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On The Money Puzzle Podcast, we will be discussing the frequently made mistakes when it comes to planning with doing it on your own. Having a good solid plan is a huge part of the success of your financial puzzle. Seeking professional help is a great first start even if you don’t have all the information. DIY planning can be very overwhelming and many mistakes can be made. Even if you have made financial mistakes in the past that doesn’t mean you can’t reach your financial goals with a proper plan. Just having a goal for your financial future isn’t enough, you have to know the steps to get there.

Speaker 1: [00:00:04] Hi, welcome to the money puzzle. Hi, Brian. Chris, and that is Eric. And we’re this is really part two. It’s not a series, but it’s really part two where we started last week and this is sort of DIY. We’re calling it DIY mistakes. And so last week, we talked about the investments and just common mistakes we see folks make when it comes to their investment portfolios. And this week, we’re generally talking about planning mistakes. So that’s a broad range, I know. But if you watch last week’s show, if you didn’t catch it, go back and watch it. If you watched it last week, you know what we’re going to reference and that’s talking about just your overall puzzle. If you guys know if you watch us the last couple of weeks, we rebranded this podcast to the money puzzle. The money puzzles exactly what we say it is. It’s right. It’s a it’s a bunch of pieces of that make up your puzzle and they can range anywhere from financial planning to investments to risk. They’re all over the wall. Actually, I think, Mr. Producer, can you throw some of those pictures up there for us? So you can see on the wall we got their Social Security, pensions, wills trusts, all that good stuff. But that’s really what makes up your money puzzle or your puzzle. But just know that depending on what phase of life you’re in, it can change. So if you’re in the accumulation phase of life, your puzzle may be may be made one particular way. When you transition to the income phase of life, your puzzle can change. And so what we thought we would do is start to run a series of shows talking about the specific pieces of a puzzle, right? And so this week we’re talking about general planning, and we’re going to talk about some of the specific pieces of the puzzle in this general planning. But just overall, some of the mistakes that we come see folks make when they walk in the door. So just a disclaimer, that’s when they’re they’re not making the mistakes after they become a client. It’s only before they become a client. No, I mean, in all reality, we see existing clients that will do something without seeking our advice and it winds up not being in their benefit. I mean, we see that a lot. Sure, not a lot, but we do see it. And so sometimes we go Now, wait a minute, you should have called because we would have walked you through there. That’s why we do a financial plan, because we can show you how that’s going to impact you over the next one, three, five and 10 years until they’re like, OK, I get what you’re talking about now. And so they’ll they’ll call us. But with that being said, sort of first topic, which we see a lot of is what [00:02:24][140.2]

Speaker 2: [00:02:25] not having a plan. [00:02:26][0.8]

Speaker 1: [00:02:26] There you go, not having it at all. [00:02:27][1.0]

Speaker 2: [00:02:28] And what you see, here’s what we mean by not having a plan. You see people that they get some of the major things Social Security, which is a passion of Eric’s. You see people talking about taking Social Security, but they’re thinking about it on an island. They don’t think about the way that your Social Security claiming decisions are going to impact everything else. They say, Well, I can claim at 62, therefore I should, because. And there’s a there’s a break even point that there’s calculators all over the internet, and that’s the only part they look at, but they don’t look at all the other parts of the picture. That’s what I would call not having a plan. You’re just winging it. You’re praying that you get it right. And the problem with that is you’re not going to know whether you were successful with your failure to have a plan until it’s too late. Yeah. [00:03:23][54.9]

Speaker 3: [00:03:23] Yeah. Or not knowing why you’re doing something so you know, to tie back to Social Security, specifically taking it 62. Why are you taking it? 62 just because you’re eligible, you know, or why are you waiting until 70? While when to max it out? Why do you need to max it out? You know what’s happening up until the time when you actually turn 70? And how much are you drawing down on your investments? And so it’s a it’s a huge, huge piece of your puzzle. But when you don’t know the why, when you don’t have the plan or the understanding about why you’re making certain decisions, that means you don’t have a plan. And so that’s a huge problem. It’s a huge risk. It’s a huge, huge risk that you’re taking upon yourself. And, you know, especially when you’re messing with your retirement plan, that’s that’s something you really can’t afford to get wrong. [00:04:05][41.4]

