Why do financial planners keep running red lights? Stay tuned.
From Philadelphia, the home of the Liberty Bell, Financial Freedom Radio starts now. Here’s your host, Raymond Jewell.
Was that intro catchy enough for you, Steve?
I liked it, Ray. It was very good. I enjoyed that.
How was your weekend, producer Steve?
It was good, Ray. How are you? Did you have a good weekend? Did you do anything exciting?
You’re talking to a retired guy. I don’t do anything exciting anyway. Well, I did go bungee jumping and skydiving.
Hey there are people older than you doing that.
I know. That’s what really embarrasses me. So you’re going to love this. This is a rant and I apologize because I know I said that we’re going to go over the product life insurance. We’ll do that next week. One of the things that I need to get off my chest is why so many financial planners keep running stop signs, running red lights. I was sitting down and watching a TV ad. How many times does a financial planner need to witness financial failure before they get it? Today, we’re going to go into a little political, but it’s financial political information. So, I’ve got a lot of background here, sorry.
Yeah, I don’t know what’s causing that. I was just gonna say if we’re gonna get political, we need to be careful.
Okay. So anyway, before I get into this, please Like, Share, and ring the bell. If you like these podcasts or these video podcasts, you can like, share, and ring the bell. It’s important because then you get notified when something happens. So we want to talk about why all these financial planners need to keep running all these stop lights. They get so many warnings, but they keep running the stop lights. So many people are retiring and they’re hurting right now. Especially with the Corona Virus that is keeping people inside. A lot of people have retired and they’re outliving their wealth and they’re having to go to work and now they can’t do it. It’s because these financial planners dropped the ball and the financial institutions dropped the ball. So we’re calling them out today no matter who they are. Unless they’re using a macroeconomic leap model, then they’re not treating their clients properly and they should.
There ya go.
So let’s talk about what the stop lights are. What are these stop lights that keep happening? People working longer in retirement. That is a crime. These are supposed to be our golden years and yet they end up becoming the rusty years. Why are people working longer in retirement? It’s awful. Now with the Corona Virus, they have no income because the financial institutions didn’t tell them where the eroding factors were. They continued to promote products and not process. Another of the stop lights is people having losses and having to start over. We saw last week what happens when we start over. The difference between the age 25 and 45, if you don’t remember it, we’re going to queue up a brief part of the video last week and go into it and you’ll see the difference that 20 years makes and if you don’t get a start early and you start later what that costs you. So Steve, if you would queue that up, I’d appreciate it.
Let’s put one percent management fees. There’s fees and hidden in everything you could imagine and that diminishes down our dollars. We could go into consumer risk. We go into other risks, but let’s do a what if. What if you didn’t start this till you were 45? Look at how much you lost. We went from 1.3 million down to 332,000. We lost a million dollars because we started 20 years too late. That exponential curve that we look at that is showing the growth of our money has a lot of peaks and valleys as it goes up, but we’re only allowed to get it from 45 instead of age 25. So this is important, the takeaway that you want to take away from it is…
Thanks, Steve. So you start later, you end up with less. People aren’t told that. I know that when we’re young, we feel like we’re financially immortal, but we need to be taught. We need to teach clients and teach people as financial professionals that you need to start early and maintain a solid program. There’s so much focus on selling products and getting commissions. That’s not allowing taxes or inflation or lost opportunity cost or any of the other eroding factors that we’ve been talking about in these past sessions. Now you can see how drastic they can be if you think you’re gonna have x later on and you don’t, you’re wondering why. You’re scratching your head wondering why you have to be a greeter in Walmart. Now I’m not saying anything about greeters in Walmart. It’s a job people have to take. Number one, retirees like to keep busy, but wouldn’t it be nice to volunteer your time? Instead, keeping busy means they’re earning an income and right now, they’re not.
Let me back up. I submit that the reason they don’t work in the interest of the consumer is because it’s not politically correct. The reason why these financial people are not working in your interest is because it’s not politically correct for them. They have to follow the four rules of the financial institutions. Get your money, get it on a systematic and ongoing basis, hang onto it for as long as possible, and give it back for as little as possible. They violate that, they don’t know what to do. If they leave and depart from those four rules, they don’t know how to make a living because they don’t understand how to explain to you where there’s no inefficiencies or where there are inefficiencies and how to correct them. They don’t understand that. So if you’re listening to some high profile financial guy and they’re trying to get you to follow their program and they’re not talking about the eroding factors and inefficiencies, then you need to stop listening to them. If you’re listening to this and you learn several things, look for financial inefficiencies and how to reverse them. When you reverse them, you put them to growth. If your financial person is not following the leap process, they don’t understand this. So, the public is so conditioned to thinking that the financial people have the answer. They’ve heavily brainwashed people. They brainwashed us into thinking that what they’re doing is right. These high profile people publish all these articles and they end up getting people to follow them. I’m not mentioning names, but you guys know who I’m talking about. You see them all over the place.
