What Does Retirement Look Like For You?

Sunday, January 29, 2017 – Wealth Strategy with Bryan Rigg Radio Show  – Every Sunday 1-2:00 on KLIF

Rigg Wealth Radio Show

We don’t charge. It doesn’t cost you to come into our office and visit with us and to understand your situation. It’s our job to ask you questions and try to understand what your objectives are. Quite often, many people don’t know what those are. Everyone I talk to, they say, “I know I need to start planning for retirement.” I question, I stop them right there and says, “What does that mean to you? What does retirement look like for you?” There are some puzzled looks.

A lot of times, if I ask somebody to take a piece of paper and a pencil and write down three goals, just three goals that you want in retirement, they struggle. They don’t have a good visual of what retirement means to them. We help them with that. I can give examples, personal examples. I can give many, many examples over the years. You get the thought process flowing. You said something in a previous segment about the “Perfect Plan.” I personally believe that people put off investing because they’re waiting for the perfect opportunity, the “Perfect Plan.”

You know as well as I do, both of you guys have been in the Marine Corps, there is no perfect plan. Let’s let everybody know right now, there is no perfect plan. You can get started now. Your goals will change. Your needs change.

If you’re a young family and you just got married, when that first child comes along, that’s a change. You’re going to start planning your life and your financial retirement differently.

LISTEN TO THE SHOW

Segment 1

Segment 2

Segment 3

Segment 4

SHOW 4 TRANSCRIPT

Host:  RIGG Wealth Management offers securities to Broker Dealer Financial Services, Member SIPC and advisory services through Investment Advisors Corp and SCC registered investment advisor. RIGG Wealth Management is not a subsidy area of Broker Dealer Financial Services. Neither RIGG Wealth Management nor Broker Dealer Financial Services offer legal advice.

Client should consult their attorney of choice on all legal matters.

Host:  Welcome to “Wealth Strategy” with Bryan Rigg for every Sunday at one o’clock on KLIF. Bryan is a celebrated Yale graduate, adding a PhD from Cambridge, a former officer in the Marine Corps, a man of profound integrity and honor, and your wealth professor.

Please, welcome your host for the next hour, Mr. Bryan Rigg

SEGMENT 1

Bryan Rigg:  Good afternoon, ladies and gentlemen. This is Bryan Rigg with Rigg Wealth Management. Thanks so much for tuning in again. We’ve been getting a lot of feedback from the last couple of weeks’ shows, and we’re going to talk about some of the questions that we were given. Also, we’re going to be reiterating some of the themes that we’ve been talking about. We are new to the air, and we have been finding that a lot of people are interested in understanding the concepts that we’ve talked about. We’ve realized that it’s good to probably do a little bit more of a dive into some of these concepts, and explore them a little bit more thoroughly. I am joined here with both my partners, Gary Bilyeu and David Rigg. All three of us are Marine Corps officers. Gary’s still in the service. David and I have been honorably discharged a few years ago, but once a Marine, always a Marine. We’ve been working together for a few years now.

One of the questions we got was directed directly at David. I’ll let David take that question, and go over how he would explore the answer to it with you right now. David, all yours.

David Rigg:  Thank you, Bryan. Thanks for having me back on the show. It’s been a couple of weeks, and I appreciate the opportunity. The question that we got via email was what is the difference between a defined benefit plan, and a defined contribution plan, and why does the defined contribution plan throw the responsibility on the employee for his own retirement? The defined benefit plan was an older version that was basically your pension plan, that you would work someplace for many years, and then you would retire, be pensioned off. The employee had really no decision or input into that process. Some people miss that, but then there’s also a lot of examples. I guess the most famous one would be Studebaker. When Studebaker shut its doors, they found out that the pension plan was very underfunded. The people that thought they were going to get a retirement did not. The defined contribution plan that the most common example of that would be a 401(k), that throws the responsibility on the employee for his own retirement decisions. The company will make a contribution if the employee makes a contribution. Then it’s up to the employee to make the decisions where to put that money. This is very important for most people to know, because most of the default settings in a 401(k) are going to be very conservative. There’s going to be cash, or the most conservative option inside that 401(k).

The individual has to then make the decisions according to their risk tolerance, according to their timeline ‑‑ all those things ‑‑ of where they want to put that money. The responsibility falls on the individual for that. That’s the biggest difference between the two plans.

