August 11, 2025 • 38 mins
On Retire Right Radio, Host Dale Cooper and John Burdette from www.FourthAvenueFinancial.com discuss financial planning for different eras of your life and general strategies. Hear the encore presentation Monday at 1:00pm on our sister station, Charleston Business Radio 95.3 | 680 WKAZ
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Phone: (304) 746-7977
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Episode Transcript
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Speaker 1 (00:00):
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Speaker 2 (00:16):
The views and opinions expressed on this program do not
necessarily reflect the views and opinions of five eight WCCHS,
its employees or WVRC Media. This is Retire Right Radio,
a weekly show from John Verdett at Fourth Avenue Financial
that aims to answer your questions about financial planning, investing,
and how to retire right. Fourth Avenue Financial is located
(00:38):
in downtown Charleston at one seventy Court Street. More information
online at Fourth Avenue Financial dot com. Join the conversation
by calling three oh four three four five fifty eight
fifty eight or text three oh four nine three five
fifty oh eight. On Retire Right Radio, Let's go lide
to the studio with host Dale Cooper and John Verdett,
(01:00):
Fourth Avenue Financial.
Speaker 3 (01:01):
Show and a very pleasant Monday morning Tia. Thanks for
tuning in. This is delkav. I'm back on Monday. It
seems like it's been forever since I've had a Monday show.
It's been forever since John and I've been in the
studio together. I think right now I missed last Monday too.
You and Lorgan we're here, and then maybe we did
one the week before that, and then we missed a
couple in a row before that.
Speaker 4 (01:17):
It's been a little while, I think, so. Yeah.
Speaker 3 (01:19):
So we're back in the saddle again for the most part,
here this morning, taking your phone calls, taking your text.
John Bredad is here with Fourth Avenue Financial, helping you
to retire.
Speaker 4 (01:27):
Right.
Speaker 3 (01:27):
You can call us this morning at three zero four
three four five fifty eight fifty eight three four five
fifty eight fifty eight. You can text three zero four
non three five five zero zero eight three zero four
non three five five zero zero eight. You can find
out more information on non Fourth Avenue Financial dot com.
So about the whole thing, Fourth Avenue Financial dot com.
Also over on Facebook, you can do that same search
and like the page over there.
Speaker 4 (01:45):
John. How you doing, man, I'm doing pretty good, excellent.
It's a man.
Speaker 3 (01:49):
This was maybe one of the best weekends I can remember,
whether wise, it was just so nice.
Speaker 4 (01:54):
Well, I'm still moving, so nothing exists right now.
Speaker 3 (01:57):
So you saw the weather as you were remove things
to the truck and out of the truck or however
it is that you're going to.
Speaker 4 (02:04):
Yeah, moving is always so fun.
Speaker 5 (02:07):
But you know, we haven't done it in over twenty years,
so you know that it's a it's a new experience.
That's it's always good to have new experiences. But it
is amazing how much stuff you pile up in twenty
years in a house.
Speaker 3 (02:21):
I every weekend when I start doing some work, and
you know, we've sort of softly been in the market
trying to see if we can find the right circumstance.
And one of the demotivating factors is I look around
and I'm like, I'd just rather stay here because it's like,
I don't want to move this stuff.
Speaker 4 (02:37):
Man, there's too much.
Speaker 5 (02:38):
Yeah, we're kind of moving as we go, and I'm
hoping that many things don't get moved, so we'll see.
Speaker 4 (02:47):
Yeah.
Speaker 3 (02:47):
Yeah, I know, you guys talked a lot about the
home ownership last week when by the way, thanks a
lot to Logan Scott from over on our assisters Station
V one hundred, who you do sponsor a good number
of things over in V. One hundred. It's it's good
for Logan to come over here. He filled in for
me last week and did a great job. So I
really appreciate Logan in doing that for us. But we're
here for you this morning. Our John's here for you
this morning, and I'm here as your pastor. You're welcome
(03:08):
to give us a call at three zero four three
four five fifty eight fifty eight three four five fifty
eight fifty eight. You can text three zero four nine
three five five zero zero eight. Things are kind of
interesting there in abouts. I mean the market is going.
I mean things are happening fine in the market for
the most part.
Speaker 5 (03:22):
The market was up last week a little over one percent.
The tech stocks are back to leading the way earnings have.
You know, we earlier in the year we thought earnings
would be higher, and then there was this swoon in
expectations where the market had cut expectations to where we
would have three four percent growth this quarter. And now
(03:46):
we're about ninety percent of the way through earning seasons
and we're we're up close to ten percent on earnings.
So you know, as long as earnings are growing like that,
that's a good backdrop for stocks to make progress. As
as you know, as the earnings go up, the valuations
come down, and so there's always this uh, you know,
(04:10):
tug of war between value, you know, what is what
is the right thing to pay for those earnings that
are happening, And as long as the earnings are matching
expectations or beating expectations, that's usually a good backdrop for stocks.
Speaker 3 (04:23):
I saw the Uh, well, I guess basically what we've
been talking about and kind of the way we've been
tracking things over the time. For a while, the market
had broadened out quite a bit where we had a
lot of more traditional players as well as the tech
stocks that were involved in things. Tech has kind of
rotated back to the top of that right now.
Speaker 5 (04:42):
It seems to be yes, the the you know, the
earnings that have come out that certainly the tech earnings
have not have not disappointed, you know. That is one
of the risks in the high value stocks.
Speaker 2 (04:53):
Uh.
Speaker 5 (04:54):
When I say high valued, I mean multiple of earnings
that you're paying. You know, you might by you know,
Coca Cola might be twenty times earnings, but one of
these tech stocks might be forty or fifty times earning,
so you're you're paying more for it because it's growing faster. Well,
if that growth disappoints, you know, then you have a
problem with the stock price. And so far that growth
(05:16):
hasn't disappointed, which which you know, somewhat justifies the high
prices you're paying for those stocks.
Speaker 3 (05:23):
One of the things that I think is interesting, and
we're going to talk a little bit about risk this morning,
and so if you have a question about how you
can assess your risk, if an idea that you have
or something that you're trying to achieve is too risky,
or if well, what exactly is risk? I mean maybe
some things that you consider it's a risk scenario isn't
necessarily one. You can give us a call this morning,
John can help you kind of navigate through that. Threes
(05:43):
are a four three four five fifty eight fifty eight.
Threes are a four three four five fifty eight fifteen.
There's a lot of different things that you can do
within your retirement. You're planning and different things like that
that people may consider to be more risky, and there's
just things that are within the normal, you know, every day,
every day of things.
Speaker 4 (05:57):
Back in when we.
Speaker 3 (05:58):
Had the the real estate crash in two thousand and eight.
You know, people that suffered from that to some degree
didn't really do anything except just go about their normal business,
you know. But the market eventually balanced out and people
that played that the right way came through it right.
But that wasn't something that you can necessarily avoid if
you were a risk averse, because there may not have
(06:19):
been in that necessarily in the tea leaves. But there
are things that you can do to evaluate what risk
that you're comfortable with. And risk isn't necessarily a bad thing.
You can turn risk into into quite into something that
could put your money to work for you quite well.
But you just have to make sure that you're the
right person for it. You're matching your risk with what
your personality is and things like that.
Speaker 5 (06:39):
Yeah, for sure, and under you know, understanding risk in
a way that you know a lot of folks perceive
risk is one thing, I lost money or my account
went down at value, and that is a risk, But
there are other risks. And if you react too strongly
to the risk that you have in your mind, for instance,
(07:01):
the market goes down, then you're exposing yourself to potential
other risks that you're not focusing on. For instance, if
you avoid the market because the market can go down,
if the stock market can go down, then you're exposing
yourself fully to the risk of the loss of purchasing
(07:25):
power and retirement, the loss of the dollar's value through
inflation because companies stocks historically keep up with inflation better
than any asset. Glass well, so you pull back from
the risk of the market volatility and say I don't
want exposure to that, but then you fully expose yourself
(07:47):
to the other risk. And really, when you're building a portfolio,
it's there is risk in everything.
Speaker 4 (07:54):
There is risk.
Speaker 5 (07:55):
And putting a cash in a tin can and burying
it in your backyard, you know you have the inflation risks.
You have the risk of somebody stealing it or or
or you know, a squirrel digging it up. You know
there are risks to absolutely everything that you do, and
and when you build a portfolio you try to keep
(08:16):
the goal in mind and then balance those risks out.
You can't get rid of all the risk, but you
can diversify and balance those risks out so that Okay,
I'm not comfortable with the full volatility of the market.
For instance, but I know that I need to protect
myself against grocery prices going up in my retirement. How
(08:36):
do I balance that out? Will you blend your assets
together to try to find out try to determine, Okay,
what am I comfortable with? What can I sleep with
at night? And where do am I balancing the risk?
But the biggest thing is not understanding the full risk
you take in all areas. You know, focusing on one
risk and not focusing on anything else fully exposes you
(09:01):
to that.
Speaker 3 (09:02):
Yeah, it's like if you get kind of obsessed with
one particular thing or you know what, people will hear
a lot of times. They'll see you like a ted talk,
or they'll see something and they'll be convinced that that's
the one thing that's going to crash the economy or
save the economy, whatever it might be. And then it's
okay to have those thoughts and to wonder about it.
