Labor Department, United States, Department Of Labor discussed on God Is Just a Prayer Away
And change. You need to be able to stay with it. Political science politics. How this is the United States. Government is fashioned. You can't just Stop learning ethics is certainly the case. Those fundamental values say the same. They don't shift. They're not relative. But the situations change And you have to be able to identify those core values that are so critically important. It'll going to guide all of us, and I just remember it so clearly where all these teachers and professors would say, You know, this is a life. Long. Educational journey. You don't just step out here, get a diploma, and that's it. You just go dumb. And you stop reading. You Stop researching you. Stop thinking And now, from now on, you're just going to be told what to think. I realized how important that concept is. And it's so great when I get calls from my listeners who are in that same situation, and they're thinking all the time. They're evolving. Nothing static. We're in a culture that is, brother. You think about 20 years ago who had a cell phone 20 years ago. Actually pay phones You carry change around so that you could make a call on a pay phone. I mean, it seems so quaint now. Just extraordinarily different. The world is shifted. And with technology has come a whole different perception of how the economy works. But what hasn't changed? I'll tell you what has not changed and this is the conversation I'm having with people and I have had for 25 years, and that is In retirement. They want stability. They want and need that stability, especially when it comes to money. You know, they're looking at This extraordinarily volatile stock market where it's up four and 5 600 points and Paul and it's so exciting. This's great. We're recovering and you know this is going to be Dynamite, and then all of a sudden, it's down. 300 then down 500. It's like Oh, wait a minute. It's a correction. Always going to come back. It's going to go down going to come back. A lot of economists are saying this is going to be a deep correction, and if it's a deep correction You better have the time on your side toe hang in there. And many people do. Many people do and that's great. That's fine. For the folks that are calling me you're saying, Look, I'm at the short end of this. I'm going to be looking at a couple of years down the road and I'm going to be retiring. If this market really does take a major correction. Because the American economy stalls because we go into a second wave with Corona virus. And why would we go into a second? Phase of Corona virus Well, Millions of kids are going back to school. Millions of kids are going back to college. And we're all going inside the outside, where it's more difficult to transmit this because of nice weather. We're all outside. We're all going inside's getting colder. Flu season is going to show up. It's going to coincide with that. They don't know how this is going to play out that the bottom line is There's again we're back to the reality of having the stock market linked realistically to the actual economy, and that's where people are coming to me and saying Look You've been talking about indexing to the market, but only on the upside so that if the market does, in fact have a major correction in the next three months or six months or a year. I'm protected. And yet I can still look at lifetime income streams. That are going to be protected. Can we do that? Yes. Yes, we can. As a matter of fact, as I mentioned last week. This is something That even the Labor Department, the United States Labor Department. Has been focusing in on For the last few years, and that is all of these 401 case in IRAs in an upmarket and people contributing and companies contributing, you know, they've been growing nicely with the problem comes in. People have no earthly idea. No realistic planning. Cruel. To know how that translates out into an income for retirement. If somebody has 200,000 in there, IRA or for a one K or 1,000,000 What does that mean? In terms of a lifetime income. People need to know. And so the Labor Department is actually promulgating rules right now, At least they're having public debate about it, asking administrators to give the participants a realistic projection off what they're Lifetime income would be it's certain ages. The problem there is it's on ly a projection and it's only a guess. As the administrators were quick to say and tell the Labor Department look will be happy to do that. We can do that, but we're just basing on projections. We really don't have any thing that's guaranteed on. What we're gonna do is we're gonna look out for the last 10 years of the stock market. Then you know a Let's take a look at that. Well if the stock market's been Jim Dandy for the last 10 years Which it has What's that got to do with the next 10 years and not have anything to do with the next 10 years? And that's the problem. That's that instability. That's that guesswork, and people got caught up in that in 2000 recession in 2008 recession and now we're 12 years down the road and we're seeing instability in the markets. In which is flashing red for many people that are coming to me, and they're going, OK, I'm going to move part of my 401 k or all of my 401 k. I get variations on it. You know, I have a gentleman the other day that said, I would like to move. 40% of my IRA. I don't know how he came up with 40% Don't make any difference. That was his comfort zone. So we're going to move 40% over in which we're gonna guarantee certain things we're goingto protect on the bottom side of the market just completely collapses and you know, I think about him today. I'm sitting here looking at the stock market as I'm doing the show, and it's down 450 points Now they make fully recover by the end of the day. But the bottom line is I know that send shivers down his spine, and that's exactly what I want to avoid. I don't want my clients bring in their hands and worrying about their money evaporating because of something they have no control over. That's exactly why I've been doing indexed accounts for 25 years. It in fact, protects the money. It just does. There's a contract there. There's a financial institution has stepped in and said Look, if the market goes up, we're gonna lock in index gains along the way. It could be once a year could be every two years could be every three years. Regardless, it doesn't make any difference. We have choices there. We can pick whatever we want, but it really makes no difference online care about is we're gonna lock in gains along the way. But when the market and in this situation is not if it's when The market makes this major correction. I'm protected. Especially in retirement. That's where the Department of Labor can only go so far, and they're asking folks that are the administrators of these 401 case and IRAs to give people a reasonable set. Of income valuations, but they realize they're just guesses. They realize they're just based on past performance, and there's no way they could guarantee anything in the future. And it's it does give people a starting point, and I'm a big believer in that..