Ep 17: Creating a core plan (Financial Safari)
Everyone's retirement plan should incorporate the Core and Explore Philosophy. It is imperative that you learn this if you're five to 10 years away from retirement or already in retirement.
mhm. This week's episode is brought to you by Capital Financial Advisory Group for all your retirement needs. Interesting. Hey, folks, it's Coach Pete here. It's a financial safari, your weekly show informing you of that complex financial world. You need a guide in the financial world. This week, we're going to talk about a very important topic in anyone's financial plan retirement plan. It's called the Core and Explore Philosophy. This week we're gonna break it down. We're gonna explain to you every single step of the Corning's for and why it is imperative that you learn this. If you're anywhere near close to what we call the financial red zone, that's five or 10 years away from retirement or in retirement. We're gonna talk about that and much more this week on the financial safari broadcasting from coast to coast. It's the financial safari with your host coach, Pete the Ruta. You'll hear from some of the nation's top financial professionals, so stick around and find out how to make it through the jungle of the financial world. Right here on the financial safari. E Welcome into the financial safari. Consumer advocate Thomas Lips come here in Studio alongside America's wealth, financial and income. Coach coach Pete Dorota. It's always honor to have you in here. Student into the studio coach. Bestselling author, winner of Emmy Awards. Almost 30 years in the financial arena. Time flies, doesn't it? I was on the plane the other day. Thomas. I'm trying to finalize my book on retirement. Hey, plus retirement. The book on retirement. I just can't quite. It doesn't seem as good as it needs to be yet, so I'm gonna keep holding off folks until I get the right put the right book put together. But it's on its way and keep in mind. I've already got the cover design eso I said. I write books like this written eight books, but every single book I've ever written. I designed the cover first. It's crazy. And just like when folks bring in their current financial statements or what they call the retirement plans from their current advisors, I read from the back to the front because there's a lot of funny business out there and we're gonna talk about ah, way to counter act that funny business and get the proper plan put together this week in a philosophy in the financial world, especially retirement World. Called the Core and explore philosophy. A Stanford professor Years ago I was talking to him. Dr. Craig is Wilson. I had him on my show, the Financial Safari radio show. I think there's 2007 time. It's a long time ago. Time flies when you're having fun, right? And he said, Coach, every single person needs to hear about the court exporting. Basically, he teaches this to students at Stanford, and so we're gonna teach it to you this week, and we're gonna break it down into the two sections. According sport, what does it mean to you? And then we're gonna tie it all together at the end and show you how to design what we call a total retirement plan based on this core and explore philosophy. I love it. This is fantastic. And folks, I just wanna let you know if you have any questions for Coach Pete and the team, we would be honored to have you give us a call, give us a text so that we can help answer those questions and then make it really just make sure that you're on the right track as you head into retirement. Really, what we're about to talk about is a core piece of that, really is Thomas. It's a vital piece. And folks, by the way, we talked about the radio show and a lot of folks. You might be seeing us for the first time ever, even though we've been around for about 30 years. But we have a radio show. It's a national radio show, and you can listen to the podcast of it every single week at financial so far. E dot com That's right really easy. And if you have questions for us, you can always go to financial safari dot com. You can type your question out if you want to see it in writing. You could even even audio question and we'll play it here on the TV show and we'll answer it and so non threatening. But it's your chance to be a star if you wanna be right. I love that absolutely, and I don't wanna forget we have a great resource on there as well. Coach Pete, as a best selling author, has offered one of his audio books at no cost or obligation. If you had over two financial safari dot com. So great thing to take advantage of. But let's dive in if you want to. Let's do this so core and explore. Um, let's start at the beginning. So what are we talking about when we talk about core and explore? Well, money is a funny thing, Thomas. When you're making it, you're happy when you're losing it. Your said e don't like to be around sad people. So what we try to do is we designed the cord you score so core the core part of your plan needs to be money that is growing. It's protected. Okay, give you lifetime income in the future forever. Forever Money. Thomas. Not lifetime income for five or 10 years, folks or 20 years and then goes away right when you need it the most. An income that is available for you and your spouse for the rest of your life. That is a continuation plan, and that is a way to keep you out of the poor house in retirement. And so now we're gonna talk. What's what's will break down. Of course, explorers risk and you have to have some some accelerated money when you're building your plan toe, hopefully get you to the goals you need