But when you start making financial decisions based on things
like that, it could get a little bit shoppy for
you because that necessarily how the way things work.
Speaker 5 (09:23):
Sure, and you know, you think, well, CDs, for instance,
what could what risk could there be in a CD
or a fixed investment a fixed bond. Well, you know,
one of the trade offs in that is how long
do you lock your money up for. Let's say you
buy something that's paying four percent and you're living off
(09:45):
that interest. You know, a four percent distribution is what
a lot of folks say, Well, that's a that's a
reasonable amount to pull off of a portfolio in retirement.
Let's say you get a security, a bond or a
CD pay four percent. Say well, fine, I'm getting the
income that I should off of my portfolio, and I'm
(10:06):
not taking any risk to the principle because I know
that the risk there is what happens when that bond
or CD matures. The risk is Okay, now interest rates
might be two percent. Well now your income and retirement
got cut in half. Oh well yeah, if that was
(10:27):
your sole investment and you were trying to protect yourself
from market risk, you know. So there's there's even in
a safe, one hundred percent guaranteed principal investment that pays
you an interest, there is a risk in that. And
that's sometimes it's we get so focused on those singular
(10:48):
risks that are in our mind that we forget about
the others.
Speaker 3 (10:52):
That makes sense It's like trying to drive somewhere in
a car and that there's normal amount of safety that
you can take, and you have a make it thereby
is a certain amount of time. There's normal amount of
safety you can take, or you can take no safety.
Get there a lot faster, you get there the norm
amount of time. But if you're too safe in trying
to go there, like you stop extra long at every
stop stop sign and maybe let people go in front
of you all the time, and then you're driving ten
(11:14):
miles under the speed limit or whatever else, Suddenly, man,
you were super safe getting there, but you missed the
deadline by like an hour, you.
Speaker 4 (11:20):
Know, so you got to be careful of those things.
Speaker 5 (11:22):
Or or you know, you're going ten miles under the
speed limit and in the semi behind you right, you know,
so you know there there again, there's risk and everything.
Speaker 3 (11:32):
And what fascinates me about the conversations we have a
lot because risk underlies a lot of our discussions every
week to some degree, you know, I mean, there's always
a little bit of underlying risk in the things that
we talk about. But the thing that really I think
that should be a buoyant to the people that listen
to this program. And also when they're trying to plan
for their retirement. Is even when you decide to take
(11:53):
a risk, a lot of chances times if somebody's coming
to you and they have some idea they want to
invest in a bitcoiny ft here and you know something
along those if it might be considered a little risky,
you can make recommendations like, well, let's balance that out
in other ways, you know, to make sure that the person,
although they may be exposing themselves to a little bit
of risk, you can put some safety parameters around that
so they're not as exposed as what they could be
(12:14):
as long as they're doing it right. Which is yet
another great idea when when you're doing stuff like this,
to contact a professional like John Bredett because you can
help with those types of things. Okay, you want you
want to get a little bit into the bitcoin space,
you want to play around, Not that you necessarily would
recommend that, but if somebody was dead set against it
and then wondering how to do it safely, you can
help with.
Speaker 5 (12:30):
That, sure, yeah, trying to help balance the risk out.
Like you say, the first thing you do is determine
what your goal is and what your timerizing is, and
then you can use the right investment tool to achieve
that in the most probable way and to try to
balance it out in a way that you can sleep
at night. You know it does no good. For instance,
(12:54):
volatile stocks over time have some of the best returns
of any asset class. Ownership of companies growth companies, well,
they're also the most volatile. Now, if you have a
thirty years to retirement, it might be reasonable to suggest
just put all your money in those type of stocks. Well,
(13:15):
the problem is those long term returns that you want
are going to have many more peaks and valleys along
the rod. And the risk that if you go out
of your comfort zone too far is that while we
know historically if you stick with it works out, is
(13:37):
that you don't stick with it, you panic at some point,
you can't sleep at night, you're uncomfortable with it. Then
what good is it to put a plan like that together?
If you can't follow through with it.
Speaker 3 (13:49):
You can tell yourself, well, you want in twenty years,
this is we find in twenty years, this Is'm be
fine in twenty But if you can't get over that
hump psychologically, you're just always going to be right. Basically
worrying a hole in your pocket.
Speaker 5 (13:59):
That's right, And that is where setting down with someone
like myself, you know, we try to discover not just
financially what should be done, but psychologically what should be done,
and we try to mix those investments in a way
that gets you from from where you are to your
goal in a way that is that is tolerable using
(14:22):
all the investment tools. And you know, that's not an
exact science that that's that's not something you can ask
AI to do because it's a very personal thing.
Speaker 3 (14:32):
And I know that it's so the psychology behind it
could be so interesting. I have a situation of my
family where my wife was left up a little bit
of money from from uh uh, from a relative of
the past, and this was something that was tied up
into like his career in the job that he had.
It was shares that was given to him. It was
like this, this, this whole thing. And she's been very
(14:55):
reluctant to really do much with that other than just
let it ride where it was when she got it.
It's honestly been a huge mistake. But some people get
kind of emotionally attached to the way the money was
given to them, how they achieved it, you know, like,
well I got here riding this rocket, so I want
to take this rocket and run it to the end
no matter what. Those are some of the barriers that
you might need to get over when you look at
(15:16):
things from more of an ego perspective and trying to
find where the money is going to do the best
work for you.
Speaker 5 (15:21):
Yes, because your goals evolve. You know, your stage of
life evolves and your time horizon evolved, so your investments
should evolve with that, or you're going to expose yourself
to those hidden risks, you know, Like you say the market,
long term ownership of companies that are working out there
and serving people is certainly a way to build wealth
(15:44):
over time owning productive companies. There's almost no better way
to do to build wealth. But if you don't have
a long time or the time horizon for that to
play out, you're exposing yourself to risk. Even though even
though mathematically those might be long term the right things
to do, they might exactly be the wrong thing to
(16:06):
do short term. You know, if you buy something extremely
risky and you know you've got a wedding, you've got
to pay for in six months. Yeah, well I don't
know what the market's going to do in six months.
And I'm the quote professional here right, Well, you don't
know what the market's going to do in six months either,
(16:26):
No one does because life is unpredictable. And if you're
in a type of investment that could go down twenty
or thirty percent in a short order like the market can,
should you be in that investment to pay for that
wedding in six months because you know you have that expense. No, No,
(16:48):
there are better ways to invest that money where you
can more ensure that the principle will be there at
the time horizon that you need it to pay for
that event. So you know, don't expose yourself to you know,
one type of risk would you have that that stated
goal And so that's that's what's so very important to understand,
(17:09):
you know, the individual as you're building that financial plan.
Speaker 3 (17:13):
This is great advice as always with John Bredett from
Fourth Avenue Financial, encourage you to give us a call.
We're going to take a break here in just a
second and when we come back one and have plenty
of time for you to get in on the conversation.
If you want some help on how you can manage
your risk, or if you just have some questions in
general on how you can retire right. Getting a late start,
are you wondering if you're at the right place or
whatever it might be. Well, I'll talk about this when
we come back, because it's a great illustration of what
you just talked about was something that happened to me personally.
(17:34):
So we're going to get into a lot more when
we come back. And plus, hopefully your phone calls and you
can give us a call this morning three zer a
four three four five fifty eight fifty eight three four
five fifty to fifty eight. Remember when you call, it
goes into an auto Q, so you'll hear the show
audio right away, and then we'll ask your name to
get you on.
Speaker 4 (17:48):
Air right after that.
Speaker 3 (17:48):
So give us a call three zero four three four
five fifty eight fifty eight three four five fifty eight
fifty eight. You can also text over your questions to
three zero four non three five five zero zero eight.
You're listening to a retire Right radio with John Bredet
from Fourth Avenue Financial Online one fourth Avenue Financial dot
Com located once so Many Court Street right here in
downtown Charleston. We'll take a break and be backgra after this.
This is as the Expert on Monday on Retire Right
(18:10):
Radio with John Meredet FAVDWCHS, the Voice of Charleston.
Speaker 6 (18:13):
Retire Right Radio was sponsored by Fourth Avenue Financial, which
is solely responsible for its content. Security is offered through
jw CL Financial Member Fenrecipic Investment advice offered through jw
COL Advisors. Fourth Avenue Financial, jw CL Financial and jw
COL Advisors are unaffiliated entities. The opinions expressed by John
Burdett should not be construed as specific investment, legal, or
tax advice. All economic and performance information is historical and
(18:35):
not indicative of future results. Investing may involve risk of
loss of principle. Any tax advice on this show is
not intended to be used by any person for the
purpose of avoiding US federal or state tax penalties that
may be imposed on such a person, and each listener
should seek advice from their tax advisor or legal console
on topics that arise from the show. John Burdett is
(18:55):
not providing legal or tax advice. Nothing should be construed
as solicitation of an offer to buy securities. This program
is sponsored by Fourth the Avenue Financial, which is solely
responsible for its content.
Speaker 7 (19:06):
I'm Kanaf County Sheriff Joey Crawford. This August twenty seventh
through the twenty ninth, weather permitting, our tax division will
once again offer a curb side collecting service. Pay your
taxes from the comfort of your car in front of
our courthouse from nine am to four pm each day.