Speaker 1: [00:04:06] Yeah, I’ll add one piece to the Social Security piece that we’ve been talking about. Now we talk about Social Security, but we really look at it in the form of this puzzle. We really look at it as a piece of the puzzle. OK, so the interesting thing is we have we’ve released our our background to our podcast and there’s actually a couple of pieces on the wall. We’ve had a couple of comments. People have replied back and said, Well, you’ve got a piece that’s out of place because we actually have a wall piece that are a core edge piece in an NPS or an edge piece that actually is not quite fitting in the right way. Why is it that way? Well, you know, you might think, well, whoever designed it made a mistake. No, they didn’t. The reason we did that is because we see a lot of folks who come in that just like Eric and Chris are on that. They selected to take Social Security at 62. But in all reality and we do their plan, it’s like, why did you take it at 62, you didn’t even need to do that. You should have waited till age of 67 or whatever and use this. Your income source or if you probably do it the right way, you put you plant your seed at around 50 55 and you’ve got you can reap the harvest at, let’s say, 60 to 65 years old and delay your Social Security benefits. But the only reason why you know how to do that is because you’ve sat down with the professional and you allow them to put their puzzle together, allowed them to put your puzzle together if I can get that out right? To see how that Social Security piece fits in your overall puzzle, and I’ll tell you it, you can’t make that decision in a vacuum. You can’t say, Well, you know, I’ll make it six because my neighbor did it or whatever the case is, it has to be specific to your specific situation. So I just can’t stress enough. All right. What about taxes? What do you guys think about taxes? [00:05:46][100.8]

Speaker 3: [00:05:47] So also, it’s interesting that you were talking about the, you know, puzzle piece that didn’t fit on our wall because that puzzle piece actually is taxes. Yeah. You have to look at the puzzle piece. It doesn’t quite fit in. You didn’t try to make that transition, but it was pretty good. Yeah. So it’s kind of I just happened to look over, though there it is now. So, so many people think when you think about an investment plan or retirement plan, everyone usually tends to be very focused on the investments. Yeah, very obviously a very important part of your retirement plan. But really, what people do not think about or neglect to think about for the most part is taxes. Taxes have a much bigger effect on your retirement plan than really the investments that you’ve got. Most people think, Oh, you know, my biggest retirement expense is going to be like health care or housing or something like that. Now it’s this taxes that taxes are the biggest expense you have in your lifetime to the biggest expense that you have in your retirement as well. Taxes don’t go away. You’re going to have to pay taxes until the day that you die. And then even after you die, you going to have to pay. They’re going to have some taxes as well. That’s that’s part of the estate planning piece of your puzzle, right? But we talked about in the last episode and this maybe you think as you were talking about, you know, common advice out there, planning mistakes that people made and people say, Oh, contribute to this account or that account, why use one specific example to extrapolate on taxes a little bit more? One of the most common things I hear is, Oh, I’m maxing out my 401k at work. Well, one, why are you doing that? Well, because I was told to do that. That’s kind of the conventional wisdom out there. OK, not horrible advice. It’s good that you’re saving, but as it relates to taxes, you’re actually causing a really big headache on the back end of your retirement plan. If you’re frontloading your pretax retirement accounts and not really building any other type of accounts outside of that, you’re not focused on the tax portion. You know the tax piece of your puzzle, so to speak. So when you neglect to focus on taxes within a retirement plan, you can actually create a massive tax liability later on down the look down the road. You know that you’re not thinking about today. [00:07:50][123.5]

