Speaker 1:
Information presented on this program is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Discussions and answers to questions do not involve the rendering of personalized investment advice, but is limited to the dissemination of general information. A professional advisor should be consulted before implementing any of the options presented. Certified Advisory Corp is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements.
Speaker 2:
Stay tuned for On The Money, Central Florida’s most listened to financial call-in show, brought to you by Certified Financial Group in Altamonte Springs. It’s the only show hosted exclusively by certified financial planner professionals. Monday through Friday, their CFPs provide financial planning and investment advice for a fee, but on Saturdays the advice is absolutely free, and has been for more than 30 years for their WDBO listeners. If you have a financial question you want answered by real fiduciaries, the lines are wide open. Call 844-580-WDBO. That’s 844-580-WDBO, and enjoy the show.
Josh:
Good morning and welcome to On The Money right here on WDBO 1073 FM, AM 580. Take us with you on the go wherever you go by using that WDBO app. Push play wherever you’ve got WiFi internet. Listen to this wonderful show of On The Money wherever you are in the world. Right now, we are so fortunate to be joined by a couple of certified financial planners with the Certified Financial Group, and by now you know what this show is because it’s served so many people. They have planned so many tomorrows for the people in the Central Florida area. Just pick up the phone right now and dial 844-580-9326. Joining us today is Harry Stadelmayer and Joe Bert, one of the illustrious members of the Certified Financial Group, offering advice for over 30 years on this very station.
Joe Bert:
How about that?
Josh:
How about 30 years?
Harry Stadelmayer:
How about that?
Joe Bert:
Good morning.
Josh:
Actually, George Washington give you guys a shout-out for Certified Financial Group. He said, “Thank you. I appreciate all the advice.”
Joe Bert:
You were still in grade school when we were doing this.
Josh:
We don’t have to go that far.
Joe Bert:
Well, that sounds good though, because you’re a young guy.
Josh:
It’s not bad, yeah.
Joe Bert:
Yeah.
Josh:
I wish I would’ve listened to you then, because I-
Joe Bert:
Well, you should have.
Josh:
Oh, yeah. Well, welcome.
Joe Bert:
I was terribly too late.
Josh:
I believe I’m talking to Josh, who’s been on vacation. And welcome back, Joe Bert, who’s been on vacation.
Joe Bert:
It’s good to be back.
Josh:
It’s kind of nice to take a little time away, isn’t it?
Joe Bert:
Oh, you got to do it.
Josh:
And charge your batteries.
Joe Bert:
You’ve got to do it.
Josh:
You’ve got to do that. Yeah.
Joe Bert:
You got to do it.
Josh:
It’s day-to-day and I won’t say grind because I love, and I know we all love what we do, but sometimes it’s good to get away from what’s the market doing today and all the pressures and things of the world that we do day-to-day, but it’s good to refresh, and welcome back.
Joe Bert:
When you’re away and you come back, or when you’re away you get a little bit different perspective about your life, about business, about the world and all those kinds of things. And you go to other parts of the world and it really gives you an appreciation for what America’s all about. So, anyway, Harry and I are here to take questions, as our regular listeners know, about things that might be on your mind regarding your personal finances, as we have been now for more than 30 years working with Central Floridians. And in fact, we have clients now in 28 states and listeners probably in maybe 50 states. And I know we’ve had calls from across the pond. But any case, Harry and I are here to take calls this morning, things that might be on your mind. We want to answer your questions to get you to and through your retirement years.
We’ll talk about your IRA about a 401(k), long-term healthcare, about insurance, real estate, all that and more are the things that Harry and I and the 14 other certified financial planners work with our clients’ day in and day out, providing financial planning and investment advice for a fee. But on Saturday morning here we are absolutely free. So, if you have any questions about any of those topics or anything I may not have mentioned, the good news for you is, well, I see we already got a call coming in, so Harry and I will vamp just a little bit while Josh is teeing up that call. And the topic of the day, why don’t we tease it, Harry? What do we have here?
Harry Stadelmayer:
Well, the topic of the day is a continuation. If our listeners were listening two weeks ago with Chris Toadvine and Matt Murphy, they just scratched the surface about something that has really hit home, especially this week in talking to a couple retirees. And that is, are you a happy retiree or are you a depressed retiree? And we’re not going to necessarily get into the financials of why you’re either happy or depressed, but we will, after we take George’s call, we’re going to start digging into really what does make a good retirement and why are some people depressed and why are others happy? Again, it’s not really money related, but it’s an attitude. So, we’re going to dig into that a little bit today as well as a few other things. But I do believe we have George teed up, is that correct?