Our tax divisions will still be open weekdays and you.
Speaker 4 (19:24):
Can also mail in.
Speaker 7 (19:25):
You'll remit or pay online at Canallshriff dot us.
Speaker 4 (19:28):
Questions please feel.
Speaker 7 (19:29):
Free to call us at three oh four three five
seven zero two one zero.
Speaker 1 (19:34):
The latest and news, talking sports when five eight WCCHS
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Visit Jerrett Dashconstruction dot com for more information.
Speaker 1 (19:43):
Time right on the boches call on Cherityshuk Show.
Speaker 3 (19:50):
The Hussin's August Special is a large eighteen inch Pepperoni
pizza and a big eight inch chocolate chip cookie for
just twenty three ninety nine. Visit your nearest Husson's for
dine in, pick up or delivery. Order now at Hussinspizza
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Speaker 2 (20:05):
This is retire Right Radio with John Burdett from Fourth
Avenue Financial, taking your calls at three oh four, three
four five fifty eight fifty eight or text on three
oh four nine three five fifty eight.
Speaker 4 (20:27):
Eighteen minutes and two nine o'clock.
Speaker 3 (20:32):
You're listening to retire Right Radio on Bob adw c
HS the voice for Charleston. Yeah, let that uh, let
the doors kind of fade out there a little bit. Yeah,
that's nothing wrong with that.
Speaker 4 (20:43):
You give us gonna break into the the chorus.
Speaker 3 (20:46):
Yeah, Yeah, there's something about hearing that, like, uh, hearing
that doors media, it just makes me want to break
out into Jim Morrison in some way, shape or form.
Speaker 4 (20:55):
I don't know what it is. It's it's one of
those things.
Speaker 3 (20:58):
Speaking of the doors, the doorway to get it on
the radio this morning, here's a segue for it. Threes
are four three four five fifty eight fifty eight. Threes
are a four three four five fifty eight fifty. You
can also text three zero four nine three five five
zero zero eight one of the great or one small.
I guess illustration of just what the difference is, or
what the difference can be between obsessing over something and
then just letting something that you were confident in kind
(21:21):
of ride. I think it was sometime last year I
had messed around with my allocations of my four oh
one K. I don't know why, but I was like, Okay, well,
I know so much more about this stuff now than
what I did when I first put this thing together.
Let's get in here. I'm not going to go crazy
with this. I just want to make a few little
tweaks or whatever. And I remember years ago when I
first set that up. I'm basically mirror, not really mirrored.
(21:43):
I did like a different version of my idea on
my on my HSA account as I did on my
on my regular four o one K account. Well, I
sat down and was paying some medical bills last week
and I had to get into my investment account on
my HSA to pull some money out of it in
order to pay some of these medical bills. And I
was absolutely floored by the amount of money. I hadn't
(22:05):
checked it seriously this year. I don't even think I
hadn't had anything major medical happen. It's just an automatic
system where I deposit money, it gets over a certain amount,
and invest whatever is over the certain I hadn't looked
at it in literally months, probably since January or something,
but I didn't touch it. I didn't touch the allocation
in this one. I figured it was too small to
worry about or whatever. Right that sucker is up tons,
(22:25):
I mean like twelve or thirteen or fourteen percent. I
mean it's doing great. I have so much I mean,
not so much money in there, but I mean my
medical bills were no problems at all, still doing a
great job and things like that. I look at the
four on one K that I tweaked at the big
at the beginning of the year, performing much worse, like overall,
performing much much worse than the one that I just
left alone at the beginning of the year. So it just,
I mean, I don't know if it's really my fault
(22:47):
or who knows it's not. It wasn't exactly the same allocation,
so who knows.
Speaker 4 (22:50):
What would have happened.
Speaker 3 (22:51):
But in my mind, I kind of feel like I
should have just taken the advice that we give on
the show, just leave the stuff alone. You know, I
wasn't overbalanced in any particular area. They were all mutual funds.
It's not like I was marrying into stocks or anything.
They know what they're doing with with with managing those things, you.
Speaker 5 (23:04):
Know, well, it also has to do with allocation. I mean,
you may have had more of a concentrated position in
the HSA, which there again obviously worked over that time period.
Speaker 4 (23:17):
However this time right, will that work over.
Speaker 5 (23:20):
Every time period? No, it just statistically can't work over
every time period, or everyone would only own.
Speaker 4 (23:27):
That one investment.
Speaker 5 (23:29):
So, you know, balancing out those you know, your four
oh one K probably is more broadly diversified, so you
don't have just tech stocks in there. You don't have
just US stocks in there. You don't you know, you
have some international exposure, small cap, mid cap, so you're
covering all the bases in that, which gives you a
(23:51):
smoother ride from point A to point B because of
the diversification. You know, you may may give up a
little return because you're giving up some volatility, but you're
still owning all of the pieces that will cycle in
favor and out of favor, so you'll never have everything
out of favor at one time.
Speaker 4 (24:12):
That's impossible.
Speaker 5 (24:12):
If you have different assay classes, you'll never have everything
in the best place at any given time. And a
lot of times, it's just human nature. You'll look at
those portfolios that are well diversified and you'll say, well,
you know what, I should have owned more of the
XYZ because it did so well, and then you end
up trading off your diversification to chase that return that
(24:40):
is backwards looking. You know, things don't stay out of
favor or in favor forever. They cycle. Well, if if
you just chase what did well last year, that might
not be the same thing this.
Speaker 3 (24:54):
Year, as we saw earlier this year where Techtok's rotated
down for a little while and so forth right.
Speaker 5 (24:59):
And if you're constantly if you're overtweaking that, you know
you're really not doing anything but chasing the tail of
something that's already passed, and that statistically is not how
you should manage that portfolio. You know, the same thing
when you look at your four O one K and
(25:20):
try to pick your allocation, you know, don't go down
the list and say, well, I need four funds to
be diversified, and here are the four that did best
last year. Well, they did best last year because they
probably owned almost identical stocks at least the same sectors
they would have to or they wouldn't have performed similarly.
(25:44):
So you know, you have to be careful. You know,
that is a risk in itself when we're talking about
risk that you're concentrated in your portfolio, even if when
you might think you're diversified.
Speaker 3 (25:58):
And you may not necessarily be like one of the
things that and again this gets so complicated trying to
do it yourself when you talk about the different funds
that could invest in virtually identical or very similar types
of portfolios. And so if you think that you're getting
something just because they have different initials after their names
or different companies that put them together, and you're like, well,
(26:19):
I'll try this one and i'll try this one, and
you're basically investing in the same thing and you don't
know it.
Speaker 4 (26:24):
And those are the things that could be great.
Speaker 3 (26:25):
You know if those if what the stocks that those
are indexing are doing great, but that's not diversification. You
need to make sure that you're in funds that are
that are more diversified and you're not just doubling up
on different things.
Speaker 4 (26:37):
Sure.
Speaker 5 (26:38):
And also when you look at your funds and you,
for instance, picked the ones that did best last year,
in this case, what is that it's large company stocks
and inside for O one k's if you look at
the at the fun choices you have, they're most always
(26:59):
the large funds in existence. Some of these funds manage
tens of billions of even one hundred billion plus dollars
under management in that one single fund. How is that
manager going to put that to work unless they buy
the largest companies. You know, Navidia is a four trillion
(27:22):
dollar company. Microsoft's about around a four trillion dollar company.
You know, a one hundred billion dollar fund can invest
in that stock and not buy the whole company. That
manager is not looking at smaller mid cap stocks because
they have so much money they would have to acquire
the whole company for it to be meaningful in the
(27:44):
size of that portfolio. And so that's why those larger
funds have so much overlap in their holdings because they
all have to almost play in the same space because
they've got too much money to put to work to
make it meaningful any other way. You know, a fifty
(28:05):
million dollar investment in a company, if you're one hundred
billion dollar fund, is meaningless that that fifty million could
double or triple or quadruple in value and it doesn't
move the needle on the whole pot.
Speaker 4 (28:17):
That's fascinating.
Speaker 3 (28:18):
Yeah, when you look at it, when you step out
and really look at it broadly. Like that another thing
that I noticed when I was kind of just looking
around into my investments and things, specifically talking about my
four one K when I've been back here in West Virginia.
So in this account, generally speaking for just under fifteen years,
so we're looking at the last Obama term, first a
(28:41):
President Trump term, the Biden term, and now the second
President Trump term. The strange thing is is when I
look at that thing, it basically just goes up right
right over this fourteen year period. I mean, if I
zoom in, you can find the rough rides that we saw.
Speaker 5 (29:00):
It's all about the perspective. And you know, like you say,
long term, look at any chart of the market over time,
and you can see that it's upward sloping almost always.
Speaker 3 (29:11):
Man, this is just twelve years, you know, So this
is three different presidential presidents during this time. And basically
if you told me that it was the same president
for twelve years, you like, just looking at the market,
you'd be like, yeah, sure that tracks. It makes sense
because really seriously, it basically just goes up.
Speaker 4 (29:27):
Yeah. Oh well politics is not the market, right, Yeah,
that's that's so true, man.
