Inspect What You Expect: How Much Are You Paying in Fees?

9.1.23: Audio automatically transcribed by Sonix

9.1.23: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Producer:
Any examples used are for illustrative purposes only and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment and is not a solicitation or recommendation of any investment strategy.

Producer:
Welcome to The Buckeye Advisor with your host, Woody Bowling. Woody is a fiduciary licensed financial advisor and Medicare expert who always places your needs first. Woody works hard each day to educate Americans like you on how to reach the financial freedom they've worked so hard for. And he can help you, too. So now let's start the show. Here's Woody Bowling.

Woody Bowling:
Good morning or good afternoon or whatever time of day it is for you. This is Woody Bowling and welcome to another show of The Buckeye Advisor. I am more than pleased to welcome you, the listener, to this week's program. It happens to be airing on 94.5 FM Dayton. The answer. Saturday, September 2nd, 2023. Sunday, September 3rd, 2023. Both days from 9 a.m. to 10 a.m. And we welcome you in. We hope you're listening from your car. If you're out doing errands, you're going to see grandchildren's ballgames or just doing grocery shopping, whatever it is. Welcome aboard. Thanks for coming again. I'm Woody Bowling and welcome to another great educational, exciting episode of The Buckeye Advisor. It is officially Labor Day weekend and we hope that you are having a super relaxing and you're not laboring on this Labor Day weekend. Lots of exciting things to talk about in our show this week. Also Ohio State football starting on Saturday, September 2nd. Super exciting for the Buckeyes to get back in action. And without further ado, I'm going to bring in my co-host and producer. I know he loves the Buckeyes somewhere secretly deep down in his heart, although he does live in Atlanta, Georgia. And he is with us week after week, providing insightful commentary as well as keeping me moving through the agenda each week. Welcome, Matt. How are you?

Producer:
Hey, Woody, I'm doing great. You know, I do have, you know, somewhere deep inside a love for the Ohio State Buckeyes, although you would imagine, you know, living in Georgia, being a Georgia boy, Georgia native, I do have another team that I kind of also also root for here. But, you know, I couldn't be on the on the radio in Ohio without saying I do love me some Buckeyes as well. So there we go. I'm going to split my loyalties here.

Woody Bowling:
And you know, what am I? You know, you're fortunate in Georgia. Bulldog fans are fortunate. I mean, take this in while you're in the middle of it. Two national championships in a row. That is an amazing accomplishment. Kirby Smart is one whale of a coach there. They're the odds on favorite to repeat again. So they've got a big task ahead of them. Lots of teams with the they have the target on their back. So Ohio State will do their thing. Georgia will do their thing. And perhaps they may see each other later on in the season. But without further ado, Matt, what do we got going on on this week's show, my friend?

Producer:
Well, we have a whole lot coming up here on the agenda for today's show. Woody, You know, we have first of all, wanted to just give a big welcome to all of our listeners there in the greater Dayton area. Remember, if you've missed the show, if you may be, you know, tune in a little bit later on. You catch us at the end or you think, oh, I just heard about half of what they were talking about here during that segment. I really want to know more. You can do that any time by going to the website. TheBuckeyeAdvisor.com that is The Buckeye Advisor with an o r.com and you go there you can go to the podcast page, subscribe to our podcast as well. Wherever you do that on a regular basis, iHeart, Stitcher, Spotify, all the big ones there, you can do it. And we're just basically all over the interwebs on audio and on video because we're on YouTube. We got the Facebook page going. So if you can't find us, you're not looking hard enough. That is basically what it boils down to. But we do have a bunch coming up here on the show. Woody, First off, of course, our Quote of the week here in just a moment with some words of wisdom to start off our conversations today, we also have some financial terms of the week. We've been something that we've been doing here recently, where we've been, you know, kind of taking terms that can sort of be confusing or sound too wonky, you know, for lack of a better term.

Producer:
If you hear them, you know, you might hear the guys on CNBC or Bloomberg or one of those type places talk about it and you wonder kind of what it is we're trying to kind of, you know, help you along in that so that you don't feel like you're a little bit in the in the dark and left behind. So we'll go over a couple of financial terms to help you better understand your investments. And then also, you know, a major US bank recently overcharging millions of dollars on their investment advisory side. We're going to actually share the details of that story. And also, are you paying too much in fees? Chances are you might be somewhere inside your investment portfolio. We'll talk about that and give some tips on how that you can keep more of your hard saved money. A lot coming up here, Woody. And of course, we've got even more on our agenda that will hopefully try and get to. And if not, we'll just pick it up next week where we leave off this time around. First, though, let's get things started off here as we launch into the main part of the show with our Quote of the Week.

