Context Debate: Investment Income

Welcome to finishing well brought to you by Cardinal guy.com certified financial planner on Schild best-selling author and financial planners 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.

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I'm finishing well.

Again, this is I was so much fun with certified financial planner Han style today were going to get into that contextual debate of Philippians 413 meds.

So many people quote you.

Philippians 413 to be in all I can do all things regarding strengthens me, but they often leave out what comes before that which is kinda critical to understanding the verse it says Paul says in Philippians 412 I know what it is to have little and I know what it is to have plenty in any and all circumstances.

I've learned the secret of being well fed and the order of 100 of having plenty in a being in need. I can then he says. Then after that statement about on contentment. He says I can do all things through Christ who strengthens me clearly indicating that it is Christ that is actually given contentment, but Hans in your book the complete Cardinal guide to living planning for living in retirement. That one is the 31st so you pick up everybody sure I have your book it in the section on postretirement investment income. Most of the things you talk about contentment's a big issue there. When it comes to this whole idea of red and green money. I think that green money is something that Paula said I know it is like to be content with green money sure so you know that is really just like a stoplight and so green money or things you know it's no so money is money that you know so you know what it's going to do you know it's going to be there like a real good example of green money is your Social Security check agreements just guaranteed by the government gets adjusted for inflation.

It's going to go on till the day you die, you can't spend it. That is the greenest of the green money. Another example would be a CD down to the bank that's FDIC sure that you and I can get much interest on that. But what the interest each of you gives can be guaranteed some forms of government bonds could be considered green money annuities that have guaranteed amounts and guaranteed payments. Those are all things that are under green money green monies kind of boring. I mean that's just it doesn't really get people clients people are drawn into your whole presentation about a green money what that word contentment right at first take doesn't sound all that exciting right.

I mean it just it just sounds like Paul's kinda board varies content with but there's so much more. Underneath that you you see that in in because you got beat.

Obviously deal with a lot of people that are in their 70s and 80s, and they've begun to understand that secret of what it means to have Christ in all things really do and there's a lot of people in their 80s that would take contentment tomorrow. And this is sign me up because there there short of what they feel would bring them financially to a level of contentment. But you know my experience is that most of folks that I'm sitting with her in their 50s 60s early 70s and their sitdown with us and their wanting us to help them plan out their whole retirement and you know make certain of certain things into it took to guarantee them things into take some worry off of them and then when it comes to investments. A lot of folks to come in to see if they think this is all we do. They think they coming to us for a financial advisor here so much money I have. Tell me what you think. I had a do with it and please make me a lot of money with a lot of folks that's what they think, I thought of my dear book and I thought this would be seven chapters on red money is fish essentially and how to get the most out of whatever it is I'm best. That's what people think of limiting what they do and they they soon find out that when we sit down and we start asking a bunch of questions and things are concerned about really investing your money and just read money is one of the last things we talk about but for the purposes today show work order talk about it and you'll read money are growth stocks units by an Amazon specially now you know you're buying it up. There were it's already up. It's already built-in that they're going to be rule the world and buying Apple wrong with that but it's clearly read money. It's hope so money words green money is no so money we know so read money is hope so money we hope that it ends up where we wanted to end up which is making us a bunch of money and with love times we don't pay attention especially during the working years when were accumulating money is okay so with the hope so doesn't work out. I mean, what if we have a big stock market correction or if you got a whole bunch your money in one or two or three stocks in their all in one industry or tech. And they crash, then now you've lost, possibly your grocery money you've lost IN and you certainly have a story in your book about a family that certainly that was all that red money and ended up not going so yeah in the coming day they were all in red money because they had accumulated money in the 401(k) which is where most of their money was in his 401(k). They just bought a little bit of time and it had grown substantially that there was a wise investment and when the markets crashed or the markets went down there gave him an opportunity to buy at a lower price and there continually adding another paycheck another just there. There probably like a lot of people to come into us where they've got a bunch of red money sitting there in their kind used to that their count on that.