to get to in life. But we don't need a have accelerated plan. Take the dip and accelerate downward. Honest. And so that's why we have the core. So we're gonna talk on this section about the core part of a plan, and the core is the safe part. The part that's not going away. It doesn't depend on the ups and downs in the market. You don't have to wake up in the morning, run to the TV and see if your money is still there s So let me ask. I guess it's probably pretty basic question, but how do you know how much you need to allocate in your core as opposed to explore? Well, everyone's different eso I wish it was so simple. Stable. Thomas, you need to do X, y Z and everything. Be fine. Can't do that. All right, So what we need to do is look at your situation and your spouse's situation. Your Children, your grandchildren if you care about them Now. Some people, some people, care more about their grandkids, their kids. I understand that you had a a long relationship with your Children. They did a lot of bad things over the years on. Then they have grandkids, and now you want to get back at him. So you spoil the grandkids and you give them candy when you're not supposed to that kind of thing, you're going through that. Now I know exactly what you're talking about, so I just thought nothing wrong. And a lot of people do have great relationships. And and I've even watched The Sopranos on TV. Member of The Sopranos. They had a great family atmosphere every now and then, but they were fighting a lot of times, too. So here's the core, the core. Basically, we need to find out what you want to do in the future, and then we need to isolate money in a place where you can't lose it to make sure you'll be able to do that all the way through the future. So one of the main things in the future if you need to have a house where you need to have somewhere to live and sleep, so we need to have food on your table and you need to have all the utilities. You need to have a air conditioning in the summer. It's no fun with no air conditioning. I grew up, but we didn't have air condition of the car, so I know that, Uh, no, you just need your necessities. But then, Thomas, those are what we call the needs. But we also have Once, I've talked to folks every single week who wanna play golf the rest of their life every time we want to travel or back in the day before, before the coronavirus spent go to a baseball game in every city, right? Do you wanna go to those kind of things? Whatever makes you float, whatever makes you tick. Maybe you like to go to Napa every couple months or twice a year. And when you go out to Napa or Sonoma, you go visit wineries. They're not just there to give you free wine. They want to sell you a bunch of wine, and so they give you a lot of wine. So then you buy more wine, so you need to have that money put aside. And you need to know what you're gonna have to be able to spend every single year for the rest of your life. That's the core, and it is a safe plan. What we do for the core is well again. There's three main ingredients of the core. The money needs to be growing. Obviously, it needs to be protected. Not only the money, but your growth needs to be protected. So if you get a gain, we don't wanna give the game back. How many times have you had a stock where you're all happy one day because it went up and then the next week or next month, or even next day, it went down? You're not happy anymore. We don't. That's I think that's called manic depressive, right? You're happy. You said whatever. So we need to make sure that we're our money is in a place that's always gonna grow. It's gonna be protected. But Thomas, the most vital part of the core is to give you that lifetime income you can never ever out with, regardless of what happens in the market, doesn't depend on the market. You're gonna get a financial, Philip. We call it a check, deliver to your mailbox. The green flag goes up on the mailbox. No, people saying, Coach, I don't have a green flag. Well, you have a red flag on the mailbox. That's bills. Wouldn't it be great to have the mailman bring you a check instead of bills? And that's why we design this core plan because it builds confidence. It gives you that safety and security and knowledge, knowing that everything's gonna be fine all the way through retirement, regardless of what happens in the market. Regardless, what happens with anything geopolitical, that money is safe and secure. It really makes a lot of sense. I'm glad we're able to open this up. Obviously, we're going to continue the conversation in a minute. But if you would like to meet with Coach Pete and the team to make sure that you have this core aspect of the core and explore plan in your own retirement plan, we'd love to invite you in. Take advantage of a complimentary consultation with Coach Pete on the team. Just call the number you see on the screen or shoot us a text us another really easy way to get in touch with us on at the end of the day. That's what we wanna do, get you suited with a total retirement and compliant coach, that's really is customized to them. It is very important, folks, and is no threat, no good. Nobody's gonna twist your arm. But we're gonna help educate you on what you number one where you are right now, what you want to do in the future. And then we'll design a plan that will get you where you think you're really gonna go and re guaranteed to be there when you need it the most. Call the number right now, live long and prosper. That's what speak used to say way all want to live a long life. And thanks to medical advances and better care that we're taking