In this episode we are sitting down with Rick White to talk all about the science of risk vs. return. Rick is definitely the perfect person to help us tackle this topic because he is a seasoned pro in tax planning and asset coaching for business owners and is the President of both Patriot Business Consultants and Triangle Adult Learning Center. He will provide listeners with a structured way of thinking about risk versus return.

We all get the basic idea that when it comes to risk vs. return, it's a balancing act; you want those high returns but not at the possible expense of losing your shirt. It's like a tug of war, where on one side, you're pulling for those gains, and on the other, you're desperately trying to minimize losses. The thing is, though; there is a science behind it that we can actually optimize.

Many of us tend to get fixated on the thrill of maximizing returns, but there's a hidden danger there, and Rick has some eye-opening insights into why obsessing over gains might not be the smartest move. Join us as we unravel the mysteries of measuring risk, exploring concepts like standard deviation, and digging into how volatility can make or break your portfolio. Stay tuned to learn how you can make your money work smarter, not harder!

Join us as we sit down this week with Jeffrey Bettermann, President and CEO of Thorngate Financial. Jeff brings more than twenty years of experience in retirement income planning, and he also brings a nuanced perspective to the annuity debate which is our main topic of discussion this week.

We discuss the polarization within the industry, where some advisors criticize annuities while others emphasize their importance. Together, we navigate the complex landscape of annuities, shedding light on the different types, their virtues, and potential pitfalls.

Jeff also shares valuable insights into the undersold and oversold aspects of annuities, emphasizing the importance of finding an advisor who strikes a balance, offering fee-based accounts, acting as a fiduciary, and understanding when annuities might be appropriate for your unique situation.

I hope that you will tune in for this insightful conversation as we unravel the complexities of the financial industry, ultimately aiming to help you make informed decisions about your financial future!

Welcome back to the second part of our conversation with Artie Green, Certified Financial Planner and founder of Cognizant Wealth Advisors, continuing our discussion from last episode on unraveling the complexities of investing when the future is unpredictable. Today we continue the conversation on managing risk effectively.

Artie shares insights derived from the renowned economist Harry Markowitz's modern portfolio theory. He emphasizes the power of diversification, explaining how spreading investments across various assets and using tools like mutual funds or exchange traded funds can help mitigate risks. We also explore the concept of correlation, understanding the delicate balance needed between assets to maximize diversification.

Artie also sheds light on the tumultuous year of 2022, marked by the worst performance in bond history. He unravels the intricacies of the bond market, discussing the impact of rising interest rates and inflation on bond prices.

Despite the challenges, however, Artie remains optimistic about bonds as an investment option, pointing out the potential for attractive returns, especially if the Federal Reserve stabilizes rates. Our conversation delves into the nuanced world of short-term and long-term rates, providing listeners with valuable insights into navigating the complex landscape of bonds.

In this episode of Finance Lab, we discuss how to invest when you can’t predict the future.

We are excited to bring you the first part of this insightful conversation with Artie Green, a Certified Financial Planner and founder of Cognizant Wealth Advisors. Embedded in the episode title is a presumption that investors cannot predict the future. If you don’t agree with that premise, we’re here to tell you that you should and it’s in your best interest to understand and accept the fact that you cannot predict the future of the markets. Despite many investors falling into the trap of overestimating their abilities, believing they can beat the market with the right research and perspective, there are ways to successfully invest without being able to predict the future.

Artie is here to help us shed some light on this fascinating topic, sharing valuable insights on controlling costs, managing taxation, and understanding the essential role of risk management in growing your investments. Be sure to tune back in for the second part of this conversation with Artie Green in next week’s episode, when we delve more into risk management, the bond market, and the Federal Reserve.

Welcome back to Finance Lab, and I am thrilled to bring you this crucial episode centered around a topic that holds immense significance for many professionals, particularly those in the tech industry. Today, we're diving deep into the world of company stock ownership. Kevin Caldwell joins Finance Lab to discuss the topic of investing in company stock, specifically restricted stock units (RSUs). We explore the balance between the substantial rewards and risks associated with company ownership, shedding light on diverse strategies, especially when facing market uncertainties.

Unraveling the complexities of restricted stock units (RSUs), a popular form of equity compensation, Kevin also dissects the nuances between RSUs and traditional stock options. As we navigate hypothetical scenarios and real-world challenges, Kevin provides actionable advice on tax planning, emphasizing the importance of proactive rather than reactive strategies tailored to your unique circumstances. We work to explain the mysteries around taxes, discussing how to optimize your gains and offset losses, ensuring you make informed decisions, not just reactive ones.

Join us as we empower you with the knowledge and strategies necessary to approach your company stock ownership with confidence. Remember, your financial future shouldn't be dictated by market whims; it should be driven by a well-thought-out plan!

In this special edition of Finance Lab, especially for financial professionals, we explore the intricate world of ERISA and what advisors need to know when advising on 401(k) assets held away. If you’re a financial advisor, particularly if you’re not an ERISA specialist, this episode is for you! There is a tremendous opportunity to provide added value to clients, but it comes with some risk if it’s not done properly. Our guest this week, Kevin Clark, the CEO and co-founder of Plan Confidence Corp., shares his journey, highlighting the pivotal year of 2008 when market upheaval compelled him to master ERISA rules and regulations and build specialized software to guide clients on managing 401(k) assets effectively.

We discuss what it means to be an ERISA Fiduciary, the difficulties that come along with that and also how advisors who are not one can proceed. We also discuss the evolving regulations, such as the Fiduciary Rule of 2016 and later updated guidelines, shedding light on the potential risks faced by advisors who fail to adhere to both these and upcoming rules. Don’t miss this episode if you are a financial professional who has an interest in ERISA guidance!

