Mr Chris Payne, United States, Bob Son discussed on No Payne, No Gain
And, of course, that's P ay, why N E and Bob and I want to make sure that you're getting the most practical common says advice right now, and that's why we put together our latest guy. Do we give you five ways? Save on taxes in 2025 different strategies we use at our firm paying capital management that you can use easy to understand. You can download it for free. Simply text the word bullish. That's Bush. B U L L s h 21,000. That's the word bullish 2 to 1000. We give you five ways and save on taxes. Money saved in taxes, just a screen. Any money could make invested. We'll give you a simple down those who can apply to your own portfolio. Five ways to save on taxes. Simply text the word bullish to 21,000. That's the word bullish 21,000. And now we have a very, very special guests on the show. My brother Bob son, Financial advisor at paying capital Management, Mr Chris Payne. You worked on a case recently. Why do you break it down for us? And tell us how you get this couple on their path to financial independence? You know, you know a brother like the one thing that I loved it to talk about his income, like, especially in retirement incomes. So important Now we say you get a better outcome with income. Sure, people are tired of hearing me say that, but it's true. And the scariest word I think in retirement planning is the word guaranteed. And the reason I say that is because we're not allowed to say that we can't guarantee anything. But there is this 11 particular area that people buy into, and that's that's thes things called annuities in particular variable annuities where a lot of times they're sold is Thies guaranteed income flows. But you know, really, when you break it down It's not as good as it appears. And that's why I want to talk a little bit about today. So, Chris, I mean, what you're saying is that the you can't say guaranteed if it's a U. S government bond write anything issued by the US government. Could be guaranteed. But anything else is guaranteed by a company. So you could say, Well, you know, I bought a bond from Horizon. It's contractually guaranteed by Verizon. That's correct, right? That's true. Contractually guaranteed is the operative word there versus being guaranteed by the full faith and credit United States government so big difference there. I mean, what if you know what if horizon would go out of business? What happens to the bond? Then she company can go out of business. So when you hear guaranteed take it with a gigantic black assault or green assault. I would say gigantic block of salt. Yes. So, Chris, I'm assuming this couple looking at the analysis you're on. They do have an annuity and I'm curious. What was the reason that made them say Okay, I want to sit down. I want to get a financial plan done and actually came to you. To finally get their financials in order. Well, the big driver for that ride was that they have a lot of money in a lot of different places. I mean, it's kind of like that change that you find in the couch. I mean, they have money and every possible financial institution that you can think of And they never really sat down and did a full, comprehensive financial plan. Everything was just kind of driven by. You know these proverbial sales people knocking on the door saying, Hey, I could do it better I can get into you this. That and the other thing. And they were just really concerned with one consolidation into making sure that they're on the right track for retirement that they would have enough income once they finally settled in. Yeah, they have 15 different accounts. Oh, my God. I want to see their cats Bill every year. That's just like I would go insane if I had that many accounts and I had to account for them. Yeah, I mean, it's really like if you think about is a person that has attention deficit disorder. It's definitely what I would call it A T d portfolio from my perspective. So, Kris, you know I'm all I'm a big believer in diversification. You should have all your eyes, one basket, but it looks like to me. They have the same eggs in every basket. Yeah, Dad, You know what that's and I think you'll agree. That's not atypical of like 99.9% of the people that walk through our door. Most their money's really concentrated into areas, primarily large cap US stocks and nowadays, guess what I see more often than not. And what would that be? Large cap growth? Everybody was growth, textiles, baby Techstocks can't get enough. Yeah, exactly. It's like it's all about the tech stocks, right? Like I look at my portfolio of people call me up. Hey, Chris, you know, Should we buy more of that growth? That's what's going off the most. Well, last time I checked You should always buy what's down and take profits on what's doing well. So in this race with a surprised to find out that they were so aggressively invested because this is a for their ages is a portfolio that's extremely aggressive. I just hope the market keeps going up forever. Blue. They're not dead. They actually weren't surprised about the level of risk they were taking. That was definitely something they pointed out in the very beginning. It's kind of like I know I'm taking a lot of risk. I know I need to be more diversified. So they knew that right up front. I think the thing that really shocked them. The most was thie annuity portion. They own a variable annuity with with the company and they were shocked to find out what amount of fees they were paying. And actually, Alan was structured. Oh, my God, Chris, I'm looking to spread she put together They're paying 4% a year. That's insane. And I bet this couple has no idea they're paying that cause the annuity company is so so good hiding fees. Like what they're best at well, they had no idea. You know the thing that's really staggering about that is to get a 4% return. Get 4% on anything is pretty darn good. So I mean, if you can say 4% and just fees alone, I mean, that's 4% almost automatic return going back into your portfolio. So turns out Chris that the insurance company's guaranteed to retire because they're getting all the return. This investors kind of out there on a limb. What's the old saying that it's the best of three? The broker made money? The company made money the client did, but two out of three ain't bad. Yeah, that's it's awful. It's just awful. So what about income? I mean, they have They have enough income to achieve their goals. And what did you do to fix that? Well, you know, just one of the things I noticed right off the bat. You mentioning income is right now, you know their portfolios on Ly generating like 10 grand a year and income. If they make some changes take a little bit less risk. Diversify a little bit more. They can increase that income by almost threefold, which you know, if you look at everything that they're gonna have coming in from pensions, Social Security that's basically going to cover their lifestyle in retirement, which is only a few years away. I love that into your point, Chris Going back full circle. You get better outcome with income If the market's going up or down there getting that income every year, and it's like 30 grand. We factor in what you're saving on the annuity. And just that.