Producer:
And now wholesome financial wisdom, it's time for the quote of the Week.

Producer:
Our words of wisdom this time around would come from a pretty smart guy named Albert Einstein. I'm pretty sure you've heard of him on occasion. This is one of my favorite quotes of his, and it says this, quote. Compound interest is the eighth wonder of the world. Those who understand it earn it. Those who don't pay it. And it's so, so true.

Woody Bowling:
Very true. We have an ad, Mr. Einstein on. And as I understand it, I think he did make it out of the fifth or sixth grade, right?

Producer:
Yeah. I mean, he was pretty smart. So, you know, of course he.

Woody Bowling:
Is. And he had a hairdo that was very, very often imitated but seldom duplicated. But Mr. Einstein had it right. We talked to people during our show. You know, no matter what the age of our listener, it's never too late to start earning compound interest. And you do that by investing. We have an investment advisory side in my business. I'm a. Licensed Fiduciary Investment Advisor representative used Brookstone Capital Management, some phenomenal tactical management strategies that I employ for my own money and for lots of money for clients. And on the other part of my business, I am a licensed insurance advisor. Help people with Medicare. We'll talk about Medicare over the next 3 or 4 episodes as that's coming up. But he couldn't have hit it more accurately because when you continue to invest on a regular basis, whether it's in a 401. Ira Roth. Ira or just a traditional investment account with your after tax earnings and savings, that's how you grow it. Keep going doing it on a regular basis. That's what we recommend and that's what Mr. Einstein thinks is a good thing, too, because you get paid interest on your interest, on your interest over a period of time.

Woody Bowling:
And it's astonishing what people see at the end of that journey when you do that on a regular basis over a ten, 15, 20 and 30 year period, I mean, people are ready. I'm talking to people this week that are getting ready to step out of retirement and or into retirement in the next few months. I mean, the guy's worked there for 30 years and he's got a $400,000 401 K, and that's very common. But, you know, they don't work currently with an advisor because that's going to be where the lion's share of their retirement savings is coming from. They still have other money in savings and bank accounts, but not nearly that kind of a number. So he's being rewarded. She's being rewarded for their. Constantly investing in that 401. K, getting a small company match. And that's what we're talking about in Mr. Einstein's dead on. Can't say any more about that. Don't think I beat it. Hopefully I didn't beat it to death.

Producer:
Definitely not to death, but really brought the point home there. I mean, it's absolutely accurate. And and, you know, you can either pay it or be paid it. The choice really is yours if you understand what compound interest is. And and that's the thing. Work with an advisor like Mr. Woody Bowling himself, The Buckeye Advisor.

Woody Bowling:
That's a good idea.

Producer:
You know, I have those on occasion, but yeah, me to work with The Buckeye Advisor. You can go to TheBuckeyeAdvisor.com as I said a few minutes ago or you can give them a call. 937 974 6201 If you've got any questions about what compound interest is and how you can actually make it work for you instead of against you here, well, you know what? He's speaking of working against people. There was some more news this this past week about a major US bank that has been, you know, caught again, doing something sort of nefarious here. And this is not the first time that this has happened to this particular bank. Wells Fargo apparently overcharging about 11,000 investment advisory accounts, get this, a total of $27 million in fees. That is according to federal regulators. And they agreed to pay now a $35 million civil penalty to settle that matter without admitting or denying what the Securities and Exchange Commission has alleged here. Like I said, not the first time that this has happened or not this particular thing. But but a similar situation with Wells Fargo. Um, you know, Woody, I mean, what do you think? Just what's your reaction, first of all, to this happening?

Woody Bowling:
Didn't Wells Fargo also get chastised and fined millions of dollars for opening fake accounts for I mean, they so incentivized their employees to open accounts that their employees began opening accounts using current customer information just to hit sales quotas and sales targets for incentives. I mean, it's it's sad, It's disgusting. It's all of those things. It makes me sick to my stomach in Wells Fargo. Is still around. They have a customer base that's loyal to them. And it's sickening to watch that kind of behavior. And it goes back to a saying that can be applied towards a lot of different things that one bad apple can spoil the whole bunch. And it it sheds a negative light on the banking industry. It also sheds a negative light on the investment advisory industry, although it really doesn't affect me per se. But. What it does when these things happen is it puts a shadow. It puts a cloud over the profession and it puts doubts in the back of people's minds. And, you know, I think that's why a lot of people enjoy working with an independent advisor. If an advisor works for Wells Fargo, they are going to be subject to sales quotas. They're going to be subject to working with certain mutual fund families. They're going to have. Very, very well defined incentive goals. And you know what Those kinds of things, Matt. They trigger those kinds of behaviors. And it's like also later on, on the backside, it's a lack of follow up and a lack of insight by their compliance area for not catching those errors and those mistakes.