Welcome back to Finance Lab as we delve today into a critical issue plaguing the country: the Retirement Crisis in America. The goal for most working Americans is simple – to fund their retirement and avoid running out of money, yet the harsh reality is that a significant portion of Americans are not on track to meet this fundamental need. This problem is not just individual—it is societal, and our guest today, Dwight Rich, President and Owner of Rich Wealth Management LLC and a seasoned financial expert, joins us to dissect the causes of it and, most importantly, explore potential solutions to it.

Join us as we explore the three legs of retirement: Social Security, pensions, and personal savings and investments. The first two legs are in the realm of guaranteed income are discussed in first half of the show and variable income, or investments, is dived into in the second half. A very important part of the discussion is how retirement norms switching from defined benefit to defined contribution changed it to two legs of retirement for many. But for those it did not, what are some pension distribution considerations to be taken? What are the predictions for how long the social security leg will be in the years to come and what are some claiming strategies for it?

Social security is the largest retirement benefit for most Americans. We get into the history of social security and thoughts about where it might go and what assumptions we should operate under when planning our financial future. Our discussion also extends to investment strategies for personal savings, where Dwight stresses the importance of asset allocation, particularly in fixed income; critical for stable portfolios. We delve into investor behavior, emphasizing the dangers of chasing returns and how awareness of behavioral influences can empower better decision-making.

In the latest episode, Troy Sharpe of Oak Harvest Financial Group and Cory Clark discuss how he guides clients into building a Retirement Success Plan that plans the transition from asset accumulation to asset distribution.

Troy shares what he calls the "light bulb moment," when clients realize the gravity of how consequential retirement distribution decisions are, and he shares his unique Retirement Success plan, breaking it down into five crucial steps. After defining what retirement success means to themselves, the first is working on investment allocation based on risk capacity versus risk willingness. Step two is income planning while step three is the tax plan, the intricacies of which can be overlooked, and some financial advisors do not get into. Step four is healthcare planning, a critical aspect often underestimated. Estate planning is the fifth and final step, wherein working with client attorneys is integral. Troy shares how guiding clients to both build and stick to this retirement success plan through market anomalies such as COVID can practically be managed.

Troy encourages us to remember, however, that these steps are not a one-time deal; retirement plans are dynamic and require continuous monitoring and adjustments to ensure a secure future. Join us as we explore these vital aspects of retirement planning on this insightful episode of Finance Lab!

Investor behavior is a topic near and dear to our hearts; DALBAR’s key yearly study researches its impacts on investor returns. Investor behavior is becoming more and more important, especially as investment technology changes. Today’s guests, John Soutsos and Alexander Soutsos of Med-Wealth Financial Services will explore five common behavioral mistakes and mitigation techniques to ensure higher returns: familiarity bias, recency bias, endowment bias, inertia or status quo bias, and regret aversion bias.

 All five of these common biases are explained and described, and we will also delve into real-life stories, illustrating the emotional challenges that underpin investment decisions.

If you've ever wondered why investors, armed with information and tools, sometimes make irrational choices, or if you're keen to understand the behavioral patterns that shape our financial world, this episode is a must-listen. Prepare for a deep dive into the human psyche within the realm of finance, where every decision is influenced not just by numbers, but by our emotions and biases.

Join us in this episode as we dive into the often-overlooked distribution part of retirement savings with expert guest Andy Paladino, founder of Paladino Financial Group. The distribution phase of retirement can sometimes be overshadowed by the accumulation phase, but our guest explores the various risks involved with planning for it.

Listen in to get tips on what to focus on, from sequence of returns to withdrawal rates and more. Andy emphasizes the importance of comprehensive planning to protect your income and assets during retirement. Discover how to navigate the challenges and ensure a secure retirement. Don't miss this opportunity to gain valuable insights into distribution phase retirement planning and safeguarding your income and assets!

In this episode of Finance Lab, Lesley Batson, Founder and Chief Wealth Strategist at Rebel Rock Wealth, a wealth strategy firm for independent thinkers, discusses how six fundamental financial considerations can potentially destroy wealth and how to avoid them.

The first two considerations may surprise you – Lesley’s method, highlighted in her writings and practice, entreats investors to first look inward and consider their knowledge and mindset and to reflect on all aspects of personal health. Their discussion continues with understanding impact of taxes, fees and inflation. Critical fee considerations that the average investor generally does not think about are further examined by Lesley and Cory. This conversation provokes investors to consider multiple wealth accumulation and deterioration factors that may have not been previously examined.

In this episode of Finance Lab, host Cory Clark sits down with Louis Harvey, CEO of Dalbar, to discuss the importance of cash in financial planning. Louis challenges the commonly used rule of thumb among investors, emphasizing the need for a prudent asset allocation strategy. He introduces his paper on the topic and explains how having a spending portfolio can give investors the freedom to make decisions, both good and bad. They delve into the concept of investor behavior and its impact on asset allocation, highlighting the vulnerability of investors during market turmoil.

Lou’s system of allocating funds for five years of spending aims to mitigate irrational behavior and provides comfort and reassurance during the market recovery. They also discuss the three categories of investments – diversified equity investments, speculative holdings, and real estate – and the importance of forecasting cash rather than relying on a fixed percentage of the portfolio. This thought-provoking discussion addresses the need for proactive financial planning and the importance of adapting investment strategies to individual needs and goals.