Speaker 2: [00:07:51] Yeah, I would go on to the same thing. I’ve had this example that I’ve used with people. You don’t realize how big the burden is, that tax burden that’s coming when all of your money was in a pretax 401k. You know, people say, Well, I’m a millionaire now. Not really. You’re going to take out 25, 30 percent of that to pay taxes. I mean, realistically, so really, you’ve only got maybe 700 750. When you put it in that context, people start to get that. I would also say that the diversification that we talk about in investments that pours over into taxes to you need to be diverse across different types of taxable accounts, their tax in different ways traditional versus Roth versus non qualified, for example, or taxable accounts, because I know what the tax code is now. I don’t know what it’s going to be in five years, much less in twenty five years. Right. So if you can position yourself where you have lots of different levers to pull based on what the tax code is, then you can minimize that tax burden overall. [00:08:58][66.8]

Speaker 3: [00:08:59] Well, I talk about a three legged stool a lot with clients, and you want to kind of build up each leg of the stool in correlation with the others. If you just have one leg, that’s longer than the others, that that eliminates a few things but eliminates control in retirement. It eliminates options. I’ll have options. I’m a huge fan of options, but it eliminates the ability for you to be able to control your tax liability to a further degree in retirement if all of your money is sitting in a pretax 401k. Well, that’s great. You did a great job saving, you know. Good for you, but you only have one source of income in every dollar that comes out of that source of income is going to be fully taxed because you aren’t doing tax preparation or tax planning right throughout your lifetime when you could still control those things. [00:09:42][43.1]

Speaker 2: [00:09:43] Taxes are not something that you deal with in April every year. It’s something that you should be dealing with all year long as part of your plan, and you should be looking at paying the minimum amount of taxes possible over a lifetime, not over a specific year. And that’s where you really have to have a plan to try to attack that. [00:10:01][18.2]

Speaker 1: [00:10:01] Yeah, that’s just a point of. Clarification, Eric’s talking about options having multiple choices, not options contracts I know we’re in. Oh yeah. Good point. Just wanted to clarify. He said Love options. OK, just clarify options, meaning several choices. [00:10:15][13.4]

Speaker 2: [00:10:15] Choices choices [00:10:16][0.4]

Speaker 3: [00:10:16] is a better [00:10:17][1.2]

Speaker 1: [00:10:18] word for plus we need. We’re not Typekit options contracts, we promise. But the other thing I’ll add to that is and this is sort of going back to seek the advice of a professional, some sort of blend these two together. When it comes to taxes, what we often find is that clients are seeking the advice tax advice from tax professionals, right? So they go to their tax preparer, a CPA, and they’re saying, Hey, what should I do? CPAs buy? But just what they do, they have one goal and that is to to make sure that you pay the least amount of tax for that particular given year. And that’s the previous tax year, [00:10:53][35.4]

Speaker 2: [00:10:54] because then you’ll hire them again next year. Right. [00:10:56][1.9]

Speaker 1: [00:10:56] Well, that’s that’s what they’re that’s that’s their job, what their job is. And then there’s some other jobs, too. But what often happens is what they don’t take in perspective. We see this a lot is what is that financial decision mean to you from a tax perspective this year? But how what does it look like to you five, 10, 15 years down the road? Now let me give an example. So my mother’s generation, let’s say my mother’s generation to my generation, OK? My mother’s generation, and let’s say 65 and older, have maybe not had access to a 401k their entire careers. And even when they first got them, they were really only putting in just a few percent of their overall salary. So they didn’t really amass these huge 401ks. Well, we really if you look at anybody 65, 70 years old, they don’t have these big giant 401ks. They just don’t because they just didn’t, you know, in a lot of them, they weren’t [00:11:51][54.6]

Speaker 2: [00:11:51] contributing as much to it for as [00:11:52][1.2]