Josh:
That’s right. We got George. And if you want to hop on the air, talk to Harry and Joe, the number to call is 844-580-WDBO or feel free to send in your question via the open mic. I’ll push play and you’ll still get the same valuable answers you will as if you called in. George giving us a call from Orlando. How are you doing today, George?
Joe Bert:
Hello, George.
George:
I’m fine, thank you.
Joe Bert:
What’s up?
George:
I have a flexible premium annuity that qualifies as an IRA and whenever they send you the letter of the required minimum distribution, is it better to do it right away or wait till December?
Joe Bert:
Well, it depends on how good your crystal ball is there, George, because if you wait till the end of the year, you will get whatever gain or loss you’ve had for that year. So, it really doesn’t make a big difference. If you knew what the market was going to do, you’re going to get that run up, the money stay invested, stay tax deferred until the end of the year. If you think the market is going to go down, you want to get it out on January the 2nd.
Harry Stadelmayer:
And that’s assuming that you might be in equities as well, George.
Joe Bert:
That’s a good point, Harry.
Harry Stadelmayer:
George, if you pulled your RMD in January of this year thinking, “Oh boy, the bottom’s going to fall out<” and you were maybe a 60/40 portfolio, 60% in equities, you’re kind of upset that you pulled because to this point, I know it’s not December, but equities have done quite well through the years. So, it really depends on the portfolio. But it is, as Joe just said, it’s kind of a crapshoot.
Joe Bert:
Yeah. And in the long run it really doesn’t make much difference. Nobody’s going to get it correctly 100% of the time. So, I wish I could tell you, George, but I can’t tell you.
Harry Stadelmayer:
And a lot of times it’s your needs. If you have a big project coming up or you have a large expense, I’ve had clients call up that were scheduled to take it in December and they decided maybe they want that new car this year and they said, “Hey, can I pull my RMD early?” And so you have that ability too. And I have a lot of people saying, “Hey, let’s pull it now. We know the market’s up a little this year. Let’s go ahead and get it now.”
Joe Bert:
Sure. So, there’s no right or wrongs, George. It’s whatever your gut tells you. And perhaps if you’re working with an advisor, he or she can sit down and look at what the other sources of income are and make a determination. But once again, there’s no right or wrongs. How’s that?
George:
Yeah. If I take it out now, then that money wouldn’t be gaining interest, right?
Joe Bert:
Well, you can take it out. You’re going to have to pay taxes on it. It depends on whether or not you have taxes withheld. If you don’t have taxes withheld, you can take all that money and then reinvest it and let it grow somewhere and maybe get a better rate of return than where it is. But don’t forget you’re going to have to pay taxes come next year on it.
Harry Stadelmayer:
George, is this your first distribution?
George:
No, but I’m just kind of like a babe in the woods. I’m not too well-versed in all this.
Harry Stadelmayer:
Okay. Well, yeah, as Joe said, you can reinvest it now. If you spend it, obviously no, you’re not going to get anything on that, but you certainly don’t-
George:
No, but I was thinking if I have it but I take it now, that money that I have taken for it, that money from here to December wouldn’t be gaining interest, right?
Joe Bert:
Well, now, wait a minute. You said what kind of annuity do you have, George?
George:
A flexible-
Harry Stadelmayer:
Flexible.
George:
… premium annuity that qualifies as an IRA.
Joe Bert:
Okay. So, a flexible premium. So, it sounds like it’s a fixed annuity where you have a fixed interest rate. Is that correct?
George:
Yeah, it can’t go below four and a half.
Joe Bert:
Okay. Yeah. You have a fixed interest rate. Yeah, so holding it on until the end of the year probably makes sense.
Harry Stadelmayer:
Well the other thing, George, is that, I don’t know who you bank with, but some CD rates, if you decided to take it now, there are some CD rates with some banks that are paying north of 5%. So, if you have a flexible annuity that’s paying four and you walk into your bank and they say, “Yeah, we’ll do a year CD for five,” you may want to pull it now and in essence put that money maybe into a CD if that makes you comfortable. So, yeah, you could still get a return on that distribution.
Joe Bert:
I’m going to circle back to my original suggestion to you, George. When you told us what you had, I thought you had a variable annuity, which means it would be probably invested in the market and that’s why my comments were-
Harry Stadelmayer:
Yeah, that’s a good point.