And now they got a plan out for the whole retirement and they want to come in and get a professional to advise them in my really start asking questions with they really want to hear is like what if I lose this morning. What if you know the story you were asking about. This is a guy that a couple years before retirement. 2008 2007 happen and he lost 30% of his of his portfolio just gone. And then what he did to make a real estate is a desirable stocks are going down.

I need to sell them now, so he converted all the cash and the guaranteed value fund and then he missed out on 2010 2011. You know he just and is just sitting there in cash so he didn't even get the growth back so that you know the thing is if you get in red money you you kinda need to stay in red money and if they if you read money goes down, you have some money, some green money on the sidelines to buy more when stocks are on sale and all that is really hard to do in retirement right which gets back to contentment. Right what, what, where, if I got to you. What's a baseline and there's a lot that goes into that planning will there is in. So when I was sitting here at the beginning of the show before preparing for the show with you. I was explaining green money and I was explaining red money and then explaining yellow money and talking about how we as financial professionals managing risk can turn red money into yellow money and how we do that and I said you know that all sounds wonderful and it did to you and then I just took it all away. I said that's not really how it works with most people. Most people coming to see us. We sitdown we ask of a whole bunch of questions would point out a whole bunch of things, and by the time they get to the end of the questions in their concern and they see all the risks with that they really want us to build them a plan around contentment okay right where they can pay the bills and and at least be comfortable with what they have both of Social Security, but in others you have those two checks together, then will you will yeah I mean self so let's what what I told you is as we build plans from the bottom up. So if you're not on Social Security yet we projected show you the decisions of her to recommend, which is what your Social Security checks will be.

This is what Mrs. Gilmore Social Security checks can be put them together and if it's 3000 a month.

Okay, so now we got 3000 a month.

The green money is going to come in every month is can get inflation-adjusted and is going to come in until the first one you guys but it's guaranteed screaming and working a look and says that enough to live on. No it's not okay so now were going to have to go over to this red money.

If you're all in red money, Morgan have to say how much more do we need out of the red money every month or every year. However, we want to do this� Say that was $2000 a month so we say we can live comfortably at 5000 a month, especially if were paying little or no taxes because 5000 a month after-tax or almost no tax 5000 a month after-tax is really like eight or 9000 a month before tax and you can do those kind of things in retirement. If you plan wisely, nonetheless, were not going to invest the party your money. That's creating that $2000 a month that you need to live on in red money in your neck and wants to do that when I can do that work and invest that and something that's green money today and so I mean, so now we can take whatever portion of your red money and work, turn it into green money so that they can produce 2000 a month for the couple here for the rest of your lives. So you will been listening to finishing well, a certified financial planner Hans Schild if you're colorblind like me.

We got a whole lot more coming up for it in the next section again. As always, you can find all this information, a cardinal guide.com and the seven worries tab you can download today's chapter, which is postretirement investments and get that information absolutely free right you can all the chapters are up there on the website both in the workbook and the regular book doesn't cost anything you could actually construct the whole book for free. Yeah, I actually construct the whole book on the website for free.

I mean, most people don't do that if you really want the book and I do hope you do send me a message. Hans Schild be glad to send it to you.

You can also buy it on Amazon it's been a bestseller on Amazon. The important thing is that you get the information and you really learn about some of these basic things are become a story in there about red, green, yellow money, so we got so much more coming up even further colorblind when we come back. How about that. Philippians 413 context. What did Polytechnic mean I can do all things through Christ who strengthens me so much more coming up Satan. We hope you are enjoying finishing well brought you by cardinal guide.com is a cardinal guide.com for free downloads of preview shows including episodes about Social Security and Medicare, IRAs, long-term care, life insurance, investments and taxes as well as Hans best-selling book, the complete cardinal planning for and living in retirement. Plus the accompanying workbook. If you want to follow along with today's topic download free PDF cardinal guide.com by going to the seven worries tab of today's show topic, just scroll down to useful documents once again for free resources shows going to get Hans book the complete cardinal planning for and living in retirement or the work will go to cardinal.com you have a question, comment or suggestion for future shows. Click on finishing well radio show and send us a word. Once again, that's cardinal guy.com cardinal God.com. Now back to finishing well brought by cardinal guide.com welcome back to finishing well, a certified financial planner Hans Schild is finishing well is based on the book the complete cardinal guide to planning for living in retirement. I didn't, but eventually I'll have a nap but today show is is a little bit of the Philippians 413 debate I can do all things through Christ who strengthens me, and what that looks like is your finishing well to be content that the Philippians 412 passage to be content in all things happens as a result of of having Christ and to do that takes a little bit of planning and and we been talking about red and green, but it it.

