Episode 13: How Do You Make Sense of Investments These Days?

ABOUT THIS EPISODE

On this episode of the Build Your Life Podcast with Financial Expert John Browning, we're discussing making sense of rollovers and other opportunities you should be taking advantage of.

Sometimes when you try to make sense of the "spaghetti-like" nature of finances it only becomes more complicated and frustrating. Listen in as John shares tips on how to get control of your financial decisions and assets during these challenging financial times.

For more information, visit www.GuardianRockWealth.com to learn more about what John can do for you.

Welcome to the building your life podcast with John Browning. Building your life is a relaxed and unedited conversation with financial expert John Brownie. John's the founder of Guardian Rock Wealth in Lake Forest, Illinois. He's also the author of the Book Build Your Life, not a portfolio, a guide to your financial future based on your personal values. Now you can purchase John's book on Amazon, or you can stay around to the end of today show and I'll tell you how to get a free copy milk right to your door. I'm Michael Law on, your host for the next few minutes as we chat with financial expert, business owner and author John Brownie. Well, good day John. How are you, sir? Doing well. How about yourself? I am a fabulous are you still in enjoying the the cool santy breezes of a Wahoo? Absolutely, yeah, we're getting the getting to know its tough to get to know people here because we're on this isolation, but the people are so friendly and the idea of the ohanna is absolutely true. If you ever wondered if...

...the idea of Ohannah and everyone's family is a reality or here and whole Hawaii, it definitely is, which is a really neat thing to experience. Oh, I bet, I bet, someday I'll get there. My wife wants that's on her bucket list, so now it's on my bucket list, right, and so we'll get there one of these days. Hey, let's let's talk a little bit about rollovers and Iras and Roth Iras and fore case and all of these things that, for you or is just like to Plos two weeks for to people like me and many of our listeners. I think they're there. It's a little it's more like calculus. Probably it's a little fuzzy. So we're in an entering interesting situation with the pandemic and all of that. The the Stock Market has corrected, and let's talk about those funds that we might have in a K or just we even have a traditional IRA or...

...rock. Let's understand the difference between all of that. How does how do you make sense of all of that, because it just it's like chicken soup, I guess, for May or Spaghetti. Clarify these things for me. Well, yeah, well, I'll do my best, but you're right, spaghetti is a good way to to think of it. There's a there are a lot of different retirement vehicles around, fantastic ones and ones that folks should take advantage of. We talked a couple episodes back, I believe, about the idea that now might be a really good time to consider rolling from a traditional IRA to a Roth IRA for a few different reasons, tax reasons that are unique to our time right now. And another item that we're finding is that as people are unfortunately furloughed or laid off from their work due to the...

...pandemic, now might be a unique time in history to gain control of their K. or if they're in a not for profit, maybe it's a four DREE B plan. Yeah, so the four one K, four hundred and three be. Those type of employer plans are fantastic because often there's a an employer match part of that, and so it's like getting essentially free money, free money, free, we all like free money. Yeah, so I always encourage people to Max out there for one k contribution, especially if they're for for tax reasons, but especially if they're being matched by in any way by their employer. But the downside of that is oftentimes these furrowing K plans don't have ways to mitigate risk or mitigate risk as much as you might like and they may not have the investment choices that you might like. They may be fairly limited into what you can invest in. So today, once you're...

...once you're laid off or furloughed from a company, you can roll over the fore K or Three v assets into an individual retirement account, either a Rath or or regular individual retirement account, and get control over how those assets are invested better, can control risk, you can go into more advantageous investments that are specific to your situation. So that's no, since I don't have one of those from a company because I run my own company. Is it? Is it that when you have a four one key through a company, they are controlling the investments where they have some from control? Is that what you mean by taking control of the money? Essentially, yes, because normally they're they're set up so that you have a set of mutual funds or something similar...

...to that that you're allowed to put your money into every month or two weeks. However, red right, and those mayor may not be, you know, fantastic investments or they they might not be what's truly fits your best outcome, for my for you specifically in your situation. So in control of that allows you to invest in essentially whatever is best for you. Got It? Okay, all right. So it's a time for you to be able to get those and, obviously, with the advice from John and you know, to know where to put those assets, because in the past, so so, basically they've been investing into a portfolio or something. They've chosen this with some company or whatever. But now, because their furlough, they have the ability to take back control and say no, I want to go, I want to readirect those maybe in a different way. I want to roll over my what if? So what if? And we talked about there's a couple...

...weeks ago and it's still fuzzy in my mind. If I have a traditional IRA and I roll it over into a Roth IRA, there are some tax implications that I paid now to save taxes later. Right, that's correct. Explain that, just help me. So, first, the assets right now are likely, given the correction the market, they're likely a little bit lower, unfortunately, right then then they were even a month or two ago. So you would be once you roll from a traditional IRA to a Roth Ira, you your taxed on that amount that you're rolling to the Rath. So obviously, if those assets have gone down in value, you are likely to be paying money on less assets, right sense. So that's sort of number one. And then in also in two thousand and twenty, unfortunately, many...