Speaker 5 (29:31):
And then the earnings of the companies that matter. Now,
policy can affect earnings, but when it affects earnings, it's
usually it might affect some earnings and benefit other earnings.
Speaker 4 (29:43):
So it's like a reallocation of that, right.
Speaker 5 (29:45):
Right, So when you look at the market as a whole,
you know, companies exist, serve people and make a profit
doing it.
Speaker 4 (29:55):
They're pretty good at that.
Speaker 3 (29:56):
Yeah, and if not, that person gets fired and somebody
else comes in do the job better.
Speaker 5 (30:01):
That's right, and innovation happens. We can see that in
our daily lives. All the changes that have happened, even
in the last twelve years, you know, all the technologies,
all the efficiencies that have come out and been innovated.
That all feeds into earnings. And you're going to see
that with AI, I'm sure start to play out. You know,
(30:22):
the computer coders, for instance, big six figure jobs, you know,
they act like that those are going to be almost
extinct in a couple of.
Speaker 4 (30:32):
Years because they're going to trust AI to do it.
Speaker 5 (30:34):
Well, how many you know those companies that utilize those
those folks, you're replacing a six figure job with a
line of code, right, That's that's bad for the person
that lost the job. But if you own the company,
own stock in that company, guess what that company is
(30:55):
all of a sudden a lot more profitable and efficient
at serving as.
Speaker 3 (30:59):
Long as the robot doesn't end up like doing something
to completely crash the company at some point in time.
That's the thing that man, I have this real concern
about just how hot ai is right now and how
it's getting incorporated into everything before we really know exactly
what the results are going to be. How the guardrails work,
you know, when you can still break a an LM
(31:23):
from the outside going in just by resetting its prompts
and stuff. They need to figure out ways to keep
that from happening. I'm not I hope that I've read.
Actually it was like a market Watch a podcast I
listened to this weekend that is cautioning the AIS the
next big bubble, and had some endicies under or some
information underneath it. You know, all what's going to take
(31:43):
is one or two things to go kind of bad,
and that could be an area that you might start
backpedaling from a little bit.
Speaker 4 (31:50):
Well, almost anytime there's innovation there there is that either
dot com et cetera.
Speaker 5 (31:56):
Dot com, the same thing happened. Eventually it becomes frothy.
Everybody wants to chase everything in it, and the reality
is everything in it is probably not a good idea. Yeah,
I mean, when I'm in the market, weeds that out.
You know, when the automobile and manufacturing came about, there
were hundreds and hundreds of auto companies, most of them
(32:18):
did not make it.
Speaker 4 (32:19):
Yeah, that's a great point, you know it.
Speaker 5 (32:22):
You know, it is too early to tell really how
that's all going to play out, but we know it's
going to play out. It's almost inevitable at this point
something will happen. To weed that out and to focus
that in a way that is that is productive. I mean,
that's uh, that's what history has has shown us. Now,
(32:44):
you know, are there fears that this time it's different,
and there's always fears that this time is different, but
you know, at this point, it's it's it's it's really
just a new technology that that new tool that that
human if you're created to be able to use and
and you know, just like about every tool there could
(33:06):
be used for good or bad.
Speaker 3 (33:07):
There's a sweet spot where it or it's fine. But
when you get beyond that, sometimes you find things that
break down a little bit with it.
Speaker 4 (33:13):
It's very odd.
Speaker 5 (33:14):
You know, a hammer can build shelter and a hammer
can knock somebody in the head. You know, it's it's uh.
Speaker 3 (33:20):
I find it kind of illustrat of the like the
autumn you mentioned the automotive industry, and the automotive industry
has recently. I've been reading some stuff on Consumer Reports
and some industry magazines and stuff like that. We're getting
ready to see a whole rash of new vehicles with
buttons again, with switches and with cranks and things like that.
We're going away from all of this heads up display,
(33:42):
which obviously it makes sense because what everything is you
keep your eyes on the road, keep your eyes on
the road keeper. And then suddenly you're not keeping your
eyes on the road. You have to you have to
touch this, this, these all these menus and stuff just
to like change your radio station. It's ridiculous that they've
made it so complicated just to get in a car
and use it. If that's if you just want to
drive the point A to point B so and consumer spoke,
(34:03):
and we're actually starting to see a lot of manufacturers
are going to be rolling out you know, less dash
heads up displays on their dashboard, whre he actually as
switches again and buttons on the steering wheels and things
that you can touch and manipulate to actually do the
things you want to. And that's all cause of consumer demand. Sure,
and so there is a thing where if, like if
AI goes too far, even if it's not quote unquote broken,
(34:26):
if it just goes too far, if you're sick of
opening up your text message and you just wanted to
sing your wife, Hey, I'm on my way home, do
you need anything from the store, and suddenly the thing
gets rewritten because AI is in your in your text message,
and people start pushing back against that. There could be
some changes in that space.
Speaker 4 (34:39):
Yeah, no doubt.
Speaker 5 (34:40):
I mean, that's that's the way the market works. I mean,
in a free market, people generally get what they want.
And why if people generally get what they want, because
it's profitable for the companies to deliver that good or service,
and and you know, people don't get what they want instantly,
right Yeah, right, But you know, if collectively people want something,
(35:04):
companies would be wise to try to serve.
Speaker 3 (35:09):
And generally speaking they do. That's how these companies, that's
how we've talked about before. How ge is still a
company today. You know, they've had to move several times
throughout the course of their of their evolution as a
as a large company. John Meredet with Fourth Avenue Financial,
let me make make sure we get some of the
information out for you because we're wrapping up on the
program right now and I want to make sure that
you can get a hold of John. If you have
any questions about how you can retire right you can
(35:30):
find out more information online. It's fourth Avenue Financial dot com.
Fourth Avenue Financial dot com. You can set up an
appointment right through the website, so you can go there
and set everything up right there. Get your initial contact
out of the way so you can set up an appointment.
The phone number as well, it's three zero four seven
four six seven done seven seven three zero four seven
four six seven doin seven seven located at one seventy
Court Street in downtown Charleston, where you can show up.
(35:52):
It's right across from the Town Center Mall, so very
easy to get to and very easy to walk about,
which I do several times a week.
Speaker 5 (35:57):
Usually more I see I wave sometimes yeah, you're focused
on that coffee.
Speaker 4 (36:01):
Well.
Speaker 3 (36:02):
The biggest problem, actually, if if you want to get
into the weeds of the thing, is the way that
the sun is that time of day and I have
on sunk, I can't see if anybody's in there. Like
I'll look over and I can't see if you're there
or anybody. So usually I just kind of half give
a half wave. If somebody's there, great, If not, I
don't look like an idiot, like waving at an empty window.
But because the polarization of the sunglasses, this is what.
Speaker 4 (36:22):
Causes you're trying to look cool still.
Speaker 3 (36:24):
Well, I mean I don't take you know, like pull on.
I just don't want to look like an idiot more
than anything else, because I don't know if you're there.
And hon it's like because I look at your because
all I see is uh from the polarization of my sun,
classes I just see another reflection. I don't sure into
the into the into the building anyway. Very easy to
get to, very easy to walk to or to stop
by if you need to get to fourth Avenue Financial,
one seventy Court Street, Downtown Charleston. You can set up
(36:47):
a consultation with John and and that's something that only
takes a couple of minutes as well, so you can
set it up. You can just ask your questions and
and try to get a running start. One on helping somebody, Yeah,
no doubt about it.
Speaker 5 (36:58):
You can set up a free call on life on
or just give us a call at the office and
you will book a ten to fifteen minute introductory call
where we could get to know one another and see
if it makes sense to move forward.
Speaker 3 (37:10):
It's all great stuff. And of course John Burdett and
Fourth Avenue Financial. You can listen to retire Right Radio
every Monday morning right here at one five ADWCHS. The
show starts at about eight twenty and we go until
nine o'clock, taking your phone calls and your text. You
can find all of our archives. They're all online. You
can go to WHS network dot com slash retire right.
You'll pull up the entire a suite of shows that's
on there, and you can find anything from as long
(37:32):
as we've been doing this thing. And it's kind of
interesting sometimes when you're not here and I go and
find a previous show to put on. I'll try to
go back to about the same time of year, you know,
so contextually it sounds relatively normal. But man, we've been
doing this for a while now and there's a lot
of good information out there, you know, so I encourage
anyone if you want to check that out, you can
do that as well. But certainly, you know, within a
(37:52):
week after we do this show. There's a lot of
great up to date information on there. You can find
that at WCHS network dot com slash retire right otherwise,
we will be back here next Monday at eight twenty
John will be for retire Rate Radio right here on
five ADWCS. John, thanks a lot for your time again,
appreciate it as always. All right, take care, thank you,
Thank you very much. John Fordett with Fourth Avenue Financial Online,
Fourth Avenue Financial dot com. You spell it out, the
(38:13):
whole thing, Fourth Avenue Financial dot Com. Like it over
on Facebook as well. Their phone number three zer a
four seven four six seven non seven seven three zer
a four seven four six seven non seven seven Coming
up next, Dave Allen and five eighty Live, Dave Wilson
and TJ. After that on talk line and then Dave
Allen will be back this afternoon on midday and I
will be back with Dave weekly on hotline this afternoon
(38:35):
at three oh six. Have a great day everyone. On
five eight WHS. We are the boys at Charleston.