Joe Bert:
… should you wait until the market goes up or down or sideways. But you have annuity with a guaranteed interest rate or a stable interest rate. So, really you’ll probably wait till the end of the year unless you can get a better rate of return, as Harry says, and move it out. So, that’s the way to do it.
George:
Oh, thank you very much.
Joe Bert:
All right. And don’t forget the taxes.
Harry Stadelmayer:
Yes.
George:
Yeah. All right.
Joe Bert:
All right, George. Thanks for the call.
Josh:
Thank you so much, George. That opens up a line for you to call in today. 844-580-9326, 844-580-WDBO. These questions always turn into more questions, so I love that may be something that was on George’s mind may have jogged something in your mind. That’s the beauty of having these experts on the air answering your questions. 844-580-WDBO.
Joe Bert:
So, we kicked off the program while you were teeing up George’s call there. Harry, what do we have here?
Harry Stadelmayer:
Yeah. So, we have an article that came across my desk and Matt’s desk and Chris. It is about what makes a good retirement, and there are three traits of happy retirees. Number one is having at least half a million or so in liquid assets, having some money obviously in your portfolio and then your mortgage being paid off and then multiple streams of income. But the ones that I found interesting are the six non-financial traits, and one is curiosity. We hear that curiosity kills the cat, but a lack of curiosity can also be a problem in retirement. If you stop being relevant, if you’re not looking for different activities to keep you active, that is a real bad sign of just wandering aimlessly, if you will. Number two is a purpose. You have to have a purpose when you retire. I spoke to someone this last week who has no financial issues, 55, retired and I was chatting with him. I said, “How are you doing?” And he said, “Harry, I’m bored out of my mind.” And he’s 55-years-old and you think about life expectancy of 85 or 90, wow, he is going to-
Joe Bert:
That’s another 35 years.
Harry Stadelmayer:
He said, “I’ve done very well in business. I’ve bought and sold businesses and I’ve done extremely well.” But he said, “I’m bored. I don’t have anything going right now. Don’t know if I really want to.” And he was depressed. He was truly, truly depressed. And so he needs to find a purpose. He needs to find another direction, something that stimulates him. The other one is social connection.
Joe Bert:
You have a client. Let’s circle back to that. You have a client that was a successful executive. You’re in town with a company who we won’t mention-
Harry Stadelmayer:
Very large.
Joe Bert:
… who is now doing what down at Disney?
Harry Stadelmayer:
Well, he’s driving a boat from the parking lot to Magic Kingdom.
Joe Bert:
You mean the shuttle bus?
Harry Stadelmayer:
The shuttle bus, whatever. He was bored out of his mind and he thought this is a great way to meet people. And this is a very, very high executive of a very large company in central Florida. He decided that he had to do something. I think that was more his wife kicking him out.
Joe Bert:
Well, it works both ways.
Harry Stadelmayer:
It works both ways.
Joe Bert:
Happy wife, happy life.
Harry Stadelmayer:
Yeah. 97% of retirees have a strong sense of purpose and are generally happy. Social connections. There’s a statistic that shows that if you’re involved in a church or a synagogue, you’re extremely much more happy. Social connections. Get involved in a club or get involved in some activity, the Elks Club or something of that sort. And the thing that’s really important, this doesn’t happen the day you wake up after you retire. You walk into your boss and you say, “Hey, I’m done. Harry and Joe have done a great job of getting me there financially.” You don’t wake up one day and say, “I’m going to start working out at the gym,” if you haven’t done it for the previous 50 or 60 years. It’s a habit. It’s something that you need to connect. And that was an important part of this article. Start that now. Start walking that mile now. Also, retiring at your planned time. Those that have been surprised by retirement are extremely much more depressed because they haven’t done what? They haven’t planned.
Joe Bert:
You got it.
Harry Stadelmayer:
And then obviously one of the most important is personal health and that’s probably the most. Without your health-
Joe Bert:
You’ve got nothing.
Harry Stadelmayer:
… retirement is not good.
Joe Bert:
Yep, for sure. Well, I see we’re up against the break there, Josh, so take it away, buddy.
Josh:
That’s right. If you want to hop on the air, help plan your retirement live on the air, the number to call is 844-580-9326. Harry and Joe with the Certified Financial Group are here to serve you today, help you plan your tomorrow.
Joe Bert:
Today-
Josh:
844-580… Sorry.
Joe Bert:
That’s all right. I’m ready. I’m ready. I’m ready.
Harry Stadelmayer:
Two guys on vacation are jumping the gun. Forgot the deal.
