Bucket #2 - Your Income Bucket

ABOUT THIS EPISODE

On today's episode, Financial expert and Amazon best-selling author John Browning talks about Your Income Bucket. To keep your money "flowing" into your pocket, you need a solid Income Bucket. Learn more when you Connect with John by texting "LIFE" to 21000 or GuardianRockWealth.com.

Welcome to the build your life podcast with John Browning. Build your life as a relaxed and unedited conversation with financial expert in number one Amazon bestselling author, John Browning Jones, the founder of Guardian Rock Wealth and serves clients across the United States. John's the author of the book build a life, not a portfolio, a guide to your financial future based on your personal values, which you can purchase on Amazon, or stay around to the end of today's show and I'll tell you how to get a free copy mailed right to your door. I'm Michael The lawn, your host for the next few minutes as we chat with financial expert and business owner John Browning. John Browning, welcome back. It's another great week and a great time to talk to you. How are you today, sir? The wonderful. It has been a fantastic weather day, and I don't know when the weather's great outside, it's just like, for whatever reason, it's just more fun for yeah, it does.

You know, I used to live in Indiana and high, high travel time for people who live in Indiana is mid February because that's when they all get on the plane in flight of Florida to get some sunshine, because it's been overcasting cloudy four months and I gotta go to get weather does affect us. I'm glad you're having a great day. I want to have buckets of fun on this cont on this conversation and we're having because we were talking about buckets of money and how to have buckets of money and what to do with them. It's kind of a part of a miniseries worries that guarding rock wealth is put out called buckets of money, and last week we talked about bucket number one. There are four buckets. Bucking number one was your growth bucket and when, when money grows, then you take those profits off the table and you put them somewhere else. You put them into bucket number too, I think, and that bucket is income. So talk to us today, John, about bucket number two and how does it how does it relate to one? And what do you what are we doing here? Sure, so,...

...the income bucket, and just like it sounds, it's to provide income, whether that be in retirement or for some other reason. It's to provide income. And generally speaking, the companies or the investments that are in this bucket are going to be not quite as volatall as say in the growth bucket, meaning as they don't move up and down as much, doesn't mean they don't move at all. Right, and this particular bucket has become a real challenge in the past several years because traditionally, back when I started in the business, rates on fixed income were really high and you could you could put a bond or a fixed income instrument into this bucket and it was fairly easy. I mean it wasn't easy, but it wasn't that hard to put together a portfolio of bonds. They would provide income ongoing and it would be enough that...

...you could surpass inflation and it would provide stability to your portfolio. Over the past, I'm going to say twenty years, but certainly over the last ten, that the ability for that to cushion the downside of your portfolio and the ability of that to provide the income that you truly need in retirement or whatever you're using it for as really diminished significantly and almost been eliminated, because you certainly cannot purchase those seams securities and even come close to beating inflation where inflation is today. After those you're like well, what's really inflation, and we've heard about it than these what is that? That means that when you go fill up your car and last year it cost you twenty five bucks, now it cost you closer to fifty or, if you have a big car,...

...hundred bucks. It's the same thing as when you go to buy a two by four that you used to spend two dollars and fifty cents on and it's eight dollars now. That's inflation. That's a pre I know somebody's been doing some construction work on their office right. We're trying to, but I can afford it. Yeah, yeah, that's exactly. That's what inflation is. And so if your income bucket is not keeping up with inflation, will that that's a bit of a problem. So we're using different types of instruments to fill this income bucket and the whole purpose of it is to do exactly that. So I talked about, and we've talked about on this podcast before, about your personal paycheck protection program. Yeah, right, so we heard about the government's paycheck protection program that they had during the pandemic that we're all unfortunately very aware of, and that was the idea that the that the government would...

...give a loan to businesses so that they could continue to pay pay roll to their employees even if they weren't at the office actually working, to keep them employed, and then later on the government, if you met all the requirements with them, forget that long right. Well, what happens when the government's not there to provide that paycheck protection program, like when you retire or when you lose your job for whatever reason, get laid off, whatever happens? Right, more so today than twenty thirty years ago, you want to create something that can be your own personal paycheck protection program and that's again what that income bucket portion of your portfolio can serve as love it, and it's not filled with the same thing that it was filled with ten twenty years ago. To fill there's different things that you need to be able to do and and advisors need to be well versed on how to do this. And it's not...