Speaker 1: [00:11:52] long. Right. And a lot of it had to do with pensions, right? So these people had pensions and things like that. But now what we’re seeing is the generation. So my generation we’ve had access to, for one case, our entire career. So when we started working, you had access to affordable care. Well, we always taught put in at least 10 percent, at least 15 percent. And then if you can max it out. So we’ve had a lot of folks that are started that have over the course of their career, maxed out for old case. Now that sounds great. Just what Eric was saying. That sounds awesome and you’re saver, and that’s wonderful. But again, you go back to the three legged stool he’s talking about. What we find is that one stool leg is gigantic, and by the time you’re 70 years old, it’s it’s a beast that all of a sudden you have problems because we do the planning piece of it, which again, going back to this the puzzle where should your money be going? Where should your money be allocated? And it’s not always to your four, OK? The reason I say that is because we look at sort of our generation, especially ones that have maxed out for one case, and you could have several million dollars in your 401k. And the required minimum distribution when you get into that phase is several hundred thousand dollars. Yeah, right. It can be hundreds of thousands in some cases. And so you’re talking about a tax burden, that’s a massive burden that you’re going to be that you’re going be handed. So that is not always the best advice to say, you know, go to my CPA. What should I do? Well, maxed out your four, OK, well, let’s do a plan first. And that’s where we really take upon ourselves to make sure that we work with the client’s tax preparer every year. We have a specifically we have a meeting designed at the end of the year where we have conversations with tax payers to say what is in the client’s passengers because we do some planning sometimes and we’ll show the client, look, you’re going to have one to three million dollars in your 401K, you know, at the end of your projected at the end of your career. And by the way, your R&D is four or five hundred thousand dollars. You’re telling us you only need one hundred thousand, but yet you’re going to be forced to take out three or four or five hundred thousand dollars and pay taxes. That’s exactly right and probably a much higher tax bracket than what you are now. So. So it can make sense to not put money or for, OK, that’s a puzzle piece. It’s a 401K. How does it fit into my puzzle? As a matter of fact, I don’t put hardly much in my form. I just don’t. I diversify out. I’m still building the other legs of the stool, so I just choose not to do that because I’ve done my plan. I’m like, OK, I’m I need to start filling up these other buckets and stopped all of that one. So we do give a lot of advice that, you know, stop putting money in your pocket or reduce it down to the minimum so you get the match or something. [00:14:29][157.2]

Speaker 2: [00:14:30] But but you know, we go back to what we were talking about in the last episode was what you should do. There is unique to you. You can’t just look at that one piece of advice and go, That’s what works for me. You have to get the plan the the puzzle put together for your puzzle, because what’s right for somebody else is not going to be the right thing for you. [00:14:51][21.5]

Speaker 1: [00:14:52] Yeah. So we kind of beat that one up anyway. Hey, real quick. Our phone number five OH two two zero zero five two one zero you’ll get Wendy on the phone. She can schedule time for you to come in and meet with. Any of us and we have another partner, Aaron. You can see him on the podcast as well, he’s not here today like he’s driving around southern Indiana right now anyway. But if you’ve got any questions about any mistakes that you think you’ve made or you have questions about how your Social Security will fit into your puzzle or you know how your investment piece fits into your puzzle, or should you be contributing to your 401k? Or you know, what is your projection of your 4K look like when you’re 70 or 65 years old and you want to come in and meet with us? Absolutely do that. We’d be happy to to, you know, to do sort of a complimentary plan for you to show you what that could look like. And then, you know, that will help you start to put your puzzle together for you. And that’s really why we changed the name of the podcast to the money puzzle. Because that’s what it is. It is a puzzle, and sometimes you need help making sure that you have all the right pieces and the pieces sort of fit together. That’s really what we’re here to do. So let’s move on to risk. So we see this quite a bit. What do you guys see mistakes when it comes to risk risk? And we’re talking about overall risk, not just investment portfolio risk, its overall risk? [00:16:05][73.1]

Speaker 2: [00:16:06] Well, I’ll start with the investment risk part. You see people, they come in and they say, Well, I want to get the best return possible. OK. I mean, that makes sense until you look at the overall plan. Why would you take on more investment risk, for example, than what is necessary to accomplish the goal? So that’s where developing the goal should come before developing the investment strategy. Why would you take on this much risk when you only need this much? If you take on that much and something goes wrong, the whole plan could fail because of bravado. Maybe unless I’d be the first thing I would point out. [00:16:46][39.8]