Josh:
All right. All right. The number to call to help plan your tomorrow-
Joe Bert:
Today.
Josh:
… is 844… We’re going to get through this. I know it. 844-580-WDBO.
Joe Bert:
I’ve like Pavlov’s dog. You say tomorrow and I’m with today.
Josh:
I know, I love it. I love it. All right. Or you can leave an open mic, which we have one coming up here after this break, an open mic requesting some advice from the experts. Are you ready, Joe?
Joe Bert:
I’m ready.
Josh:
All right. You are listening to On The Money where we are planning tomorrow-
Joe Bert:
Today.
Harry Stadelmayer:
Today.
Josh:
… with Joe Bert of the Certified Financial Group.
Welcome back to On The Money right here on WDBO 1073 FM, AM 580, always streaming live in that WDBO app. Pick up the phone right now. We got Joe Bert and Harry Stadelmayer on the phone answering your questions. I guess they’re in the studio. You’re on the phone. That’s how this whole process works. Call in now. 844-580-9326. Get your questions answered. Roth IRA, 401(k), HSA questions. Help plan your retirement. 844-580-WDBO or feel free to send in your open mic today. Or I guess we have some email questions coming in. How about that, guys?
Joe Bert:
Let’s do it.
Harry Stadelmayer:
Perfect.
Josh:
All right. This one comes to us. We’ve got about three minutes. “I have 120K in student loans and $60,000 in auto and credit card debt. My wife and I earn approximately 225,000 per year and have 400,000 of equity in our home.” All right, so I’ll repeat that. 120K in student debt, 60K auto and credit debt, and they earn 225 per year with 400K equity in their home. A lot of numbers. I guess your whole career is numbers. Their question is, “Should we sell our home and pay off our debt and keep trying to reduce our debt on a monthly basis?”
Harry Stadelmayer:
Well, it sounds to me like there’s 120 student debt, 60,000 It sounds like there’s a situation there where we need to do a little plastic surgery. They have a very nice income, but I don’t know why you would, and I think you agree, why you would, Joe, sell a home that you have equity in to pay off debt and then where are you going to go? You’re going to buy another house. You’re going to go to an apartment. They do have very nice equity. I don’t like the fact that obviously somebody’s been in school for a while and then racked up some other debt. But it seems to me like they have a lifestyle that is not conducive to their income and they’ve gotten themselves in…
And again, maybe this was a situation where somebody was in school, things didn’t work out and now they’re a different career path or something of that sort. But I’m not sure that I would give up a home, especially in this interest rate environment. You have to live somewhere. I think the income they have is good. The 225 is good. So, I’m not sure I’d throw the baby out with the bathwater.
Joe Bert:
I think the most important thing for them is to get a handle on where the money’s going.
Harry Stadelmayer:
Correct. Exactly.
Joe Bert:
It’s take a hard look at your lifestyle choices. Are you going out to eat dinner three times a week and you’re doing the Starbucks routine? You’re taking those big vacations, buying those new cars. There’s ways to get yourself out of debt if you’re willing to pull… Nobody wants to pay the price to do what you got to do. They’re looking for the quick fix.
Harry Stadelmayer:
Yeah. Many folks that come in to see us, they immediately can tell us exactly how much money they’re earning, their income. “I have X amount from here and here and here.” And then when you ask about their expenses, “So, what are you spending?” and sometimes there’s a blank stare. It’s like, “Not really sure.” If there’s a hole in the boat, we need to know how big that hole is. In this situation with good income, decent income, they could get very healthy within a year or two. And again, I think selling the home, and again, I don’t know where they would go, especially with interest rates if they have… They would maybe have to finance it or downsize.
Joe Bert:
Did they say what their interest rate is?
Harry Stadelmayer:
No, no interest rate. 400,000 in equity. So, I’m assuming they didn’t say if there was also a-
Joe Bert:
Mortgage.
Harry Stadelmayer:
… mortgage. But they did say 400 in equity, so it was probably a pretty nice little home. So, I don’t know that I would sell the home to pay off student loans and credit card debt. That leaves you homeless.
Joe Bert:
Well, I think the most important thing is to do some planning. How often we’ve talked about expenses. We give our clients what we call the blue form.
Harry Stadelmayer:
The blue sheet. The blue sheet.
Joe Bert:
And tell us what you spend and how often do you hear what?
Harry Stadelmayer:
“I have no idea.”
Joe Bert:
“I didn’t realize that.”
Harry Stadelmayer:
Yeah. Or they come back and say, “Wow, this was eye-opening.” And that happens more times than not.
