Is financial planning being politically correct? Is your financial planner being politically correct? What is that costing you? Stay tuned.
From Philadelphia, the home of the Liberty Bell, Financial Freedom Radio starts now. Here’s your host, Raymond Jewell.
Today we’re going to talk about “is your financial planner being politically correct?” I know that that’s kind of an ethereal term. I’ll elaborate on it as we go along. I wanted to invite you to like, share, and ring the bell on our shows so that we can send you all of the shows when we air them. So like, subscribe, and ring the bell please. Also, we build this show on referrals. So if you like what you hear, please tell your friends.
FinancialFreedomRadio.com or go to YouTube.com/FinancialFreedomRadio and you can subscribe there, either way. We’d like for you to share with your friends because it’s important to us that we expand our listener base and we spread the word. My goal is to make sure that we can get as many people to hear this information as possible because the financial planner and financial institutions are letting people down. I went to Walmart the other day and I saw some old people greeting. Granted they’re probably doing it to get out of the house, but wouldn’t it be nice just to work and donate your time instead having to work for money. People are out living their wealth and we’re going to talk about that. Let’s say good morning to our producer, Steve. How are you, Steve?
Good morning sir. How are you today?
I’m dynamite. I’m ready to go.
Technically, it’s afternoon.
I didn’t say good morning did I?
No, I said good morning. So once again I admit I made a mistake.
You gave me grief for saying it.
I thought it was funny that the topic of today’s show was financial planners being politically correct. People as they get to know you, I’ve known you for a long time, you are the most unpolitically correct person I have ever met. So this’ll be a fun show.
You had an issue with the topic, didn’t you?
I did. I get nervous when you get political. I have to do a lot of editing when you get political.
I’m gonna keep you from doing that. I call it as I see it. Let’s dig in here. What we want to talk about is your financial planner being politically correct. This is a topic that bugs the crap out of me. Have you ever heard somebody say, “Absolutely. You’re absolutely correct. You’re absolutely right.” I’ve heard it in the financial world and it just bothers me because it’s a political correct statement that’s rewarding somebody of being absolutely correct. That’s not possible in the financial world. It’s never possible to be absolutely correct because there’s too many unknown variables that are going to affect the absolute statement. So when somebody says that your plan is absolutely correct, don’t believe them. It’s not possible. So, when you’re looking at the financial world, there are no absolutes. When you look at it through a macroeconomic model, you can correct as many of them or more than you would if you were to work with a financial planner and their way of doing things. They use math and we’ve talked about this. They use math as a planning tool. Math should never be used as a planning tool. It’s only used to solve a problem or prove a concept. It’s my lemon analogy. If I give you three lemons today and three lemons tomorrow, you’ll have six. If I give you 3 the next day, you’ll have 9. If I don’t give you any more for a year, how many will you have? Most people say 9. You won’t, you’ll have 0 because you’ll either eat them or they’ll rot and you may give them away. Something external to those lemons will keep them from being there down the road. It’s the same with math.
When you use math as a planning tool, something external to that equation is going to keep it from happening. I’ve been doing this for over 40 years. You’re probably saying how do you know this, Ray? I’ve seen it first-hand. I’ve seen it with clients. We’ve gone in behind financial planners and we’ve found where they leave enormous amounts of inefficiencies on the table. Financial planners, God bless them, they have their own agenda. The Dave Ramsey’s of the world, he doesn’t like whole life insurance. I’ve told you about that two weeks ago, the ideal financial product. Because he doesn’t like it, he’s going to tell you to buy term and invest the difference. When you do that, you put your money at risk. What if you don’t die? You spend all this money and you’ve incurred a huge lost opportunity cost that you could have earned when you put that money in the bank. Less than 1% of people die with term insurance. What happens when you’re older and you can’t get it or you stop paying for some reason and it goes away?
They have their own biases against certain things. They want you in the markets. We saw the markets do some crazy stuff. So when we look at math being a planning tool, you know you’re going to fail. There’s just too many inefficiencies out there. We’ve talked about them. We’ve talked about taxes. Taxes are crazy. They go up and down and are never constant. So how in the world can you plan? When you try to eliminate them as best as you can, that’s a good planning isn’t it? Eliminate taxes. Inflation is a stealth tax that can steal more spending power from you then you can ever imagine. So I love it when financial planners sit down and they go “what do you want in retirement? How much do you want in retirement?” Why are they asking you? I want the maximum.
Exactly, I want everything.
Well what is the maximum? You’re the professional, don’t ask me. I want to have my retirement. When I go retire to earn the same income before I retire and have it continue up with inflation. That’s what I want. You figure it out. They can’t do that. So when they come and they set out with their financial jargon and all that kind of BS and they start asking you what you want. If I went to an architect and asked the architect and they asked me how to do it. Better yet, when I had my bypass surgery, if the doctor sat down and said “well, I think you need bypass surgery. How do you think I ought to do it?” Oh boy, I’d say send somebody else in. Sorry.
Inflation is huge. Lost opportunity cost, in my term insurance example. Why are terms so cheap when you’re young? Because you’re not going to die. But if you put the money in the bank and earn interest on it, you’d have more money in the end. It’s just throwing money out the window. You don’t need to do it. Market fluctuations is another one. Markets go up and down. Look at the last downturn we had. We’ve talked about this over and over again. I just get frustrated because my job is to deliver the information to you to show you what is the best way to come out of this and win the game. We have one exponential curve in our life. We have one curve. We’re born and we die. What do we do in between? If we do this, we never get ahead. That’s what the financial institutions want you to do because they want to control your wealth. That’s what the financial planning industry does. They’ve got schools that give them credentials to follow what the financial institutions tell them to do. They start hitting you with all this, Steve’s favorite term, technobabble. Technobabble is awful because it will confuse you and you go I can’t take it.
