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Ask Us Anything

Ask Us Anything

Originally aired 12/13/2021

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The floor is yours to #AskUsAnything on the Get Ready For The Future Show! We’re answering your questions with special guest Ryan Detrick, Chief Market Strategist with LPL Financial. In this episode, advisors answer your questions.

You’ll learn:
– Retirement, investments, and your money!
– Valuable market insights from LPL Chief Market Strategist Ryan Detrick
– How we make money, do business, and are different from the other guys.

Links:

Register Here For Outlook: 2021 Webinar

Get Your Free Retirement Check-Up Here

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SHOW NOTES

Retirement Income

  • When should I claim Social Security?
    • It depends on your needs and your plan.
    • The circumstances in which you approach retirement determines whether you should claim Social Security early, at your full retirement age, or late. 
    • We’ll talk a bit more about Social Security changes happening this year on next week’s show, so be sure to tune in live on Wednesday!
  • Should I spend down my 401k/IRA first or keep it for last?
    • The order in which you spend assets greatly depends on a number of factors.
      • Retirement age
      • How much you have in assets in your 401k/IRA
      • Your Social Security claiming strategy
    • It’s more important to focus on “asset location”
      • Fixed income first
      • Moderate risk / hybrid investments next
      • Equities for the long-term

 

Interview: Ryan Detrick, Chief Market Strategist at LPL Financial

  • The markets finished 2020 strong but there was a little bit of a rocky start to 2021. Give us some insight into what LPL Research is saying about the upcoming year in the markets.
    • We’ll talk about this in-depth in the Outlook 2021 webinar I’ll join you for. (Register Here)
  • Is the equity market too high, and do I need to change my asset allocation?
    • You mentioned sectors; what sectors do you like now?
  • Talk about this concept of narrow market leadership – in other words, is the growth of the market concentrated in too few companies?
  • Let’s jump over to the bond market. There’s a lot of talk about low to almost zero yield on fixed income for the near term, although we have seen a little movement in the 10-year in a positive way. But what is the proper role of fixed income in a portfolio in an environment where we are still seeing record low interest rates?
  • With the results of the Georgia senate runoff race last week, what does it look like with a democratic majority in all three branches and what could that look like in the market?
    • You mentioned the potential for a tax increase. Let’s say that happens – what impact could that have for the investor?
  • There’s all the controversy about what’s going on with the tech companies and shutting off Twitter and Facebook to various people. I want to look at this a little differently from an investment standpoint. We’ve seen these companies on fire in 2020, but is the bloom off the rose for them right now?
  • Job growth is looking like it’s turning negative right now. What’s the difference between a strong market and job growth and what are we expecting?

 

Retirement Income (Cont.), Planning, and Timing

  • What’s an In-Service Distribution?
    • Quite simply, it is a distribution that a participant takes from a retirement plan while still employed.
    • There are restrictions to this, generally based on age and service. 
    • You are subject to a 10% early withdrawal penalty if you take an in-service withdrawal before 59½. 
    • When it comes to in-service withdrawals, you have 4 options:
      • Keep the money in the plan (not required to take it out at 59½)
      • Cash out (in most cases don’t recommend)
      • Rollover to IRA accounts and begin the retirement income planning process
    • You can keep your 401k and continue to contribute on your next paycheck following the in-service withdrawals. 
  • What’s an RMD?
    • RMD: Required Minimum Distribution
    • This is the amount of money that must be withdrawn from a traditional IRA, SEP, or SIMPLE individual retirement account (IRA) when you’re of retirement age.
      • As of 2020, the age for withdrawing from retirement accounts changed. It now must happen by April 1 following the year account holders reach age 72 (prior to 2020, the RMD age had been 70½ years old).
      • If you take it by April 1 instead of Dec 31, you have to take 2 that year
    • RMDs are a great source for tax savings through qualified charitable distributions. Up to $100,000 per person ($200,000 for married couples) can be distributed to a charity and avoid the tax consequence of the required distribution.
      • It must go directly from the IRA through to the charitable organization, it can’t pass through you first.
  • Can I retire? Am I on track?
    • We’d love to say “Yes, of course!” But it’s not quite that easy…
    • The bad news is that the answer to this question is entirely specific to your individual situation, so we can’t answer this for you on the air.
    • The good news is that, because this is entirely specific to your individual situation, we’ve developed a tool to help answer this question, and it’s totally free!
    • Get your retirement checkup and find out if you’re on track at 15minuteretirement.com!

 

Business As Usual

  • Do I have enough money to work with you?
    • Yes!
    • We value all levels of wealth.
      • One of the biggest disservices our industry has done is to take financial planning—a powerful tool for cultivating individual wealth and security—and make it inaccessible to the people who need it most.
      • We see financial service as a public service, and anyone who wants the support should be able to get it. That means we have no minimum requirements and no high bar to entry.
  • What makes you different from other financial advisors and firms?
    • GW Difference
      • Education-Driven, Strategy-Based, Team-Delivered
    • Trademarked process
      • GenWealth Ready to Retire Process
      • Retirement planning and Education by trusted advisors. Advice specifically Designed for You and your legacy.
    • On paper, on purpose
  • How do you get paid?
    • Financial planning fee
    • Compensation from asset management
      • Brokerage
      • Advisory

FINAL THOUGHTS

    • It’s good to have questions.
      • You’ve worked hard for your money.
      • It’s good – healthy – to have questions about how it’s being put to use.
      • If your financial advisor doesn’t answer the questions you have about your money, it’s probably time to find someone who will.
    • We don’t expect you to know all of this on your own.
      • Unless you’ve spent years studying the behavior of money, how would you know?
      • Just because it’s called “financial independence” doesn’t mean you should have to go it alone.
      • Being “good” at money isn’t knowing something you were never taught, but choosing a team you can trust to guide you through it.
    • We’re answering even more questions, particularly about what’s in store for 2021, in our upcoming workshop: Outlook 2021.

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