Joe Bert:
Yeah. But that’s all part of planning. There’s no rights or wrongs. Our job is to look at what you’re doing, not to be critical, but to show you what you need to do now so you’re ready for when those retirement years comes, that you can get you through retirement years and there’s no surprises. That’s what financial planning is all about. It’s what we do at Certified Financial Group, 16 certified financial planners providing financial planning and investment advice for a fee working with you as fiduciaries. Remember, anybody can call themselves a financial planner. Only certified financial planners are required to work with you as fiduciaries, and that’s what we are here. Go to our website. That’s financial group.com, financial group.com. Learn all about Harry and me and the other 14 certified financial planners here. And we’re up against the clock, so take it away, Josh.
Josh:
844-580-9326 is the number to call to pick the brains of Harry and Joe. Plan your retirement. 844-580-WDBO or send in your open mic now. Those are very easy. Just push the open mic button inside that WDBO app. I’ll push play on the air and then I’ll push play on the experts here, where they give you their expert advice and help you plan your retirement. You are listening to On The Money, where we’re planning tomorrow-
Joe Bert:
Today.
Josh:
… with the Certified Financial group.
Speaker 2:
Welcome back to On The Money, Central Florida’s most listened to financial call-in show, brought to you by Certified Financial Group in Altamonte Springs. It’s the only show hosted exclusively by certified financial planner professionals. Monday through Friday, their CFPs provide financial planning and investment advice for a fee. But on Saturdays the advice is absolutely free, and has been for more than 30 years for their WDBO listeners. If you have a financial question you want answered by real fiduciaries, the lines are wide open. Call 844-580-WDBO. That’s 844-580-WDBO, and enjoy the rest of the show.
Josh:
Welcome back to On The Money right here on WDBO 1073 FM, AM 580. Take WDBO with you on the go utilizing that WDBO streaming feature. Listen to us wherever you got the internet, WiFi, 3G, 5G, whatever out there is out there now. Feel free to push play if you want to hop on the air. We are listening to On The Money with the Certified Financial Group In the show today is Harry Stadelmayer and Joe Bert of the Certified Financial Group answering your questions, planning your retirement-
Joe Bert:
Today.
Josh:
Oh, brother. If you just want to call in and yell, “Today,” the number to call is 844-580-9326. 844-580-WDBO, or send in your open mic. Or if you want to go to Joe and ask him what day it is right now, you can go to the futuristic office of the Certified Financial Group for one of their highly anticipated workshops.
Joe Bert:
Yeah, today’s workshop is full. Matt Murphy is conducting one on the four stages through retirement. No, I’m sorry, on legacy planning.
Harry Stadelmayer:
Legacy.
Joe Bert:
Legacy planning with an estate planning attorney, and it’s a full house. For those folks that signed up, we hope you do show up because we reserved a seat for you. So, today is done and what do we have coming up, Harry?
Harry Stadelmayer:
But-
Joe Bert:
But?
Harry Stadelmayer:
And as evidenced by today, these workshops are filling up pretty nicely.
Joe Bert:
Well, there are topics that people need to know, stuff that we’ve learned through our many years of doing this and that people always walk away shaking their heads, “Geez, I didn’t know that.” And then they send their friends. So, if you want to know what the next ones are, Harry, what do we-
Harry Stadelmayer:
It’s October 11th. On October 11th, 6:30 to 8:00. I believe that’s a Wednesday. I didn’t look that up, but I think it’s a Wednesday evening, 6:30 to 8:00. Charles Curry will be talking about getting long-term planning right, the do’s and don’ts of long-term planning. And this one really hits home with me. I just had a client that has been with me for 25-some years, had a little procedure, 10% chance of something going wrong. It went wrong. And they checked her in and she will be in a long-term care facility for who knows how long. So, if you are thinking about long-term care and long-term care planning, it’s one of those things that, “Oh, it’ll never happen to me,” think again. You may want to go-
Joe Bert:
Oh, Harry, we see it every week.
Harry Stadelmayer:
All the time. Yeah.
Joe Bert:
You and I have been at this for a long time and that’s the good news, and the bad news is that the clients that we got in the early years today are older than we are. And some are younger. And we see those things happening. And you want to make these decisions when you don’t have to make them in a crisis situation. At least you want to know what your alternatives are. You don’t want to be start searching and googling information when mom or dad is in the hospital or whatever and you got to make those… At least get the information and know where to look. So, Charles is going to be covering that.
