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 podcastwith John Browning. Build your life as a relaxed and unedited conversation with financialexpert in number one Amazon bestselling author, John Browning Jones, the founder ofGuardian Rock Wealth and serves clients across the United States. John's the author ofthe book build a life, not a portfolio, a guide to your financialfuture based on your personal values, which you can purchase on Amazon, orstay around to the end of today's show and I'll tell you how to geta free copy mailed right to your door. I'm Michael The lawn, your hostfor the next few minutes as we chat with financial expert and business ownerJohn Brownie. Oh, John Browning, I hope your week's going well,sir. It is. It's going well so far. It hasn't been thatlong, 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 thatnow is flowing over, because that's how we should be. But that's neitherhere nor there. I've had I've had some thoughts recently, John, andI figured you might have the answers to these, so I wanted to throwthis out here today on your podcast. Is Okay if there were a wayto 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 setup more is it more important of how my money is invested? Does thatmake 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'swhat most people focus on. But I'll...

...tell you, I've I've in thisactually is just it's interesting that you ask that question because just recently, overthe last month and a half, I've run into a gentleman who his wifeunfortunately passed away. Super Nice Guy, but she had kind of always handledthe finances of the relationship and he didn't even know how the account was titledand When we looked into it it turned out it was titled in a littlebit want to say different, different way, and that can make a big differencewhen you have that happen if there's you and a significant other, oreven if it's just you, if you haven't titled The Account Right or it'snot 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 stateor maybe depending on you to have set things up correctly. And there's justthere's a plethora of different ways to title accounts, whether it's retirement accounts oror just an individual account. Is it a transfer on death account? Isit a joint rights and privileges? It a joint tenants and it goes onand 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 walkingthrough stuff, right, and we found some accounts that so some are inhis name, some are in her name, some are in his end or hername and some are in his and her name, joint tennis with somethingor like, Oh my God, I had no idea, John. Sototally with and then go and throw all the paperwork to get them all turnedover to her and all this, but I'm learning exactly what you're talking aboutnow, just about how do you title it? And it does make adifference. Yeah, it does. But...

...too many times when we set thingsup or like, well, I don't know, I just just like thisis, you know, it's kind of a car difference. Just. Yeah, yeah, you buy a car and you put it in Michael or orMichael and Jill Delong will we both have to be there if it's Michael orjolled 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. Youdon't really deal with that stuff. HMM. But we digress. But I meanthat'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 withthe situation of each individual. But it's kind of a well, they're bothreally, really important, the type of account that you have, how it'stitled and all that, but also where the money's invested. Right. Yeah, I would say, if you really push me, again someone and saidyou got to answer this question. It would. It would certainly be howthe money is invested is the most important, but I don't want to minimize howimportant it can be to set up the right type of account. Theother example of this is I talked to many people who don't even know savesay that they could have, you know, a Roth IRA versus a regular IRA, or business owners. Business owners have a lot more that they cando with their retirement accounts. Then there's a lot more things that they cantake advance image of, but many times they're just not aware of it andnobody is taking the time to tell them or they haven't gone and gotten theadvice that they need on this and they miss out on thousands and thousands andthousands of dollars, and over a period of time it could be hundreds ofthousands of dollars that they've missed out on in terms of building up accounts incertainly 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 onevery podcast, John, but it's why people need to reach out andtalk to you, because you're right, there's just a slew of opers,opportunities, options and confusion for people like me to go. Wow, soI'm a self inmpoint guy. Do I have an SEP or a TSA ora TF? I don't know right, because there are. It's just it'sGobbligook, but you get it. You get because it's what you do allday, every day, all right, and that's why people need to reachout 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 whenthey reach out to you, make it a lot easier, right, becauseyou 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 thebest 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 twodaughters and they're getting a portion of the guy's life insurance and I'm getting readyto 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 finftygrand each or something like. They don't have a clue what to do withthat 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 roleyou play, right, is your that advisor. You're prolling everything to gatherto 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 lifethat you want through a portfolio of what makes sense in your life. IsI 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 eachindividual'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 hasa pension plan, like we talked about on the last episode. If youmissed 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 ifyou had a pension and so security, you're still going to need more thanthat. Probably, and so you need to set these things up and understandand how do you do this? And I think you even do have somepeople on staff, attorneys and thanks, to help with estate planning if yourclient 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 workwith 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 werun into all the time because people, again, just don't this is notwhat they think about right, and they'll they'll come to me in retirement rightwhen some things it's almost too late other but it's never too late. Ialways tell people it's never too late to make an make a big difference andhow your life is built and retirement. That's come to me and they haveK's like can, four, five, six, different companies and they've neverconsolidated 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 andten even a couple years and haven't can solve they did that for onek. 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 agoat Xyz Company and to get that consolidated...

