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Business as usual -- very lucky now to be joined by author Patrick Kelly as -- -- -- fans continued to increase.
Then increasing worry is what you do about retirement Patrick has a lot of relive the more money we need is -- imminent indeed so you talk about the success to a stress free retirement how to get there.
Matt I -- -- six -- things today and it's time to get -- we just have a few minutes and obviously as a whole lot more on the new book that just came out stretched their retirement.
The very first thing that I would love to share with people is don't lose.
I -- sounds so basic and so simple but I think the killer of most retirements.
Have been that people have put themselves in a situation where they lose money what most investments today aren't necessarily really investments -- more of a gamble.
And there are things today in the marketplace that it's almost like if you -- at a blackjack table if you could know that on every hand you're either gonna push with the dealer.
Or win a little bit that you never lose would you take that table would you take one that he knew he can either win or -- and every hand well -- telling people not just.
Now I'm not -- not the most -- -- that there are ways that they -- finance table.
The -- exist they can't give away all the secrets.
But there are products today I think really private meeting with a license and but advisor in their local area.
To find out just two -- products are different than they were ten years 1520 years ago but there are ways.
To grow with the market but never take a market -- from the market goes down OK and then you talk about don't limit your games.
You know what we talked on that first point of safety and I think what the problem is when people.
Go to safety they think of the few things I think.
Savings account to think a money market funds I think it's CDs and right now the problem with that.
Is the you know the the rate of interest that they're getting of 1%.
Or less if they're lucky in the problem with that is if inflation hit a three and a half percent -- which is about what it's been in the last couple years.
If they're making 1% on their money.
They're going backwards in purchasing power two and a half percent every year by only getting 1% return and myself.
Don't lose money but also don't think your only option is to put your money in something where you get very very little return and -- you say don't.
Pay interest don't pay taxes on your interest.
Have you -- well I think that I think that that's our full phrase I like there and I don't.
Ernie can't that you checked that the senate paying taxes on -- and exactly that's the power of tax deferral.
Because what people don't realize back to that 1% CD let's say.
Every single year when they -- and that 1% the government still wants their cut the IRS -- says he made 1% we're gonna take our fair share -- that.
And so really you're paying taxes every year on your interest simply by earning.
But that the other part is -- waste my tax deferral I'd like to share one number from the book -- super powerful.
Tax deferral says left that money compound don't pay tax on it every year just because you earned it.
Wait until you take it out to have to pay -- figures -- -- if you got a dollar and you double that dollar twenty times.
And at the end of twenty -- one dollar would be worth just over a million dollars -- 1048000.
To be exact.
And if you paid hacks at 25%.
On that million dollars at the end of that twenty year period to be about 786 down.
But if you had to pay taxes every single time that dollar doubled so I don't doubled from one dollar to two dollar didn't.
You pay caps an additional dollar and 25 cents that that you made.
Instead of 786000.
You don't land the 72000.
Give ten times more money in the account by waiting to pay the tax at the end then paying each and every time that dollar double interesting.
And then you say it's what you keep that count.
You don't want my favorite questions to ask clients to -- years this.
Who else who else's name is on your 401K account not go -- look at me like -- you know laugh when I don't know what just mind.
But the reality of it is there is someone else's names names Uncle Sam because.
Most people look at their 41 K balance and they're looking at the wrong number.
Because it's not the balance that really matters is what's left over for you take -- if we -- exactly right.
And I think the big misnomer to individuals is if you contribute to attract qualified plan -- -- 401K you're saving tax.
Unfortunately not saving it you're just delaying your -- -- it and really are making the problem far -- -- compounding the problem.
All right stand.
Minimize the fees and that's the stuff that goes along with that -- one of the big killers I think of people's retirement is the fees that go along with just everything -- -- if they're hidden everywhere idiots I know it.
You can't get away from a most of the time a little someway he can't but here's the real compound -- -- Paying a fee in a year that you -- also lost money not only -- I mean it's okay if they feel not against -- If that person is helping make money -- -- at a much I might say you -- Catholic but yet that's where system set up right now as you pay a fee.
Do you a broker oftentimes even if illusion my how to get around.
Again I think I just want to encourage them is not enough time to meet with the local advisor life and to -- in their area.
Find out what products -- bill because there are ways to get around that.
And -- it spend it.
Use it enjoy it I think week I think that when we can figure out you know it's funny you expected.
But one of the biggest surprises to me in the twenty years I've been in this business is people spent all of this time accumulating money.
When it comes time to spend it on how to do it.
They feel like I've I don't even want to tap into one of the things I want to be a let people it's okay to spend.
-- not -- you can't they went in can't get it would be better to do and candy you consented to do three things.
Build memories build relationships.
And make a difference in people's lives are really -- the last few chapters of my book which -- entitle more than money because life is more than money.
Retirements more than money use it to make a difference.
And how can people get the book so this is really interest -- my first two books.
They can buy online tax -- and retirement miracle.
This book we're not selling were actually giving away and so anyone who wants a copy of the book can go to stress free retirement dot com.
Request a copy of the book.
-- -- -- -- Remember set along how important is that they -- with the local advisor in their relations advisor in the local area.
If they set up a point would -- license advised in the local area would be more than happy to -- in the book because we think this message is that important to get out to the public.
Very interesting Patrick Kelley -- it's just three retiring get the book brave to set up an appointment and will have an article up.
About this on Fox News happening today thanks so much magic appreciated that thing.
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