How to Build a Passive Income Stream for Financial Freedom
Channel: Payne Capital
Date: 2020-05-27

Are you committing one of the common financial mistakes that could ruin your retirement? Today, Bob and I reveal how you can avoid those and build a passive income stream.

For our spotlight segment, Payne Capital Financial Advisor, Chris Payne, talks about how he helped a couple who was taking more risks than necessary.

Start planning and don’t miss this episode on the No Payne, No Gain podcast!

Financial Propaganda of the Week
This week so many articles were flying back and forth. We scoured through each one of them to pick out the ones worth talking about.
[03:39] The propaganda never ends. The media still loves talking about the disconnect between the economy and the stock market.
[04:50] The market is smarter and ahead of us. It’s looking at 3-6 months in the future.
[07:00] Just this past February, we’ve had one of the best economies in history. Since its decline, the Federal Reserve has injected $9 trillion into the economy.
[08:03] Don’t be stubborn by sitting on your cash when you’re not getting any return.
[08:35] Prices are low, and there's a lot of attractive income you can build into your portfolio right now.

Easy Ways to Ruin Your Retirement
If you’re not careful, you could end up making these mistakes that could lead to dire consequences later. Let’s go over them here:
[12:24] Treating retirement as a destination instead of a journey.
[15:03] Another mistake is assuming your monthly spending habits are going to be the same as when you’re working or less.
[15:12] Your expenses when you retire are going to be more. Your cost of living is the biggest thing that could ruin your retirement. 
[16:13] Investing your money like you’re 35 when you’re already in your 50s or 60s is not a good idea.
[17:48] The upside always takes care of itself, but if you don’t have a downside plan, then it can wipe out your entire retirement.

Reaching Financial Independence 
Imagine being able to stop working tomorrow because you have the passive income to maintain your lifestyle. But how do you get that?
[22:15] It takes cash flow to have all the money to not be dependent on anybody.
[22:43] The first place you start is an income needs analysis.
[23:39] Do a portfolio assessment to see if your portfolio matches your income needs.
[24:58] There’s no yield in certificates of deposits (CDs).
[26:05] The pandemic will go away eventually, and the economy will come back. But the problem of not getting yields from your CDs will still be there. You have to solve this now.
[26:20] You will have unexpected expenses such as long-term care.
[27:24] The worst thing you can do with financial planning is to set it up then forget it.

The Mailbag
If you want to know our views on the market, the economy, or your financial plan, send your questions over to us via email at questions@bebullish.com.
[32:42] Question #1: “How do I maintain my purchasing power of my savings when an advisor charges around a 1% fee to manage my money?”
[35:33] Question #2: “The conspiracy theorists say we should invest in gold, silver, and cryptocurrencies. What is your outlook, and what should we invest in?”

Spotlight Segment
Today, we have Payne Capital Financial Advisor, Chris Payne. Is your financial advisor running your financial plan based on your goals? The answer turned out to be a ‘no’ for this couple Chris helped. 
[44:04] A lot of financial planners love to take fees, but do no work to earn those fees. This was the problem faced by a New York based couple who were a year away from retirement.
[44:54] This couple didn’t need to take a lot of risk because they already have a great pension and social security, so they won’t need to draw a lot of money out of their portfolio.
[46:48] The bonds the couple had were Triple B rated bonds, so they’re not high quality. When you don’t want to take risks, your bonds should be of the highest possible quality.
[47:17] Now is the time that you should know what’s really in your portfolio, what are the risks you’re taking, and then purge all the things that are too risky down the line.
[48:39] Chris was able to eliminate risks they couldn’t see before the inevitable happens.

“It’s okay to be wrong. It’s not okay to stay wrong. It doesn’t matter what happened the last two months, only what happens every month for the rest of your life.” —Bob Payne

To download our Coronavirus Portfolio Survival Guide, text BULLISH to 555888.

If you have saved over $500,000 for retirement and need a plan based on your retirement goals, Bob and Ryan will create a 360 Financial Portal just for you! Text or call 844-752-6692 to check out the 360 Financial Portal with no strings attached.

Do you need a game plan for these volatile times? We’ll make sure you’re making the right decisions for your retirement plan. Schedule a call with one of us at  https://paynecm.com/game-plan-call/

facebook.com/PayneCapitalManagement/
paynecm.com/
twitter.com/paynecmwealth