The information and discussion on this show is for informational purposes only and is not intended for specific tax, legal or financial advice. Exposure to ideas and financial vehicles discussed should not be considered investment advice or recommendation to buy or sell any financial vehicle. Past performance is not a guarantee of future results. Investments will fluctuate. And when redeemed may be worth more or less than when originally invested, you should always consult your tax or legal professional and financial advisor or representative before making any financial decisions. Neither Retirement Wealth Advisors, Bulman Wealth, WORLD EQUITY GROUP Securities Inc its representatives or affiliates have any liability for investment decisions or other actions taken or made by you based on the information provided on this program. Christopher James Bulman is a registered representative offering securities through WORLD EQUITY GROUP Securities Inc, member of FINRA SIPC an investment advisor representative of Retirement Wealth Advisors. Neither the Financial Compass or Bulman Wealth are affiliated with WORLD EQUITY GROUP securities Inc or Retirement Wealth Advisors. Licensed in California number 0D57586.

Randy Cook:

This is the Financial Compass with Chris Bulman. At Bulman Wealth we use results in advanced planning to help you grow and protect your money. And now setting a course for a better retirement it’s the financial compass with Chris Bulman. And welcome once again to Sunday afternoon here on KFBK and the Financial Compass with Chris Bulman. My name is Randy Cook here each week with Chris from Bulman Wealth. As we talk a little bit about your money and hopefully give you some great ideas and options that we hope you’ll act on and give us a call to explore some of those things, Chris, how are you doing today?

Chris Bulman:

I’m excited. We’re about to kick off the March Madness week and just excited. My kids are really into basketball though. We’re kind of transitioning from basketball season to golf. So the four basketball games a day and two golf tournament days are now going to transition to just one baseball practice and two golf tournaments. But the NCAA March Madness it’s getting hot, it’s going to be fun.

Randy Cook:

It is. And the first week in my opinion is the best, when you’ve got 16 games on Thursday and Friday and they’re all going on at the same time, it’s fun to sit down at a sports bar and just go from game, to game, to game, to game and go back and forth and do those brackets as well. And that is one thing everybody’s going to be doing this week Chris and that’s picking their Cinderella’s, picking their favorites, picking that one team that they think can go all the way through. You kind of put all your eggs in that one basket don’t you?

Chris Bulman:

You do. We talk about it in the financial world, we have short memories sometime and we’ve probably already forgotten just last year… Just last year two 15 seeds knocked off two number two seeds in the first round. And I’ve kind of gotten used to this with KU I’m a Jayhawk. And every year it seems like for the past 15, 20 years, we’re a number one seed or number two seed, but we only have one championship to show for it in the last 15 years.

So you never know exactly who’s going to perform or what’s going to happen. Similarly, if we look at the end of the 1990s who foresaw that the stock market was going to essentially go sideways for the next dozen years, it was going to crash and we’re going to have the tech bubble. A lot of people talked about it, but how many people actually removed their money from that and avoided the whole tech bubble. Or even five years ago who would have foresaw that the savings account interest rates are going to be down to a fraction of 1%.

And even now we’re going to talk about this a little bit later in the show, but as interest rates are rising and the fed’s raising rates are, we don’t see our checking account rates going up and things like that. But we can’t foresee what’s going to happen in the future, certainly with the NCAA March Madness or with our financial accounts. What’s important if you look at some of the top teams with Kentucky and Calipari, or Duke and Krzyzewski, Kansas and Bill Self or North Carolina and Roy Williams. And if I missed your favorite team, I apologize, but some of the big blue blood teams out there, if you look how they perform on an annual basis. Again, back to Kansas, Kansas only really has seven players this year. There’s a few more that sit on the bench, but they never play because they had some people that weren’t able to play due to grades or transfers or whatever it might be.