Bryan:  One thing to say here, here at Rigg Wealth Management, we’re able to help people or companies with their retirement plans. If you’ve often thought that you wanted to set up a 401(k) for your business, we can come and help you with that setup. We can help educate your employees on the different options that they can invest in. We can help them understand their options within those 401(k)s. That’s for people who are interested in 401(k)sA lot of people who are out there, who are owners of their own business, a lot of times they don’t know that they can do a SEP ‑‑ a simplified employment pension plan IRA ‑‑ and that they can put away money that’s tax deferred for them. Also, other people who are just starting out, they don’t understand the difference between a Roth ‑‑ which is you pay taxes on the money in the upfront, and then it grows tax‑free ‑‑ or you can do a traditional IRA, and it’s tax‑deferred money.

There’s many options here when you are taking the responsibility to retire that are out there, that a lot of times, when we throw out all these terms, which I’m doing right now ‑‑ 401(k), SEPP IRAs, traditional IRAs, Roth IRAs ‑‑ people’s eyes start glazing over. But if you know you need to do something for retirement, and you haven’t, and you would like to explore those ideas, that’s something that we deal with. That’s what David has been talking about. That now in our new reality, the responsibility is put on the people themselves. In most cases they can no longer depend on companies to help them out with their retirements.

David Rigg:  Absolutely. I think also at this time, we need to talk about what is actually an investment? What is an investment? There’s some things that you and I ‑‑ and it’s our own opinion ‑‑ that some people may consider investments that we don’t necessarily think are either wise investments or appropriate investments. The definition of an investment, there’s several different ones. The main one is it’s an action or a process of investing money for profit or material result. That’s really what we do here. We’re looking to grow your portfolio. We’re looking to increase your cash flow out of a portfolio. That’s really what we’re focusing on. Another definition would be a thing that you buy, and you think hopefully it’s worth more later on down the road. We don’t do a lot of that. That would be getting more into the collectible type of things ‑‑ cars, or jewelry, or whatever.

That’s something people can make some money on, but we believe they need to do that much, much later ‑‑ much further down the road in their investment life, when their needs are already met, basically. I can use a couple of examples, for myself, where if you have to do it on a timeline that’s not of your choosing, normally that sort of stuff doesn’t workWhen I was in the Marine Corps, I was flying jets. I had a 1969 Corvette. I had a Ducati motorcycle. I was just like Tom Cruise, except for the looks, and the money, and the fame. I had none of that, but I had the car, and the motorcycle, and that sort of stuff. A couple of years later ‑‑ and this is after I’d painted the car, and put a motor in it, and spent quite a bit of money on it ‑‑ a couple years later, I got married. That 1969 Corvette turns into a Jeep Cherokee with a baby seat in the back of it. Then the Ducati was turned into a baby jogger in the garage, and then a diaper genie. That’s what happened to my collectible car thing, because I had to get out of it, not on a timeline of my choosing.

Bryan:  That was not part of the movie, “Top Gun,” I think.

Gary:  That was not. [laughs] That was not. That was one of the scenes that was cut later on. A lot of times, that is exactly what happens when people get into collectibles. Something will happen, situation will change, and it is not a suitable investment for them at that point in their life.

Bryan:  David is right. I’ve met clients throughout the years that, a lot of times, they tell me it is coins. It’s cars that they’re collecting, that they’re thinking about retirement. That is a potential strategy, but I would encourage people to look at other ways of investing for retirement. As you rightly noted a few days ago, David, a lot of times, when people go into collectibles, the only people who really benefit from these collectibles is usually the heirs. That’s when they’re really liquidated. People have a hard time knowing when to sell collectibles, because they want to hold onto them.

With setting up a proper retirement plan within the structure that we have in the financial world will hopefully allow people to get to what I like to call the sacred cow. Once you get a retirement plan up and running, and get the assets into it that will replace your salary, then everything after that, you can say is gravy. That’s when you want to start playing with your money, and doing collectibles, I believe. In my opinion, that is the wise way of looking at things. In short, I think if people are looking at going into collectibles for their retirement, that’s one strategy. I think you need to look at other options that are out there, and see what can benefit you in the long run as far as replacing that salary, because collectibles don’t replace salary necessarily.