Speaker 3: [00:16:46] Well, unnecessary risk is something we never want to see in a portfolio if we can eliminate unnecessary risk. Why chase a 15 percent return in your portfolio, which returns are great, but you’re going to have to take an unnecessary amount of risk to achieve that. And on the downside, you could, you know, have a much larger negative consequence. But yeah, we definitely got to get rid of as much unnecessary risk as we possibly can. When you know, when we don’t need 15 percent, when six percent will do, yeah, let’s tailor your portfolio to a six percent rate of return with a lot less risk. It’s going to cost you a lot less headache from a day to day basis. So that’s a certainly a big one. [00:17:23][37.8]

Speaker 1: [00:17:24] Yeah, the one thing I’ll add to that and then I want to add another piece to the risk piece, but is, even if you can’t get well, if you’re worried about your portfolio risk, you need to find some way to measure it. You can’t just look at it and say, Well, I don’t OK. It’s, you know, it’s a growth portfolio and there’s no you got to have a way to actually measure it. We have a portfolio are we have software that will allow you to measure your portfolio’s risk and then monitor your portfolio or risk moving forward. That’s how you can measure it one time. But if it’s going to change throughout time and pieces of that little puzzle, if you will, all the components inside that portfolio are going to change a little bit, so you’ve got to be able to way to monitor it. We have software that that can help you do that. Now I’m a transition a little bit away from investments and say that if we talk about this money puzzle a lot and we’re going to continue to harp on it because we do feel like it’s it’s incredibly important. But if you look at if you look at a puzzle, let’s say you have 15 different pieces of your puzzle. Really, anything financially related that where you’re making up your puzzle has some sort of risk associated with sure it could be real estate, it can be 401k investments. It could be your estate plan, it could be long term care, it could be Social Security, all that has some sort of risk associated with it. So it’s not just investments, it’s not, you know, I think one of the things that we are. So Kristen, well, actually, all of us teach classes and we have one specific piece where we talk about disability insurance. And I have I have a scenario where I have a client had a client that at one point he was new in town. You guys are to tell a story, and he went through his benefits and select his benefits for the year and didn’t select disability insurance. He was a huge income earner and I was like, That is the biggest risk you have because your largest asset is your income. That’s the largest asset you have. He didn’t even insure it, but yet you would ensure everything else. You insure a car that was $25000. You ensure your home that’s four or five hundred thousand or whatever, but you didn’t insure an income that’s greater than any other liens over. Yeah, yeah, much greater. So again, it’s it’s all these different components that if you don’t properly insure the risk associated with one piece of your puzzle, it could be a disaster. And I’ll give you another quick example. This is when we were going to talk about what we may do a podcast on it all together. But real estate investment, we had a client years ago that got into a situation where he had some property, whose land it was a farm over and never sales actually and had a house on it and had some people that got into the. House, it was a 200 year old historical house and got into it, snuck on there and had been squatting there. You guys know one two years squatters. They were squatting there and these people never went to the show or never went to to this point. They were on the farm and never went to the house. [00:20:18][173.8]

Speaker 2: [00:20:19] It was that it was they had a squatter. [00:20:20][1.2]

Speaker 1: [00:20:21] Yeah, they didn’t realize and the thing burned and they thought they that somebody had died in there. Come to find out it was like an animal or something because they had bones or whatever. But anyway, it was a huge disaster and it was like they had. No, they didn’t have it owned properly. They didn’t have it inside of an LLC. I mean, it was a mess. And so they were really scared to death. And I said, you guys averted a financial disaster by about that much. And so again, that’s just another thing. It’s it’s not just risk in your portfolio, it’s risk on all your puzzle pieces. And so that’s why I would tell you, you know, bring your puzzle to us and say, All right, here’s all the pieces of the puzzle. Make sure that I have the proper amount of risk. Make sure or make sure you have the proper boundaries and make sure you’re de-risking as much as you possibly can, and we can help you do that. [00:21:06][45.1]