Harry Stadelmayer:
Yeah. And the beauty of the situation I just talked about, they’ve been with me for a long time and that was part of their planning recommendation.
Joe Bert:
Of course.
Harry Stadelmayer:
And so now we are in the process of filling out paperwork, which was somewhat of a relief to him saying, “Oh, I forgot.” And now I said, “Well, here’s some paperwork. We need to get this going because you are going to need this check.” They could do it, they’ve saved money, but still, it’s what we planned for.
Joe Bert:
Today.
Harry Stadelmayer:
Today. So, that’s October 11th, 6:30 to 8:00. You can register on our website or call our office on Monday. And then the 28th, the ever-popular healthcare options, Gary Abely from 10:00 to 12:00. That is a Saturday morning. That’s October 28th. So, those are the two in October, the 11th on long-term and then 28th healthcare options, Gary Abely, the ABCDs and all those healthcare.
Joe Bert:
Yeah. This one fills up awfully fast because it’s the one of getting through that maze of when you turn age 65 and your mailbox explodes with all these opportunities that you might have regarding your Medicare supplements. Should you do a Medicare Advantage? The pros and cons of that. What to look for. Medicare part A, part B, part C, part D. What’s the best supplement for you? All that stuff. Once again, we don’t sell this stuff, but what we do is offer education. So, if you want any information about any of these workshops that we do, go to our website. That’s financialgroup.com, financialgroup.com. Click on events and you make your reservation right there online and we hope to see you there.
Harry Stadelmayer:
Yeah. Knowledge is power.
Joe Bert:
It is.
Harry Stadelmayer:
Knowledge is power.
Joe Bert:
For sure. I see we got another text question floated in there, Josh. Take it away, buddy.
Josh:
We certainly do. If you want to hop on the air, the number to call is 844-580-93… 93? Where am I? 844-580-9326. 844-580-WDBO. And I believe that very same… No, it’s Rodney Ownby that’s taking calls off the air. If you want to hit him up and get personal with your advice, the number to call is 407-869-9800. Email question number two. “I have a portfolio with a financial planner valued at 1.7 million. My planner has me in over 100 individual stocks. I’ve been listening to this show On The Money for a few years and always hear you talk about being diversified. I’m assuming with over 100 stocks I am diversified. Is this true?”
Harry Stadelmayer:
Never assume. Never, never assume without digging into… First of all, good night. 100 stocks. Quite honestly, if that client were to walk in and put that portfolio down, we would say, “Okay, we’re going to change the complexity of this completely.”
Joe Bert:
Let’s back up here. Do we know anything about the age? We got the age on this guy?
Harry Stadelmayer:
I don’t think so.
Josh:
I don’t see an age, no.
Joe Bert:
And we don’t know if this is the only assets that he or she has.
Harry Stadelmayer:
Correct.
Joe Bert:
Okay, so let’s assume it’s the only assets that they have.
Harry Stadelmayer:
It’s a sizable amount.
Joe Bert:
Okay. But it’s all in stocks.
Harry Stadelmayer:
Correct.
Joe Bert:
So, what does this tell you?
Harry Stadelmayer:
Well, it tells you that, again, depending. This person could be 50. He could be 80. Don’t know. But chances are that he is really heavy into equities, perhaps. And not only just equities, probably large cap tech equities. And so there’s some talk about the tech industry being a little bit overpriced. I know we in this firm have talked a lot about value, moving from some growth to value, which is what we do occasionally. We’ll do some rebalancing and our investment committee might recommend that we do maybe a little more value. We have a great committee that puts that together.
But in this situation, there’s a good chance that 80 or 90% of that portfolio is literally… I had a lady walk in one time. She goes, “I’m very well diversified. I have CDs in nine different banks.” That’s not diversified. Now, maybe you want to stay under that FDIC limit, but having 100 stock means really nothing. You want to look at large cap. There are over 100 different asset sectors. And when you work with a certified financial planner and they are a fiduciary and they have your best interests at heart, diversification means you have large, small, mid. You have some bonds, some bond funds, some ETFs-
Joe Bert:
Maybe some real estate.
Harry Stadelmayer:
… some value, some real estate, maybe some international stuff. And so you cannot assume, and I would invite this individual if he happened to be listening again this morning to let us just take a peek at what you have and we will tell you if you’re diversified or not. And we would probably share with you the way we feel is the best way to manage assets for an individual based on your risk tolerance level.
Joe Bert:
And your time.
Harry Stadelmayer:
That’s where we start.
Joe Bert:
And your time.
Harry Stadelmayer:
And your time.