Speaker 2 (38:43):
Fives Any six point five FM Charleston at one four
point five Cross Lanes, that seld UVRC media station. We
are proud to live here too.
Unlock your dream property with Meeks Realty Group, where Rich
the realtor makes real estate dreams a reality, whether it's
residential or commercial. We've got Charleston to Huntington covered. Your
key to exceptional real estate experience is start here Meeks Realtygroup.
Contact us at Meeks dot us.
Speaker 2 (00:16):
The views and opinions expressed on this program do not
necessarily reflect the views and opinions of five eight WCCHS,
its employees or WVRC Media. This is Retire Right Radio,
a weekly show from John Verdett at Fourth Avenue Financial
that aims to answer your questions about financial planning, investing,
and how to retire right. Fourth Avenue Financial is located
(00:38):
in downtown Charleston at one seventy Court Street. More information
online at Fourth Avenue Financial dot com. Join the conversation
by calling three oh four three four five fifty eight
fifty eight or text three oh four nine three five
fifty oh eight. On Retire Right Radio, Let's go lide
to the studio with host Dale Cooper and John Verdett,
(01:00):
Fourth Avenue Financial.
Speaker 3 (01:01):
Show and a very pleasant Monday morning Tia. Thanks for
tuning in. This is delkav. I'm back on Monday. It
seems like it's been forever since I've had a Monday show.
It's been forever since John and I've been in the
studio together. I think right now I missed last Monday too.
You and Lorgan we're here, and then maybe we did
one the week before that, and then we missed a
couple in a row before that.
Speaker 4 (01:17):
It's been a little while, I think, so. Yeah.
Speaker 3 (01:19):
So we're back in the saddle again for the most part,
here this morning, taking your phone calls, taking your text.
John Bredad is here with Fourth Avenue Financial, helping you
to retire.
Speaker 4 (01:27):
Right.
Speaker 3 (01:27):
You can call us this morning at three zero four
three four five fifty eight fifty eight three four five
fifty eight fifty eight. You can text three zero four
non three five five zero zero eight three zero four
non three five five zero zero eight. You can find
out more information on non Fourth Avenue Financial dot com.
So about the whole thing, Fourth Avenue Financial dot com.
Also over on Facebook, you can do that same search
and like the page over there.
Speaker 4 (01:45):
John. How you doing, man, I'm doing pretty good, excellent.
It's a man.
Speaker 3 (01:49):
This was maybe one of the best weekends I can remember,
whether wise, it was just so nice.
Speaker 4 (01:54):
Well, I'm still moving, so nothing exists right now.
Speaker 3 (01:57):
So you saw the weather as you were remove things
to the truck and out of the truck or however
it is that you're going to.
Speaker 4 (02:04):
Yeah, moving is always so fun.
Speaker 5 (02:07):
But you know, we haven't done it in over twenty years,
so you know that it's a it's a new experience.
That's it's always good to have new experiences. But it
is amazing how much stuff you pile up in twenty
years in a house.
Speaker 3 (02:21):
I every weekend when I start doing some work, and
you know, we've sort of softly been in the market
trying to see if we can find the right circumstance.
And one of the demotivating factors is I look around
and I'm like, I'd just rather stay here because it's like,
I don't want to move this stuff.
Speaker 4 (02:37):
Man, there's too much.
Speaker 5 (02:38):
Yeah, we're kind of moving as we go, and I'm
hoping that many things don't get moved, so we'll see.
Speaker 4 (02:47):
Yeah.
Speaker 3 (02:47):
Yeah, I know, you guys talked a lot about the
home ownership last week when by the way, thanks a
lot to Logan Scott from over on our assisters Station
V one hundred, who you do sponsor a good number
of things over in V. One hundred. It's it's good
for Logan to come over here. He filled in for
me last week and did a great job. So I
really appreciate Logan in doing that for us. But we're
here for you this morning. Our John's here for you
this morning, and I'm here as your pastor. You're welcome
(03:08):
to give us a call at three zero four three
four five fifty eight fifty eight three four five fifty
eight fifty eight. You can text three zero four nine
three five five zero zero eight. Things are kind of
interesting there in abouts. I mean the market is going.
I mean things are happening fine in the market for
the most part.
Speaker 5 (03:22):
The market was up last week a little over one percent.
The tech stocks are back to leading the way earnings have.
You know, we earlier in the year we thought earnings
would be higher, and then there was this swoon in
expectations where the market had cut expectations to where we
would have three four percent growth this quarter. And now
(03:46):
we're about ninety percent of the way through earning seasons
and we're we're up close to ten percent on earnings.
So you know, as long as earnings are growing like that,
that's a good backdrop for stocks to make progress. As
as you know, as the earnings go up, the valuations
come down, and so there's always this uh, you know,
(04:10):
tug of war between value, you know, what is what
is the right thing to pay for those earnings that
are happening, And as long as the earnings are matching
expectations or beating expectations, that's usually a good backdrop for stocks.
Speaker 3 (04:23):
I saw the Uh, well, I guess basically what we've
been talking about and kind of the way we've been
tracking things over the time. For a while, the market
had broadened out quite a bit where we had a
lot of more traditional players as well as the tech
stocks that were involved in things. Tech has kind of
rotated back to the top of that right now.
Speaker 5 (04:42):
It seems to be yes, the the you know, the
earnings that have come out that certainly the tech earnings
have not have not disappointed, you know. That is one
of the risks in the high value stocks.
Speaker 2 (04:53):
Uh.
Speaker 5 (04:54):
When I say high valued, I mean multiple of earnings
that you're paying. You know, you might by you know,
Coca Cola might be twenty times earnings, but one of
these tech stocks might be forty or fifty times earning,
so you're you're paying more for it because it's growing faster. Well,
if that growth disappoints, you know, then you have a
problem with the stock price. And so far that growth
(05:16):
hasn't disappointed, which which you know, somewhat justifies the high
prices you're paying for those stocks.
Speaker 3 (05:23):
One of the things that I think is interesting, and
we're going to talk a little bit about risk this morning,
and so if you have a question about how you
can assess your risk, if an idea that you have
or something that you're trying to achieve is too risky,
or if well, what exactly is risk? I mean maybe
some things that you consider it's a risk scenario isn't
necessarily one. You can give us a call this morning,
John can help you kind of navigate through that. Threes
(05:43):
are a four three four five fifty eight fifty eight.
Threes are a four three four five fifty eight fifteen.
There's a lot of different things that you can do
within your retirement. You're planning and different things like that
that people may consider to be more risky, and there's
just things that are within the normal, you know, every day,
every day of things.
Speaker 4 (05:57):
Back in when we.
Speaker 3 (05:58):
Had the the real estate crash in two thousand and eight.
You know, people that suffered from that to some degree
didn't really do anything except just go about their normal business,
you know. But the market eventually balanced out and people
that played that the right way came through it right.
But that wasn't something that you can necessarily avoid if
you were a risk averse, because there may not have
(06:19):
been in that necessarily in the tea leaves. But there
are things that you can do to evaluate what risk
that you're comfortable with. And risk isn't necessarily a bad thing.
You can turn risk into into quite into something that
could put your money to work for you quite well.
But you just have to make sure that you're the
right person for it. You're matching your risk with what
your personality is and things like that.
Speaker 5 (06:39):
Yeah, for sure, and under you know, understanding risk in
a way that you know a lot of folks perceive
risk is one thing, I lost money or my account
went down at value, and that is a risk, But
there are other risks. And if you react too strongly
to the risk that you have in your mind, for instance,
(07:01):
the market goes down, then you're exposing yourself to potential
other risks that you're not focusing on. For instance, if
you avoid the market because the market can go down,
if the stock market can go down, then you're exposing
yourself fully to the risk of the loss of purchasing
(07:25):
power and retirement, the loss of the dollar's value through
inflation because companies stocks historically keep up with inflation better
than any asset. Glass well, so you pull back from
the risk of the market volatility and say I don't
want exposure to that, but then you fully expose yourself
(07:47):
to the other risk. And really, when you're building a portfolio,
it's there is risk in everything.
Speaker 4 (07:54):
There is risk.
Speaker 5 (07:55):
And putting a cash in a tin can and burying
it in your backyard, you know you have the inflation risks.
You have the risk of somebody stealing it or or
or you know, a squirrel digging it up. You know
there are risks to absolutely everything that you do, and
and when you build a portfolio you try to keep
(08:16):
the goal in mind and then balance those risks out.
You can't get rid of all the risk, but you
can diversify and balance those risks out so that Okay,
I'm not comfortable with the full volatility of the market.
For instance, but I know that I need to protect
myself against grocery prices going up in my retirement. How
(08:36):
do I balance that out? Will you blend your assets
together to try to find out try to determine, Okay,
what am I comfortable with? What can I sleep with
at night? And where do am I balancing the risk?
But the biggest thing is not understanding the full risk
you take in all areas. You know, focusing on one
risk and not focusing on anything else fully exposes you
(09:01):
to that.