Those are just simple concepts to help people see that there's money that you know is coming in and and yet you've got other money that you hope was gonna grow yeah and so when we talk about contentment in your retirement income in the living that that creates or living off of it. That's yours to define me when you're coming in the sit in that chair in my office you're hiring me to advise you on the best way to get what you want so you get to define what content finance and that's what we were talking earlier on their other segment we're talking about so we can establish for each person. What that level of income is.

This can create the content okay and in the example we are talking about earlier. We have a husband and a wife, $3000 a month of Social Security.

Then we had come up with an example that they feel like they need and want.

This can produce that contentment. Another $2000 a month of income for the 95 grand a month and they really don't want any of that at risk. They want to be sure that they're going to have 5000 month we got to have a little bit of inflation adjustment on their Social Security part has inflation adjustment but we got a plan and that extra money that's invested in green money shooting out this income some inflation and really the inflation can come out of really the red money if they end up with some red money, assuming in this example that we still have some money left that we don't talk about and that's where and when you get into the red, yellow and green money so it's not just a simple as then we take whatever is left. So let's say it took us $300,000 or 200,000 are to some number invested.

This can create this 2000 and month of income guaranteed for your life.

So now that we've got that in green money resuming. We still have some money left and that's the money that were to consider putting at risk when I can unnecessarily put it resume to make that decision is knocking me guy I meant to provide the facts and also going to provide a recommendation, but ultimately you're going to decide how you want your money invested, and what I'm describing is just how we do financial planning for people approaching retirement. So now we got this other money last and it's it's that money that's above contentment to bring us something or you know a lot of folks they really have trouble with his partner like what you going to do with it. I think it's back to the bigger bonds. The idea of how can I be generous with God. What would God want me to YouTube advance the kingdom. There's all sorts of possibilities with red money. Sure you get your money the jurors to decide not to tell you what to do with your money. I will suggest things I'm at a point out things if you do this, but ultimately these are your descendents, UCD, thing is red money.

Well, it can be invested in you and Ollie fired Erin and get the finished when they get the distribution for the get the donation and distribution. The church doesn't care whether it's in green money or credit line is learning to turn it into cash and invested in their part of the kingdom.

I so but it could be red money. So if it's in your IRA urging your 401(k) what has to be an IRA and then you're going to donate your over 70 1/2 in your to make you tithing you can do your donations through your IRA and your to do it directly. And it's really just as much of a tax move as it is kingdom enhancing mood and if you just give the same money, but you do it through your IRA that is taxed if you give more money because your sentiment is the kingdom is a little more money available to move the kingdom forward as part of your plan to be generous with God is there you go, will you see the other thing is no point out is is that you we do financial planning for Christians.

We have many non-Christians that we do financial planning for as well you play financial planning for Christians.

Tithing is in their 5000 a month budget so there there to be tithing out of that income and most Christians do ties Social Security and their other retirement income if they have a pension and interest that they're earning on things so that it becomes a question of where we pull the money from okay but that's built into the $5000 a month budget for most Christians. Okay everything in which which is chemical when you think that it is this listing is gone at will, essentially, God God, and the increase got in the income and and so now they're able to do all things through Christ is given in the income and and they're able to move the kingdom forward through what it is. He gave up and it actually is, living out flipping for me. It it it right there. Every week we sit down put together a budget for people and were usually no work pushing the budget up to.

Sometimes people come back to us with these competency budgets and is and then we look at what they're currently spending because we can we can see that through the tax return and the increase or decrease in the accounting we just sucked.