Joe Bert:
And your time horizon, because those will go hand in hand. The more time you have, the more aggressive you should be because you can ride the market. Because markets do go down. But if you hang in there long enough, you get great returns and that’s been history. But what you don’t want to do is be forced to sell when the markets are down because you didn’t do any planning. So, that’s what it’s all about.
Harry Stadelmayer:
And the other thing is, out of those 100 stocks, there’s probably a good chance that we could maintain positions in those 100 stocks with maybe 10 or 15 symbols versus 100-and-some CUSIP numbers, if you will. So, we can make life easier for you as well.
Joe Bert:
Yeah, I think people like to own the individual stocks because they like to see the names. “I own Apple. I own Meta. I own Walmart.” And I understand the psychology of that, but that isn’t the really way to build long-term financial security. Anyway, I see we’ve got a call there. Josh, take it away, buddy.
Josh:
That’s right. Kathy’s calling in from Lake Mary. Kathy, go ahead.
Joe Bert:
Hello, Kathy.
Josh:
You’re on the air.
Harry Stadelmayer:
Good morning.
Kathy:
Good morning.
Joe Bert:
How can we help you?
Kathy:
In March of this year I inherited an annuity. My sister-in-law had passed away. It had matured. She had held it for eight years. And I’m thinking about moving it to a better investment and I’m wondering if the gain on this will be a short-term or a long-term capital gain for me?
Joe Bert:
It’s not going to be a capital gain at all. It’s going to be taxed to you as ordinary income.
Harry Stadelmayer:
Which is worse.
Joe Bert:
Yes. Now-
Kathy:
Ordinary income?
Joe Bert:
Yes. Now, let me ask you this. You said it’s an annuity. I understand that. Was the annuity in an IRA or just a straight out annuity, not an IRA?
Kathy:
Not an IRA.
Joe Bert:
Okay. Just a straight annuity.
Kathy:
Yes.
Joe Bert:
So, you’ll have to pay taxes on any gain that she had. Not on the whole amount, but just on the gain. So, if she put in 100 and it’s worth 120, you’ll pay ordinary income on the $20,000.
Kathy:
So, ordinary income for me.
Joe Bert:
On the gain. That’s correct.
Kathy:
All right.
Joe Bert:
Okay?
Kathy:
Yeah. Well-
Joe Bert:
All right, Kathy.
Kathy:
… I appreciate the answer. Thank you.
Joe Bert:
You’re welcome. Sorry for your loss.
Kathy:
Bye-bye.
Joe Bert:
Bye.
Kathy:
Okay, thank you.
Harry Stadelmayer:
And that is some of the negative of buying annuities. We’ve had a lot of folks come in and say, “Well, what about an annuity?” And sometimes those can be tax time bombs.
Joe Bert:
Yeah, if you don’t know what you’re doing.
Harry Stadelmayer:
Those can be tax time bombs.
Joe Bert:
Right. Now, had you been the spouse, there’s different treatment on that. But you not being as a spouse in the situation, you’re going to be taxed at ordinary income rates. So, that’s the way that plays out. And we’re talking about diversification and quality of investments. This is probably a good time to talk about Score My Funds, Harry.
Harry Stadelmayer:
Yes. It’s an opportunity for you to have us, in fact, look at your portfolio. We use something here called Fi360, which is 11 criteria that we feel make up a good mutual fund or ETF, alpha, beta, standard deviation, on and on. What most people couldn’t care less about, but we certainly do. And it’s a way for us to evaluate your portfolio and let you know if you really do have quality. And you can do that by the website is-
Joe Bert:
Scoremyfunds.com.
Harry Stadelmayer:
Scoremyfunds.com.
Joe Bert:
Scoremyfunds.com. Go to the website. There’s a pulldown menu if you don’t… You need the ticker.
Harry Stadelmayer:
Yeah, you need your ticker.
Joe Bert:
The ticker is the letter symbols. If you don’t know it, there’s a pull down menu. You can plug it right in. And we’ll send you the report absolutely free and you can then determine what you have. If you’d like to follow up with us om perhaps improving or changing your portfolio, that’s why we are here. And I hear the bumper music, so take it away, Josh.
Josh:
Thank you much. One more segment coming up with Harry and Joe of the Certified Financial Group. The number to call is 844-580-9326. Send in your open mic via the free WDBO app. You’re listening to On The Money where we’re planning tomorrow-
Joe Bert:
Today.
Josh:
… with the Certified Financial Group.
