Market Risk

This is good Truth Network welcome to finishing well brought you by Cardinal guy, certified financial planner belongs agile, best-selling author and financial planner helping families finish well for over 40 years of finishing well will examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Medicare IRA long-term care life insurance and investments and taxes. Now let's get started with finishing well. So welcome to finishing well today show market risk and you know the Bible has quite a story about market risk. You're just reading it this morning when John was chapter 20 is a means right to obtain this in the center.

Now that's just getting just discovered something that I unit in the Bible to myself and I don't know how to pronounce certain things and I learn about when I talk when I read aloud to you so I get corrected I'll remember that I actually know how I learned how to save us against a list of the Bible and tape all the time. Okay.

And that's better than said so many of those words like Nebuchadnezzar ago that said, today we got the mean is, and you might remember the story that the master unit would three guys that he had about the meanest and the first guy he may know he only gave five and the second guy gave Tanana.

As I recall, he gave the third 120 and the first guy buried his and you know that didn't play well for him and second iron five more and attend iron to so incomes the master and you're all too familiar with the story that I hope you're familiar with the story where your masters really really upset with the guy but the more you study it and the more I thought about it you know God to risky God and so he loves it when we go out in faith and believe that that he's gonna come through for us that he's can come through for you. Just since warnings given Robbie Gilmore free will absolutely such a big risk. That's yeah is risky to high risk player for gave me.

So as I thought about it I thought about many employees I've seen over the years that if you give him some responsibility that they look at it like oh man I'm in a blow this this is and I got a good for me and I and they go into it with the fear mentality of oh now you just gave me this money. Now I've got now. I got a problem. Now I gotta figure out what to do in this league is Burgett versus you know Mina's number two guy is like oh cool man I got some staff man, I get to go play and I get to go and invest this and see what I can do. You know, he looked at it is the other two looked at as an opportunity like the master trusted you and now you go. I I'd never really it actually until Hans and I were to stop, you never really put this together my own mind that all my goodness. God is been training me for since we been doing finishing well now I guess a year and 1/2 on kind of what to do with money and kinda what to do and and so when I got some Venus is as a result of my personal financing being Hans help didn't help me with my you know, some insurance products that lowered my other things.

So I got some new meanest, in order to invest and I was really excited.

I was like I was like contestant number two's like oh man, I I get to go buy some long-term healthcare should listen I'd see it all the time people experience joy when they finally do something about their financial planning problems in their either by insurance, invest their money.

You will will there's a great sense of joy and satisfaction of doing something that you wouldn't think would be all that full of joy but it's really cool. God gives us all these resources, even if it's a small enough, it's the five mean, is it still really cool. He gave me this and and I get to go do something with it, but then part of the adventure what he's hoping for is asking to build a relationship with him that the stick close and so part of that sticking close in today show is really there's a lot of allies out there a lot of hooks that could get you going with risk and in a direction that can hurt you versus ones that would help you, especially in this stage of life and so were hoping that after today show you to be real excited about your meanest well and so let's let's put little context is is so trying to make all the shows we are making all the shows that were doing in this post market crash and will relive and through the pandemic's investors are licking their wounds right now, meaning system people that had money or have money continue to have money in the market and they've lost a good bit back in March and many of them are wondering like what to do in the first place. I want to go in answering that question is to have a little conversation about risk is is that we you know the reason you lost money is you had money at risk.

So it's a good thing that you had money at risk because you you you can't make any money unless you put it at risk, but when you have something like real estate or precious metals or were piece of jewelry and antique car you got a real liquidity and marketability risk. There just you.

You may say it's worth $30,000 but to turn it into $30,000 that you could go spend that's another thing that's can take some doing and then you get credit risk, which is is really that the credit worthiness of the company or the institution that standing behind whatever stock you're buying or whatever bond you're buying the war whatever institution is backing the thing you got a credit risk so were not just going to read off all the risk today and we really want to just kind of focus on market risk and we want to talk a bit about having your future self so is your 65 now and you're listening to this, we want to have your 80-year-old self room when she did it in a conversation with your 80-year-old self. We can't really necessarily do that but to just to see, and you can do that through me is that I have a lot of clients that are there in late retirement and they are invested in handling their money and I want to share with you just how they kinda feel about gains and losses in the market right and I left it. You know when it been cool to sit down with Mr. meanest fit of the poor guy yet eight if he did turn the to the master and said help me out before you go I could I get a few pointers and that but we have that chance to to say hey and I love the conversation that actually sent me an email on that that talked about the questions that really help you set goals because once you you kinda oh this is where were headed for that 80-year-old self. You know what what what would that look like so yeah I mean I sent this a purchase can read it to you and then you just stop me with this because Robbie was. He found this quite amusing and interesting in the got and think about the show, so I asked clients in their 70s and 80s.