And so that’s not normal. Usually they’re subbing five in five out all the time. And so Bill Self had to get used to coaching with just seven players and point guard playing almost every minute of every game. And you look at Kentucky UK, every year they have seven or eight new players because all the freshmen come in and then they go out and go to the pros. So it’s really important to have a plan in place. And these coaches have learned how to be able to bob and weave on the go and be able to make their players work out in the system that they have. And that’s exactly what we want in our retirement plans too, is we want to have a system in place that as the market’s bobbing and weaving going up, going down, going sideways, we have things in place that we can take advantage of those. And it’s vital that you do that, not just in your bracket for the NCAAs, but for your retirement plan as well.

Randy Cook:

I think about basketball is one sport where there’s so many timeouts, and there’s so many adjustments made in that last couple of minutes of the game because the coaches are seeing something, they take a time out, they sit, they huddle, they make their adjustments, they go out and they do it over and over again. There’s a correlation there to what you do when you sit down with somebody who’s nearing that end and moving into retirement, they’re working through their working years and they’re working into retirement and you do have to sit down huddle up and make your adjustments, don’t you?

Chris Bulman:

Yeah. And it’s not just the investment world. Sometimes life happens, whether it’s a divorce or someone passes away, or most recently we have a good friend that was injured and hasn’t been able to work in months and tough to communicate. And at some point the revenue stops coming in and so you start talking about even disability insurance, and that’s not something that most people ever think about. But if that money-making machine, which is you, your body, if that stops and can’t go out and make money, what do you do? You want to have that insured. Those are the things as we go through life, sometimes we have kids and we start thinking about life insurance and how important that is.

And then you get to a point in your income where you realize how valuable it is. And maybe you need to start thinking about disability insurance and all along the way we’re thinking about retirement planning and college planning. And that’s why you want a coach, you want an advisor, you want to a holistic financial planner that looks at everything and has a plan in place for you. Not just a one-stop mutual fund shop that you walk in and they put your money and funds, and they don’t tell you about all the other things you want to be thinking about.

Randy Cook:

Well, what we do on this show each and every week is offer you our listers at the end of every segment an opportunity to get a full blown financial and income plan. Well, what does that mean? That means what does your 401(k) do for you? Your IRA, your Roth, your pension, your annuities, your stocks, your rental income. How does it all become income for you in retirement? There needs to be a strategy there. What about taxes? You’ve saved your whole life with this money. You don’t want to give it all back when you need it the most. And what about the risk that you have right now, as you move toward your retirement years there is less of an opportunity there to lose that money because you don’t have that opportunity to make that money back like you did when you were 40 years old. Insurance, estate planning, all the things that Chris has been just been talking about that goes under the umbrella of our full-blown financial and income plan.

So we’re going to offer that to you right now for the next five people to give us a call. Five people right now and here’s our number (916) 458-8199. You get a full-blown financial and income plan with the team at Bulman Wealth, (916) 458-8199. Now here’s another way that you can get in touch with us. You can actually text the word PLAN right now to (916) 458-8199. And then we’ll just give you a call back because we’ll have your number at that point. A lot of people do call at the same time when we do this. So again (916) 458-8199, look us up online at thebulmanway.com. Coming up next, funny moment this past week with Ellen DeGeneres and Bill Gates, billionaire Bill Gates. What do you think he knows about going to the grocery store? That should be some fun. That’s next on the Financial Compass. (singing).

Welcome. Back to the Financial Compass with Chris Bulman. Find us online thebowmannway.com. You can give us a call (916) 458-8199. And talk to us about the full blown financial and income plan. That is what we offer you our radio listeners. Give us a call and we’ll talk more about what that is in this segment and give you the opportunity to call in again, coming up in just a few minutes. All right. Fun moment financially, we’re always looking for some interesting talk from TV and Ellen DeGeneres on her show. Funny lady. And she had billionaire Bill Gates on the show. So what do you ask the millionaire? Well, when’s the last time you’ve been to the grocery store.