It seems a lot of the financial planners have an agenda and that agenda serves their interest more than it serves yours.
Yeah. You know, these high profile financial writers and planners have cost people more money, but yet they keep doing it. It’s tragic. They don’t know any other way. They keep buying into a losing strategy. The stoplights are there, Steve. But neither the public or the professional people are aware of them. Professionals don’t point them out because they don’t know and the public doesn’t know because they don’t do due diligence and they don’t know what the due diligence is looking for. So today, I tell you about a way to get it right. We’re gonna get it right. Financial people will try to discredit it and some will believe it, some will discredit, but here’s the question. If they are right, why are so many constantly losing money, having to work longer, and outliving their wealth? If they’re right and I’m wrong, why are so many people losing money? Our clients don’t. They get to see it all. They get to see all the inefficiencies and a macro model and see where they’re problems are and not make them. But if all these people are right, why are so many outliving their wealth, having to work longer, and not enjoying their retirement years?
It always seems like the financial planners are blaming. They’ll never admit they made a mistake. They’re always like oh you did something wrong, if you had done what I had said and only what I had said. But that’s not the world people live in.
Yeah, but the point is they don’t know how to protect against erosion, financial erosion. They don’t understand that. So the market goes down and what do they do? They blame the consumer for giving them money to work with. I know you found this humorous when I said it before. We give our money to people we don’t know. In our 401k’s, our IRA’s, our SEPT, whatever it is, we give them money to manage. We don’t know them. If your brother-in-law came up and said I’ve got this great place to put your money, you’d laugh him out of the room. But yet, you’ll give somebody you’ve never even met, don’t even know, and haven’t talked to a whole lot of money and they manage it and then they lose it. Then they go, well you gave us the money. So, as the consumer, you’ve got to accept the risk going up and coming down. Now obviously there’s no risk going up. Any investor looks like a genius when it’s going up. When it’s coming down and people lose, then they try to say not my fault.
It’s always the blame game.
Yeah. So, I’ve had intense discussions with people from financial institutions and they try to defend losing strategies. How do you defend against a losing strategy? When you say to them, why did you overlook taxes? Why did you overlook inflation? Why did you overlook the lost opportunity cost? Why did you overlook propensity to consume? Why did you overlook planned obsolescence? Why did you overlook fees, charges, and losses? Why did you overlook technological change? Why did you overlook market fluctuation? So, when I ask these questions, they can’t answer them, but they get so defensive and make me out to be the bad guy because they’ve spent tons of money to promote their world that when somebody comes in to attack it, they get extremely defensive and start fighting. You’re fighting to discredit me. It’s just the government. I don’t care what political party you’re from, the president comes in and he’s an outsider. All these people are swamp people or bubble people. They live in this bubble and outside of the bubble comes a guy who’s sticking pins in it. They’re going, wait a minute. You’re busting my bubble. I don’t like that so I’m gonna call you out and I’m gonna say everything you do is a bad move and everything we do is the right thing. Well if it’s been so right all these years, why is the country in the position it’s in? Why are all these people trying to defend a losing strategy? So that’s my political side of the ranch.
I was gonna say, let’s end that right there.
So, how do you argue against facts? They do it. If you managed to listen to my rant today, the question is: why do all these financial planners keep running these stop signs and stop lights and why do they put you in peril financially? They get their commissions and off they go. So, I’m gonna wind down for today. We’ll pick up life insurance as a product and how to coordinate and integrate it with your whole financial picture next week.
I want to thank you all for coming. By the way, if you can’t find a leap practitioner, that’s LEAP. Lifetime Acceleration Economic Process in your area that you want to work with, if you go to my calendar at Raymondjewell.com/meet and set up a time, I’ll meet with you, and I’ll find one for you. You should be working with a LEAP practitioner to make sure you’re doing the right thing. They’re all over the country. There’s a lot of them. The financial world doesn’t like us because we show you how to win. We don’t push products or push process. Take care. God Bless. Have a great week and we’ll see ya back here. FinancialFreedomRadio.com. Next week.
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