care of ourselves, we are actually managing to do that. But is your retirement plan designed to take you into a longer life? That is why we're here. We are going to put together ah, plan that will last you for the rest of your life. Hi, My name is Greg Bearing. I proudly serve the Wilmington area for Capital Financial, and I want to put together a plan that's gonna suit you for the rest of your life, no matter how long you live. What about? All right. Welcome back into the financial safari. Consumer advocate Thomas Lips come here with you again alongside Emmy winner best selling author coach Pete D. Arruda. We're sitting here talking about core and explore philosophy. Why that is vital to retirement planning. Coach. You've introduced us to the concept of Of what? The core is why it's important. This is my next question for you. How do we achieve it? Emmy winner e Just thinking he said that I purposely don't wear makeup. Folks, number one. I don't like messing up my towels all the time because I don't have a clean makeup on my face. So yeah, no makeup Coach Pete. It is what you get. You know e can't put enough makeup on me anyway to be a better anyway. So how do we accomplish the core philosophy? Well, number one, you meet with us. Well, I mean, really, Thomas. It's not as easy as it as as you think it could be, but it's It's easy for us because we've done this year over year and we we've we've done it with success on. We've been through some markets, ups and downs. And so it's one thing to say you could do something. It's another thing to prove it. After we've had the market tumble we've had. We've been really lucky, though really lucky as a society, because we've had crashes. But we've had recoveries almost immediately. After that, they call that a V shaped recovery goes down, comes back up. Well, could we go down one time and never come back for a while? Maybe a you like a big you? Sure. And you know what? I call that a big because if we have our money in the market now, we're depending on it to come back to say when the market comes back, I'm finally gonna do what? Coach Pete, I'm gonna meet with Coach Pete and get that court explore. There's no better time than the present to sit down and at least find out what you could be doing and what confidence you could have if your money was in the right place. So we utilize were independent Thomas. We're independent financial fiduciary investment advisory firm. Say that five times. What? What? What that means to you out there is that we're not gonna push you into products. We can't take commissions out of your money, fiduciary. We have to do what's best for you at all times. We have an oath, and we also have regulators monitoring us to make sure we're doing what we're supposed to dio. And so, but we always do. We've been doing this forever because I've never had a complaint for a reason. Thomas. And that's a pretty big accomplishment, by the way, because people complain about everything these days. If you go out to see people complain, so people just love to complain. These days we're in the cancel culture they call it People wanna build you up and knock you down. So it's like King of the Hill Way Wanna put you on top of the hill all the way through retirement. So by utilizing the proper products, strategies and philosophies again, cording sports a big philosophy. We could put you in the driver's seat all the way through retirement. You have that retirement autopilot. We say Financial cruise control where you're not worried about. Hey, the market's up. I need to take some money out because I have to pay my mortgage bill. Andi. If the market goes down, they'll have to take it out of the lower mountain. Well, let's have an account, the core account where all the bills are paid from. So you don't have to disturb your explore. Account the market account when you have to pay bills off. So if the markets down, the worst time to take money out of the market many times to pay bills if you have all your money in the market, is toe is when this down. Now, if you have all your money in the market, you shouldn't. Anyway, you're way over balanced. It's like the fat guy on a seesaw. He's never going up. You ever get on the seesaw with the fact that certainly, yeah, trap way up there. The fat guy. Here's the lunch bell ring. He's off to see Mom Boom! And you're what You're down so he doesn't let you down. So good It all Well, I was a little bit skinnier as a kid, but I will say this. I was fat ter enough than my younger brother that I did that So you didn't. I was the fat guy of the three brothers back in the day, so I used to get away up there, then I would purposely get off real quick. I love it. Well, let me ask you about how to take a fall, Ugo Ugo, but we don't have to learn how to take falls in the market. We need to put our money where it's not gonna fall, and that's possible. A lot of people say, Well, Coach, I can withstand some losses until losses happened. They said, Coach, I wish I would have done that. That core thing way don't have to worry about was the money? Sure it is possible. I want people to know that it's it's not impossible. It is possible. It is probable if you get the right plan put together. Absolutely. So that's what I want to talk to you about is I think a lot of people fall into all right? Yeah, into these pits, these traps, they fall into that you shape or that l shape or whatever it may be because they're not prepared. Now you have something that you call the financial red zone on. I think this is something that folks out there need to pay attention to because this is truly If you're aware of this, it can help prevent some of this downfall that you're talking about. The financial red zone folks is when you're getting close to retirement and again, retirement age is different for everyone. 