Ellen DeGeneres:

When’s the last time that you have been at a supermarket ?

Bill Gates:

Long time ago.

Ellen DeGeneres:

Tide PODS. You’ve been hearing a lot about those lately. What do you think?

Bill Gates:

$4. They want me to go higher.

Ellen DeGeneres:

Yeah.

Bill Gates:

Let’s go $10.

Ellen DeGeneres:

$19 and 97 cents. It’s expensive to do laundry. It’s very costly.

Randy Cook:

He had no idea. Well, I don’t think bill Gates goes to the grocery store regularly. Do you think Chris?

Chris Bulman:

No. His laundry is probably a lot more expensive because he pays someone else to do it.

Randy Cook:

That’s probably true. That’s true. But there’s things… That’s probably one of those things that he doesn’t have to know. But he does have to know about his money. He runs his foundation. He does some great work with that. I’m sure he sits down with all his advisors and sits down and knows where the ins and outs of the money is and how it’s all doing. And that brings us to, we should all know those things too Chris. There’s things that maybe we don’t need to know but there are things that we do need to know. When you sit down with people and you go through the full blown financial and income plan, what are the things that you uncover for people that they might not know about?

Chris Bulman:

Well, it’s interesting this whole idea of watching your money and how much money it takes to do things. It’s all relative too, depending on where we live in the country and where we live in the world. I was watching a documentary on Monaco and Piers… What’s the guy’s name from the UK?

Randy Cook:

Piers Morgan.

Chris Bulman:

Yeah. Piers Morgan was doing a documentary in Monaco and I’ve been there and it’s amazing. It’s something like 35 to $40,000 per square foot to live there. So you have in Monaco alone, which is only one square mile, but in Monaco to live there they have 2000 millionaires that live there. And when you talking millionaires, you’re not talking 1 million, you’re talking maybe 40 to a $100 million or more. And they have at least 50 billionaires that live there. They were talking about when you’re looking at a yacht, you don’t want to spend more than 10% of your net worth.

So you shouldn’t be buying a $55 million yacht, unless you’re worth at least half a billion dollars. Thought that’s good prudent financial advice. It’s not really good advice though, for the people that live here in Sacramento, right? Because we’re not really thinking necessarily about a 50 to $60 million yacht, so it can be relative. And then again in Sacramento, we’re not talking about a $12 million flat that you might be talking about if you lived in one of the districts in San Francisco or Silicon Valley. And so it can be relative depending on where we are, but what it comes down to is we need to know how much money that we have coming in. We need to know how much money that we have going out, and we need to know what kind of return we’re getting on our money.

And I think it’s so interesting as people come in and we do this full blown financial plan for people that they’ve never seen before, they’ve never had it done before to this level. They start to realize, they come in and say, “Oh, I’ve been getting great returns. I think I got 10% last year.” But when you look at the last 10 years they’ve averaged 5.2% return they have no idea it just feels good lately, it didn’t feel so good, no way, but we do all that work for them and show them how the accounts have been performing, what kind of fees they’re paying. And then as we’re doing that retirement income plan, it’s important to know how much money you’re spending on a monthly basis as well. So that we know how much money is going to be there for retirement.

How long it’s going to last, are we going to end up with… Sometimes we do plans and people smile, we ended up with $160 million by the time they are 90, 95 years old based on their budgeting, inflation expenses and all these things. Some other people might do a plan and they tell me, “We spend $8,000 a month.” And by the time we do the plan, I say, “Okay, well, based on our plan, you should have $62,000 left over at the end of the year to invest after taxes, after inflation, all these things.” And they look at each other and they say, we don’t have any money left over at the end of the month. And that’s great because what that tells me is it’s always, one, they have a lot of extra money that they could use to invest, or two, they are paying no attention to their budget and have no idea how much money they’re really spending. Which either one of those turns out really nice for the clients because it shows them how unaware they might be of those things.

