eight two seven zero nine four
This is the Retirement Solution Podcast with financial advisor John Hicks,
founder of Jay Haagen Capital.
Speaker 2 (00:07):
It's that time of year. We have sprung forward. The
days are longer, the pollen is all over everything.
Speaker 3 (00:13):
I was gonna say, I haven't sneezed in the last
two seconds. That's a record today.
Speaker 2 (00:17):
Give it a moment, give it a hold on.
Speaker 3 (00:20):
Hold on, I think.
Speaker 4 (00:23):
But also you might be cleaning out your closet. You
might be cleaning out the garage. People love to do
spring cleaning because the flowers are blooming.
Speaker 2 (00:30):
It's a time for the fresh season to come in.
Speaker 3 (00:33):
I take do people enjoy spring? I love My wife
likes to yell at me, oh to spring clean. Now.
I know she loves that. I think she just this
is her favorite time of year. I love spring clean
wise around the house on her broomstick and screams.
Speaker 2 (00:48):
Don't you dare? Tanila is lovely. You're a lucky man.
Speaker 3 (00:52):
Oh no, I'm very lucky. Very lucky doesn't change the situation. Uh.
Speaker 4 (00:56):
This is John Hicks, founder of ja Haagen Capital.
Speaker 2 (00:58):
I will give you his direct.
Speaker 4 (00:59):
Phone number if you care to comment, of course at
ja Haygen Capital. Helping Folks Day and day out, understand
their options as they head into this next very exciting
time of life, their second phase of their financial life,
and focusing on what they get to finally do with
their time, things they want to do because they're leaving
the working world behind and headed into retirement and it
should be all about having a good time. But if
(01:21):
you want to have a good time, you got to
make sure your money is in order, and that's what
you are here for. So Retirement solutionshow dot com is
where to start the conversation with John and his team.
We also have links posted in the show notes. The
analogy though, the parallel of spring cleaning and cleaning out
and the work that we don't regularly do when it
comes to our investments and our financial portfolio is very real.
(01:43):
But I loved did you read this stat that I
sent you.
Speaker 2 (01:46):
I emailed you about the.
Speaker 4 (01:48):
Key thing alone that the average person, if you take
a look at their key ring, they've got nine keys
on their key ring and they don't even know what
three of them are.
Speaker 2 (01:58):
Four they're just walking around with extra keys in their pocket.
Speaker 1 (02:01):
I do that.
Speaker 3 (02:02):
I'm like, my I was just looking for it. Thank
goodness is not in here. It's worse than a janitor's keyching,
you know there's because at least theirs is like one
of those like along rope, like those retracting your bands.
Mine is just like twelve huge keyfob things. Don't ask me,
don't know. I have a staff and people that give
(02:23):
me their keys in case that has to be moved
around the office. Yeah, it's it's the whole thing. But
there's probably like nine, ten, eleven, no joke like house
type keys, And I'm like, I have no idea. What
it's too is that the back door of that place?
Is that the office key? Because I don't remember that.
What is that too?
Speaker 2 (02:40):
What is this too? And you don't want to throw
it away in the event that I need to get.
Speaker 3 (02:45):
Into a door, And I'm like, I don't know. I
got twenty seven keys to try.
Speaker 4 (02:48):
Suddenly you'll find out which one it was that you
that's the one you finally threw away. You went through,
you had a fun shway attack and you threw everything out.
Speaker 3 (02:55):
It's literally the day that I would throw it away.
My wife would say, honey, do you have the key
to that one girl?
Speaker 2 (03:01):
That one storage, oh.
Speaker 3 (03:05):
The one that had all of our most important family
memorabilion all of the thing, and your grandmother's crystal in it,
many of those things. I was like, oh, we both,
But then they would say, hey, which which which storage unit?
Isn't like, I don't know, I have no idea. They
all look the same.
Speaker 2 (03:20):
They you sounds like you do need to do some
spring clean. It's a good thing to do.
Speaker 3 (03:23):
A lot of.
Speaker 2 (03:24):
You know what though, we.
Speaker 3 (03:25):
All have spring dumping.
Speaker 2 (03:26):
We all have we all have roles in this life.
Speaker 4 (03:28):
Maybe you're not that great at organizing and cleaning, but
you're good with the finances, and so let's flux focus on.
Let's focus on your skill set today. This is not
a place I can hire someone to spring clean. Get
Marie on the phone.
Speaker 3 (03:42):
Cleaning to me means throwing away. It means dumping, got it,
spring dumping. So it's like, here go, honey, I'm gonna
make you really happy. I got two minute a truck
and they put a dumpster up front. So just take
anything you want.
Speaker 2 (03:53):
It's a solution.
Speaker 3 (03:53):
Whatever makes you happy, get rid of it. Just dump
all of the dust with it. We don't have to sweep,
just toss all the To.
Speaker 4 (04:00):
Be honest, though, if only it were so easy to
clean out our financials in that same manner, because it's
just so much more complicated.