Speaker 3 (09:02):
Yeah, it's like if you get kind of obsessed with
one particular thing or you know what, people will hear
a lot of times. They'll see you like a ted talk,
or they'll see something and they'll be convinced that that's
the one thing that's going to crash the economy or
save the economy, whatever it might be. And then it's
okay to have those thoughts and to wonder about it.
But when you start making financial decisions based on things
like that, it could get a little bit shoppy for
you because that necessarily how the way things work.
Speaker 5 (09:23):
Sure, and you know, you think, well, CDs, for instance,
what could what risk could there be in a CD
or a fixed investment a fixed bond. Well, you know,
one of the trade offs in that is how long
do you lock your money up for. Let's say you
buy something that's paying four percent and you're living off
(09:45):
that interest. You know, a four percent distribution is what
a lot of folks say, Well, that's a that's a
reasonable amount to pull off of a portfolio in retirement.
Let's say you get a security, a bond or a
CD pay four percent. Say well, fine, I'm getting the
income that I should off of my portfolio, and I'm
(10:06):
not taking any risk to the principle because I know
that the risk there is what happens when that bond
or CD matures. The risk is Okay, now interest rates
might be two percent. Well now your income and retirement
got cut in half. Oh well yeah, if that was
(10:27):
your sole investment and you were trying to protect yourself
from market risk, you know. So there's there's even in
a safe, one hundred percent guaranteed principal investment that pays
you an interest, there is a risk in that. And
that's sometimes it's we get so focused on those singular
(10:48):
risks that are in our mind that we forget about
the others.
Speaker 3 (10:52):
That makes sense It's like trying to drive somewhere in
a car and that there's normal amount of safety that
you can take, and you have a make it thereby
is a certain amount of time. There's normal amount of
safety you can take, or you can take no safety.
Get there a lot faster, you get there the norm
amount of time. But if you're too safe in trying
to go there, like you stop extra long at every
stop stop sign and maybe let people go in front
of you all the time, and then you're driving ten
(11:14):
miles under the speed limit or whatever else, Suddenly, man,
you were super safe getting there, but you missed the
deadline by like an hour, you.
Speaker 4 (11:20):
Know, so you got to be careful of those things.
Speaker 5 (11:22):
Or or you know, you're going ten miles under the
speed limit and in the semi behind you right, you know,
so you know there there again, there's risk and everything.
Speaker 3 (11:32):
And what fascinates me about the conversations we have a
lot because risk underlies a lot of our discussions every
week to some degree, you know, I mean, there's always
a little bit of underlying risk in the things that
we talk about. But the thing that really I think
that should be a buoyant to the people that listen
to this program. And also when they're trying to plan
for their retirement. Is even when you decide to take
(11:53):
a risk, a lot of chances times if somebody's coming
to you and they have some idea they want to
invest in a bitcoiny ft here and you know something
along those if it might be considered a little risky,
you can make recommendations like, well, let's balance that out
in other ways, you know, to make sure that the person,
although they may be exposing themselves to a little bit
of risk, you can put some safety parameters around that
so they're not as exposed as what they could be
(12:14):
as long as they're doing it right. Which is yet
another great idea when when you're doing stuff like this,
to contact a professional like John Bredett because you can
help with those types of things. Okay, you want you
want to get a little bit into the bitcoin space,
you want to play around, Not that you necessarily would
recommend that, but if somebody was dead set against it
and then wondering how to do it safely, you can
help with.
Speaker 5 (12:30):
That, sure, yeah, trying to help balance the risk out.
Like you say, the first thing you do is determine
what your goal is and what your timerizing is, and
then you can use the right investment tool to achieve
that in the most probable way and to try to
balance it out in a way that you can sleep
at night. You know it does no good. For instance,
(12:54):
volatile stocks over time have some of the best returns
of any asset class. Ownership of companies growth companies, well,
they're also the most volatile. Now, if you have a
thirty years to retirement, it might be reasonable to suggest
just put all your money in those type of stocks. Well,
(13:15):
the problem is those long term returns that you want
are going to have many more peaks and valleys along
the rod. And the risk that if you go out
of your comfort zone too far is that while we
know historically if you stick with it works out, is
(13:37):
that you don't stick with it, you panic at some point,
you can't sleep at night, you're uncomfortable with it. Then
what good is it to put a plan like that together?
If you can't follow through with it.
Speaker 3 (13:49):
You can tell yourself, well, you want in twenty years,
this is we find in twenty years, this Is'm be
fine in twenty But if you can't get over that
hump psychologically, you're just always going to be right. Basically
worrying a hole in your pocket.
Speaker 5 (13:59):
That's right, And that is where setting down with someone
like myself, you know, we try to discover not just
financially what should be done, but psychologically what should be done,
and we try to mix those investments in a way
that gets you from from where you are to your
goal in a way that is that is tolerable using
(14:22):
all the investment tools. And you know, that's not an
exact science that that's that's not something you can ask
AI to do because it's a very personal thing.
Speaker 3 (14:32):
And I know that it's so the psychology behind it
could be so interesting. I have a situation of my
family where my wife was left up a little bit
of money from from uh uh, from a relative of
the past, and this was something that was tied up
into like his career in the job that he had.
It was shares that was given to him. It was
like this, this, this whole thing. And she's been very
(14:55):
reluctant to really do much with that other than just
let it ride where it was when she got it.
It's honestly been a huge mistake. But some people get
kind of emotionally attached to the way the money was
given to them, how they achieved it, you know, like,
well I got here riding this rocket, so I want
to take this rocket and run it to the end
no matter what. Those are some of the barriers that
you might need to get over when you look at
(15:16):
things from more of an ego perspective and trying to
find where the money is going to do the best
work for you.
Speaker 5 (15:21):
Yes, because your goals evolve. You know, your stage of
life evolves and your time horizon evolved, so your investments
should evolve with that, or you're going to expose yourself
to those hidden risks, you know, Like you say the market,
long term ownership of companies that are working out there
and serving people is certainly a way to build wealth
(15:44):
over time owning productive companies. There's almost no better way
to do to build wealth. But if you don't have
a long time or the time horizon for that to
play out, you're exposing yourself to risk. Even though even
though mathematically those might be long term the right things
to do, they might exactly be the wrong thing to
(16:06):
do short term. You know, if you buy something extremely
risky and you know you've got a wedding, you've got
to pay for in six months. Yeah, well I don't
know what the market's going to do in six months.
And I'm the quote professional here right, Well, you don't
know what the market's going to do in six months either,
(16:26):
No one does because life is unpredictable. And if you're
in a type of investment that could go down twenty
or thirty percent in a short order like the market can,
should you be in that investment to pay for that
wedding in six months because you know you have that expense. No, No,
(16:48):
there are better ways to invest that money where you
can more ensure that the principle will be there at
the time horizon that you need it to pay for
that event. So you know, don't expose yourself to you know,
one type of risk would you have that that stated
goal And so that's that's what's so very important to understand,
(17:09):
you know, the individual as you're building that financial plan.
Speaker 3 (17:13):
This is great advice as always with John Bredett from
Fourth Avenue Financial, encourage you to give us a call.
We're going to take a break here in just a
second and when we come back one and have plenty
of time for you to get in on the conversation.
If you want some help on how you can manage
your risk, or if you just have some questions in
general on how you can retire right. Getting a late start,
are you wondering if you're at the right place or
whatever it might be. Well, I'll talk about this when
we come back, because it's a great illustration of what
you just talked about was something that happened to me personally.
(17:34):
So we're going to get into a lot more when
we come back. And plus, hopefully your phone calls and you
can give us a call this morning three zer a
four three four five fifty eight fifty eight three four
five fifty to fifty eight. Remember when you call, it
goes into an auto Q, so you'll hear the show
audio right away, and then we'll ask your name to
get you on.
Speaker 4 (17:48):
Air right after that.
Speaker 3 (17:48):
So give us a call three zero four three four
five fifty eight fifty eight three four five fifty eight
fifty eight. You can also text over your questions to
three zero four non three five five zero zero eight.
You're listening to a retire Right radio with John Bredet
from Fourth Avenue Financial Online one fourth Avenue Financial dot
Com located once so Many Court Street right here in
downtown Charleston. We'll take a break and be backgra after this.
This is as the Expert on Monday on Retire Right
(18:10):
Radio with John Meredet FAVDWCHS, the Voice of Charleston.
Speaker 6 (18:13):
Retire Right Radio was sponsored by Fourth Avenue Financial, which
is solely responsible for its content. Security is offered through
jw CL Financial Member Fenrecipic Investment advice offered through jw
COL Advisors. Fourth Avenue Financial, jw CL Financial and jw
COL Advisors are unaffiliated entities. The opinions expressed by John
Burdett should not be construed as specific investment, legal, or
tax advice. All economic and performance information is historical and
(18:35):
not indicative of future results. Investing may involve risk of
loss of principle. Any tax advice on this show is
not intended to be used by any person for the
purpose of avoiding US federal or state tax penalties that
may be imposed on such a person, and each listener
should seek advice from their tax advisor or legal console
on topics that arise from the show. John Burdett is
(18:55):
not providing legal or tax advice. Nothing should be construed
as solicitation of an offer to buy securities. This program
is sponsored by Fourth the Avenue Financial, which is solely
responsible for its content.