Woody Bowling:
And it's, you know, I hate talking about negative things, but at the same time, I want our listeners to realize that, you know, I use TD Ameritrade, which is officially becoming Schwab this weekend. They merged two and a half years ago. They're going to go by the name of Schwab. That's our custodian for client investment account funds. People will be able to log on 24 over seven. We bill on a flat rate monthly. There's one overriding management fee that my clients pay annually, but it's broken up into 12 months once per month. But it's one gross fee period. As your account does better, I do better. It's very easy to calculate. It's based on the ending monthly balance. So I think people see through a lot of times and I think incidents like this will continue to help individuals like myself as I talk to people and our listeners to say, Hey, you know, you might have an advisor that works for a big bank in our area and there's lots of big banks that have offices in our area. But look, there are those advisors are going to want you to be in the market all the time with 100% of your money. If not, they want it to be in your savings account.

Woody Bowling:
On the other side of the bank. And that's it. That's the two options. So as a hybrid advisor, that does a lot with both sides of the coin. We're able to help clients with some other options that are hybrid like options. Fixed indexed annuities is something we use. Often it can grow, but it also principal protect and we can get into further details about that. Anytime people can call me, I know there's people out there that are getting ready to call me and people that will hear in a few months and you know when the time is right. But I'll encourage you, don't hesitate. Most people I talk to say, I wish I would have called you sooner when I first heard your show, but for some reason people just wait and they want to hear it. We're we're 14 months into this. I've been doing this business for about 15 years now, so don't let that stop you. Take the time. (937) 974-6201. And I want to make another point. I will answer my phone or return your call on a Saturday. You're going to call my cell phone number. You call me at 7:00 in the evening. You'll be able to talk to me. You cannot say that about your typical investment advisor brokers that work for these big institutions. And that's another major difference is communication and being able to reach those people.

Producer:
Yeah, I mean, that that's one of the big biggies there for me. I think what he is being able to actually reach out, talk to a human being and not only a human being, but somebody who's not maybe in a large call center somewhere halfway across the world, you know, someone who is the person who is your advisor, call them and talk to them directly. Having that connection is great. That's what you do as The Buckeye Advisor here for the listeners to the show. If they call you (937) 974-6201 for a free initial retirement plan consultation. And when I use the word initial there, I mean it's comprehensive. It's not just you know, oh yeah, this is here's your, you know, your budget and here's what you, your investments look like. Now it's much more in-depth than that. Talk about that, if you will, and what people can look forward to when they do give you a call.

Woody Bowling:
Yeah, that's a that's a great point. And I'll I'll ask I'll ask the listeners this. If you were going to the doctor and you sat down and had a, you know, Hey, how you doing, doctor? Good. How about you? How you like the weather? But you didn't actually disclose to the doctor what needed to be addressed. You're maybe you're having pain somewhere. Maybe you're having frequent headaches, whatever it is that you go to the doctor to talk about. You have to tell them. And as an advisor during that initial meeting, all I'm trying to do is be your financial quarterback or your financial doctor, because most people have an issue that they want to deal with, whether it's a concern over fees like we were just talking about. I think a lot of people think in the back of their mind, am I being charged too much? Am I getting my money's worth? Do I know why my advisor put me in these particular investment strategies? Should I really be paying fees if I'm in bond funds? We don't really believe that bonds are the best way to go for part of your portfolio these days because of the high inflation and high interest rate environment we've been in now for a year, year and a half. So my clients like alternative strategies like annuities for a portion of those retirement savings. Not all of it, but a portion. The. Things that once I learn your situation, you know where you're at currently, whether you're 50 years old or 55, maybe you change jobs along the way. Do you have a 401. K that you left behind somewhere? You want to talk about that? How's it doing? What can we do with it? How much money can I generate from it on a monthly basis for income? You know, five, ten, 15 years down the road? I address those kinds of questions and concern each week with people that I meet with, and that's the fun part about it.

Woody Bowling:
Everybody's situation, Matt, is completely different. I hear so many great stories about family, about careers and about what their post employment world looks like, travel or spending more time with the kids or playing more golf, which sounds good to me. I would love to play more golf. So all those things are fun. That's part of the discovery process. And the discovery process is where we get to know each other. We find out kind of we set a roadmap of where you want to be, where you're at today, and then I'm going to do research and come back with some ideas and some strategies that will more than likely, you know, be to your liking. And we're going to manage risk in an appropriate way because most people are not comfortable, you know, depending on your age, most people are not comfortable risking everything they got in the stock market these days. And it's been a good year for the first part of the year. And then it's become really choppy again lately with some up and down wild kind of swings in the stock market. So all we're saying is we're going to keep an eye on your portfolio every day. That's what I do. We're going to manage it. We're going to make changes as needed based on quarterly performance in your investments. And that's what we do. That's why we're good at it.