If you made a windfall of $100,000 what would you spend, how would that change your life. How would that hundred thousand dollar windfall what what would be different in your life because of that and sometimes the answers are a trip around the world. Sometimes I give it to my kids or grandchildren other people's them to give it to the needy. Give it to the church cemetery that most answers after I pick at this for a while, I was staying with my questions to get an answer when I'm working with people there don't know and that's a pretty good answer because it just when they were making money in 2018 and 20, 19 or 2017 or 2012 or whatever they they didn't do anything with.

They just kinda looked at it on paper so they don't know people salmon. Save it which is really not doing anything with that you discount leave it there where it is, pay taxes, and there's a lot of people before they just immediately go to the taxing line, making money you pay taxes. Answer almost bringing up a negative about this post be a time of joy. We just made 100 grand.

Okay, yeah, and it's fascinating to me because of that this week I heard the podcast is listen to about a great show on the Truth Network. They said what makes you feel wealthy like like you been given abundance by.wow, how does that feel and so here worked with talk about practically okay you know about your investments. You want to invest this wonderfully. What if this happened, how are you going to feel that now go to the other side of this quest because it is not scared and then after I get my answers on that we talk about them a bit. Then I asked the clients if you lost $100,000. How would that change your life and that's the situation that were in right now is is that there's many people out there, there may be 1 is not 100,000 but they lost something. Maybe it's more 900,000.

A few say very little, but most say I'd have to cut back. That's the most common sense of some people just say this can have very little change in my life because they're just the people that were pertinent. There there. I'm dismissive and stress about it but it's I can change my life because I don't really need that money to live, but I'm still going to sit here and stress about it. Then there's people that say what we just have to cut back in without really minimum that that's it. That's a pretty logical answer and that's really what a lot of people are doing especially when you add in the pandemic. People just cut back and that that Nessus isn't necessarily helping the economy either. Says some people say I wouldn't have an investment like I just I will. I wouldn't have and that's when not when I'm hearing people talking about that I'm hearing if I talk to somebody 80 years old will that I just know they don't have any money in stocks and that's that's fine that's good management rent, we are fortunate that we get a break coming up, but you're fortunate you get here. On the other side where Hans is going all this, which is defined or hoping and were praying actually that that your gonna feel like man I got Samina is a God to give me is gonna be fun to see where God takes me on this adventure includes increasing your relationship with God but also increasing your joy with the resources that you have to find out more about this which, again, the more you know about it, the more finder to have understand is how I feel like having been on the show now for a period of time on you know the status fun and and so you can find out about that.

It Cardinal guy.com you can get Hans's book the complete cargo guide to planning for and living in retirement. The workbook that goes to that by simply emailing Hans.

We got the. The seven ways chapters that are there we don't watch that way we want to have fun in the way you have fun knowledge of thinking we get so much more coming up. Hans and I would love to take our show on the road to your church, Sunday school, Christian or civic group.

Here's a chance for you to advance the kingdom through financial resources and leveraging Hans expertise and qualified charitable contributions veterans aid and attendance, higher rates of security and care and long-term care.

Just go to Cardinal guy.com and contact Tom to schedule a live recording of finishing well at your church Christian or civic group. Contact Tom to Cardinal guy.com that's Cardinal guide.com welcome back to finishing well is certified financial planner Hans Schild today show her talking market risk for such a time as this, obviously, and Hans when we left our hero IEEE was given an opportunity to really look at his goals and invest yeah I mean II asked this of my older clients that are in late retirement is very kind and know the answer to this thing the words to the break before the break we are talking about Woody, what are you going to do has a gonna make you feel hesitant to change your life if you had a windfall of $100,000, presumably from a stock market sale of stock market run-up and then you subsequently get an extra hundred thousand dollars what would you do and then we which we talked about that a bit and then we had just moved on to the contrary question would say that if you had your money invested maybe with me. You know, maybe not. Or if were talking to somebody in their 6065.