Speaker 3: [00:21:07] I’ll even add one thing to that too, because it’s important to remember you’re always going to have risk in your portfolio. There’s always going to be some that there’s always going to be some level of risk. Yeah, I’ll use another example because we go back to to real estate to some degree. So many of our clients come in and they want to talk about how best to pay off their mortgage. OK, great. Great conversation. A great topic to talk about. But if you do pay off your mortgage, you’re reducing your liquid. You’re going to increase your liquidity risk because you’re going to have less money in your cash flow or less money available to use. You’re putting more money in an illiquid investment. That’s not necessarily wrong or bad. It’s just something to consider because I’m going to run through it plan actually with someone this evening. And one of their big goals is to pay off her mortgage. It’s a great and lofty goal, and she’s been paying quite a bit extra every single month. What the team at the same time, every extra penny that she’s paying through a mortgage is a penny that’s not going towards some type of an investment. She doesn’t have a ton of other investments out there. She really needs to focus more on her liquidity, more so than paying off an illiquid asset, especially an illiquid asset with a really low interest rate. So there’s always a combination of different types of risks within your portfolio. It’s a matter of what’s most correct or what’s most [00:22:21][74.4]

Speaker 2: [00:22:21] proper spreading them out, correct? [00:22:22][1.2]

Speaker 3: [00:22:23] Exactly. Diversifying your risk capital by diversifying investments, right? We want to diversify your risk as much as we possibly can as well. Yeah. [00:22:31][7.8]

Speaker 1: [00:22:31] All right. So let’s talk about Social Security, so we’ll wrap it up with this piece. So what are some of the sort of common mistakes we see clients make when it comes now? This is, I would say, this is a whole ball. Oh yeah, we could go down. [00:22:41][10.2]

Speaker 2: [00:22:42] We go down a rabbit hole on this, we go [00:22:43][1.5]

Speaker 1: [00:22:43] down a whole bunch of them. But what are some of the more common ones? [00:22:45][2.1]

Speaker 2: [00:22:47] The biggest one is taking Social Security, not understanding the rules. How has Social Security calculated? I actually spoke with somebody a couple of weeks ago that thought that Social Security was calculated based upon your highest three years of earnings. It that’s not even close to correct. But they were making retirement decisions based upon incorrect information, which goes back to the do it yourself problem, right? The other one that I see a lot with Social Security is, like I said, there’s calculators online that say, here’s your break even point. If you live to this point, then you are better off if you take Social Security early or late or whatever the case might be. It does not take into account all of the other factors. It doesn’t take into account. You know, people say, Well, I claim at 62 because I want to claim while it’s still there, well, but they’re still working. And if you’re making enough money and it doesn’t really take a whole lot of income, I don’t. Eric, you might know the number if you’re making enough money, the penalty that is placed on your Social Security while you’re still working and you’re below full retirement age. [00:23:56][69.2]

Speaker 3: [00:23:57] If you’re making that, you [00:23:58][0.5]

Speaker 2: [00:23:58] could, you could literally not receive a Social Security check because your income’s too high. [00:24:02][4.3]

Speaker 3: [00:24:03] So there needs test comes into play, and if you make a mistake, you make about forty five thousand a year. You’re pretty much going to forfeit your Social Security benefit. At least I got the three right. When you’re talking about based on the top three years, it’s actually the top thirty five. Yeah, thirty [00:24:15][12.7]

Speaker 2: [00:24:16] five. There’s a little bit of a digit. [00:24:18][2.0]

