JOE, Lincoln, Paul discussed on Kowal Investment Show

Automatic TRANSCRIPT

And don't worry about putting in the plan? Well, it becomes a pretty, you know, substantial amount of Joe called his mailbox and come on, call reliable and come on. We both called two different things the same, you know, but that dependable Lincoln that's coming in every single month. But it's certainly not your retirement plan in complete. That's not enough to get right most of it. I'm just for most of us. It's not gonna be enough to maintain my quality of life that I, but it reduces your dependency on the portfolio. Correct. Okay, I'm gonna get to feel that that rolls into our next, um Our next item is Have a cash flow analysis done by a professional, so we call it our retirement cash flow. It's something that is is a centerpiece of our planning. And you really need to do that. So you're assessing your assets. I'll call liabilities too. We didn't talk about that. Hopefully, you know, those aren't too high. But if they are, you have to put that in the plan on Ben Assessing your income. And then putting that all together to answer the question. Do you have enough income to provide her assets to provide the income you need throughout your whole retirement? And so we do a deep dive in that analysis and come out with the cash flow for your retirement? And do we feel confident that you have enough? And how do we know that while we stress tested a few ways We used the money, Carlo Simulation to stress test the real world. We know the market isn't gonna go up 5% every year. So what Monte Carlo does is it Does 1000 different trials on your plan, you know, predicting what if the market goes up for the next 10 years, but then drops for 20? What if it goes up for 20, but then stays flat for another 10, you know, and it spits back of probability of success, so that's one way to stress test the portfolio. The other way we stress tested is we assume a 2008 type of event is gonna happen Your first year of retirement the first year you need to start taking assets. Excuse me Income off of those assets. You assume Worst case scenario. Worst case scenario, so we we plan assuming the worst but hoping for the best that we want you To be prepared for a 2008 event, even though it's it's not highly probable that that's gonna happen if it does. You're prepared, and you don't have to change your lifestyle and retirement. You know, we have side is assuming everything's gonna be peachy. And we're gonna be in the best market ever. And then things go south and we're not ready, right? Right? Yeah, In the nice part about having that plan in place and is it's not just the one stop shop for you. Look at it. Okay, I can retire. Um We're done. Uh, that's a plan you go back to for other decision making. Uh, I don't know if you're looking at Social Security, your pension. The other thing Looking at the plan is we talked a little bit earlier in the show about the market when the market Was down in March and clients were, you know? Hey, Should I do something? I should I should I sell. Should I go to cash and having that plan in place? You can go back to it and say Hey, We planned for this. We stress test that these types of scenarios and you're fine. You don't want to the emotions to get the better of us. No, but I was there. I was with everybody else in March, looking at my four every day. The Dow's down Whatever. Remember the 5000 point drop in a day or whatever. Oh, my God! My goodness. The next day I checked. I'm freaking out. What? The plan. Go to Paul. Hey, Paul, look at the plan. You're gonna be all right. Stop watching these guys on TV because they're gonna tell you that You know the dollar's going to zero right? Water cooler in the kitchen. Everybody is freaking out. I just lost 80 80 grand in one day. What do you have any? Oh, what if you had just retired, and we had a I had a number of clients that I worked with that had just retired in January. February and we had a conversation and we took him right back to that cash flow analysis and said. Already. We already prepared for this. Yeah, we prepared Now We don't think the market is going to be down 25 30% at the end of this year, So we're saying and march and nobody was sloppy. It was down. No, but if it is We can get through this. We've already planned for this to happen. That's one of the keys in working with us is in working with a professional is going through that worst case scenario and planning that out and that's you know, one of the things that separates us. Uh, thank you. Logically. I like that approach. You know, Um, I know we gotta sneak in a break here in a minute real quickly. We're going to get to the sexy segment. In fact, I think, Spitz that's your deal. Today. You guys air have a pop quiz for me. I failed miserably. Last time you're on the show, Joe. Still, Aaron Spitzer, we called the still spit show are with us today from the Cowell Investment group. On Wi sent to reach out and talk about your retirement plan. We haven't even mentioned your locations. Let's quickly go over your main hub. Walkinshaw World Headquarters. Yes. In Walker Shot world headquartered in Walker Shaw and their beautiful office in Port Washington overlooking the harbor. Yeah, I love going up. Ozaki County Port Washington Mt Pleasant View of Highway 20 and I'm 94 is excellent. So is that justice? Good? Yes, I tell you what way. We remodeled that location, and it's beautiful. Now you got to go down the other received location recently remodeled. The newest location is.

Coming up next