...into some place where you can controlit 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 thepodcast, as you exit one job and go to another job, get thatfor one Cape. Put it into something like an IRA individual retirement accounts ormaybe your Roth. Call me, we'll talk about it. Talking with meis absolutely free. I'm happy to chat with anyone. So try and keepthat in mind as you go through your preretirement years. Things that you donow really make a difference. Well, it does, and that's a fascinatingtopic 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 wetalked 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 husbandworked at a company, big company, for forty years. Okay, John. People don't do that anymore. They move from company to the company everytwo 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 counselto move that money with them. We need a whole episode just on thatconcept of why is that important and what would you do with it? Ithink that be a fascinating episode. Yeah, I would say, yeah, we'llhave to do that and we'll talk about at the same time we'll talkabout let's do with your one K now, because that's another question, because itwhen you're here with a k, the company, generally speaking, doesn'thave any real incentive to give you any advice on that, and neither doessomebody like myself, because you generally don't. You don't, you know, chargeon assets that are in a one K plan. But you know,something that we do is we always take...

...with our clients. We say whathave 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 geteven point here. In that one K, the good, not great, optionscan be reconfigured to work with your existing portfolio. Outside of that,and that's a whole another topic. Like you said, yea, I loveit though. All right, so those are two for one k. Soit's going to be an ettwo month next month. I'm sorry, that aone case, but I think it's really important because people just they don't thinkabout this and there are some tax amplications as well that can come into playwhen you start taking distributions. But you can move it from one place toanother if you don't take the money and it doesn't cast. I mean thereare so many little things that people just don't get, John, that Ithink you could just really explain in a few podcasts. So we're going totake a few coming up and we're just going to talk about the K andand the Rath and they and what's the difference. So that's another one ofwe're just going to it's going to be fun because I love this. Thisis really cool. I learned every time I talk to you and today.You know, last time we talked about the personal paycheck protection plan, becausea lot of people don't have pensions anymore. So you need to sit up yourown and John has a way to do that. Today we've talked aboutthe difference between the type of account that you have and how it's titled Versuswhere that money's invested, and which is more important, and you landed onone side, even though it's kind of a both end. They're both reallycritical right and in the future we're going to talk about for one case andjust a wealth of things around that. So between now and then, JohnI, let me encourage people to reach out to you guardian rockwealthcom. Iknow you've got a new free report there. They can go to the contact pageand asked for this new free report on the eight misconceptions or misunderstandings ofretirement. You can send that somebody absolutely free right. They can request acopy of your book build a life, not a portfolio. It's an Amazonbest selling book. They can reach out and just have a conversation with youabout this. Are a thousand other fen...

...nancial thanks, because you don't justtalk 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'mso 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 areal small account that she's involved with and and she said, well, I'veearned some money over over the summer and I just graduated high school. I'dreally like to invest what I earned. And I was like, am Iin the twilight zone, because most, most young adults in that age groupdon'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 soI graduate, that I would invest whatever is going to put to it.So her time horizon is, you know, for five years. Sure, butshe'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 itthey don't you don't have to be really old to work with me. Iwork 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 clientsas they're getting started. Yeah, what a difference you could make in somebody'slife when they start young, they start understanding these things. So, regardlessof your age, go to Guardian Rock wealthcom, reach out to John,request of information, schedule a call with them and see how he can helpyou navigate the the entire financial world, because he is definitely an expert anda wealth of knowledge and just a great guy. So, John, thanksfor thanks for spending some time again today. It's always, always fun to bewith you, Buddy. All right, enjoyed it. I'll see you.Money really is a big part of...

...our lives and John Browning can helpyou and your family learn how to keep money in the proper perspective. It'simportant, but it's only a tool that can help you build the life thatyou want. If you like, John Emilie a free copy of his bookbuild a life, not a portfolio. Go to John's website. Guardian Rockwealthcom and click the contact US link and send your request. John Will Mella copy of his book right to your door absolutely free. Thanks for listeningto building your life podcast with John Browning. Be Sure to subscribe to this podcastso each new episode will be sent to you automatically when it's released.Have a terrific day.

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