Speaker 3: [00:24:18] Yeah, I think the biggest mistake I see, I mean, there’s so there’s so, so many when it comes to Social Security, but right off the top of my head filing at 62, just because you’re supposed to. Well, if you file at 62 versus 70, you’re forfeiting about a 75 percent difference, 75 percent greater monthly benefit if you wait and delay receiving your benefit until the age of 70. You talk about figuring out most people try to maximize their benefits. So much of the industry is geared toward maximizing your Social Security benefit. Here’s the secret guys if you want to maximize your benefit, file at 70 and live to eighty two done. That’s how you maximize your Social Security benefit. OK, that’s great. What if you retire at 65? How are you going to earn income for the next five years? That’s where it comes, that’s where the planning peace comes into play, and we need to talk about how best to optimize their Social Security versus trying to maximize your monthly benefit. [00:25:13][54.1]

Speaker 2: [00:25:13] It’d be really easy to figure out when you should do all of these things if and Eric, I’ve heard you say this in classes many times and you’re spot on. You tell me exactly the month and year that you’re going to die. And I’ll tell you exactly when you should file for Social Security, when you should start using certain types of investments for income. But as long as that’s a variable, you can’t just automatically go do it at this date. [00:25:38][25.1]

Speaker 1: [00:25:40] Yeah, yeah. So the other thing I’d say about Social Security that we actually get into lots of conversation around is there’s a there’s this a lot of prospective clients will come in the door and that’s the only, well, a backup. So we talk a lot about retirement income sources. Not a topic for today, but we talk a lot about permanent, predictable income. Yeah, that’s one of the sources of income in retirement. What we find is that that piece everybody sort of saying so security’s not only form of permanent, predictable income. So really, when you get to 62 or 65, that’s their only source that they have that they can flip on. That is permanent. Predictable income comes in every month. It’s guaranteed. There are if you properly plan, and again, this comes back to a puzzle piece you can properly plan. You can actually set things in motion in your, you know, before you retire. Right? To produce permanent, predictable income that could maybe get you from 65 to 67 if that’s when you retire, since you don’t want to return Social Security onto your 67. Well, maybe we can turn that source on for two years, right? Or get it started earlier so that you can delay Social Security benefits for a couple of years. You have to be able to go through all these different options to understand that sometimes taking income from other sources that you’ve put in place and delay Social Security benefits can actually be more beneficial to you and your plan. Here’s a and I’ll say one other quick thing on it. A lot of times we’ll show clients that your Social Security benefit. If you delay from 62 to 65 or 67, it grows on average eight percent ballpark, right? So it’s about eight percent growth per year. Well, if your 401k or your investable assets are invested at a risk profile, that’s only going to get you five or six. And maybe that’s all you need. Well, which is a better option? Well, you’re much better off taking assets out of out of investments, only making five or six and delaying the benefit that grows at eight. But a lot of people don’t even look like look at it that way, but you may only be delaying it two years or three years, and you don’t have to. We’re not doing it for a lifetime. You’re only delaying it a couple of years, and it can make a lot of sense. So again, that’s just another example of how making sure that you understand how all the pieces your puzzles fit and making sure they all fit together. And are there options that you can put in place now to make sure that you have sources of income for later life? Absolutely. But you got to know you got to know what your puzzle looks like in order to find out if you can actually make that work right? [00:28:19][158.3]

Speaker 3: [00:28:19] I want I want to add one thing to guess as we begin to start wrapping up. It sounds like we’ve been talking about mistakes in the last two episodes, including this one, of course, have been around the idea of, you know, what mistakes we’ve seen investors make. It’s very, very important to understand that if you’ve made a mistake not to let that mistake compound upon itself and lead to other mistakes, we’ve all made mistakes I’ve made. I can go through. Maybe we’re maybe we need to do a podcast about this. That’s that’s a long path. All the different, the different mistakes that we’ve made individually. We’ve all made mistakes as it relates to finances and portfolio construction and things like that. So you don’t want to let any individual mistake compound upon itself and lead to other mistakes. So if you feel like you’ve made a mistake or you feel like we’re talking to you right now, it’s very, very important for you to make sure you come on in and don’t make another mistake in the future, you know? Don’t let the fear of make another mistake inhibit your ability to to properly put together a plan. [00:29:13][53.9]