Producer:
And you can give The Buckeye Advisor a call, folks, if you want to see how good he is at it. 937 974 6201 9379746201. Or go online to The Buckeye Advisor with an o r.com.

Producer:
Here's the cost cutter of the week.

Producer:
Well we are taking time here Woody to cut some costs before the break in these next few minutes and you know I think one of the easiest ways really to cut costs is to eliminate unnecessary fees that you're paying. And I think that it's probably true, and you can correct me if I'm wrong here, but there are probably people who are overpaying in fees and or paying fees that they have no idea that they were even paying to an advisor or to, you know, some portfolio manager or a broker or whomever. But they're paying those fees and they're just flat out paying too much.

Woody Bowling:
They are. And sometimes. People never really understand why they're paying those fees just because the broker, the and I say broker meaning stockbroker. And that's a term that's maybe it's not in use as much as it used to be. But look, there's mutual funds charge expenses operating in all the mutual funds out there. There there is a cost to do business. There are people that manage those funds that they get paid very, very good salaries that work for Vanguard, Fidelity, you know, all these different companies that have their own mutual funds, Janus Mutual funds, you know, the American Fund family, all these fund managers get paid big money. And their goal is always to try to create, you know, as much of a return as they can. Unfortunately, they're always 100% invested in the market. They're never allowed to take part of their mutual fund that they manage and cut back on the risk. It's just not allowed. And that is by law. Or the fear would be is if they did that, because the amounts of money that they manage that it could trigger a downfall in the stock market overall. Some mutual funds have heavier costs than others. It just depends. And a and a share. A, B share or C share have different levels and a share has front end loads is what is called an expense is equal to a load load. And a share has typically a 5% front end load when you buy it in mutual fund.

Woody Bowling:
So if your broker puts you in a fund's share a share of a mutual fund and you invest $100,000, $5,000 comes in right off the top. So you have $95,000 that goes to work for you that day just because that's the way your broker did it. People don't know. People can never tell me what kind of funds they're in. They don't have a clue. So when I review statements, your management charges that your actual investment money manager makes, that's calculated. Most people don't know how much they're paying there. There's transaction fees every time your broker and there's I still have clients that have brokerage accounts that they trade on their own. They I manage a portion of their money. They have another side fund that they like to buy and sell individual stocks. And if that's what they want to do, great. I just tell them to be careful and they're paying, you know, potentially they can pay transaction fees, you know, commissions on those trades, although everybody's trying to get as low as possible on those commissions. But, you know, we can wrap that up by saying there's a lot of potential fees and charges. And I can help by reviewing your statements and really help you understand what you are paying currently versus what you could be paying and perhaps be getting better performance, you know, with me.

Producer:
Yeah. And that's really where The Buckeye Advisor can make a big difference in your your portfolio and in your investments and in your future really, because that's what it is all about. Now, you know, a lot of listeners, of course, ask that question, What am I paying too much or how much even am I paying on my retirement savings in fees? Well, if you don't know the answer to that question or you can't pull it up quickly, you owe it to yourself to find out. Woody Bowling would be more than happy to take a look at it and identify the current expense ratio of your retirement savings and get things straightened out for you. See if you could be paying less. Remember, go to TheBuckeyeAdvisor.com that's TheBuckeyeAdvisor.com. Or you can call Woody at (937) 974-6201. Well what are you. Time for our first break here the first half of the show coming and going quickly but we will be back on the other side of the break and we'll talk about beating the bank CDs with some migas multi year guaranteed annuities. We've also got some financial terminology to talk about. And of course, the dad joke of the week on the other side of this break. Stick around.

Producer:
Thanks for listening to The Buckeye Advisor. If you like what you're hearing, subscribe to our YouTube channel to watch videos from this program and other recent episodes.

Ma'am said that. Gimsoy.

Producer:
All fixed annuities, including multiyear guaranteed rate annuities, are not designed for short term investments and may be subject to restrictions, fees and surrender charges as described in the annuity contract. Guarantees are backed by the financial strength and claims paying ability of the issuer.

Producer:
With market volatility becoming the norm these days, many retirees are seeking safer options to protect and grow their hard earned money. Woody Bowling, host of The Buckeye Advisor, helps listeners retire better. If you're ready to stop putting off retirement planning, schedule your free consultation now at TheBuckeyeAdvisor.com Investment Advisory Services offered through Brookstone Capital Management LLC, a registered investment advisor. Visit TheBuckeyeAdvisor.com for more information.