65 is the number we all had in our minds because that's the age that Social Security used to kick in and all that. But now it's different. It's a sliding scale and managing Social Security very important. We help a lot of folks again. That's a that's a core part of your plan and Social Security. If you could get Mawr from Social Security every month, why wouldn't you? Well, a lot of people are making a mistake and filing wrong, so we help a lot of folks with the filing of Social Security ahead of time. Now we don't work for the government, were not affiliated with the government, and that's a good thing because if you do work for the government or affiliated with the government, you're not allowed to give advice on how to take the proper claiming strategies. So there's a lot of mistakes that we made that there is also a lot of mistakes made with Medicare. And so we put together a Medicare cheat cheat guidebook and Siri's video, Siri's, and we're gonna give that away later on on the show to Thomas. I want everyone to get a copy that, uh, that worksheet guidebook video Siri's they could even get. They could go to the Internet and download the workbook. The companion manual. Right now they can. We have a great website, folks. Pete, on demand dot com Pete on demand dot com We have a treasure trove. Resource is obviously we have the Medicare guide and everything around that there. But also, you have some of your audio books from your best selling books there that we have available some reports that we put together, uh, including people in really people known in the financial arena, such as Tom Hagena, Dr Wade Foul, Great Information Site Pete on demand dot com Those are friends of our radio show. They come on every now and then and give great advice. Folks, you can never have enough good advice, but getting a bunch of advice and not taking action is you're killing yourself. Basically procrastination. I've seen procrastination killed more plans in a market crash it seems. Yeah, it really makes sense that it does. So let's talk about how we can achieve this. So So we know what we need to do to prepare for retirement. We get that we need this course set aside to cover basic expenses, electricity, those needs that you were talking about looking at our wants. Um, what are some ways that we can go about doing this? Obviously, you said we could meet with the team. Is it truly individualized on each person that comes in? What we do is meet with you. See what you like to do what makes you take what you're spending now. And then we look forward into the future In retirement, What are we gonna wanna dio? And so then we factor inflation in because inflation things get more expensive. Just look at candy bars over our lifetime E remember five cent candy bar when I was young. I I'm 54 now, so I was a paperboy at 789 10 on my watch. Candy bars go from 5 to 20 cents in my paperboy Do every s o. I lost a little weight because candy bars got more expensive Mom used to get mad at me because I would spend a lot of my profits, my profits for my paper out. What? I didn't make much money doing a paper out, but it's good activity and kept me in decent shape for a fat kid. But you know, there's there's, there's no magic bullet, there's no like. We can't pull off something from this itself and say, Hey, you're you're 55. Here's what you need to do or you're 78. Here's what you need to do We need to see everybody individually, what you like to do, and then we'll design a plan based on what's available out in the financial arena. Thomas is a bunch of different products. Strategies available were independent, so we'll find what works best for you, and we'll do it for you. If you call right now, folks, you can call the number that you see on the screen or you can text Issa's Well, this is a great opportunity to connect with coach beating the team. You can finally sit down with someone who's offering common sense and straight talk as opposed Thio, the financial mess that you can hear there are a lot of confusing terms. There are a lot of just confusing aspects to this world, and you want to know that you're connecting with someone you can trust. Someone, as coach said earlier, the fiduciary that has your back. So call the number that you see on the screen or give us a text to great ways to connect with coach beating the team so that you can get started on your total retirement income plan. Folks stay tuned. We'll be back and taking a short break just a minute. Live long and prosper. That's what speak used to say way all want to live a long life. And thanks to medical advances and better care that we're taking care of ourselves, we are actually managing to do that. But is your retirement plan designed to take you into a longer life? That is why we're here. We are going to put together a plan that will last you for the rest of your life. Hi, My name is Greg Bearing. I proudly serve the Wilmington area for Capital Financial, and I want to put together a plan that's gonna suit you for the rest of your life. no matter how long you live, retirement planning can be stressful, so our process is designed to put you at ease. You'll notice immediately that we are different than other financial advisory firms during your initial consultation will get to know you and give you the chance to get to know us. We wanna learn all about your vision for retirement so that we can design a plan that