And it helps us to plan even better. And then we kind of send them home and they come back with a tighter budget because we can plan for $50,000 extra if you have it. And what’s great Randy is a lot of people do have that extra money and they say, “Yeah, our budget’s tight. This is how much extra we have. And let’s save it in these buckets that you’re talking about here Chris.” Or other people realize that, “We have extra money, but we’re just blowing it.” And where they might be blowing it. One person had an AOL email account they were still paying on, had no idea they’re still paying on that. Gym memberships that they haven’t been to the gym in years. But they just never pick up the phone to make the call to cancel the gym membership. Lots of different things that can pop up and they start to see where the money’s actually going and all that’s important because you want to make sure that there’s more money at the end of the month, then there is month.

And we don’t know that unless we have a good tight budget. So as we build all these things and we can see what is the wealth going to look like going forward, maybe it’s going to be really nice and we need to do some legacy planning. We have a lot of people that come in with a million, 2 million, $5 million or more, we’re looking at legacy planning, how do we avoid estate taxes? How do we plan to mitigate and minimize those taxes and lots of different things that come out of these plans. But it all starts with sitting down with a packet of information, having a nice long talk and getting it all put together.

Randy Cook:

So something as simple as just knowing what goes in and knowing what goes out, and knowing what your needs are going to be five, 10 years from now and starting to put it down on paper, it’s such an important part of the process. And that’s what our full blown financial and income plan does. Are you losing money because you’re making a error in tax strategy. That is something you really need to know because a dollar saved in taxes is just as good, maybe even better than a dollar saved in your pocket. Hey, give us a call. We’ll give you the opportunity right now to call. Next five people to give us a call, get the full-blown financial and income plan. The number is (916) 458-8199, (916) 458-8199. Now, if you want to you can also use your phone and you can text the word plan to (916) 458-8199.

That’ll get us your number and we will call you back immediately right after the show. So again, (916) 458-8199. And if you get a busy signal, you get the message, please leave your number there because many times people call all at the same time, and we want to make sure that we can answer your questions and deal with the challenges that you’re dealing with right now. Again, (916) 458-8199. Now, another place that we haven’t talked about that also comes under the umbrella here Chris of the full-blown financial and income plan is social security. And there was a story that came out this week that I found kind of shocking with the stat here. The inspector general went in and did an audit at the social security administration.

Where’s the money going to? How much is going out? That kind of a thing. And they found that there was $131 million that should be going out, but didn’t go out because they were not telling people about certain strategies. This has to do with widows and widowers and a strategy called restricted application. So Chris education is a big part of what you do, knowing that these things are there. That’s a big part of the full-blown financial and income plan.

Chris Bulman:

Well, absolutely. And every single client that comes in and gets one of our plans, gets a social security analysis as well. And the social security analysis, regardless of what you think, “I want to take it at 62 as soon as possible in case I pass away early, I at least get some money.” And other people know that they’re going to live to 95, so they want to wait until age 70. So some of the things we want to know are, if you wait till full retirement age to take your social security benefit, you get what’s called the full benefit. If you wait beyond that you get an additional 8% growth every year on that benefit up to age 70, beyond age 70 it doesn’t make any sense to wait, you need to start taking your social security at age 70.

But some of the things that they got rid of just a couple of years ago in 2015, with the Bipartisan Budget Act, it ended the file-and-suspend which was kind of a loophole. There were a few places in social security planning where really it was giving people more money than what they intended to do, which go figure social security is in a little bit of trouble, but they took a lot of those away. One of the strategies that they didn’t take away is filing a restricted application, survivor benefits, for example, if you’re a widow and you’re maybe 65, 66 years old, 62, something like that. You’re going to want to call us and find out there could be an additional 30, $40,000 that you’re going to be able to get in benefits over time, or even more than that by filing the correct way. So the great thing is when we do this financial and income plan, when we do a social security analysis, we can run different plans.

