Five Major Money Mistakes
Channel: Payne Capital
Date: 17/03/2020

Did you know that termites also exist in the financial world? They are disguised as the money mistakes that are detrimental to your financial freedom.

This week in the No Payne, No Gain podcast, Bob and I will break down the five major missteps that slowly wreck your retirement and how to avoid them. More importantly, we will dive into one of the most significant pieces of retirement legislation, the new SECURE Act, and its benefits.

For our spotlight segment today, we have our financial advisor at Payne Capital Management, Chris Payne. He will reveal a couple’s retirement plan that shocked him the most.

Tune in to the No Payne, No Gain podcast now!

The Five Major Money Mistakes
Money mistakes are portals to discover what you should be dodging especially if you are building your way up to financial freedom.
[02:14] – Flying blind is the number one mistake people make, where you don’t even have a retirement plan at all.
[03:20] – 30% of US retirees say that they don’t have the same standard of living in retirement as when they’re working. How do you avoid this situation?
[05:36] – A lot of us think we can work forever that we don’t have to worry about our retirement plan. What if you get downsized? What if medical conditions turn out?
[06:33] – Ryan shares the importance of having a “contingency plan.”

The Benefits of the New SECURE Act
With the new SECURE Act, massive opportunities for retirement are granted. 
[12:28] – Before, you had to take money out of retirement accounts at age 70 and a half. Now, it’s been moved back to age 72, which is a huge opportunity for financial planning.
[13:13] – If you’re in a lower tax bracket when you stop working, it’s the perfect timing to convert some of your retirement money into Roth IRA where it can grow tax-free forever.
[14:27] – If you’re working past age 70, now you can still contribute to your retirement plan or your IRA.
[15:09] – If you have a small business or self-employed right now. And again, you're down that homestretch for retirement, you have five to ten years.
[15:41] – If you’re working part-time, now you can even contribute.
[15:59] – When your heirs inherit your retirement assets, they used to be able to inherit and take those retirement plans or IRAs over their lifetime. But now, that's been truncated into a 10-year window.

Financial Propaganda of the Week
Here’s what we have for this week:
[21:40] – Bob dives deeper on how the Coronavirus had been setting alarms in the market and making everyone fearful.
[22:56] – Ryan believes the fear roots from the concept of supply chains, considering China is one of the biggest markets in the world and now in a standstill.
[23:44] – The central actors of these fear of pandemic panderers are attention-seekers.
[24:12] – The Internet perpetuates fear by publicizing headlines.
[25:01] – Eventually, outbreaks go away, and the trend before that is what continues.
[26:49] – The one thing that has not changed even with all this fear and the volatility in the market is cash flow.

The Mailbag
This week, Dan Irving answers our listeners’ questions about their finances.
[33:31] - Question #1: “I am getting very concerned about the coronavirus. I believe this could have a larger impact on the markets than has been anticipated. I think it might make sense to go to cash and wait it out. What do you think?”
[36:24] - Question #2: “I need to make a decision on my wife and I's Long-Term Care policies. They're raising rates up to 150% over the next five years or so. Is it worth keeping the policy?”

Spotlight Segment
Our special guest for this week’s Spotlight Segment is none other than Bob’s son, my brother, Payne Capital Management’s financial advisor, Chris Payne. He talks about the planning side and the things he found very shocking.
[44:35] – Blindly saving with zero guidance at all, the couple thought they would never be able to retire.
[46:47] – One of them was actually a teacher working for a local school district, but she is not aware she should be saving for her 403(b) plan.
[48:20] – 99% of the people that walk through our doors, that they're taking way too much risk, almost 100% of their money's invested in stock 50 to 60% of that is invested in large-cap stocks.
[47:17] – Mutual funds are higher costs because on average, they're tax-inefficient.

“Having a retirement plan, having the ability to put as much as possible away, make a big difference in your financial planning —Bob Payne

To download 5 Ways to Maximize Your Retirement Accounts and Save on Taxes in 2020 and the Highlights from the new SECURE Act, 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!

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