Which is more important: The type of account or how my money is invested?

ABOUT THIS EPISODE

The coin toss between account type and investment decisions can be a challenge. You also need to know how your account is titled and which 'vehicle' your plan is riding in. This is really a Both/And equation becuase both of these are critical in how you build your life and your portfolio. Learn more from John when you reach out to John at 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 Brownie. Oh, John Browning, I hope your week's going well, sir. It is. It's going well so far. It hasn't been that long, so we're still wondering how the rest of the week's going to go, but we're optimistic. Well, that's the way to be, is optimistic. You know, I'm pretty optimistic, as everybody I was asked me. You know, the is the glass half full or glass and half amptim like. Well's a full right that I just go for more stuff in as that now is flowing over, because that's how we should be. But that's neither here nor there. I've had I've had some thoughts recently, John, and I figured you might have the answers to these, so I wanted to throw this out here today on your podcast. Is Okay if there were a way to tell which was most important, or maybe more important one or the other? Is it more important the type of investing account that I have and set up more is it more important of how my money is invested? Does that make sense? It does, it does make sense and it's, you know, and in some cases it could be a bit of a toss up. How the money is invested is expos obviously extremely, extremely important, and that's what most people focus on. But I'll...

...tell you, I've I've in this actually is just it's interesting that you ask that question because just recently, over the last month and a half, I've run into a gentleman who his wife unfortunately passed away. Super Nice Guy, but she had kind of always handled the finances of the relationship and he didn't even know how the account was titled and When we looked into it it turned out it was titled in a little bit want to say different, different way, and that can make a big difference when you have that happen if there's you and a significant other, or even if it's just you, if you haven't titled The Account Right or it's not in the right vehicle type of account, it can create real problems, headaches, except a tax implications for the people who are then settling your state or maybe depending on you to have set things up correctly. And there's just there's a plethora of different ways to title accounts, whether it's retirement accounts or or just an individual account. Is it a transfer on death account? Is it a joint rights and privileges? It a joint tenants and it goes on and on and off, different ways you can do it. It is well, as you know, I'm helping a recent widow lady. It's rough walking through stuff, right, and we found some accounts that so some are in his name, some are in her name, some are in his end or her name and some are in his and her name, joint tennis with something or like, Oh my God, I had no idea, John. So totally with and then go and throw all the paperwork to get them all turned over to her and all this, but I'm learning exactly what you're talking about now, just about how do you title it? And it does make a difference. Yeah, it does. But...

...too many times when we set things up or like, well, I don't know, I just just like this is, you know, it's kind of a car difference. Just. Yeah, yeah, you buy a car and you put it in Michael or or Michael and Jill Delong will we both have to be there if it's Michael or jolled a long wet right, little things like that make a big difference, especially during the time of grieving after you've lost a spouse or something. You don't really deal with that stuff. HMM. But we digress. But I mean that's one one aspect of types of accounts and how money's invested in things. But is there a it's probably a both and isn't it? It's not. It's not like this one's more important because I assume it has deal with the situation of each individual. But it's kind of a well, they're both really, really important, the type of account that you have, how it's titled and all that, but also where the money's invested. Right. Yeah, I would say, if you really push me, again someone and said you got to answer this question. It would. It would certainly be how the money is invested is the most important, but I don't want to minimize how important it can be to set up the right type of account. The other example of this is I talked to many people who don't even know save say that they could have, you know, a Roth IRA versus a regular IRA, or business owners. Business owners have a lot more that they can do with their retirement accounts. Then there's a lot more things that they can take advance image of, but many times they're just not aware of it and nobody is taking the time to tell them or they haven't gone and gotten the advice that they need on this and they miss out on thousands and thousands and thousands of dollars, and over a period of time it could be hundreds of thousands of dollars that they've missed out on in terms of building up accounts in certainly in terms of the taxability of those...

...accounts as they get into retirement. Yeah, well, and and it's why, I mean I say this probably on every podcast, John, but it's why people need to reach out and talk to you, because you're right, there's just a slew of opers, opportunities, options and confusion for people like me to go. Wow, so I'm a self inmpoint guy. Do I have an SEP or a TSA or a TF? I don't know right, because there are. It's just it's Gobbligook, but you get it. You get because it's what you do all day, every day, all right, and that's why people need to reach out to you and start planning. I guess that's the word for the month, is planning and doing what you really don't want to do. But when they reach out to you, make it a lot easier, right, because you have is to make things easier. I don't make the decisions for you, but I at least make you aware and so that you could make the best to decisions for you and building your best life. Yeah, yeah, very much. So I'm working with this widow lady right and she's got two daughters and they're getting a portion of the guy's life insurance and I'm getting ready to have the conversation with these, you know, they're twenty and twenty two, and they're gonna be in here, like you know, I don't finfty grand each or something like. They don't have a clue what to do with that money. So we're going to have discussions, because it's not my decision, but I need to be their advisor to go hear some options here. Something you need to be thinking about, right. That's kind of the role you play, right, is your that advisor. You're prolling everything to gather to go. Based on what you have told me, Mr and Mrs Jones, here are two or three options that's going to help you build the life that you want through a portfolio of what makes sense in your life. Is I mean close? Yes, that's that is close. That's right. Yeah, and we just you know, there's so many options based on your each individual's situation, because not everybody's a business...