Speaker 7 (19:06):
I'm Kanaf County Sheriff Joey Crawford. This August twenty seventh
through the twenty ninth, weather permitting, our tax division will
once again offer a curb side collecting service. Pay your
taxes from the comfort of your car in front of
our courthouse from nine am to four pm each day.
Our tax divisions will still be open weekdays and you.
Speaker 4 (19:24):
Can also mail in.
Speaker 7 (19:25):
You'll remit or pay online at Canallshriff dot us.
Speaker 4 (19:28):
Questions please feel.
Speaker 7 (19:29):
Free to call us at three oh four three five
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Speaker 2 (20:05):
This is retire Right Radio with John Burdett from Fourth
Avenue Financial, taking your calls at three oh four, three
four five fifty eight fifty eight or text on three
oh four nine three five fifty eight.
Speaker 4 (20:27):
Eighteen minutes and two nine o'clock.
Speaker 3 (20:32):
You're listening to retire Right Radio on Bob adw c
HS the voice for Charleston. Yeah, let that uh, let
the doors kind of fade out there a little bit. Yeah,
that's nothing wrong with that.
Speaker 4 (20:43):
You give us gonna break into the the chorus.
Speaker 3 (20:46):
Yeah, Yeah, there's something about hearing that, like, uh, hearing
that doors media, it just makes me want to break
out into Jim Morrison in some way, shape or form.
Speaker 4 (20:55):
I don't know what it is. It's it's one of
those things.
Speaker 3 (20:58):
Speaking of the doors, the doorway to get it on
the radio this morning, here's a segue for it. Threes
are four three four five fifty eight fifty eight. Threes
are a four three four five fifty eight fifty. You
can also text three zero four nine three five five
zero zero eight one of the great or one small.
I guess illustration of just what the difference is, or
what the difference can be between obsessing over something and
then just letting something that you were confident in kind
(21:21):
of ride. I think it was sometime last year I
had messed around with my allocations of my four oh
one K. I don't know why, but I was like, Okay, well,
I know so much more about this stuff now than
what I did when I first put this thing together.
Let's get in here. I'm not going to go crazy
with this. I just want to make a few little
tweaks or whatever. And I remember years ago when I
first set that up. I'm basically mirror, not really mirrored.
(21:43):
I did like a different version of my idea on
my on my HSA account as I did on my
on my regular four o one K account. Well, I
sat down and was paying some medical bills last week
and I had to get into my investment account on
my HSA to pull some money out of it in
order to pay some of these medical bills. And I
was absolutely floored by the amount of money. I hadn't
(22:05):
checked it seriously this year. I don't even think I
hadn't had anything major medical happen. It's just an automatic
system where I deposit money, it gets over a certain amount,
and invest whatever is over the certain I hadn't looked
at it in literally months, probably since January or something,
but I didn't touch it. I didn't touch the allocation
in this one. I figured it was too small to
worry about or whatever. Right that sucker is up tons,
(22:25):
I mean like twelve or thirteen or fourteen percent. I
mean it's doing great. I have so much I mean,
not so much money in there, but I mean my
medical bills were no problems at all, still doing a
great job and things like that. I look at the
four on one K that I tweaked at the big
at the beginning of the year, performing much worse, like overall,
performing much much worse than the one that I just
left alone at the beginning of the year. So it just,
I mean, I don't know if it's really my fault
(22:47):
or who knows it's not. It wasn't exactly the same allocation,
so who knows.
Speaker 4 (22:50):
What would have happened.
Speaker 3 (22:51):
But in my mind, I kind of feel like I
should have just taken the advice that we give on
the show, just leave the stuff alone. You know, I
wasn't overbalanced in any particular area. They were all mutual funds.
It's not like I was marrying into stocks or anything.
They know what they're doing with with with managing those things, you.
Speaker 5 (23:04):
Know, well, it also has to do with allocation. I mean,
you may have had more of a concentrated position in
the HSA, which there again obviously worked over that time period.
Speaker 4 (23:17):
However this time right, will that work over.
Speaker 5 (23:20):
Every time period? No, it just statistically can't work over
every time period, or everyone would only own.
Speaker 4 (23:27):
That one investment.
Speaker 5 (23:29):
So, you know, balancing out those you know, your four
oh one K probably is more broadly diversified, so you
don't have just tech stocks in there. You don't have
just US stocks in there. You don't you know, you
have some international exposure, small cap, mid cap, so you're
covering all the bases in that, which gives you a
(23:51):
smoother ride from point A to point B because of
the diversification. You know, you may may give up a
little return because you're giving up some volatility, but you're
still owning all of the pieces that will cycle in
favor and out of favor, so you'll never have everything
out of favor at one time.
Speaker 4 (24:12):
That's impossible.
Speaker 5 (24:12):
If you have different assay classes, you'll never have everything
in the best place at any given time. And a
lot of times, it's just human nature. You'll look at
those portfolios that are well diversified and you'll say, well,
you know what, I should have owned more of the
XYZ because it did so well, and then you end
up trading off your diversification to chase that return that
(24:40):
is backwards looking. You know, things don't stay out of
favor or in favor forever. They cycle. Well, if if
you just chase what did well last year, that might
not be the same thing this.
Speaker 3 (24:54):
Year, as we saw earlier this year where Techtok's rotated
down for a little while and so forth right.
Speaker 5 (24:59):
And if you're constantly if you're overtweaking that, you know
you're really not doing anything but chasing the tail of
something that's already passed, and that statistically is not how
you should manage that portfolio. You know, the same thing
when you look at your four O one K and
(25:20):
try to pick your allocation, you know, don't go down
the list and say, well, I need four funds to
be diversified, and here are the four that did best
last year. Well, they did best last year because they
probably owned almost identical stocks at least the same sectors
they would have to or they wouldn't have performed similarly.
(25:44):
So you know, you have to be careful. You know,
that is a risk in itself when we're talking about
risk that you're concentrated in your portfolio, even if when
you might think you're diversified.
Speaker 3 (25:58):
And you may not necessarily be like one of the
things that and again this gets so complicated trying to
do it yourself when you talk about the different funds
that could invest in virtually identical or very similar types
of portfolios. And so if you think that you're getting
something just because they have different initials after their names
or different companies that put them together, and you're like, well,
(26:19):
I'll try this one and i'll try this one, and
you're basically investing in the same thing and you don't
know it.
Speaker 4 (26:24):
And those are the things that could be great.
Speaker 3 (26:25):
You know if those if what the stocks that those
are indexing are doing great, but that's not diversification. You
need to make sure that you're in funds that are
that are more diversified and you're not just doubling up
on different things.
Speaker 4 (26:37):
Sure.
Speaker 5 (26:38):
And also when you look at your funds and you,
for instance, picked the ones that did best last year,
in this case, what is that it's large company stocks
and inside for O one k's if you look at
the at the fun choices you have, they're most always
(26:59):
the large funds in existence. Some of these funds manage
tens of billions of even one hundred billion plus dollars
under management in that one single fund. How is that
manager going to put that to work unless they buy
the largest companies. You know, Navidia is a four trillion
(27:22):
dollar company. Microsoft's about around a four trillion dollar company.
You know, a one hundred billion dollar fund can invest
in that stock and not buy the whole company. That
manager is not looking at smaller mid cap stocks because
they have so much money they would have to acquire
the whole company for it to be meaningful in the
(27:44):
size of that portfolio. And so that's why those larger
funds have so much overlap in their holdings because they
all have to almost play in the same space because
they've got too much money to put to work to
make it meaningful any other way. You know, a fifty
(28:05):
million dollar investment in a company, if you're one hundred
billion dollar fund, is meaningless that that fifty million could
double or triple or quadruple in value and it doesn't
move the needle on the whole pot.
Speaker 4 (28:17):
That's fascinating.
Speaker 3 (28:18):
Yeah, when you look at it, when you step out
and really look at it broadly. Like that another thing
that I noticed when I was kind of just looking
around into my investments and things, specifically talking about my
four one K when I've been back here in West Virginia.
So in this account, generally speaking for just under fifteen years,
so we're looking at the last Obama term, first a
(28:41):
President Trump term, the Biden term, and now the second
President Trump term. The strange thing is is when I
look at that thing, it basically just goes up right
right over this fourteen year period. I mean, if I
zoom in, you can find the rough rides that we saw.
Speaker 5 (29:00):
It's all about the perspective. And you know, like you say,
long term, look at any chart of the market over time,
and you can see that it's upward sloping almost always.
Speaker 3 (29:11):
Man, this is just twelve years, you know, So this
is three different presidential presidents during this time. And basically
if you told me that it was the same president
for twelve years, you like, just looking at the market,
you'd be like, yeah, sure that tracks. It makes sense
because really seriously, it basically just goes up.
Speaker 4 (29:27):
Yeah. Oh well politics is not the market, right, Yeah,
that's that's so true, man.
Speaker 5 (29:31):
And then the earnings of the companies that matter. Now,
policy can affect earnings, but when it affects earnings, it's
usually it might affect some earnings and benefit other earnings.
Speaker 4 (29:43):
So it's like a reallocation of that, right.