We can say, “Well, what if we file restricted, take our widow’s benefit until age 70, let our benefit continue to grow until age 70 and then we switch over to our own benefit. And then we live until age 88 or 85 or 82.” We can see what the difference is. Where’s the crossover. Where does it make sense to take the benefit earlier later, file restricted, don’t file restricted, all of those different things. And we can get you the right answers that you’re looking for with respect to that Randy.

Randy Cook:

Well, these are the things that are under the umbrella as I say of the full-blown financial and income plan. How do you get the most out of social security? It’s not as simple as saying I’ll file at 62, 66, 67 or 70. There are strategies involved there. And as we’ve seen from this article here, hundreds of millions of dollars that are going unclaimed because people don’t know about these strategies. You should know, give us a call here’s our number (916) 458-8199, (916) 458-8199. We’ll give you the opportunity right now. Next five people to call, get the full blown financial and income plan. We’ll talk about income. How does what you’ve saved become income.

How do you make it last? Tax planning, risk assessment, insurance needs, estate planning, social security, all under this umbrella, all to you free a full-blown financial and income plan. Here’s the number again (916) 458-8199. Or you can text the word plan to the same number (916) 458-8199. That’ll get us your number and we’ll call you right back today. Again, (916) 458-8199. Coming up next, you’ve heard it over and over, the fed is raising interest rates. Well, it’s happened five times over the last two years. How’s it working for you at the bank? Is it trickling down? We’ll talk about it next on the financial compass with Chris Bulman. (singing).

And welcome back to the Financial Compass with Chris Bulman, online find us at thebulmanway.com. Some Frankie Valley and the Four Seasons, that was number one this week in 1964. Did you happen to see the show the Jersey Boys, Chris? I thought that was awesome.

Chris Bulman:

I did. I saw it live somewhere. I can’t remember where, but it was a great show.

Randy Cook:

It really was, I don’t know how those guys sing that high, exploding underwear or something, I’m not sure. That’s got to be tight. All right. So we’re going to talk here about interest rates and we have seen the fed raise interest rates five times. So you would think Chris that this would trickle down to the banks and CDs would get better, but from what I see, it is still dismal at the bank if you want to buy a CD, isn’t it?

Chris Bulman:

Well, it is. And it’s generally going to be that historically, as rates rise banks are going to be slower to raise the rates that they’re paying out. And if you think about it though, that banks have been just struggling to kind of… Well, banks and insurance companies has been struggling to stay alive. They live off of the interest rates and the spreads they can make. And with interest rates so low for so long it’s probably like gas stations, no one’s going to raise their prices until one does and they all have to start. And I could probably see banks doing that in the future, as one starts raising their rates everyone else has to stay competitive, but no one wants to raise them at this point.

Randy Cook:

So that means people are still looking for that place, that conservative portion of their portfolio. It used to be CDs, money markets, that kind of thing, because it used to be four or five, six, 7%. That still isn’t there even though the interest rates are going up, it doesn’t look like it’s going to happen anytime soon so we’re looking for alternatives. What do you find for people?

Chris Bulman:

Well, it’s funny, anytime you mention the word annuities, it’s a love, hate relationship. People either love them and they already own them and they want more of them, or people hate them because their friend told them to hate them. Or they had a relative with a bad experience and it’s usually a variable annuity. I was actually talking to another advisor this past weekend at one of the other firms, the Wall Street to Main Street type firms. And I like to call them a cult because they only say the company line over and over and over. And he was telling me, “Oh, annuities are horrible. We’ve been taught that annuities are basically like the devil because expenses are so high and you can’t make any returns.” And I said, “Oh, that’s interesting because the annuities you can average four to 7%.”