David:  In a lot of cases, they’re strictly an expense. There’s a guy that lives down the street from me. He’s got a beautiful ’65 Corvette. We were talking the other day. He goes, “It’s been a great investment.” I said, “Well, are you planning on selling it?” “Oh, no. I’ll never sell it.” It’s really just an expense. He has to put tires on it. He has to insure it. He has to put gas in it, and maintain it. He never plans on selling it. Just like you said, maybe his kids will sell it, but it’s not really an investment. It’s not improving his portfolio. It’s not making him any money. It’s a toy.

Bryan:  Absolutely, David, you’re right. This reminds of something that’s very important. When you look at retirement accounts, what you want to be looking at is cash flow. Collectibles obviously don’t give a cash flow, unless you’re renting them out, and most people don’t do that with their car collections. So it’s important to look at cash flow, look at growth of portfolios. That’s something that Rigg Wealth Management can help you with, is looking at what retirement vehicles is suitable for you, as far as accomplishing your goals.

Here, again, if you’ve been interested in looking at Roth IRAs, traditional IRAs, or setting up 401(k)s for your employees, or getting involved with a 401(k) yourself, we can help you with that. We encourage you to look at our website, riggwealthmanagement.com. That’s Rigg with two Gs, riggwealthmanagement.com. Also, we encourage you to give us a call at 972‑383‑1210. That’s, again, 972‑383‑1210. We’ll be back with some more information in this program here shortly. We’re going to be taking a break here soon. Please, stay tuned, and we’ll be talking more about financial management and wealth strategies. Thank you so much.

SEGMENT 2

Bryan Rigg:  Welcome back to the show, ladies and gentleman. This is Bryan Rigg with Rigg Wealth Management, and thanks for tuning in to the other show. We’re here every Sunday, 1:00 to 2:00 on KLIF. Quite often, when people hear the name “Rigg Wealth Management,” a lot of times people look at me and they say, “Wealth, I don’t have any wealth. I don’t think you can help me.” I look at them and say, “Hey, if we have a good rapport and we like working with each other, whether you have $5,000 or $5 million, we believe we can help you.” There is always solutions to your goals and to your expectations of what you want to do later on in life and for your retirement. Do not be intimidated by the word “wealth.”

When I was at Credit Suisse, a lot of times they required you to just focus on people with five million and up. There’s enough people out there that are focusing on those individuals. We can take care of them, no problem. But what we like to do is like to help people at all different levels. If you feel that you don’t have enough assets to begin with, I would encourage you to come and talk to us, see what your goals are, see how much you can start saving because a good plan now implemented is usually the best decision you can make.

In the Marine Corps, we’ll often say, “A perfect plan tomorrow versus a decent plan today, you need to do the decent plan today,” because if you always wait until you’re in a perfect position to do something, you’ll never do it. We encourage you to come and talk to us and meet with us and go over your portfolios, and do the best we can with what you have. There’s no really beginning limit that we put on our clients. I’d like to turn it back over to David. David had a few other questions that he was exploring from our previous radio shows about investment, and I’ll turn it over to you now.

David Rigg:  Well, thanks, Bryan. We were talking about different definitions and different ways of investing. One of the ways that you can invest is your time or your energy and your efforts. A perfect example is Gary coaches baseball, you coach your kids’ basketball, I coached Pee‑wee football when Connor was playing that. My wife and daughter were very involved in the 4H horse showing things, which paid great dividends. It taught poise and training and responsibility. And you had to get out there and perform in front of people you didn’t know. I mean, there was great things that spending time with people really showed the benefit.

That’s one thing we try to do here. We will invest our time in our clients, so that we really have a good idea of what their needs are. We had a perfect example this week. We had a guy call yesterday, and he’s been through a traumatic experience. He just got divorced, that he had to sell his house. He had a large liquidity event, and we started talking. We also found out that he’s got some rental properties that are cash flowing extremely well. We started talking and understand that he has a fairly high risk tolerance, and that he is a fairly aggressive investor. We figured out that we could take the money from his liquidity event and leverage that money, and then pay down more of the rental houses.

Then he could also make money on his initial investment or the initial money that he’d capture from the sale of his house. He’s going to fly down and we’re going to have a larger and further conversation with this. But, that’s because we spent 45 minutes on the phone, you and I on our conference call with somebody that is not a client, is not a client but we’re willing to invest that time so that our solutions to their problems are suitable.