Speaker 2 (04:09):
I feel like probably people want.
Speaker 4 (04:11):
To have a better understanding, they want to clean some
stuff out, but they try to get into it and
the legal ease.
Speaker 2 (04:16):
Of all of the documents that have to go through.
Speaker 4 (04:19):
They can't even understand what it is they're trying to understand.
Speaker 2 (04:22):
So we talk about saying what to get rid of
it right exactly.
Speaker 4 (04:26):
And maybe in your twenty thirty forty years of working years,
what you needed then was great. But now as you
head into retirement, something we talk about all the time
on diversification, means an entirely different thing for your retirement
years what you needed in your working years, maybe you
need something totally different.
Speaker 2 (04:42):
So how do you begin? How do you begin.
Speaker 4 (04:46):
Work through and bring to some full sort of conclusion
on with a person who's coming to you saying, hey,
I need some help. I don't know what to do.
I need to clean out my investments. I want to
get ready for retirements.
Speaker 3 (04:58):
I rarely give blanket advice, I know, because I really
don't think that most advice is right for all people.
But I'm going to give some right now, OK, Because
I have found it to be one hundred percent accurate
for every single time I've used. If you're looking at
cleaning out your investment portfolio, or if you will eliminating
some of that financial junk from your trunk, I would
(05:18):
start with target date funds. And I am not even joking. Now.
There are two companies that I've run into over the
past twenty years, really in the last eight or nine
that only allow target date funds, And all I can
say is that I am sorry for you guys, but
for the most of us, target date funds are an
absolute bane to the existence of the financial world. They
(05:39):
underperform consistently. They do not properly balance risk in any
modicum of the way you would want to. They're based
arbitrarily on an age with has nothing to do with
your risk tolerance, or your needs or your income goals.
And frankly, they're more expensive than the alternatives. You could
make them on your own. What's scary it would cost
less money.
Speaker 2 (05:57):
Is how prelevant they are.
Speaker 4 (05:59):
Is prelevant towards I George Bushing at trial, you are strategy.
Speaker 3 (06:03):
We're gonna take these targeted funds and strategically put them,
put them in a place, but they are well, no,
it's till financial institutions can make scads more money.
Speaker 2 (06:11):
But they are so I can't. I'm without words. They
are just everywhere.
Speaker 3 (06:16):
When it comes to one greened into the four. One
case they were built they were built is the ron
po Peel showtime, rotisseriy oven of lazy investors. Hookah hookah hookah,
It dices, it fries, it's Julian. It's the rotissary oven
of the future. Blah blah blah blah blah blah. Why
do I sound like Bernie Sanders. We're gonna make retirement
(06:38):
funds mediocre again? Anyway, I'm not gonna do any Bernie. No.
So so the rot the rotisserie oven, the showtime is
what they've done. They've made an inferior product that takes
up a bunch of counter space that is not good
for almost anyone. You could do that bird thirty different
ways better than how it performs, and it's expensive, right,
so unfortunately, but they built it to be the lazy
(07:01):
man's lazy person's tool to financial planning. It's like, hey,
eat as bad as one thing and you just set
it and forget it. That's why I said rotiss free
of it, set it, and forget it. And that is
almost never a great philosophy for investing. Right, So that
is one blanket and statement on get look for other alternatives.
And if you're gonna look up anything, if you have
(07:21):
a target date fund, just open it up, look at
what's in it, and then go buy the individual things
it owns, which are often available inside that four one
k in the percentage that fits your risk tolerance.
Speaker 4 (07:33):
You say, you say, go buy those things individually, because
when you're fifteen nine and a half, you can take
control and roll it overyone, show an IRA and begin
to make begin to do things like that, make moves
like that.
Speaker 3 (07:43):
Right there you go. So here's what I would say,
Even though I say i'd very rarely make blanket statements,
I just made one. This is not a full blanket
statement because you had to make sure it's better for you.
But the majority of us, the majority of us once
the time we turn fifty nine and a half, it
is a benefit to us to consider rolling that four
one in your own self directed IRA. Why control, flexibility, freedom, cost,
(08:06):
administrative design. You can do any number of things. You
can put it in anything you want and you're not
relegated to those set it and forget it type investments
that so many four to one ks have. So although
I have seen a handfew a handful of situations where
someone would be better staying in their four one K.
For instance, they have a loan against that four one
k as a down payment on a house, or they
(08:27):
bought a car, or they send a kid to college,
and so they have a loan against it. Sometimes it's
prohibitive to get out of that four one K at
that period of time because you can't take a loan
against your IRA very easily. So typically, if you want
to do a loan provision, that's why you'd stay in a
four to one K. But typically by the time you
turn fifty nine and a half, guys, that money belongs
to you. Put it where you can control it. You
(08:48):
can do the exact same things often in a self
directed IRA at Schwab or Fidelity or Vanguard or t
Rowe Price, take your pick, they would do in that
four to one K. The difference is you control it.