will help you achieve your long term Financial goals are relaxing office environment and friendly staff will make you feel welcome and comfortable the moment you walk in the door with Welcome Back into the Financial Safari, consumer advocate Thomas Lips come here with you again alongside coach Peter Ruta. Coach. We've been having a fantastic conversation about the core and explore philosophy. I think it be a good time to just take a minute. Let's recap that make sure if anybody's just tuned into the program, that they kind of understand where we've come from so that they can follow us with where we're going. It's not rocket science, Thomas, but it sure feels like it sometimes. I mean, you've got I mean, lump sum, your wedding. You got a lot of people I talked to have big balances in 41 K. S. T s P s. That's thrift savings plan. Four or three bees for teachers and hospital employees. Corgi. But you have this lump sum and you're wondering to yourself, Gosh, one of these days, I want to retire. I'm not gonna be putting new money in, but I need that money to continue to grow. But I don't want it to shrink right. It's like the paradox right here. So and my 41 k doesn't give me too many options as far is how to make that money safe, Where, whereas you go to bed on a Monday and no, you're gonna wake up on a Friday and you're gonna have equal to or mawr than what you started with. And so what happens many times, unfortunately, is people getting close to retirement. They don't pay her down the risk, and so they get to that retirement date and there's less money in their they thought was gonna be. And then you're looking at a lump sum. So how do you know what that lump sum could translate to? As far as a lifetime income you could never live. And that's what we specialize in Thomas giving you that futuristic look into that lifetime income that will never go away using according sport philosophy. And so here's a philosophy that I want to understand. We're not saying take all the money out of the market and put it into a place that's not gonna grow because our core plans sharing the gains in the market. But they don't share the losses of the market, and there's no commissions coming out of your money like a lot of brokerage firms you look at. Oh, gosh, I was up 10% of the market yet my return is only 5% because my broker took money out, right, so that's not good. So we need to look at what we have. We need to have a planning team show you. Well, if you pair off a certain amount of this money out of your 41 K and put it into the core plan, you're not gonna worry about losing that money anymore. And in the future we could get a crystal ball out. Thomas, we could say, if you put certain amount of money away today, in one year from now in five years and 10 years and 20 years from now, here's what kind of lifetime income you could get from that money for the rest of your life for both you and your spouse. So it really is a way to pare down risk. But pair up confidence lift up confidence because now, you know, regardless of what happens in your explore account, which again is the risk account, it goes up and down, up and down, regardless of what happens there. If you have money dedicated to your core plan, you know exactly what kind of income you're gonna get for the rest of your life. At the minimum, here's one of things I forget to talk about. A lot of times when we put the plans together for you, we show you the guaranteed minimums. Now, I'm not a negative person, but we have to show you the worst case scenario. Okay, it could be better, and hopefully will be better. But as long as we could make a plan around the income, you're going to get from the core based on the worst case scenarios, that's if the market goes down every single year for the rest of your life, you're still gonna have the same amount you started with. With a little growth in the core account, you're not gonna lose that money. But if we do have good market environment, you're gonna share in the game. Therefore, your income will increase in the future, combating inflation. Now, the reason why we say we need to utilize the core is because we have all our money and explore account and the market's going down. You still have to take money out of there in the future when you're you're in retirement to live on, therefore locking in your losses. But if we have a core account established giving your lifetime income when the market goes down on the on the other side, the explore side, you don't have to touch that money, so you have plenty of time for it to recover because you're living on the core. Eso the core helps in so many ways. Number one. It helps you minimize your loss from the explore account because you don't have to liquidate when the markets down. These air overlooked aspects because a lot of brokerages and Wall Street is basically said, Give us your money will do good for you. You don't do good. Don't worry. Next year, we'd better. You do bad in the next year. Don't worry, is just a paper loss what becomes a real loss when you need that money and have to liquidate at a low point? So having, according sport philosophy enables, you never have to liquidate from your explore side because your core sides always there and always pumping out money for you really, really makes a big difference in number one, your safety and security in retirement. But your confidence approaching retirement and Thomas because of the court, explore philosophy. We've had some folks be able to retire earlier because they have a lot more income than ever thought they would get because they utilize that core philosophy. I