Gonna look forward and were going to talk about how Mckenna situation you can be inward looking down the road and were asking if you lost $100,000. How would that change your life at 80 years old and I just say from experience.

He causes a lot of worry thanks to people are well aware of the fact that they can't really earn much more because are not working in the end of their life and their estate, and all I can the staff it's it's very troublesome. But I ask you how's I can change your life and there's a few people, not many that just sale very little, you know that's Mr. big box that he has a lot of money and knows the risk you change a question for him yet yeah I did, I did have come later and that what what most people just say is we have to cut back and you know that's that they don't say that with a lot of joy when there looking your perspective there. That's what people are saying when they've lost a lot of money in the market in their 80 right now and they lost it back in March and there were and so you know what other people say I would have an investment like that and then many people say I don't know what I do what I do.

I don't know how I feel obviously it's not good. You know all many times get marching orders.

It might if I can lose $100,000. I want you to change something about which different so in it because of the summary of that whole story is the worry and pain of loss far outweighs the joy of a windfall for people in their 70s and 80s.

You just need to think about is is you comparing one against the other question is, is that Germany gets in joy of my stocks are up and things you can feel good but what you really get to do with and then the contrary, if you lost $100,000. What second entity and it just is just fork for a lot of folks in retirement and approaching late retirement or even early retirement. I was thinking about late retirement. I know I am right now minute cyst in your mind. I can just tell you this is a fact is that there's got to be some joy there but it really doesn't flow people's boat. I am but I love what you do to the question because you can tell that Mr. big, Betsy change it to a million rather hundred bow you to set on here I vary the not the hundred thousand dollar number as low as $10,000 for somebody that has a no hundred thousand dollars in savings are that kind of amount and then I'll raise it to his eyes. $1 million for the multimillionaires that I have. You can be more than just a multimillionaire, but you can before $500,000.

I can make a 500,000 so I vary the number where I know it's gonna bring them some level of joy and and so as honestly as we are preparing to show I was really trying to reconcile where was at the story of aminos with with what this was. And then� Honestly gave me insight like oh what I'm doing with this resource that he's given me is really fun to me as I out as I allot those resources in ways that are really where I see they are to benefit the church benefit. My family to fit the kingdom, but there's ways to do that where there still prospering but there's not this huge risk that would possibly cause a problem in that in mice. If that in itself is fun with wisdom because there's all these urban legends, which I think really we would be a good time to maybe talk about one or two of those that get in the way of our joy here with us. What will yeah a people you know it. People have all kinds of rationale. If we want to call it that for ways they try to make themselves feel good. They try to massage her eagerly say what you know what goes down must come up well maybe you know Emily just it probably will when you know what goes down could go down more and then you could have another hundred thousand dollar loss to to be in in in so didn't get it. There's a lot of urban legends were were people at 6065 that have a hunk of money in retirement account and now I gotta live on it. The rest of their life.

They feel an obligation to earn Mckenna back to the Mina story you know they they feel like they honor earn 7 to 10% on that money or some number and a lot of times I don't have any math basis during market basis for coming up with 7% of the 10% unamused 10 in you know that those are kind of things you're talking about with urban legends.

People have all these burdens are carrying around. And then there looking for somebody like me that they can trust this gonna really pick those stocks well and this can earn that number and I tell you, regardless of what the number is it doesn't happen in nice neat little patterns like 7% every year for 20 years in Munich is out because down. It was all over the place. It depends on what you're invested in. That's all the stuff that we calculate with risk. So what I want people to get out of this show is you are taking some risk with your money. Whether you're in the stock market are not okay and if you're in the stock market with party or money or all your money then there's all varying levels of risk that you can be taken. This is something that we can actually quantify and calculate iMac and try to teach people that on the show Norm again tried teaching that I didn't turn teaching that in both my books.