And he said, “What? I’ve never heard of anything like that.” And then he said, “Yeah. But the fees are astronomical.” And I said, “Well, that’s interesting because there’s zero fees.” So basically they have no knowledge of them at all, but they form this super strong opinion on them and it just blew me away. So we all in the office had a chuckle out of it because millions of people across America are owning these, whether it’s fixed annuities, fixed index, equity index annuities that you can get that have zero fees as the market goes up, you get to participate. In other words let’s say the market goes up 10%, maybe they give you 5%.

When the market goes down 10%, 20% not only do you not go down, but your money’s locked in at the previous year. So if you put in a $100,000 and you got 5%, now you have 105, the market drops in half and you still have 105. The next year, the market comes back up 35%. You get 17%. So it’s pretty nice. Anytime the market goes up, you get to participate. When the market goes down, you don’t participate. No fees and clients absolutely love them.

Randy Cook:

I heard a great story the other day about this. And it was a lady has a whole bunch of water in her basement, so she calls a plumber and the plumber comes over and she says, “You don’t have a 17 inch pipe wrench in there do you?” And he says, “Well, matter of fact, I do.” She goes, “Well, you’re going to have to leave because my mom told me her died when a 17 inch pipe wrench fell off a scaffolding and hit him in the head. So never ever let anybody come into your house with a 17 inch pipe wrench.” And he’s like, “What?” So you have this prejudice against this tool, but it’s because of a story that you’ve heard and it’s not because of what the tool does. And an annuity is a tool, isn’t it?

Chris Bulman:

It is. It’s funny I used to play golf back in Kansas. And I played at this course called Shamrock. And this course you could hit it anywhere. It was just fairway after fairway left or right hardly any trees. So I could hit a driver on every hole and I could hit it 320 yards out there, but it might go 80 or a hundred yards right or left, you never knew. But it didn’t matter because I was still only 60 yards from the green. Well, if I employed that same strategy and I had water on the left and sand and trees and out of bounds on the right, I would shoot 150. But on that course, I could shoot right around 80 every time because there was never any trouble.

And so when you think about investments, you need to know when you want to use them, what kind of trouble there is that lies ahead. Right now fixed index annuities, equity index annuities, these types of safe money investments are really good for those people that don’t want to lose money. They’re not trying to get 10 or 20% a year. They just want to stay ahead of inflation and they don’t want to move backwards. It could be a great investment as long as you know where it fits in a portfolio.

Randy Cook:

Well, these are some of the discussions that you can have when you sit down with Chris, and take advantage of our offer that we’re going to give you right now. Next five people to give us a call, the full-blown financial and income plan. We’ll talk about building income in retirement, we’ll talk about having a tax strategy. Don’t lose all that money that you’ve saved to income tax or any kind of tax. We’ll talk about risk. At what point are you comfortable with the risk that is associated with your money? Do you even know the risk that is associated with your money. Insurance, estate planning, social security, all under the umbrella of the full-blown financial and income plan. It’s yours right now, give us a call (916) 458-8199, (916) 458-8199. Be one of the first five callers.

If you would like to text, feel free to do that. You can text the word PLAN to (916) 458-8199. We will give you a call today. We’re going to take a break. We’re going to come right back and we’re going to talk about that time in your life when you step away from work and you’re looking at your last paycheck, that’s next on the Financial Compass.

Speaker 6:

Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not refer in any way to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company.

Randy Cook:

Welcome back to the financial compass with Chris Bulman, online find us financialcompassradio.com or check our brand new website which is thebulmanway.com. That’s Bulman, B-U-L-M-A-N, thebulmanway.com. Lot of great information there, and a lot of great things for you to tool around and find. Chris let’s go back, I want to go back to the guy from Fidelity was talking about the market and the expectations that people might have right now and probably unrealistic expectations. Take a listen once again.

Speaker 7:

Remember over the long run, the market goes up 10% a year, about 70% of the time. And so at 10% we’ll be at Dow, 30,000 in five years.

Randy Cook:

There’s your Wall street mantra there, there’s those numbers that they throw around all the time, over the long haul the market does it. But what we’re going to talk about today Chris is in your timeframe, that might not be the case, is it?