...owner. Don't have to be. You can work for a company. You can work for a company that has a pension plan, like we talked about on the last episode. If you missed that one, by the way, you need to go listen to it, because most of us don't have pensions and John helped us understand it, personal paycheck protection plan. So go listen to that one. But even if you had a pension and so security, you're still going to need more than that. Probably, and so you need to set these things up and understand and how do you do this? And I think you even do have some people on staff, attorneys and thanks, to help with estate planning if your client needs us, stay planning to transfer wealth most efficiently when that day comes. Right. Yep, we've got a team, whether it's a state planning, whether it's tax planning. We don't give tax advice, but we work with people that that do that have that expertise very specifically and you know, you one of the things you said sparked another memory and it's something that we run into all the time because people, again, just don't this is not what they think about right, and they'll they'll come to me in retirement right when some things it's almost too late other but it's never too late. I always tell people it's never too late to make an make a big difference and how your life is built and retirement. That's come to me and they have K's like can, four, five, six, different companies and they've never consolidated them. And I will tell you that two things. Number One, a one K plan has, generally speaking, good options but not great options. So that's number one. Number two, if you have gone five hundred and ten even a couple years and haven't can solve they did that for one k. It can be really difficult to figure out who you're supposed to call, who, what form you're supposed to fill out that from ten years ago at Xyz Company and to get that consolidated...

...into some place where you can control it and you can deal with it and even withdraw all some of that money. It can be really difficult and pain in the rear end to figure out. So, as you if I leave you with nothing else today on the podcast, as you exit one job and go to another job, get that for one Cape. Put it into something like an IRA individual retirement accounts or maybe your Roth. Call me, we'll talk about it. Talking with me is absolutely free. I'm happy to chat with anyone. So try and keep that in mind as you go through your preretirement years. Things that you do now really make a difference. Well, it does, and that's a fascinating topic that we're going to have to come back on another show to talk about. Is is as you move companies, because begging my GRANDPA's Day and we talked about him on the last thing in the last episode. The last podcast. He was a state police officer and he was there for a long time. Right. The widow lady right that I'm working with now, her husband worked at a company, big company, for forty years. Okay, John. People don't do that anymore. They move from company to the company every two or three years. So the younger generation, even the Middle Age generation, they probably are going to have multiple one case sponsored, you know, company sponsored for one Kese or whatever that as they move they need that counsel to move that money with them. We need a whole episode just on that concept of why is that important and what would you do with it? I think that be a fascinating episode. Yeah, I would say, yeah, we'll have to do that and we'll talk about at the same time we'll talk about let's do with your one K now, because that's another question, because it when you're here with a k, the company, generally speaking, doesn't have any real incentive to give you any advice on that, and neither does somebody like myself, because you generally don't. You don't, you know, charge on assets that are in a one K plan. But you know, something that we do is we always take...

...with our clients. We say what have you got in Your K plan? How do you have it invested? Okay, why don't we do this with it? And so we can get even point here. In that one K, the good, not great, options can be reconfigured to work with your existing portfolio. Outside of that, and that's a whole another topic. Like you said, yea, I love it though. All right, so those are two for one k. So it's going to be an ettwo month next month. I'm sorry, that a one case, but I think it's really important because people just they don't think about this and there are some tax amplications as well that can come into play when you start taking distributions. But you can move it from one place to another if you don't take the money and it doesn't cast. I mean there are so many little things that people just don't get, John, that I think you could just really explain in a few podcasts. So we're going to take a few coming up and we're just going to talk about the K and and the Rath and they and what's the difference. So that's another one of we're just going to it's going to be fun because I love this. This is really cool. I learned every time I talk to you and today. You know, last time we talked about the personal paycheck protection plan, because a lot of people don't have pensions anymore. So you need to sit up your own and John has a way to do that. Today we've talked about the difference between the type of account that you have and how it's titled Versus where that money's invested, and which is more important, and you landed on one side, even though it's kind of a both end. They're both really critical right and in the future we're going to talk about for one case and just a wealth of things around that. So between now and then, John I, let me encourage people to reach out to you guardian rockwealthcom. I know you've got a new free report there. They can go to the contact page and asked for this new free report on the eight misconceptions or misunderstandings of retirement. You can send that somebody absolutely free right. They can request a copy of your book build a life, not a portfolio. It's an Amazon best selling book. They can reach out and just have a conversation with you about this. Are a thousand other fen...

...nancial thanks, because you don't just talk about retirement your you can help people build wealth at a younger age, you can help people plan for retirement, you can help people in reach out. John takes them from from cradle to great how about that? You know, I just I got to tell you this is so much fun. I'm so excited. A client of mine just called me today and his his daughter, was in the background and and and I said hello, we have a real small account that she's involved with and and she said, well, I've earned some money over over the summer and I just graduated high school. I'd really like to invest what I earned. And I was like, am I in the twilight zone, because most, most young adults in that age group don't even think this way. And she said, well, my thinking was, since I'm going to take out some loans and they don't church interest so I graduate, that I would invest whatever is going to put to it. So her time horizon is, you know, for five years. Sure, but she's young and she's already planning and doing this. I'm so excited. So I'm excited to work with her. So yeah, like I said it they don't you don't have to be really old to work with me. I work with people all the way down to. I think my youngest client, well, she's going to be my youngest client. She's eighteen, okay, but other than that my youngest client is twenty two years old. Yeah, so I work with them all and I absolutely love working with the younger clients as they're getting started. Yeah, what a difference you could make in somebody's life when they start young, they start understanding these things. So, regardless of your age, go to Guardian Rock wealthcom, reach out to John, request of information, schedule a call with them and see how he can help you navigate the the entire financial world, because he is definitely an expert and a wealth of knowledge and just a great guy. So, John, thanks for thanks for spending some time again today. It's always, always fun to be with you, Buddy. All right, enjoyed it. I'll see you. 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 Emilie a free copy of his book build a life, not a portfolio. Go to John's website. Guardian Rock wealthcom and click the contact 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.

In-Stream Audio Search

NEW

Search across all episodes within this podcast

Episodes (118)