I simply just want to give you the basics and have you leave with an understanding that you have to take risk to make money and you need to make money off of your investments so when I'm thinking is is you may consider something other than just stocks okay right within a portfolio you can buy bonds and that's going to lower your risk and make it more moderate. But even bonds got there issues in today's environment, especially the low interest rate environment that were in mean it did you know were were Jesus was talking in the story of mine is going to put in the bank at least tighter interest. The bank same payments these days, but still it's something so you taking risks, and what what I want to propose is that you would look at annuities and if you look at life insurance for party or money and I think that your 80-year-old self. If you you're looking forward to that would probably agree with me because what most people want when they're in late retirement mid retirement late retirement is they don't want to get some big happy gigantic return or windfall on their money. They just want to know that they're going to be all right. They want to enjoy the grandkids maybe travel a little bit. Although my people age you really want to travel that much. Maybe they want to travel to see their grandkids or they want their grandkids to their kids to travel to see them take syndications they want to be active in the church maybe go on some mission trips or or fund some of the younger people going on the mission trips work and you know you people want a piece of mine and finish well right so yeah so we don't end up put the burden on our kids through our healthcare problems. We don't end up not leaving any kind of a statement by the same token, you know, we do all this in in using God as a plan and that that that the thing that I'm discovering is him gone on this journey with Hans is that that adventure in itself is full of joy as it is, you begin to really see some of the opportunities are there to make an impact with your life on the kingdom from the standpoint of these resources. Like how cool is that unite two clients come to mind that her people in 2019.

You know, we walked in through this problem. They they retired in 2019, and we were doing financial planning form very much the whole year and we really walking through the wrist thing and both of them decided that they really didn't want the in stocks.

Okay mean they just, and both of them told us at some point that they didn't want annuities either but once they are really able to see that there's all types of annuities for starters when I just say the word annuity is so many different types and what both of them did the one lady had a good bit of money in IRAs and then in her pension or her 401(k) at her work up pretty much invested in stocks and she moved most of that to annuities that she's not drawn on right now. What are in more than one annuity so that she doesn't have to turn all the income streams at the same time and when you turn on income with a certain type of annuity you have a guarantee from the insurance company if you lived 100 or beyond. You still going to be getting a check even if there is not the money in the account to pay for is called insurance. The other lady just had it all and 401(k) zealots not finish up with this lady had she left her money. Where was I became into March. I'm guessing yet that he that she would have as many called us up both on called us up as we get to the end of the show here silent time for the secondly but it just as you, but she really called Tom and them I did as Tom did all the work with her getting all the stuff moved in place properly in both of these people were just filled with joy, having a just in the sense that the other they didn't lose anything when actually the second lady did because we are managing about 22% of her money, but we have that invested very conservatively, so the amount she lost on that was much less than the market as a whole, but most of the money is in these annuities and didn't go down all she sold the right time and that was pure luck physicist you should decide to retire but still it's it's kind of you know it is an interesting time in life yeah and we want to finish well and one things we know is that to to study the stuff whether you actually hire Hans or you don't you Chiron's of the information is quite valuable as in the book. It's in the workbook. It's all these things, but the reason we do this show and I know Hans is hard it is for you to enjoy this project to finish well in your life to be not the that the server that's it now scared to death and afraid of the master meeting Jesus but Sandia's game is deaf man let's go have some fun madman and and do it in a measure of the kingdom and so those are available at Cardinal guy.

Don't forget the guide. After Cardinal Cardinal guy.com and it corresponds with the complete Cardinal guide the plan for living retirement.

Is there as well as the PDF of the chapters that we talked about today, which is to be again retirement income. Listen during this pandemic.

All the sick Cardinal working from home so were dealing with clients over the phone, which we do a lot of that. Anyhow, were in all 50 states and the District of Columbia. So if you have friends or relatives that are outside where the radio goes run a podcast but were here to serve and so if you're if you're inside and you know you want to get started on some your retirement plan, just give us a call. Cardinal guy.com, telephone numbers, send us a message will be happy to talk with you and help you in any way we can. We are clearly admit we really are investing in you finishing well. Thanks for listening. We hope you enjoyed finishing well brought you by Cardinal guy.com visit Cardinal guy.com for free downloads of the show previous shows on topics such as Social Security, Medicare and IRAs, long-term care and life insurance, investments and taxes as well as cons best-selling book, the complete Cardinal guide to planning for and living in retirement and the workbook once again for dozens of free resources past shows what you get.

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