You completely control It's your money. I think you should
control it, or you can hire someone else to help
you control it. But regardless, take it it belongs to you,
(09:09):
all right.
Speaker 4 (09:10):
So spring cleaning one, we got to look for TDFs,
We got to think about sweeping those out. Two if
for fifty nine and a half, we got to look
into and consider options to roll over into an IRA.
What else should we consider?
Speaker 3 (09:22):
Another big one. I've been seeing this over and over
and over recently a lot of people have gotten hung
up in divid in paying exchange traded funds. Okay, so
they're out there and they're looking and say, hey, I
want something sexy. I want someone's gonna pay me a
bunch of money. I see that's exchange traded fun out there.
I googled it up, man, I googled that sucker up,
and it's gonna give me thirteen fourteen, fifteen percent annualize
(09:42):
dividend streams. Which may be true, it may be true maybe,
but listen, let's just take a little let's just take
a little Unfortunately, pop pop the balloon a little bit here,
deflate it just a hair because last year I had
a gentleman that talked about how great this dividend fun was,
and I'm like, no, no, no, I think it's perfectly acceptable.
As you understand, you know, there's market risk to it,
(10:03):
and blah blah blah blah blah bla blah blah. The
way that his dividend fund produced that income because it
was panning like fifteen percent. Okay, the way he was
doing that it was using leverage and using things like
volatility control indexes, which I know the whole point. The
point is is like, if we're listening to me, going,
what is that he didn't understand that either. Unfortunately, I'm
(10:24):
going to say a couple months after we just had
the conversation, he told me it's pan fifteen percent. I'm like,
that's a really that's a really good income. You could
do a similar thing by making by selling your own puts,
writing your own put options on a cash portfolio. You
could do a very similar thing, and you could control
the downside and control you own Unfortunately, from that point
in time that I had that conversation, that gentleman lost
(10:46):
and was thirty eight percent, and that exact same fund,
so he may have been earning fifteen as a payment
that he was down nearly forty at the same time.
So those things exist. Be very, very very careful. The
industry has done a tremendous mark marketing job creating things
that look like they're so special and fascinating and sexy,
(11:06):
like to set it and forget it retisserie oven. But
the problem is is that it may not be what
you need. Like, for instance, what if you're allergic to chicken.
You wouldn't want the thing, even though that they try
to sell it to you in the first place. So
there are many better ways, like using a controlled put
options where you can control so many things you can
basically replicate cheaper often, but more importantly than that, with
(11:29):
more safety nets because you can choose them by creating
your own dividend strategy. If you can use options, those exist,
So be very careful. So if you're looking at cleaning
out your portfolio, make sure you understand if something looks
like it pays a really psycho amount of money, it
may it may it may look better than it actually is.
You just don't want to lift up the veil and
find out, wow, that is not that is not what
(11:50):
you thought you owed.
Speaker 4 (11:51):
But when it comes to cleaning things out, lifting up
the veil is part of the process. Really you have
to do pulling the curtain back on what you have
worked so hard to earn. And save, truly educate yourself,
truly understand what's going on with in your portfolios. Retirement
Solutions Show dot Com is our website and where you
can head to begin this conversation. If you want to
(12:11):
know better about what you're doing with your money and
the direction that you are headed, John and his team
are here to help you gain that understanding. Offer you
opportunities to educate yourself. Look for things like TDFs, should
you get them out of your portfolio? Do you understand
your role of options after age fifty nine and a half?
Are you invested in things that you think are wonderful
but could actually come around and really bite you in
(12:32):
the took us?
Speaker 3 (12:34):
This is the toocus, theocus you.
Speaker 2 (12:37):
Brought up burning I'm and I'll wrap it up.
Speaker 3 (12:39):
That's what I'm talking about, the took us.
Speaker 4 (12:42):
These are always the things that John and his team
looking to help every single person that comes into the
office with and can help you with as well. So
again it's Retirement Solutions Show dot com or just click
on the links we got posted in the show notes.
Speaker 2 (12:53):
Let's get to work helping you lean it out.
Speaker 1 (12:56):
Thanks for listening to the Retirement Solution Podcast with John Hicks.
Begin the conversation about your savings plan with John and
the team at Jayhagen Capital by visiting Retirement Solution Radio
dot com. Be sure to listen to John's radio show,
The Retirement Solution Saturdays at eight am and Sundays at
nine am on NewsRadio eight forty Whas.
Speaker 3 (13:17):
Jahigen Capital Incorporated is not licensed in all fifty states.
To find out if Jayhigan Capital Incorporated is licensed in
your state, please call five zero two six nine oh
fifty six thirty five. J Higgan Capital, Incorporated is not
affiliated with, nor endorsed by the Social Security Administration or
any other government agency, and does not provide legal or
tax advice. By contacting house, you may be provided with
information about insurance and annuity products offered through Jahiggen Capital
(13:38):
LLCNPN number one eight eight two seven zero nine four
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