Welcome back to the final segment of On The Money right here on WDBO. We’ve been helping you plan your future for the better part of an hour. But as the show comes to an end, I want to tell you that we have Rodney Ownby standing by off the air to answer your calls. If anything pops into your head for the last second, the number to call is 407-869-9800. Harry Stadelmayer and Joe Bert have been advising the area, me, mainly me, I pretend no one else is listening and I write down everything they say. And I say, “You know what Joe told me today. You know what Harry said last week?” It’s one of the beauties of being this here job. 844-580-9326 is the number to call. 407-869-9800 is the number to call if you want some off-air advice by Rodney. But I heard Harry and Joe talking during the break about a conversation Harry had with someone of an underrepresented group.
Harry Stadelmayer:
Yes, I actually met with a client this week that unfortunately lost her husband in a tragic motorcycle accident years and years ago. And so she has been there, done that. And we met this week to go over her portfolio and talk a little bit. She has become very, very involved in something called the Modern Widows Club. The third-largest widow population is in the United States. There are over 12 million widows in the United States. Just to give you an idea, New York City has 8.8 million people. So, 11.8 million. And these are individuals that sometimes are ignored. And again, I’m not talking… This organization called the Modern Widows Club is not about financial. This isn’t about managing your money. That’s what Joe and I do. But this is about anybody out there that knows a widow or you are a widow, that this organization will help you thrive in widowhood. Empowering widows to thrive is the idea of this. It’s an organization. They will love on you. They will hug on you. They will help you get through. They are people-
Joe Bert:
They understand.
Harry Stadelmayer:
They understand.
Joe Bert:
They’ve been there, done that.
Harry Stadelmayer:
They’ve been there, done that. So, I just wanted to mention her organization. She is very, very involved and I promised her that I would just mention that. And if you want to get more information, just email me at harry@financialgroup.com. Harry@financialgroup.com, and I’d be happy to put you in touch with this organization that does so much good for so many widows that are hurting, that have pain, and maybe they can just be a real blessing to you as you go through this. And she has told me about two and three time over widows. So, it’s-
Joe Bert:
So, that statistic. 70% of all married women-
Harry Stadelmayer:
Will become widows.
Joe Bert:
70%. Well, that’s-
Harry Stadelmayer:
70%.
Joe Bert:
Women kill us, Harry. I want to tell you.
Harry Stadelmayer:
I don’t want to be morbid here, but I went to 13 funerals. All were male but one. So, it is an area that needs some attention. So, again, if you’re interested or you know someone that they’re struggling, harry@financialgroup.com and I’d be happy to put you in touch with this. It’s just, again, another part of what we do. And this, again, is not to benefit Certified Financial Group. Of course we can help you from the financial standpoint, but-
Joe Bert:
Join the club.
Harry Stadelmayer:
Yes.
Joe Bert:
At least get information. To segue on that, this week we got another inquiry. For anybody who’s ever been to our website, you can make an appointment through our website. And we ask, when they fill out the form, why you’re coming to see us. And once again, it was a situation, “Well, I’m getting up in years and I want to be sure that if and when I pass on, my wife has a home financially to go to and I understand and trust the people that she’s going to be doing business with in the future years.” That’s what we call planning.
So, folks, if you are in that kind of situation, if at least you want to come by and kick the tires, find out what we do, how we do it. We’ve been around now for almost 50 years, serving the third and maybe the fourth generation now of clients here in Central Florida providing financial planning and investment advice for a fee, working as fiduciaries. You can find us at financialgroup.com. That’s financialgroup.com. And as a minimum, come to one of our workshops and find out what we’re all about. Leave your checkbook at home. They’re absolutely free, and hope to see you there.
Harry Stadelmayer:
Yeah. Again, just to reiterate, the workshops coming up in next month, October 11th, Charles Curry, getting long-term care and then October 28th, healthcare options with Gary Abely on the 28th, and that’s 10:00 to 12:00. That’s a Saturday morning. These are free. We don’t hold you hostage here. Information is power and that’s what we do all day, all week. And if you like what you hear, get going to our website, set an appointment, come on in, let’s have a cup of coffee and talk about your situation.
Joe Bert:
There you go. All right, Josh, take it away. It’s been a pleasure being with you. Glad you’re back. I’m glad I’m back.
Harry Stadelmayer:
Have a great week everyone.
Joe Bert:
And we’re doing what?
Josh:
We are planning tomorrow-
Joe Bert:
Today.
Harry Stadelmayer:
Today.
Josh:
… at the Certified Financial Group.
