Episode 32: Your Financial Flexibility

ABOUT THIS EPISODE

On this episode of the Build Your Life Podcast with Financial Expert John Browning, we're discussing how to create financial flexibility in your life.

Tune in today to hear John share all about financial flexibility and how it may be the difference between fulfilling all your hopes and dreams and a financial future that leaves you in ruins. Don't miss this one!

For more information, visit www.GuardianRockWealth.com to learn more about what John can do for you. Or, give us a call at (312) 372-5000.

Welcome to the build your life podcast with John Browning. Build your life as a relaxed and unedited conversation with financial expert John Browning. John's the founder of Guardian Rock Wealth, with offices in Hawaii, Colorado and Illinois. John's also 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 mild right to your door. I'm Michael D Lan, your host for the next few minutes as we chat with financial expert, business owner and author John Browning. Well, welcome back, John Browning, to your podcast. How are you this fine day? I'm doing grace. How about yourself? Tremendous, tremendous, it's true. It's just a great day and Little Rock and love and every minute of it. Enjoy spending some time with you because I just like talking to you, because I learned...

...something every time. Well, I hope so. Thank you. Well, you're you're welcome and talking with you doesn't destroy my day, which is good. Some things do. They come at me and they don't. They do but you don't. But one thing that does destroy some people, as for some we're talking in terms of financial health and maybe even retirement. Is What you've been turning over the last few episodes that I really like your phrases financial flexibility, and you've got the subtitle now for that term is the oft ignored destroyer of financial hopes and dreams, and that really caught my attention, John. So unpack for us, if you would, financial flexibility what it is, and then how could it be a destroyer of financial hopes and drinks? Yeah, we talked about this a lot with our existing clients and new clients that are coming on board, and it's it's what happens when unexpected expenses,...

...say pandemics or two thousand and seven, two thousand and eight, you know, downturns in the economy. It's what happens when that happens and it's why you don't manage port overall portfolios to a specific index or things like that, but rather you manage them to the goals, hopes and dreams of the individual because if you're doing it correctly, in my opinion, you're going to build in some financial flexibility the which is not going to allow you to be one hundred percent invested in securities that would bring about meeting or beating the index, and the less you take more risk than the individual is comfortable with. Right, and I can talk about that a little bit more. If that was confusing. Yeah, yeah, in fact, that just a little bit more.

Okay. So the problem is for in order to have financial flexibility for those times when an unexpected expense occurs, where you get furloughed or laid off due to a pandemic or whatever. It might be, a downturn in your particular business, whatever it might be that happens, you might get a severance, maybe maybe not. There you know, the companies are not required to give you a sign and you know, unfortunately, it's been stated that most people, like to the tune of seventy eight percent of people in the United States are living paycheck to paycheck. So about the time that next paycheck comes, you're going to need to be drawing down on, say, your investment account. If you don't have any cash available, then you may have to sell a security which, at that particular point in time, might be up, it might be down. You you're but you're purchasing that portfolio for a long time horizon and it might be not be the best time to sell that...

...security right. So folks in two thousand and seven, two thousand and eight, or even in say, March, when they needed right now to access those funds and they were forced to sell at the bottom of the market after spending years building up the that investment account. They sold at the very bottom of the market. and Ba can that can literally destroy all the saving and all the work that you've done for the past ten, fifteen years in a heartbeat, because the market does tend to drop faster than it rises tends to. So if you have to get at have access to that and you don't have financial flexibility in that cash portion or very short term instruments, then you could end up selling way more shares in a particular equity security then you would have even a month later or two months later. Yeah, well, and it puts you, it put you in a bind, not just financially but...

...also really emotionally, because you lose that kind of money and you're gone. Ah, and it does things to your psyche as well, which can impact other things as well. So having that flexibility almost like that, and we talked about on a few episodes of back back, a what do you call it? A buffer account, where you have three or six months of money set aside. Right, we talked about that. You had a better name than buffer account. But but having that set aside, so you're not living month a month, or even if you are, you're able to tap into that to navigate some some upsides and downsides. And if you had that reserve and a downside happened, you would be able to tap into that and wait for that Margaret to come back up so you don't have to sell so many shares. Right. I mean right, that's exactly right. And you know, like we talked about, for some people that might be three months of living expenses, for other people that might be six months or even a year or in we have a couple clients that really, for their risk parameters and...

...where they are in their life stage, they have two years of financial flexibility built into their overall portfolio. Yeah, wow, that's that's amazing, because most people aren't there. You know, it's very interesting. We have some friends out in California and relatively young couple and he got laid off because of the the pain to maker or something and they said. We sat with them and they said you want, it's okay. Our House is paid off and we're debt free and we've got some money in the bank. We're not worried right now. We're okay and in Dylan, I look at them and said, wow, that's amazing, because most people in your age group aren't anywhere near that. So they had financial flexibility for a lot of reasons. They have done really well. Right. Yeah, and those are the conversations that we love to have. And unfortunately, typically, when we bring on like...

...a brand new client, we're helping somebody for the first time, we're not having that conversation. But within six months to a year we are having that conversation because we've put together a comprehensive financial plan that's specific to their hopes, needs, dreams and their life, as opposed to just their portfolio, and we're able to have that conversation fairly quickly in most cases. Sometimes it takes a little bit longer. Just depends on the person. Yeah, but and that's really cool to know that there's hope at the end of the tunnel. So, no matter what situation you're in right now financially I'd recommend you just reach out to John. Go to Guardian rockwealthcom and you can reach out to him through email there or a phone call and I just have a conversation, because financial flexibilities are really, really big deal and it is probably not as elusive to most people as we may think, because John's obviously brilliant at all this, but he has a way to look at your entire portfolio after he...

...gets to know you, because one thing you'll find out about John and his team a guardian rock wealth is they really want to know you because they want to build finances so you can build a life. That's really the whole purpose of money is to help you build a life do good things. What do you want to do? Build a portfolio around you to support that and make sure that you have financial flexibility and that you don't have your hopes and dreams destroyed. So, John, that's great. I appreciate this conversation. Is Very unique. I love your term financial flexibility. I think we're going to be talking about that a lot more in the days to come. So thanks, thanks for taking some time and enlightening us on financial flexibility. Buddy, take care of yourself, all right. You too. Okay. So thanks for listening to the 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 is released. Have a terrific day.

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