Chris Bulman:

No. And I thought it would be a good time to revisit a conversation and issue that it’s always a big topic, and it generates a lot of interest for folks that listen to our show. And that exactly, the story that we get… I can’t tell you over my career being… Even through the walls, I can hear other brokers telling their clients, “Oh yeah, we’ll get 10%. Don’t worry the market’s down. Hang on. Now the market’s really down, just hang on, there’s no point in selling now.” And basically they never want you to sell. So what the gentleman at the recording at the beginning didn’t talk about is all of those people that took that same advice back in 2000, and I can tell you people from my Rotary Club, people from my family took that advice from different people back in ’99, 2000, they said, “Don’t worry. The market returns 10%. You’ve got a million dollars we’ll be at 1.1 next year. So as long as we take out $50,000 a year, give you a little raise. You’ll never run out of money. As a matter of fact, you’ll die with $10 million.”

So, that doesn’t work when you look back at the history of if the market actually turns while you’re taking income. Now, if the market never turned and we just got 10%, folks that would be amazing. And I would love that and I would say take 50,000, but that’s not how the markets work, and we need to really be thinking about how we’re going to plan that. The way Randy we used to deal with this when we were retired was we’d put a big chunk of our retirement money into bonds and the bonds would pay us some income.

Matter of fact, pretty good income even back in the early 2000s. And then we put the rest of our money into mutual funds or some kind of investments to stay ahead of inflation, and hopefully we get some growth there. The problem today Randy is interest rates as you know are and have been at historic lows for a long, long time now. And the average tenure municipal bond right now is only paying about 2%, maybe two and a half you can find somewhere. So imagine now if you’ve got $10 million just 15, 20 years ago, you could have got a municipal bond paying nine or 10%. That’s a lot of money, you could’ve gotten $90,000 a year. Today you can get about 20,000 to 25 max per year out of your million dollars. That is probably not going to do it for your retirement. You could also think about putting it into CDs.

And at best right now a one to five-year jumbo CDs paying about one to 2% maximum and that’s before taxes, you’re taxed on those so we just can’t live on that. So what are we going to do to have some growth in our portfolio? What do we need to do to make sure that we don’t outlive our money? And those are some of the things that I think we have to visit and we have to talk about.

Randy Cook:

Well, Chris, I imagine that is what people are coming to you for. What are people saying? What are people coming to you for right now? I imagine that as we talk about every week, “I don’t want to run out of money. That’s my big fear. Is that what they’re saying?”

Chris Bulman:

Sort of, sometimes what I think has happened now, we’re in the second longest bull market in history right now. And I think some people have already forgotten what happened in 2000 and 2001, what happened in 2008. And what do we do to get some growth in our portfolio and not outlive our money. So more and more people are starting to think about putting more of their money back all into the stock market, all into mutual funds and their brokers are getting back on that board again. The story, again, we just talked about this, a long-term historic return is 10%. That is true, when the time period is 75 or a 100 years that’s an average. If we take out the 90s, that doesn’t mean that’s going to be what happens to you a couple of examples. My wife and I, I don’t know if you know this Randy, we average five miles a day jogging. Did you know that?

Randy Cook:

I didn’t know that.

Chris Bulman:

That’s true. She jogs five miles a day and I watch the kids. We average five miles together, though. I’ll give you an example of one of the stories that raised a lot of interest in people calling into our show. We had a couple come in 77 years old, retired in 2000 at the age of 60, they had met with their stockbroker told them the 10% return story and they’re going to be fine to retire. And by the way this story probably hits half of our listeners either hits them directly or someone they know. They take $50,000 of income or about 5% and that broker is still going to grow their money. The market’s been growing at 10%, so it’s going to be fine to take out five and continue to grow that money. Well, as you remember Randy the market began to downturn about that same time period. And three years later in 2003, the portfolio had already dropped below $500,000 and they started with a million.