Producer:
Welcome back. This is The Buckeye Advisor. I'm Matt McClure, the co-host, the producer of The Buckeye Advisor show. Here with the man The myth, the legend, The Buckeye Advisor himself, Mr. Woody Bullock. He is the one who answers all of your financial questions around here. Hopefully shed some light on some things that you might be wondering about as far as your investments, your retirement, your future. That's really what it is all about. And you can find out more at The Buckeye Advisors.com that is The Buckeye Advisor with an r.com or call Woody at (937) 974-6201.

Producer:
The marriage counselor loves them keeps him in business It's the dad joke of the week.

Producer:
Okay Woody it is that time once again I know everybody's been looking forward to it. So reveal it.

Woody Bowling:
Matt, what do you call two spiders that just got married?

Producer:
I don't know. What do you call two spiders Who just got married?

Woody Bowling:
Newlyweds. Uh, if you like dad jokes, you're going to like that one. If you don't, maybe not so much. If you didn't like that one, come back next week. We guarantee that we will try again.

Producer:
Yes, ABS, that's one thing that we can absolutely guarantee is that we'll try another dad joke again. And hey, you either laugh or you roll your eyes. Either way, you have fun. And that's what we like to do around here.

Producer:
Need a higher rate of return from your safe money. Listen up. It's time to beat the bank CD rates.

Producer:
All right, Mr. Bowling, So we're talking now about bank CDs. And I mean, we're in a period where we do have high interest rates. So you might think, okay, a bank CD is going to be pretty much one of the best places that I can go to keep money safe and earn a good rate of interest on it. And it is, you know, they're better than they were when interest rates were at or near zero, you know, for years, really, that's where they stayed. And a lot of the big banks will tout those CDs as being such, you know, this is a great place to get high interest. Haven't seen this high of interest in years and that you know not seeing high interest that high in years is is very true but and it's a big but there are places where you can actually do better and as the name of the segment would suggest it beat the bank CDs, right?

Woody Bowling:
Yeah, no doubt about it. And you know, as we get into this segment, it's a great segue into reminding our listeners that this is your first time or only a handful of times. And I know we have some veteran listeners that have been hearing us for the last 14 months since we started. We have a book called Annuity 360, Great book on learning All you Need to Know About annuities, Whether it's a variable annuity, which we do not recommend high fees completely at risk to the market. There's also a fixed indexed annuity that I use a lot with many of my clients for a portion of their retirement savings or investments that they want to protect the principal, but they still want to be able to grow it based on an index value. So that's a great, phenomenal way to get some market like return. You share in the market gain when your index goes up, but you cannot lose if it goes down. So if the market's down 20%, you lose nothing when you're in that fixed indexed annuity. And that leads me to the third type when we will provide you a free copy of Annuity 360. All you got to do is drop us a line, go to the website TheBuckeyeAdvisor.com with an or at the end of advisor or just email me directly Woody at TheBuckeyeAdvisor.com and say hey Woody give me the annuity 360 book and we'll get it out.

Woody Bowling:
Annuities are a great thing. The multiyear guaranteed annuity we're talking about today. And Matt, you hit it on the head. What hurt the whole older generation of sabres over the last 15 years was when the market crashed in 2007 and eight and the Fed, the Federal Reserve, responded with near zero interest rates for so many years. The banks quit paying anything worthy of even talking about in the form of CDs or savings rates. So CDs are considered a safe investment. But like you said, over the last year, year and a half, as the Fed raised interest rates now at a record setting pace, the highest since the 1980s, banks finally had to be dragged along into looking at this and saying, okay, we're going to pay a little bit more on our CDs. And they are. But what they don't know about because their banker will never tell them. And, you know, that's where the banks have an advantage. They have a brick and mortar office that people walk into and they can put money in and make take money out of their bank and they can conduct transactions face to face. So that's where the bank has the advantage. But what I'd love to do is provide education for people because in many, many cases you can get a multi year guarantee annuity that's going to mimic a bank CD. The term can be as short as three years.

Woody Bowling:
It can be 4 or 5, six, seven years, and you can get some returns that you will be surprised at how well they are paying these days. But the difference is it's going to be issued by an insurance company versus a bank. You're getting basically the same thing in a different wrapper. Insurance company versus bank insurance company has to keep 100% reserve dollar for dollar for the money they take in for annuities. How's that for a guarantee? That's a very, very strong guarantee by the insurance companies that do these. And that is a little known secret that our listeners are learning about today. And it's a great way, if that's all you're looking for is a plain vanilla, here's my money for 3 or 4 years. How much can I get? Guess what? I'm going to compare it on a website that I have access to, to multiple insurance companies, all that are very highly rated and we're going to shop to get you the best deal. Do you want to have access to any of it? Do you want to have access to 10% of it per year? The banks, when they get your money, they prefer you really don't touch it the entire duration. But these insurance companies will still give me flexibility and let me tailor that that that multi year guaranteed annuity. They pretty much will let me tailor it to what you're looking for.