...just diving in paying equity security and paying companies, because those will be more volatable than I think many people realize and what and would like, and they also tend not to pay income enough to beat inflation. Yeah, so you're reliant on those also appreciating in value. So it's you have to be very careful with what you put in this bucket. It's probably one of the hardest to manage. Yeah, it's very interesting. They keep coming up with these pictures every time we talk about pictures in my mind. But what hit me there is you remember those commercials, those car commercials? I guess I can see the namount is for Buik, right, and they would they were trying to reintroduce buque as this cool car, and they would say, Hey, that's this is not your GRANDPA's Buick, right, right, your father's Alsmobile. I remember that one too. Yeah, same thing, right. And what you were just saying is I kind of termed and say this is not...

...your GRANDPA's retirement plan, because GRANDPA live fifty, sixty years ago. That retirement plan was filled with pansions and all you know, we're in a different world. So you can't say, well, this was all that did. It is all GRANDPA did it. I'm glad you need to be looking at what's going on today and that's why you got to reach out to somebody like John and say, okay, here, I'm getting this whole bucket thing. Let's talk what do you mean by it's fill differently? How does it work? How do I help keep up with and or beat inflation and all of those things right, because this is not GRANDPA's retirement, this is your retirement and you need to build it properly so you can have the life that you want now and then. So that just that's a picture that hit me that I wanted to throw out there because it really helped me to put my head around it that just because Grandpa or dad did it certain way doesn't mean you're going to do exactly the same because things change. You know, it's one of the things that I talked about a little bit off topic, but I...

...but I have to say this is I often tell people, once you've decided where you want to go in life and what you want your best life to be, and you've decided that and you understand why that is, don't let blind people proof freed your vision. And you know, I respect my dad more than anybody in this world, but he comes from a different era. Yeah, and and he does not understand, or have a good understanding of what it means to be a of in my case, I fifty three year old in today's world. I have no pension right that that never existed for me. I have I don't have that fixed income. Those bonds and the CD rates are not paying you anything anywhere close to inflation. Yeah, and so it's a different world. We must do things in a different way and, frankly, my why and what my definition of my best life is,...

...it's not the same as what what this is. That's right and that's okay. That's all right. All of your clients have a different why and that's really where you start with your client and that's why I encourage people to call John and just the beginning to discussion, because the first meeting is really just him asking you a lot of questions about what are you trying to make happen? Why do you like that? You know. How do you want to? You know, and that's where he starts, because he get he understands you and he's got to do that before he can ever build a portfolio on you. And it's helping you build the life that you really want to buy build. And these four these four buckets of money, is really a great concept because I think people can wrap their heads around them. We talked last time about the growth bucket this times, the income bucket, and then we got two more in this miniseries. Guardian rock original of the four buckets of money. So anything else on the income bucket that I missed, John, or that we need to talk about, that's it, because if we go...

...any further, will be here for ours. That's right, which I know you can talk about it for hours because you're an expert and that's what you do. So let me just encourage Peele to reach out to you. John Guardian rockwealthcom. You can schedule a zoom meeting or a phone call or probably write in the letder. You could ask for a copy of his Amazon Best Selling Book and you could also just have a conversation with them to talk about the buckets of money, talk about your your life and where you're wanting to go and how he can help you get there. So He's a great guy and, John, I always enjoy we're talking with you. Thanks for the conversation day around your income bucket, which is bucket number two of four. Will be back next week to tackle another one of these buckets. Sounds good. We'll see you then. Money really is a big part of our lives and John Browning can help you and your family learn how to keep money in the proper perspective. It's important, but it's only a tool that can help you build the life that you want. If you like, John Emil you a free copy of his book build a life, not a portfolio. Go...

...to John's website, Guardian Rock wealthcom, and click the contact to US link and send your request. John Will Mell a copy of his book right to your door absolutely free. Thanks for listening to building your life podcast with John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automatically when it's released. Have a terrific day. Nothing in this podcast should be construed as personal investment advice and past performance is no guarantee of future results. Investing is not appropriate for everyone. There is a risk of loss associated with investing in the markets. No representation or implication is being made that using any methodology or system will generate profits or insure freedom from losses. Please remember that investing carries risk. Guardian Rock Wealth LLLC and it's affiliates are fiduciary investment advisors. Please consult with US or another experienced, qualified investment advisor before making any investment decisions and or trying to implement any of the strategies...

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