Bryan:  Yeah and…

David:  That meet their needs.

Bryan:  Yeah, and there was many things yesterday or two days ago when we were talking to him that he didn’t know were out there as options.

David:  Uh‑huh.

Bryan:  One thing I encourage people to do is you don’t know what you don’t know. Sitting down with us and going over what options are out there, and then discussing your goals will help us give you several different opportunities that you can then pick to fit what you want to accomplish with your portfolio. That’s a case in point, Dave.

David:  Uh‑huh. The last definition of investment, which I find the most interesting, it’s a very old and it’s an archaic one, but it was a hostile force would surround a city or a town or a location and they invested themselves around that in order to do a siege or a blockade, OK, in order to take the objective. It’s kind of funny that that’s a very different definition from what we’re talking about, but it’s actually kind of the same thing that we do. If your objective is to retire at 65 or have a 529 plan for your kids or you’ve got a special needs child and you need to set up a trust for that kid, that’s your objective. The tools that we’ll use whether it’s a 401K or an IRA or a unit investment trust, whatever tools we’re using, that is how we surround the problem, and that is how we use the different options we have available to reduce that problem.

Bryan:  Hmm.

David:  It’s kind of interesting how they’re different, but they actually apply.

Bryan:  And on that note, in this radio program today, we’ve talked a lot about 401Ks, IRAs, CEPs, traditional IRAs, Roth IRAs. A lot of times this can be very overwhelming. Just like the example David just gave, the ability to worry about money and think about money in your retirement is a recent phenomenon in the history of mankind.

Many times our ancestors were looking about how not to be killed, how to survive, how to grow food. It’s really recently that we have the luxury, if you will, to worry about money. As many of these concepts, as they’re being thrown out on the air can be overwhelming to some degree. On the other side, I’d like to encourage people to think that this is an incredible opportunity that you have, especially when you look at history, you look at what most of your ancestors have had to struggle with.

Being able to sit down and go over, “Hey, I have positive cash flow I need to put away for retirement, I need to put away to take care of my kids.” These are wonderful opportunities you have, and it really is a luxury. A lot of people say “first world problem.” I would encourage you, especially in this New Year, if you haven’t got a plan together, start thinking about what you need to do to accomplish a lot of the goals that you have out there. Or like David says, OK, you’re going to go and create a battle plan, a plan to accomplish these goals and what are the steps that you need to do in order to do so. Part and parcel of that, and we’re going to be reiterating a lot of things we’ve been talking to you about the last couple of weeks, you want to be thinking about several different areas of that plan. One aspect of your plan should be your estate plan. Estate planning helps you get guidance to what you’re going to do with your retirement, what you’re going to do with your portfolios. I think that is something that’s very important to look at. And I don’t know. David, that’s one thing that I always like to lead with. What is something that you think about when you’re sitting down with clients?

David:  Well, number one, what are your needs? OK, where do you see yourself? Then we have to get realistic, OK? What’s your timeline and what is your burn rate going to be and what’s your savings or investment rate going to be? And are we even going to be able to mesh the two? Then you get into such things as how are you going to take care of the people you want to take care of? What’s the life insurance needs? Do you have that covered, OK? Have you done everything will wise and healthcare surrogate and things of that nature? It is a complete picture. It’s not one thing. We’ll have people come to us and say, “I want to start investing.” That’s part of the equation, but it’s the main part of the equation is the entire picture and how we serve the client and what their needs are and how we meet those needs.

Bryan:  Yeah. And it’s critical, I think, for people to think about these realities, because from some of the information I’ve been given, I’ve come to the conclusion and I was taught this at some of the institutions I’ve been at, that 50 percent of people who retire today have 50 percent less than what they need, not than what they want, than what they need.

That’s something important to be thinking about in this New Year like what are you going to need later on, and then start putting a game plan in play in order to accomplish those goals. We hope that you visit our Web page, RiggWealthManagement.com. That’s Rigg with two Gs, R‑I‑G‑G Wealth Management. Also, we hope if some of you are interested in exploring some of the ideas that we’ve been talking about today, that you will call us at 972‑383‑1210. That’s 972‑383‑1210. Please stay tuned. We’ll be back after a break, and we look forward to hopefully meeting you here in the future.