Woody Bowling:
So if you want a good rate of return and if you're dealing with a savings account or money that's already been taxed and you decide that you want to do one of these annuities, guess what? The interest that you're getting does not get credited. It gets credited to the annuity. But you don't have to pay taxes on it that year because it's tax deferred. Okay. So that's another nice thing. It's another added little bonus that you can save money on taxes potentially by considering an annuity, even if it's a fixed indexed annuity. The difference is you really have a little more upside potential with the indexed annuity versus the plain vanilla multi year guarantee. But again, with some clients, we mix them up. There's we we're going to tailor that mix. Some of it may go in the multi year guarantee and some of it goes into the index and we mix it all together along with the investment option strategies that we have on the money management side of my practice. And it works all together. And don't forget Social Security, very important to think about Medicare, health insurance, very important to think about. So these things will give you flexibility. Some for partial withdrawals without any surrender charges. You know, the banks don't want you usually getting to those financial security. Diversification, You know, these multiyear guarantees, annuities can have an important place in your overall strategy.

Woody Bowling:
And Mark and and mark my words, that your advisor today will not want you to take any of your money you have with him or her and put it into a safe strategy like this. They're going to say simply, keep it all in the market. We're going to have some of it in bond funds, some of it in mutual funds that do stocks. We're going to rock with that. If the market's off 20, 30%, sorry, stick it out. It's going to be okay. It's not the right approach. We're looking for custom strategies, something most everybody I talk to these days is looking to know how much income can I create by guaranteeing part of my retirement assets? How much income can I create to put a personal pension together? It's a holistic approach that takes into account your Social Security at what age you want to retire, how much do you need? How much do you want? And all those things go into that holistic plan that we're going to put together for clients. So it all works together. It all makes sense. We get the strategies, we get them set up. We're open to moving and changing those on the fly as we go forward. And that's what you get. You get that personalized planning, personalized service from me, The Buckeye Advisor. And we also got to have some fun along the way.

Producer:
And that is just the cherry on top there that you get to get to have a better retirement and hopefully the retirement that you dream of. That's always the goal here. And you get to have fun with The Buckeye Advisor, as I do each and every week because I'm just privileged in that way. But The Buckeye Advisor is the website folks, if you'd like to check it out and you can get that free consultation. I mean, it's absolutely free of any cost and any obligation. TheBuckeyeAdvisor.com that is the place to go to get more information and to sign up for that and or you can call Woody if you prefer to talk to him on the phone. Maybe you got a couple of questions you need answered. Something like that. Just give them a give them a ring. (937) 974-6201. That's (937) 974-6201. Well Woody, at the beginning of the show, we teed this up and I want to get to it here in the time that we have left, which is a good chunk of time actually, our financial terms of the week. Now, we have been doing this for a couple of weeks now, and I like it because it takes these terms that people hear. They might hear their they might hear their advisor talk about it. They might hear their their broker or somebody on TV or on the radio talk about it and not quite understand what these terms mean. So we are here to sort of, you know, lift the confusion away from these terms and help you understand them better. So number one is correlation, so specifically correlation of assets. So if somebody hears that term correlation, what does that mean? Woody Yeah.

Woody Bowling:
I think, Matt we're trying to really what we're trying to do with this segment is demystify. Take a little bit of the mystery out of this. A lot of people will hear the the terms, the jargon, if you will, used on shows, if you watch, you know, Fox Business News or NBC, Business News, MSNBC, any of those business shows, they're always talking about this and that. So our goal is to really take some of these terms, demystify them, really break it down, you know, correlation of assets. You know, it's just a statistic. It's really looking at two securities or two assets, two retirement vehicles and really measuring how closely they correlate to each other in the way they move. And and when you're looking at constructing an overall plan for people, if you put everything that's closely correlated, then that can be problematic because if everything moves at around the same amount during ups and downs of the financial cycle, then you're could be potentially setting yourself up for a little bit of trouble. We've talked about this before. If you have all your money in the market and you're retiring soon and you want to start taking money out immediately, that can be very problematic.