A Lot of times people use technobabble to prove how smart they are too.
If you can’t dazzle them with brilliance, baffle them with bullshit.
Now I gotta go do my editing.
Don’t edit that. We don’t have any kids watching this.
We certainly won’t now.
Just to name a few of the eroding factors, the taxes inflation, lost opportunity cost, market fluctuations. The frustration is that these people are following what the financial institutions tell them to do because they have to make a commission. In our models, you’re the one that makes the decisions, not me. We show you what’s going to happen. If you choose to follow that path and stay on that path, that’s fine. If you choose to correct it, that’s fine. We don’t want to be persuading you to buy products just so we can make a commission. We want to make sure that you understand whenever you make a financial move, is it the right move or not. This is political correct as you see it more and more in what’s going on in our world today, and for posterity sake, this is the end of June 2020, the wheels have come off the bus. The market’s are just all over the place. They can’t figure out what’s going on. We’re in an election year and everybodies calling everybody names. If anybody that goes for the Biden guy, you might as well just kiss a lot of your wealth goodbye. The markets are going to react in a negative way. It’s not possible for it to be positive. You get positive results when you have a good positive vibrant economy. When you raise taxes and you start to shrink the dollars or contract dollars and people stop spending and hoarding money and there’s not enough int he coffers to run the country and they have to keep raising and borrowing and getting back into those old crazy cycles, it’s gonna affect everything you’re doing.
If you’re following the financial institutions information, it’s gonna go up and down as it is right now. It needs to level out. This corona virus thing has really spooked a lot of people, but you’ve gotta continue down the path of recovery without any kind of interference or deviation from the path that you’re currently on, that the country’s currently on. If you deviate from that, it’s gonna spook everyone. I know that’s not a major reason to vote one way or the other, but it’s your pocketbook, it’s your money.
That’s a good reason for me.
I’m giving you a heads up, folks. Whether you like the man or not, what he’s doing, he’s an entrepreneur. He’s run businesses. He knows what to do as far as being efficient. He practices efficiency. He gets rid of the unknown variables that are going to bite us in the back side like regulation slowing down things. All the things that are going on are going on to get rid of the inefficiencies. When you’ve got a career politician that is trying to run for office. Steve, I gotta back up here.
Here’s another thing since I’m going off on politics. We don’t know when somebody gets a certain age whether they’re going gaga or not. You’ve got all these people in Washington that are in their ‘80s, in their late ‘70s. I’m not so sure mentally that they’re that sharp. You start seeing people slow down with their speech and thinking and can’t put two sentences together and make a foe pause and have all sorts of problems. You’ve got to wonder. So, if you’ve got a politician coming along that has done nothing but be in politics, what do they know of entrepreneurism? What do they know about running a business? They’ve never had to meet a payroll. They’ve never had to meet a bottom line. They’ve never had to run an efficient company and worry about inefficiencies biting him in the backside.
That’s the problem. The financial people of the world, the financial planners, don’t delve into the inefficiencies. You’ve got to have a mindset to do it. You’ve got to be able to see them in the best way. The best way to see them is through a macroeconomic model. That’s why I love the Leap system because it’s the only one out there. There are other people that say “Well we have a model.” There’s one guy running ads and he’s saying architect. You want to build your own blueprint. Financial blueprint. He sends you this big thing.
I’ve seen that ad.
What’s a blueprint? It shows you a path to follow. If you’ve got a path to follow, are you offsetting the inefficiencies? Are you using math as a planning tool? Do you have all sorts of holes in your bkcet? Try to fill up a bucket with water and you’ve got all these holes in it. The water keeps leaking out and you keep going what’s going on. What are you gonna do? Patch the holes. Too many holes in the bucket. We’ve gone in behind financial planners, we’ve picked up clients that financial planners have worked with and shown the clients where they’re losing enormous amounts of money. It blows their mind.
The issue is, if your financial planner is being politically correct, they’re going to agree with you. You are actually the one that they are trying to convince to give you their money. Remember those four rules, get your money, get it on a systematic and ongoing basis, hang on to it for as long as possible and give it back for as little as possible. They’ve got to get your money so they’re gonna agree with you, they’re gonna say things to you, and they’re not going to irritate you because they want to be politically correct and they want you to think that they are working in your best interest. I don’t care about you being my friend or not. We don’t care if you don’t agree with us or not. We’re going to show you the truth. That’s what we do with our clients and they appreciate it. So, that’s my rant. If the financial institutions are being politically correct and the financial planners are pandering to the institutions, are following the institution party line, then you’ve got to look out. Find another way. It’s incumbent on you to protect your wealth, to create your wealth. If you don’t, shame on you. It doesn’t hurt me, but I’m giving you the information. Everything I say I can back up and prove. I’ve been doing it for 40 years. It’s amazing to me how a small piece of the population will actually focus on wealth building and the others won’t. They complain they don’t have enough money. Oh my god, no. You gotta raise money so security governments gonna give me money because I don’t have any. Crazy.
Anyway, thanks for listening and putting up with my rant. Steve is going to end up having an edit nightmare.
I have a lot of work to do.
Thanks for listening and please send people to financialfreedomradio.com or our Youtube.com/FinancialFreedomRadio. Subscribe, ring the bell, so we can let you know when we put these shows up. Better yet, sign up at FinancialFreedomRadio.com and you’ll be on our list. So have a great week and a great weekend. We’ll see you back here next week. FinancialFreedomRadio.com. Take care. God bless.
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