SEGMENT 3

Bryan Rigg:  You’re good? Three, two, one, go. Welcome back, ladies and gentlemen. This is Byran Rigg with RIGG Wealth Management. Thanks for joining us today. We are on the air every Sunday from 1:00 to 2:00 on KLIF. We’ve been talking about investment strategies, retirement strategies and what you want to be thinking about in the new year. We’ve gotten a lot of feedback about different concepts that we’ve talked about. One thing I want to encourage you is that here at RIGG Wealth Management, we can work with the attorney of your choice to help you with a lot of part of your planning of your estate, planning of your financial goals and so on. I encourage you to talk to the attorney of your choice about your will, if you haven’t got that put together. We know that Prince, who just died, he died intestate. He died without a will, and that’s going to create a lot of chaos with his estate. Rockefeller Sr. and Rockefeller Jr. also both died without wills.

A lot of these men feel like they will never die. A lot of people don’t like to deal with their mortality, but it’s important that you get those type of documents in order for the welfare of your family and your loved ones. I encourage you in this new year, if you’re doing new year’s resolutions, to work on that ‑‑ living will, power of attorneys, healthcare surrogates. These are all very important to have. I think one of the reasons, I like to reiterate, I said it earlier. The reason why this is so important to have is quite often getting your will and your estate planning in order helps you understand what you need to do with your financial planning, which is the core of our business and the core of the advice that we give. There other aspects that we can go into as well here at RIGG Wealth Management with insurance and helping you there, learning about whether you should have whole life or term life, if you should have long term care insurance. These are things that you need to be thinking about at getting your house in order.

While you’re thinking about what we’ve been discussing earlier with retirements, please, just realize that is one part of the puzzle. There are many things that you need to be thinking about. That’s something that here at our shop, we can help you look at all the different areas that will help get your house in order. We are joined here, again, with two of my partners ‑‑ David Rigg and Gary Bilyeu. Gary, what are some of the things that you’ve been hearing after the show from people that they are most interested in?

Gary Bilyeu:  The response has been…it’s been flattering, overwhelming, things of that nature. A lot of people think…the first question is, “What do you charge to sit down and talk?” I was, “We don’t have a fee to sit down and talk. We sit down and have a conversation. A lot of times, that’s done over coffee. If it’s a good conversation, then maybe there’ll be some cookies.” Dave can appreciate that. We don’t charge. It doesn’t cost you to come into our office and visit with us and to understand your situation. It’s our job to ask you questions and try to understand what your objectives are. Quite often, many people don’t know what those are. Everyone I talk to, they say, “I know I need to start planning for retirement.” I question, I stop them right there and says, “What does that mean to you? What does retirement look like for you?” There are some puzzled looks.

A lot of times, if I ask somebody to take a piece of paper and a pencil and write down three goals, just three goals that you want in retirement, they struggle. They don’t have a good visual of what retirement means to them. We help them with that. I can give examples, personal examples. I can give many, many examples over the years. You get the thought process flowing. You said something in a previous segment about the “Perfect Plan.” I personally believe that people put off investing because they’re waiting for the perfect opportunity, the “Perfect Plan.”

You know as well as I do, both of you guys have been in the Marine Corps, there is no perfect plan. Let’s let everybody know right now, there is no perfect plan. You can get started now. Your goals will change. Your needs change.

If you’re a young family and you just got married, when that first child comes along, that’s a change. You’re going to start planning your life and your financial retirement differently.

Bryan:  On that note Gary, quite a few clients that I’ve had, they would tell me when I’m looking at their retirement goals like, “I was waiting until I had $100,000, or $200,000 or $300,000 under management myself before I wanted to go to a financial adviser.” I would encourage them. I was like, “No, you need to start now and start looking at ways of investing that money and growing it. Don’t wait until you think you’re gonna get there ’cause quite often, if you wait around, you’ll always kinda delay. You’ll put it off. You’re like, ‘I’m gonna buy that car. I’ma do this.’ Until you really see the vision where you need to go, you don’t really realize what you gotta do to get there.” A lot of times, people who’s saying, “I’ma wait on $300,000,” they’re never going to get there if they don’t start putting a plan together today.