Woody Bowling:
If the market drops or when it drops, which it does eventually, and then it's going to rise again. We don't want to say it doesn't because it does. But if you're one of those unlucky people that in 2007 or 8 or 2022, at the end of 21, you retired or during that year and you wanted to retire and you kept all your money in the market because that's what your advisor or broker told you to do, But you wanted to start taking periodic withdrawals out every month to supplement your Social Security and retirement. That's problematic because your funds continues to drop if everything is correlated in the market. So you look for some ways where not everything is going to move in the same direction. And that is key. That's why we don't think as you get near retirement, everything should be, you know, in that one bucket, which is the stock market bucket, we think some of it should be, but not all.

Producer:
Yeah. And this goes right to what you were saying as well. A minute ago, Woody. And that is sequence of returns risk. That's kind of the second term that we want to talk about because, you know, you spoke about a minute ago, somebody, let's say they retired end of 2021. They're in their first year of retirement in 2022. That was not a good year for the stock market. So talk about sequence of returns risk and how that affects people, because a lot of times, you know, timing really is everything when it comes to when you retire.

Woody Bowling:
Well, it's very important. And, you know, when people hear that sequence of returns risk, when you think of a sequence, you know, it happens in order. And so depending on when you retire, if if that first part of the sequence is negative and you lose 30%, let's say you retired at the end of 21 and you had part of your money in stock funds and part in bond funds, your total loss was 30%. Let's say your portfolio was down 30% for that year. Well, what people don't understand, it's not a dollar for dollar or a percent for percent to bring that back up to the original balance. Right. So if you had 300,000 at the time of retirement, you didn't draw anything out. You just watched it drop and it dropped 30%. Well, Matt, the startling number is it's almost 43%, 42.86. Your portfolio would need to gain 42.86% to come back to the original 300,000. And when you put it that way, it really surprises people. I'm sure there's some jaws dropping right now and some of our listeners because they say, Oh, no wonder it took my 401. K so long to recover. Or maybe that's why I still haven't recovered this year because I was off so much last year. But with a 401. K, when you're contributing, you see the big drop, but you get a faster recovery also because you're still. Pouring money into your 401. K through your paychecks. The company matches still coming in, so that helps to put a little bit of a mask on how long it really takes for that account to grow back up because you're adding money to it. But most people's IRA, once it has that number in it, it's done.

Woody Bowling:
They're not putting more money into it unless it's a Roth and they're still making contributions. So it can you know, the impact on your portfolio can be very, very negative If that first year or 2 or 3, while you're pulling money out is dropping, you can run out of money and it can happen. And I've seen it happen to people that were dealing with other brokers in the last few years. Long term consequences can be really, really disastrous. You know, when that portfolio gets shrunk, it depleted. It's going to you know, it's a scary thought because the other problem today with longevity. Longevity is great. People say if you give people a choice, do you want to live to be 65 or do you want to live to be 85? Most people will pick 85. But what they don't know is health risk. Health concerns if that last five years. They are you know, they're suffering from dementia, they're in a nursing home and all of their savings for retirement is depleted and their spouse is left with only a portion of the assets left because they had to pay for the nursing home stay. The answer might be different for a lot of people. So I help people plan for those unknown, unforeseen consequences. You know, it's it's something that once it goes, you can't make changes in many times once it goes down. So I encourage people before you make those changes, before you make those decisions, before you retire, if you're a year, two, three, four years away, now's a great time to think about. How much Social Security am I going to get? How much income do I want to create from my savings? Where do I want to put that 401.

Woody Bowling:
K. Now. Because once you turn 59.5, that's five, nine and a half. Most companies, most employers will let you move a large portion of your 401. K that's vested into your own IRA. And that's where we can come in. I can help you construct and set it up in a way that is. Right in line with the amount of risk that you want based on your situation. And the older we get, most of the time people don't want as much risk. That's just as simple as I can put it. So if you don't want as much risk or you want some personal money management versus that old 401. K that's at the old employer, that's somebody in an office somewhere out of state is they're not reviewing it daily like I am. They're just going to send you a quarterly statement and say, hey, here's your here's your balance. You know, you were off 10% or 5% or you're up 2% or 6% and that's it. And if you want to talk to somebody, you call at 800 number, talk to their customer service representative. That might be an advisor. And I'll tell you, that advisor is working in there because that's what they choose to do and they're getting paid X number of dollars per hour to answer those calls so they're not vested in your success. Me. That's what I am. I'm vested in the success short term and long term of my clients, and I think most people really want that out of an advisor.