love that, and they must have loved that. I love it, too, because it helps me sleep at night. You know you're taking care of again. No complaints, but I worry about everything in the money world from my from my clients. But I also worry about people that aren't clients because they're not getting the full truth. A lot of times, folks, this is your chance to get the financial truth. It is, and that's a very important point. So obviously you can hear coaches heart here. He wants to take that anxiety. Take that trouble out of the retirement planning process and make sure that you can be confident, not just in year one. And we talk about this a lot. Coach uh, this is ongoing relationship that you develop with folks that you work with it. It's not just your one is your seven. It's your 14. It's your 21 making sure that you can get all the way through retirement with confidence. And I appreciate that because it's true. There are a lot of folks out there that that are the typical broker that air the typical, and they don't have your best interests at heart, and I think that's something need to pay attention to. Yep, the point that I'm bringing up is the fact that you're a fiduciary and again that you're independent on both of those things are vitally important. We have a guest on a show many times over the years. Dr Dan Geller. He's written the Money Anxiety Index, and he says Coach, The Corning's floor is the best way to avoid anxiety with your money because you know your money is not gonna go away because you've got two different sides and you've got the growth, one that's giving you that growth, income of protection, growth, protection, income, income second or third after after protection, growth, protection income and then the other side, you've got that maximum horsepower potential the market. And if that side goes down, you can always live on the court. Explore the court side of the court. Export makes a lot of sense, and it really reduces your anxiety about money and let you enjoy retirement the way it was supposed to be. The way all the brochures show the husband, wife on the golf course and the best weather. No mosquitoes and gnats around the best dress, every every shot you hits going in. So like Caddyshack with the guy was having the best round ever. But we need to make sure that we are in control, and this is a way where you can take control of the money world instead of the money world controlling you. I couldn't agree. More and again, folks I want to remind you of that financial red zone that 5 to 10 years before retirement, when you do need to be looking at these techniques were really, truly looking at your budget As you head into retirement. I know you don't like the budget word all the time, Coach. We could make it a fun budget. Well, let's make it a budget. The budgets A bad word because budget says you can't do folks. You're talking your wife. Honey, I'd love to do this, but we can't do it because the budget won't go out. What if you had a budget that would increase for you and give you more money to do what you want to do? So your main thing, your main problem in retirement is finding time to do all the things you wanna do. Very nice, happy wife, Happy life. So the more that we can increase those numbers all about Thomas, it makes a lot of sense. So let's stop believing the lies of Wall Street and putting all our money in a place that we have no idea what our lifetime income is gonna be, and let's get a true lifetime income plan that financial cruise control the retirement autopilot that a check a financial Philip Every single year a check will arrive in your mailbox regardless, what's happening in the stock market, and you still have your explore account. But your core account is one. Pumping out that lifetime income. Yeah, it's absolutely fantastic folks to take advantage of this. All you have to do is call the number that you see on the string screen. Or you can give us a text right now and we'll connect you with our team here that Coach Pete has built up. Coach Pete himself would be honored to meet with you. Make sure that you have that total retirement income plan, including the core, and explore philosophy in place again. Just call the number that you see on the screen or give us a text. This is a great opportunity. Don't forget that 5 10 years before retirement, you do need to be looking at this again so that you could take that anxiety out of that year before retirement. The year after or the 10 years into retirement. I love this You wanna be in the Green Zone and the money anxiety index go green, Yellow, red. We don't want red. We don't want a war you all the time. Yellow is okay, But we're always still looking over our shoulder, wondering what's going on. Green gives you that lifetime protection, that lifetime income, that true peace of mind that I know all of your searching for We all are. Thomas. I have my own courting sport philosophy. I practiced what I preached, and I am totally confident about my retirement. And I'm totally confident I can help you with yours. All you have to do is give us a call right now. That's right. Just call that number you see on the screen or give us a text and we'll be glad to set you up with your own total retirement income plan. Now it looks like we're coming to the end of the show. Any last Well, I'll give when you call and come in. You get a copy of my book. And also our 41 K survival box said as well. Very nice. Very nice folks Take advantage, call the number you see on screen or give us a text right now and we'll see you next week right here on the financial safari. All right. Do you todo