Gary:  Byran, I got started with $50 a month. Wasn’t sure what to do with it, I just knew I had to get started and $50 a month. I’ve mentioned this in the past and I think it’s good to reiterate it. For me and my plan, I decided that with every raise I got ‑‑ I was a young officer in the Marine Corps. With every raise I got, I would take half of that raise and increase my investments. The other half, I could spend. That was the carrot. I could take the other half and enjoy it, but I knew that retirement was being taken care of. I was in my mid‑20s, so retirement was four decades away. Would things change? Absolutely.

Bryan:  I think that’s a good point that Gary’s making is that even if it’s small, $100, $1,000 a month, getting a plan in place is very important. There’s a German phrase, I’ll translate it. It says, “To know and not to do is not to know. Knowledge without action is futile and stillborn.” If you know you need to have a plan, if you know you’re going to need retirement and you’re not doing anything for it, that is a scenario for disaster. There’s countless cases of people retiring nowadays who are scrambling because they don’t have the assets they need to support their lifestyle and their needs. It’s very important, just like Gary said, if you’re at the very beginning and it’s only $50, $100, you should do it and get that plan implemented.

Gary:  You’re absolutely right. I hear people say that they didn’t plan to fail, they simply failed to plan. We see that. We saw it in the Marine Corps over the years. We see it every day, every day. Getting started, and I tell people, “It’s not one marathon meeting with us.” I would rather have multiple very short meetings and get to know them. A half hour meeting, maybe an hour, but a half hour meeting and just ask them a few questions and see how much thought they’ve put into it. You find that a lot of people, they don’t know where the starting point is. They’re looking all around so that first meeting is to simply get them focused on a few areas. The follow up meeting, they’d come back and we have a very good discussion because we can talk about those items that are important to them.

Then that leads to another meeting. That’s the process. That goes back to what Dave was saying, “The time we invest.” People don’t just walk in the door. Prospects don’t just come in and say, “Here is a sack full of money,” or, “I have this inheritance and here’s a large amount of money. Go and do something with it.” That simply doesn’t happen. People want to get started. They don’t know what step to take. We always say, “The hardest step is the first step.”

Bryan:  I had a client 10 years ago that came to me. She said, “I really would like to have about half a million under management when I retire.” She says, “I have a couple hundred thousand right now and a rollover IRA. I haven’t done anything with it. I’m in cash. I’m a little nervous about the market.” I started telling her about the potential benefits of diversification, going into a lot of index funds, which is something that we do here at RIGG Wealth Management. She slowly got a plan together. Due to the market really taking a tank right when we got involved with ATS in 2008, 2009, her portfolio’s done very well.

We’re at that goal that she wanted after 10 years. She feels so relieved. Then when we started looking at getting that goal of having half a million under management and we stated looking at what she would need in retirement, we realized we need to do a little bit more. We need to put a little bit more away. She’s seen that the plan worked this last 10 years. Now she has more confidence. She is more comfortable and upbeat secure in putting together a plan that will hopefully take her to the next level, which is now she wants to have a million here in the next 10, 15 years.

David Rigg:  I think to the point earlier of having a bad plan…or not a bad plan, but an OK plan implemented now is better than a great plan implemented later. When I was getting out of the Marine Corps, we had a meeting for everybody that was separating from the service. A retired navy, the guy had been enlisted for 30 years, he came in and he conducted the meeting. He had started buying one share of Coca Cola stock every paycheck when he was very early on being enlisted. When he retired, he had roughly a million dollars in Coca Cola stock. That’s not a plan I would recommend. One share in the same company every paycheck for 20 something years is not something we would recommend, but it was an OK plan executed early. It worked out well for him. That’s a perfect example of starting now and getting something going.

Bryan:  Absolutely. One phrase that always plays in my mind, a lot of people when they’re looking at retirement, when they’re looking at estate planning, when they’re looking at insurance, quite often like I mentioned earlier is bringing questions about their mortality, bringing questions about their legacy. That sometimes is difficult. As Sigmund Freud said, “People who feel like death has nothing to do with them make poor decisions every day.” If you don’t realize that this is temporary and that you’re just passing through, quite often, you’re not making the important decisions about what is right, what is moral, what’s going to take care of people, and what’s going to ultimately take care of yourself as you start to decline.