Producer:
I would agree with that 100% as well. And you know, you can go to TheBuckeyeAdvisor.com folks that's The Buckeye Advisor with an or at the end.com or call Woody at (937) 974-6201. If you'd like to start on that journey or get that free consultation see if you and The Buckeye Advisor would like to work together. It's a no pressure situation, no obligation and no cost to you to get that initial full retirement plan consultation. Once again, the number (937) 974-6201. It's this week in history. Some big landmarks to talk about this time around in our history Woody and on September 3rd, a big one in the tech world. On September 3rd, 1995, eBay, the Internet giant known for the online auctions and all of that was was founded on on that date in 1995. Boy, talk about a big one. I've I've bought and sold quite a few things I think over the years on that website.

Woody Bowling:
Well you know Matt, it's just it's funny that you mentioned that I saw your eBay seller rating as less than desirable. So I'm joking, of course, but I love eBay. I've used it like you. I've used it so many times. It's, man, it's a great thing. And I'm going to confess, I probably only got about 90 ratings over the last ten years because I've, you know, I've bought and sold. I've bought more than I've sold.

Producer:
But that's me too. Yeah.

Woody Bowling:
Get a good rating. If you buy from them, they're going to give you a good rating. But as a seller, I've sold a handful of things. But eBay, I love it. It's a great thing. It's there's a lot of small businesses that are run on eBay and eBay can be part of their successful small business strategy, which I love. And of course, another company named Amazon came along and changed everything. But eBay is still around, still doing well. I don't know what their earnings are these days, but love them.

Producer:
Yeah, and a big operation. They're operating in 32 countries that will, you know, do just that, facilitate that customer to customer or business to business or business to consumer sales through that website. September 4th would be big. Oh, boy, a big one in entertainment. And I got to say, this one kind of makes me a little bit sad because we just lost Bob Barker at the age of 99, not all that long ago, several days back now. But on September 4th, 1972, the revival of The Price Is Right began airing with Bob Barker as its host. Boy, what a legend, man.

Woody Bowling:
Hats off to Bob Barker. He is on a pedestal that as game show host only Bob can stand on. Drew Carey does a good job, but Bob was the master. Um. Crazy. Crazy Good. What? How many people's lives he's touched. It was very sad to hear him go. He lived to be a robust 99, which is crazy and amazing in and of itself. He was in the Adam Sandler movie, I believe it was Happy Gilmore. Am I right?

Producer:
That was the one, yes.

Woody Bowling:
And that scene where they were fighting all the golf course, I believe was one for the ages. If you haven't seen it, watch Happy Gilmore. You'll see Bob Barker. And it is hilarious. But, you know, we're very sad to see Bob pass, but. He lives on through Drew Carey. And Drew's doing a fine job.

Producer:
Yeah, absolutely. Absolutely is. And one more to share here quickly. On this date, September 4th, 1998, Google was founded. And boy, I'll tell you what. Talk about changing the world. Google certainly did.

Woody Bowling:
Well, you know that you've made an impact in the world when an action becomes named after you. Now everybody says Google it.

Producer:
Exactly.

Woody Bowling:
Back in the day, a soft drink was you're going to have a Coke. Yeah. And if you needed a if you needed a tissue to blow your nose, you need a Kleenex. Whether it was Kleenex or not. So there's only a handful of things, but Google is one of those things. Unbelievable dominance. They've survived multiple lawsuits. There's probably lawsuits against them going on right now, but they keep on ticking. I don't agree with everything they do and the way they manipulate algorithms and sell your sell your information and everything they do. But a great company and the Google search is something that does come in pretty darn handy.

Producer:
That much is very, very true. Well, Woody, it is time for us to get on out of here because our time has come and gone for this edition of The Buckeye Advisor. But thank you, sir, for all of your insights as usual. And we will talk at you next time around.

Woody Bowling:
Matt, thanks for being here. We hope our listeners enjoyed the show. We hope you learned something and we look forward to having you back next week. Have a great and blessed Labor Day weekend and we will catch you on the other side next week on another episode of The Buckeye Advisor.

Producer:
Thanks for listening to The Buckeye Advisor. You deserve to work with an experienced and licensed expert who will strategically work to protect and grow your hard earned assets. To schedule your free no obligation consultation with Woody, visit TheBuckeyeAdvisor.com or pick up the phone and call (937) 974-6201. That's (937) 974-6201.

Producer:
Investment Advisory Services offered through Brookstone Capital Management, LLC, BCM, a registered investment advisor, BCM and The Buckeye Advisor are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Investments involve risk and unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results.

Producer:
Are you interested in protecting your retirement savings from market volatility, rising taxes and economic uncertainty? Then tune in to The Buckeye Advisor with Woody Bowling to learn how you can protect and grow your hard earned money. The Buckeye Advisor Saturdays and Sundays at 9 a.m. right here on Newstalk 94.5 FM. Schedule your free No obligation consultation now at TheBuckeyeAdvisor.com.

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