...people are going to get paid less than they did in two thousand and nineteen. Just going to ask you that. So they may be in a lower tax bracket. Yep, there's yet another reason why this might be a good idea. And then, giving all the stimulus that we're seeing being pumped into the market right now, it's somebody eventually has to pay for that, and it's likely to be make a prediction here, I don't know, but it's likely that taxes will be higher in the future when you go to take that money out of your IRA and retirement. So when you when you do that, you're not tax because you've already paid that tax when you rolled over to the Roth IRA, right right. But your pain and and we're in a from what I've gathered over the years, right now we are kind of in a low tax bracket, may not be the right word, environment, then...

...we have been in the last thirty or forty, fifty years or something. And so when you look at that. When I've seen grass on that, it's like wow, that taxes are really low right now. That means they can go one direction and so I think, I think you're right. So we're in a low tax environment. I'm a earn less this year because of this. There there seems to be two or three or four reasons that I would at least want to consider rolling that over from a traditional Rath to a or traditional IRA to a roth. I right, that's correct, but it really is a consideration because everybody's different it. I'm sure not every situation would say no, that's the right thing to do, and that's one thing. That why people, I I'd recommend reaching out to John is having that conversation to say what, what do I do? Because it's it's more than just that one decision. You really need to look at the entire portfolio. Right. That's absolutely correct. Yeah, and and I think too many times, I know in my life I've made too many rash decisions and made a decision...

...on one factor and realize, oh, yeah, I didn't think about that, and that and that, and you've got other strategies. We just we just spent last episode. You had three or four strategies you throughout that I knew nothing about how you can do things because you just understand this world of finances so well because you've studied it for so long. So you know Roth Iras and case and three B's and all of those numbers and letters get confusing to people. But a simple phone call and conversation with John Begins that process of helping to understand what are you really trying to accomplish, what kind of life are you wanting to build for yourself and what are some strategies that you, John, can bring to the table to really help them accomplish that? Because that's at the end of the day, that's really what it's all about. That's exactly right and I can't stress enough that. You know what we say on this podcast when we talked about you're right. It's not right for...

...every investor. You know, every strategy is not right for everybody. Actually it's one of the things that that bothers me a bit about. You know, many of or much of the advice that we see maybe on TV or what have you, or even, unfortunately, when you when you go in to see some financial advisors. Are really great advisors out there there's also advisors that try and put you in a box and they assign you a number. We're people, yeah, and we have lives and we all come from different perspectives, and it goes back to my idea, the snowflake theory. We're all different. We need something unique and specialized for us, especially when you're talking about your financial future, how you're going to live the rest of your life after formal work. It's hopefully most most of us want to retire at some point. We made like our jobs, even love our jobs, but maybe we'd like to do that in a different way, in a different place or whatever. So it's just important to realize that different strategies are for different...

...people and there's lots of them out there. That makes sense. Maybe they make sense for you, maybe they don't. You got to have that personal one and one conversation with somebody who has the experience. I can tell you absolutely and on that note, John, let me encourage our listeners to have that personal conversation with you and guarding rock wellcom is a website, has phone number. There has an email form on the contact US page. You can just fill that out send it to them. John is a fully deployed and employed and even though he's in a Wahoo right now, you can reach him. He'll reach out to you. It'll even wake up at three am his time to reach out to you if need it, because he's up anyway. But yeah, reach out, have conversation and that's one of the things that the people realized and one thing I've learned about John over the last few months of John's is not a salesman. John is there. He's a consultant guy. He just likes to talk and help people. And if you guys, if you have a caller to a John and realize that's not going to work,...

...that's okay. John's going to love just helping you and talking with you. So don't don't have any fear that you're going to get locked into something, especially when it's online. So just reach out to John and start having conversations about taxes, about K rollovers, Roth, all of those things, because John has strategies and insight that most of us don't have any. Really wants to help you understand how do you want to build your life and then how can you build a portfolio that really supports that dream so that you can live the life that you really want to live and that's what it's all about. So, Jon, thanks for sharing with us again and helping me understand a little bit more in depth about traditional R I r a's and roths and rollovers, and very interesting that you can take control of it now that if you've gotten furloughed laid off, you have an opportunity to take control of that and redirect some of those things. So talk to John, give him the call and see if that's something that you can do and how he can help you. So, John, thanks for once again thanks for being here. Always enjoy talking with you and appreciate your insight. Have a great week,...

...my friend, you do the same. So thanks for listening to the building your life podcast was John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automatically when it is released. Have a terrific day.

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