I think that is very important to think about, of the importance of putting a plan in, looking at the importance of the people around you and in implementing a plan. You were saying this enlisted navy personnel, that was not something that we’d recommend, one stock in one company all the time, but yet, it’s a blue chip company. You can read about people investing in blue chips like Warren Buffett. He said, “Hey, that sounds good to me. I’m gonna implement it,” and it’s worked out very well for him. Gary, do you have any…We’re about to end the segment. Do you have any thoughts about what we’ve been discussing?

Gary:  No. I don’t want to be the dead horse. We’ve talked about the importance of at least taking the first steps to form a plan. I think when we come back, we can talk a little bit more about what some of those plans look like. We mentioned some of them, some of the retirement plans, but sometimes, those get confusing. I think that’s what we do very well at RIGG Wealth Management is we cover the full spectrum of investors from the novice, just getting started, to the most sophisticated. It’s not about the amount of money you bring to the table. It really is about helping people in their situation.

Bryan:  Thanks so much for tuning in. We’ll be back with you here shortly in a few minutes. Please, visit our website at riggwealthmanagement.com. That’s Rigg with two Gs. Also, feel free to call us at 972‑383‑1210. Again, that’s 972‑383‑1210. We are here in Dallas. We would love to set up meetings with you and go over your portfolio and see how we may help you with getting that plan in place. Even if it’s simple or if it’s extremely complicated, we can help you in those areas. Thanks again for tuning in. Stay with us. We’ll be right back with you here in a few minutes.

Host: “Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk. Examples mentioned are for illustrative purposes only, individual results may vary. Past performance is no guarantee of future results. Investing involves risk including loss of principle.”

SEGMENT 4

Bryan Rigg:  Welcome back, ladies and gentlemen. This is Bryan Rigg with Rigg Wealth Management. Thanks so much for tuning in. This is the last segment of today’s radio program.

We’ve been talking an awful lot about retirement and putting together a plan. A lot of the concepts we’ve been talking about today can be overwhelming. A lot of people’s eyes can glaze over with the terminology and with all the things they need to do. Really, a lot of the things that we do and we help clients with are very simple, which is working with the assets, getting a good plan, looking at the investment options out there, and then implementing those strategies. It’s like what famous German military philosopher, Carl von Clausewitz, said. I like to translate this into financial management as well, he says, “Everything in war is simple just hard to do.” Same thing in the financial world, everything is really simple.

A lot of times, it’s hard to do. It’s hard to step off that line, hard to take that courageous step of putting together a plan that’s going to take care of you and your family. I’d encourage you, when you think about a lot of stuff that we’re doing, really it is blocking and tackling of life, how you take care of the assets, how you grow the assets. We’ve been talking a lot about 401Ks and IRAs. We can help you learn about the limits. If you want to set up a simple IRA, if you’re under 50, that’s $5,500 a year you can put away for that. If you’re over 50, you can get a little bit of acceleration boost if the government allows you. That’s $6,500 per year.

If you set up a simple IRA plan for your company, you can put up to $12,500 away. When you put this money away, it’s tax deferred. It helps you tax wise, and then it starts helping you get a plan together for retirement. These are some of the pieces of information we can give you to help educate you so you can make informed decisions. Think of us, in many ways, as your financial quarterback. You’re coming in and we’re giving you the play to execute that’s hopefully going to give you a lot of benefit for the goals of winning the game, which is to be financially independent. That’s what we really try to do with our clients. Gary, you were talking a little bit about some of the things that we might want to explore with retirement. What were you thinking about?

Gary:  I want to make sure that our listening audience, because I’m sure it covers the whole spectrum of sophistication, and I don’t want people thinking because our name is Rigg Wealth Management that we just cater to the high‑net‑worth individuals.

Now, we’ve grown the business very quickly and consistently with a lot of high net worth, but we also have many, many clients. I got started 15 years ago in insurance. Some of my first clients were school districts. I feel obligated, and I still have many of those clients today, is to take some of the strategies that we can use for some of our higher‑net‑worth individuals and help those that don’t consider themselves wealthy. How can we help them implement strategies that are more efficient? We talk about efficiency. There’s a lot that goes into that equation. It’s taxes. It’s fees, things like that, and how they invest their money. A lot of people understand and heard of stocks, bonds, mutual funds, and annuity.