Speaker 5 (29:45):
Right, So when you look at the market as a whole,
you know, companies exist, serve people and make a profit
doing it.
Speaker 4 (29:55):
They're pretty good at that.
Speaker 3 (29:56):
Yeah, and if not, that person gets fired and somebody
else comes in do the job better.
Speaker 5 (30:01):
That's right, and innovation happens. We can see that in
our daily lives. All the changes that have happened, even
in the last twelve years, you know, all the technologies,
all the efficiencies that have come out and been innovated.
That all feeds into earnings. And you're going to see
that with AI, I'm sure start to play out. You know,
(30:22):
the computer coders, for instance, big six figure jobs, you know,
they act like that those are going to be almost
extinct in a couple of.
Speaker 4 (30:32):
Years because they're going to trust AI to do it.
Speaker 5 (30:34):
Well, how many you know those companies that utilize those
those folks, you're replacing a six figure job with a
line of code, right, That's that's bad for the person
that lost the job. But if you own the company,
own stock in that company, guess what that company is
(30:55):
all of a sudden a lot more profitable and efficient
at serving as.
Speaker 3 (30:59):
Long as the robot doesn't end up like doing something
to completely crash the company at some point in time.
That's the thing that man, I have this real concern
about just how hot ai is right now and how
it's getting incorporated into everything before we really know exactly
what the results are going to be. How the guardrails work,
you know, when you can still break a an LM
(31:23):
from the outside going in just by resetting its prompts
and stuff. They need to figure out ways to keep
that from happening. I'm not I hope that I've read.
Actually it was like a market Watch a podcast I
listened to this weekend that is cautioning the AIS the
next big bubble, and had some endicies under or some
information underneath it. You know, all what's going to take
(31:43):
is one or two things to go kind of bad,
and that could be an area that you might start
backpedaling from a little bit.
Speaker 4 (31:50):
Well, almost anytime there's innovation there there is that either
dot com et cetera.
Speaker 5 (31:56):
Dot com, the same thing happened. Eventually it becomes frothy.
Everybody wants to chase everything in it, and the reality
is everything in it is probably not a good idea. Yeah,
I mean, when I'm in the market, weeds that out.
You know, when the automobile and manufacturing came about, there
were hundreds and hundreds of auto companies, most of them
(32:18):
did not make it.
Speaker 4 (32:19):
Yeah, that's a great point, you know it.
Speaker 5 (32:22):
You know, it is too early to tell really how
that's all going to play out, but we know it's
going to play out. It's almost inevitable at this point
something will happen. To weed that out and to focus
that in a way that is that is productive. I mean,
that's uh, that's what history has has shown us. Now,
(32:44):
you know, are there fears that this time it's different,
and there's always fears that this time is different, but
you know, at this point, it's it's it's it's really
just a new technology that that new tool that that
human if you're created to be able to use and
and you know, just like about every tool there could
(33:06):
be used for good or bad.
Speaker 3 (33:07):
There's a sweet spot where it or it's fine. But
when you get beyond that, sometimes you find things that
break down a little bit with it.
Speaker 4 (33:13):
It's very odd.
Speaker 5 (33:14):
You know, a hammer can build shelter and a hammer
can knock somebody in the head. You know, it's it's uh.
Speaker 3 (33:20):
I find it kind of illustrat of the like the
autumn you mentioned the automotive industry, and the automotive industry
has recently. I've been reading some stuff on Consumer Reports
and some industry magazines and stuff like that. We're getting
ready to see a whole rash of new vehicles with
buttons again, with switches and with cranks and things like that.
We're going away from all of this heads up display,
(33:42):
which obviously it makes sense because what everything is you
keep your eyes on the road, keep your eyes on
the road keeper. And then suddenly you're not keeping your
eyes on the road. You have to you have to
touch this, this, these all these menus and stuff just
to like change your radio station. It's ridiculous that they've
made it so complicated just to get in a car
and use it. If that's if you just want to
drive the point A to point B so and consumer spoke,
(34:03):
and we're actually starting to see a lot of manufacturers
are going to be rolling out you know, less dash
heads up displays on their dashboard, whre he actually as
switches again and buttons on the steering wheels and things
that you can touch and manipulate to actually do the
things you want to. And that's all cause of consumer demand. Sure,
and so there is a thing where if, like if
AI goes too far, even if it's not quote unquote broken,
(34:26):
if it just goes too far, if you're sick of
opening up your text message and you just wanted to
sing your wife, Hey, I'm on my way home, do
you need anything from the store, and suddenly the thing
gets rewritten because AI is in your in your text message,
and people start pushing back against that. There could be
some changes in that space.
Speaker 4 (34:39):
Yeah, no doubt.
Speaker 5 (34:40):
I mean, that's that's the way the market works. I mean,
in a free market, people generally get what they want.
And why if people generally get what they want, because
it's profitable for the companies to deliver that good or service,
and and you know, people don't get what they want instantly,
right Yeah, right, But you know, if collectively people want something,
(35:04):
companies would be wise to try to serve.
Speaker 3 (35:09):
And generally speaking they do. That's how these companies, that's
how we've talked about before. How ge is still a
company today. You know, they've had to move several times
throughout the course of their of their evolution as a
as a large company. John Meredet with Fourth Avenue Financial,
let me make make sure we get some of the
information out for you because we're wrapping up on the
program right now and I want to make sure that
you can get a hold of John. If you have
any questions about how you can retire right you can
(35:30):
find out more information online. It's fourth Avenue Financial dot com.
Fourth Avenue Financial dot com. You can set up an
appointment right through the website, so you can go there
and set everything up right there. Get your initial contact
out of the way so you can set up an appointment.
The phone number as well, it's three zero four seven
four six seven done seven seven three zero four seven
four six seven doin seven seven located at one seventy
Court Street in downtown Charleston, where you can show up.
(35:52):
It's right across from the Town Center Mall, so very
easy to get to and very easy to walk about,
which I do several times a week.
Speaker 5 (35:57):
Usually more I see I wave sometimes yeah, you're focused
on that coffee.
Speaker 4 (36:01):
Well.
Speaker 3 (36:02):
The biggest problem, actually, if if you want to get
into the weeds of the thing, is the way that
the sun is that time of day and I have
on sunk, I can't see if anybody's in there. Like
I'll look over and I can't see if you're there
or anybody. So usually I just kind of half give
a half wave. If somebody's there, great, If not, I
don't look like an idiot, like waving at an empty window.
But because the polarization of the sunglasses, this is what.
Speaker 4 (36:22):
Causes you're trying to look cool still.
Speaker 3 (36:24):
Well, I mean I don't take you know, like pull on.
I just don't want to look like an idiot more
than anything else, because I don't know if you're there.
And hon it's like because I look at your because
all I see is uh from the polarization of my sun,
classes I just see another reflection. I don't sure into
the into the into the building anyway. Very easy to
get to, very easy to walk to or to stop
by if you need to get to fourth Avenue Financial,
one seventy Court Street, Downtown Charleston. You can set up
(36:47):
a consultation with John and and that's something that only
takes a couple of minutes as well, so you can
set it up. You can just ask your questions and
and try to get a running start. One on helping somebody, Yeah,
no doubt about it.
Speaker 5 (36:58):
You can set up a free call on life on
or just give us a call at the office and
you will book a ten to fifteen minute introductory call
where we could get to know one another and see
if it makes sense to move forward.
Speaker 3 (37:10):
It's all great stuff. And of course John Burdett and
Fourth Avenue Financial. You can listen to retire Right Radio
every Monday morning right here at one five ADWCHS. The
show starts at about eight twenty and we go until
nine o'clock, taking your phone calls and your text. You
can find all of our archives. They're all online. You
can go to WHS network dot com slash retire right.
You'll pull up the entire a suite of shows that's
on there, and you can find anything from as long
(37:32):
as we've been doing this thing. And it's kind of
interesting sometimes when you're not here and I go and
find a previous show to put on. I'll try to
go back to about the same time of year, you know,
so contextually it sounds relatively normal. But man, we've been
doing this for a while now and there's a lot
of good information out there, you know, so I encourage
anyone if you want to check that out, you can
do that as well. But certainly, you know, within a
(37:52):
week after we do this show. There's a lot of
great up to date information on there. You can find
that at WCHS network dot com slash retire right otherwise,
we will be back here next Monday at eight twenty
John will be for retire Rate Radio right here on
five ADWCS. John, thanks a lot for your time again,
appreciate it as always. All right, take care, thank you,
Thank you very much. John Fordett with Fourth Avenue Financial Online,
Fourth Avenue Financial dot com. You spell it out, the
(38:13):
whole thing, Fourth Avenue Financial dot Com. Like it over
on Facebook as well. Their phone number three zer a
four seven four six seven non seven seven three zer
a four seven four six seven non seven seven Coming
up next, Dave Allen and five eighty Live, Dave Wilson
and TJ. After that on talk line and then Dave
Allen will be back this afternoon on midday and I
will be back with Dave weekly on hotline this afternoon
(38:35):
at three oh six. Have a great day everyone. On
five eight WHS. We are the boys at Charleston.
Speaker 2 (38:43):
Fives Any six point five FM Charleston at one four
point five Cross Lanes, that seld UVRC media station. We
are proud to live here too.
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