So that's that's the first thing we can be doing with people. Retirement planning is coming up with what you need live in maybe add some things and follow. But nonetheless, for example, you 3000.

We got 2000 that's invested in green money.

It's creating this income and then we got some extra amount of money now.

We got a look at that and decide you know how much that you want to put it risk so you never have gotten to the yellow part because we did read. We did green. How do we go yellow what yellow money is yellow means caution. Red means stop for danger alert your green means go and sell what yellow money is is that yellow money she's be red, money becomes yellow money when it's properly managed wind when we can do an assessment of risk. So where to sit down with you and were going to assess. We have some objective ways to do this and we have some subjective ways to do this to assess like Robbie Delmore. How attuned are you to lose in selling your money how much your money are you willing to risk what type of losses are you able to sustain day and then were to look at the investments that you currently have or that you're proposing are that you want to get in and working at balance these things out and we can do this with statistics, but there's a subjective part of it will release really got to get a feel when I get a lot of clients, especially people that are 6570 and there retiring and they can earn more money. A lot of them they get on the real conservative side.

They just don't want any part of red money and your book does an amazing job, really on page 53 of you know this would be like a whole rainbow. I thought about this earlier that while because it is a you you you have all these different levels of low moderate high in all these things that unite you got a whole Roy GB of on dissent that allows a lot of the work I do is education with people and you were fortunate that we have the book because a lot of people are coming to see us have already read the book, so they're using lingo that we put into the book and the lingo is simple stuff. Also, we put in the book is real, understandable, real simple, down the earth side and this is the book.

It's a good time to stop and say the book is a complete gargle guide to planning for living retirement which is we always tell you gargle guide.com you go order the book for another that it's a dollar 99 for the Kindle and at 799 on Amazon prime ship to you. For each book and there's two books that you really just need to read the first one the second one is for the people that want a little more detail. It's very good as well.

Books also in the library sits in the wake County Library to Durham Library, the Mecklenburg County library to allow libraries across the country on Amazon. You can get the information for free we construct the whole book for free on my website so I am not as much interested in selling books as I am educating people and I find when I educate people. There's a number of people to just be a path right now. Yesterday was on the website and get an arm's email and you can just ask him send the bookkeeper he wants the information out there, because that information. Obviously, you know, helps you be more content helps you be more generous to God and helps you. You clearly advance the kingdom and that's an open so as a subject or example so we got this couple we met it simple as $5000 a month. I talked to you earlier how we could really plan somebody out at those levels that we can have them in a very low tax rate of any tax at all for a couple another show where we can talk to. We can plan against these thresholds and then were going to take this extra money and were going to get that if something were you not paying taxes year to year and a tax-deferred account or tax-free account because there's no point paying taxes on interest of justice and account willing to pay that on the money that were pulling out of their so again we got this pool money and we still have some needs based upon. This is things you might know thought of not number one is both of you might not live the 95 and then die in your sleep, hold hands and just we don't know when the first one of you is going to go but it's probably going to be before the second one you got stuck could be one of you could be gone in 5 to 10 years and another one could live 30 years so that Social Security check is going to take a big decline when the smaller check goes away.

You know it the death of the first person so were going to need to account and expense is probably so you know when life insurance is a simple way to do that to create another income stream to replace that law Social Security check. The other thing we got concern ourselves with is what if one or both. You need long-term care. So if either one of you need long-term care that $5000 a month is Gober so we got a lot of still needs on this extra money so I mean that's all I got for today and we had a lot more to cover on finishing well again today show based on his book the complete cargo guide to planning for and living in retirement.

Thank you Hans.

We went to the we hope you enjoyed finishing well brought you by cargo guide.com visit Cardinal.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 constant best-selling book, the complete cargo guide to planning for and living in retirement and the workbook once again for dozens of free resources past shows get Hans book go to Cardinal.com if you have a question, comment ingestion for future shows. Click on the finishing well radio show on the website and send us a word. Once again that's Cardinal guide.com Cardinal guide.com