Randy Cook:

Wow.

Chris Bulman:

So now the other thing that 50,000, that 5% they were taking out of a million, that’s now 10% coming out of 500,000. So how are we going to recover there? That’s just the first three years of their retirement mind you. So the guy that came in he told us, he called his broker and said he was pretty worried about his money now. And his broker of course, gave him that same old story that I’ve heard a million times through the walls and cubicles that I’ve worked in over the years. “Stay the course, the market always averages 10%. And we’re going to have some big years coming up since we’ve had some down years and stick it out.”

Well, the next four years, the market did go up and the clients started feeling a little bit better about that, but they’d only made it back up to about 529,000. Because remember they’re still taking out $50,000 a year. So they’re holding their own a little bit. They’re maybe getting a little bit less stressed but not a whole lot, they’re a little bit more relaxed. And then what happens 2008 and 2009, by the summer of 2009, that million-dollar portfolio was down to $239,000. Now these people in their 80s are going to be completely out of retirement income and what are they going to do? They can’t go back to work.

They can’t go back to those higher earnings jobs they had 17 by that point 20 years ago, they can’t do that. So I think now’s a probably a good time to stop for a second Randy and folks listening today, if you’re concerned about this, if you’re concerned about something like this happening in your portfolio. If you’ve got 500,000, if you’ve got a million dollars in your portfolio, and you’re worried about something like this happening, give us a call. We’re going to do a giveaway right now, Randy, I want to give away five full blown financial plans to the first five callers. That’s going to include income planning. We’re going to look at what expenses you’re paying in your portfolio. We’re going to look at the risk you’re taking. We do a full Morningstar analysis. We run a risk analysis, tax analysis.

We’re going to show the buckets of income that you’re going to take with inflation, where it’s going to come from. And we’re going to show you with what we call results in advanced planning, exactly where your money is going to come from, how inflation is going to hit you. And with historic drops in the market and how they’ve happened in the past, how will these things impact you and your retirement planning going forward?

Randy Cook:

We’ll give Chris a call right now and take him up on the full financial plan for the first five callers that reach us today. It’s (916) 458-8199, (916) 458-8199. You can also text the word PLAN to (916) 458-8199. Chris, I’ll give you the last word.

Chris Bulman:

Just want to say everyone. Thanks for listening. We’ve got a great show coming up next week back here at noon on KFBK and the Financial Compass Radio and we’ll talk to you then.

Speaker 8:

You’ve been listening to the Financial Compass with Chris Bulman for your complimentary Morningstar report or to explore the options and strategies Chris talked about today, call (916) 458-8199, that’s (916) 458-8199. Find us online at financialcompassradio.com. Join us next week for more navigation tips to a successful retirement on the Financial Compass.

Speaker 1:

The Information and discussion on this show is for informational purposes only and is not intended for specific tax legal or financial advice. You should always consult your tax or legal professional and financial advisor or representative before making any financial decisions. Neither Bulman Wealth, WORLD EQUITY GROUP Securities Inc its representatives or affiliates have any liability for investment decisions or other actions taken or made by you based on the information provided on this program. Chris Bulman is a registered representative offering securities through WORLD EQUITY GROUPs Securities Inc, member of FINRA SIPC, and investment advisor representatives of Bulman Wealth. Neither the Financial Compass or Bulman Wealth are affiliated with WORLD EQUITY GROUP securities Inc. Licensed in California number 0D57586.

Speaker 9:

If I said, “I blank retirement.” How would you fill in the blank? Would you say, “I look forward to retirement.” Or would it be, “I fear retirement.” Either way it’s probably a good idea to bring your retirement picture into focus. That’s what Chris Bulman and the Bulman Wealth Group do every day. They help you answer the question. Do I have enough for retirement? Call the Bulman Wealth Group at (916) 458-8199 or visit bulmannwealthgroup.com.