Speaker 1: [00:29:14] Yeah. Here’s the other thing I’ll say is we sort of wrap up Zayas and I. We keep talking about this money puzzle thing, and we’re going to keep going at it. And we’re going to keep referencing it. And what we find some time is folks are a little hesitant to pick up the phone call because they don’t know what other pieces of the puzzles even are, much less how to even start to put it together. And we’ve had folks that have walked in this door that that literally have their pieces are scattered all over the place, and they’ve not even started putting their puzzle together. And that’s OK. It’s no different. We don’t judge. We’re going to say, Look, we’ll find out what all your pieces of your puzzle are and we’re going to put them together. We’re going to help you put them together. So again, it doesn’t matter what your puzzle looks like at dinner, how many pieces you have, you can have a few pieces are a lot of pieces or you know, you, you may not have your puzzle put completely together and really all you. Needs help with just the final few pieces. That’s totally fine. Or you may be somebody that says, Look, I think I’ve got my puzzle pretty well put together. That’s fine if you’re just looking for a second opinion. Come on in, meet with us and say, Hey, I just, you know, I think my puzzle is put together, but I really just looking for a second opinion. But either way, again, it’s all about planning and making sure you’re seeking the advice of a professional and that you’re getting your puzzle put together properly. I guess that’s sort of a wrap. [00:30:28][74.1]

Speaker 2: [00:30:29] Add one more thing to that. What you don’t want to do this is another common mistake is don’t wait to get all your ducks in a row before you seek professional advice. That’s kind of like cleaning your house before the maid comes over. It doesn’t make a lot of sense. Yes, and a lot of people make that mistake. I want to get all this fixed before I come in and see people like you all get a professional involved now. Don’t wait. [00:30:52][23.3]

Speaker 1: [00:30:52] You know, I’ll tell you the hardest thing you’re ever going to do is pick a phone call. That’d be the hardest. The very first steps are this piece you’re going to that you’ll do so anyway. That’s it for another week. We appreciate you guys watching and following. And Eric’s going to sound us off for another week. [00:31:06][13.0]

Speaker 3: [00:31:06] Yup. You’re watching on YouTube. Make sure you hit that red subscribe button there in the corner. Make sure you’re the first to hear about any new content as we loaded on to our YouTube channel. If you’re listening on any of your favorite podcast providers, make sure you’re leaving us a rating and or a review. That’s how we get the word around about our show here. And of course, if you’d like to share any of our content with anybody that you think might benefit from any of the topics that we discuss that would be very well appreciated as well. Thank you all for listening, and we’ll see you next week. The information given here in is taken from sources that IFP Advisors LLC Doing Business is independent financial partners, IFP IFP securities, doing business as IFP and its advisors believe to be reliable, but it is not guaranteed by us as to accuracy or completeness. This is for informational purposes only and in no event should be construed as an offer to sell or solicitation of an offer to buy any securities or products. Please consult your tax and or legal advisor before implementing any tax and or legal related strategies mentioned in this publication, as IFP does not provide tax and or legal advice. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors. This report may not be reproduced, distributed or published by any person for any purpose without AFP’s express prior written consent. Securities offered through IFP Securities LLC Doing Business as Independent Financial Partners, IFP member of FINRA and SIPC investment advice offered through IFP advisors doing business as IFP, a registered investment advisor. IFP and family wealth planning partners are not affiliated. The information given herein is taken from sources that IFP Advisors LLC doing business as IFP IFP Securities LLC, doing business as IFP and its advisors believe to be reliable, but it is not guaranteed by us as to accuracy or completeness. This is for informational purposes only and in no event should be construed as an offer to sell or solicitation of an offer to buy any securities or products. Please consult your tax and or legal advisor before implementing any tax and or legal related strategies mentioned in this publication, as IFP does not provide tax and or legal advice. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors. [00:31:06][0.0]

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