When I ask clients about that and, when we ask them about their investing experience, those are the primary ones that we hear. There’s other things. Dave mentioned unit investment trust. There’s so many options out there. I tell people, when they say they’ve heard of stocks, bonds, and mutual funds, I tell them, “There are many thousands more. There are many thousands within each one of those categories.” To sit down and work with a client and understand their risk tolerance, their time horizon, how much they have to invest, what their goals are.

As you said, Dave, realistic goals, that actually eliminates a lot of the investments that are out there.

Bryan:  On this note, Gary, the one thing I want to reiterate to people and potential clients out there is that we’re not like a lawyer. When you come and speak to us, you’re not on the clock. We’re not charging you hourly for our time. Whether we meet with you for 1 hour or 10 hours a week, you’re paying us the same fee. Usually, it’s a percentage of assets under management. Usually, the benchmark is around one percent of assets under management.

As much as you need to utilize us, we are there. We’re not incentivized to markup the clock as much as we possibly can to get paid because we are there to give you a service. We are there to give you education and help you develop a plan. We are not incentivized from a time perspective of helping you. We are incentivized to make sure that you are taken care of, that you feel comfortable, that your assets are being managed properly, and that you have a good plan. If you need to talk to us several times a week on the phone, if you need to come and meet with us in the office once or twice a week, or if you need us to come out to your home and work with you, that’s a service we provide. That’s something I wanted to reiterate when you were bringing up fees.

Gary:  Exactly right, Bryan. Dave, I’ll let you jump in here. I don’t mean to hog all the time.

David Rigg:  No, that’s fine.

Gary:  I’ve had this question quite a bit. They said, “Well, how much?” They have the courage to ask for some help, but one of the first questions they ask is, “Well, how much? A minimum, how much do I need to invest?” That’s why I tell him, I’ll dovetail off that, Bryan, “We are compensated as a percentage of assets under management. We don’t look at the dollar amount. Any dollar amount is considered assets.”

If we’re truly going to help people, we do not set a minimum amount that, “We’re only going to talk to you if a certain threshold of money to invest.” That’s not what we do. I can’t reiterate that enough. If we can go and help the new couple, or a struggling teacher, or a struggling worker at any given plant in the DFW area or beyond, if you need help, we are willing to invest time to sit down with you, talk to you, and help you formulate a plan. That’s how we give back.

We’ve served our country. We’ve given to our country. This is how we can give back to the community and beyond. If everyone out there talks about retirement, that is when you say, “What is your goal at retirement?” We assume that everybody is planning to retire. One day, they will stop working. When is that day? Let’s get our Point A and Point B, our starting points, and let’s bridge that gap. We’ve talked about in previous shows, but it’s worth mentioning. Retirement is what we’re all working for.

Now, we have our needs, our daily needs, so on and so forth. But retirement, we all plan to stop working one day. Great, let’s draw a line right there. That is retirement. What are you going to do after that? Then try to determine what they’re going to need financially to support them to accomplish those goals.

Bryan:  You had something, Dave?

Dave:  As far as compensation is concerned, I want people to understand that the way that we are compensated with assets under management, that incentivizes us to grow your portfolio. If your portfolio grows, our percentage becomes a bigger piece, not a bigger percentage, but a larger amount of dollars. As opposed to somebody who is compensated with the number of trades they do or anything like that, we’re chained to the same oar you are. Your account grows, we all benefit. I want people to understand that, like I said, we’re not compensated if we do trades.

We’re not compensated if we go with a particular company. We’re not compensated in any other way but assets under management.

Bryan:  Also, on that note, something very important, as an independent advisory firm that we are, we’re also not beholden to a wirehouse. Nobody’s looking over our shoulders and pushing into certain products, which a lot of wirehouses do for our clients. We can really sit down with you, go over what you need, and then find products that will hopefully help you with your goals in retirement. Gary, did you have something really quick you wanted to say before we close?

Gary:  No, I know we’re short on the clock. I’ll leave it with you.

Bryan:  We encourage you to look at our web page, riggwealthmanagement.com. That’s Rigg with two Gs, wealthmanagement.com. Also, please give us a call and set up an appointment if you want to go over some of the ideas that we’ve been exploring today at 972‑383‑1210. Again, that’s 972‑383‑1210.

Please, tune in next week. We are here every Sunday from 1:00 to 2:00 on KLIF. Remember, if you watch the pennies, the dollars will take care of themselves. Have a good day.