To see a full schedule of our TV airtimes, please click here.
Video Transcript
Rebecca Powers 00:25
Welcome to On the Money with Secure Money. We’re so happy to have you again with us this week. I’m Rebecca Powers here with Brian Quaranta, the founder and CEO of secure money advisors, great to see you Good to see you. I always, always learned so much from you. We have tons of calls, we love your emails, keep those coming in, it actually gives us ideas for our shows, I want to talk about people have asked, What’s the difference between you and someone who works at an insurance company or who says they’re an advisor or says their planner? A fiduciary, from what I’ve learned, has a higher standard higher education. And being an independent, you can choose any product from any company, unlike when you worked for one of the big boxes? Explain that.
Brian Quaranta 01:10
Which, by the way, I did work for one of the big box firms. A long time ago. And, you know, unfortunately, what people don’t understand is that when you work for the big box firm, there’s what we call a menu of services. So, here’s what you can do. Here’s what you can’t do. Here’s the companies you can recommend, here’s the companies, you can’t recommend the products you should sell. Yes, the products you should sell what products they want you to sell their own kind of Yes, note and notice, we’re saying sell, right? Yes, nobody should ever be sold a financial product, exactly. A financial product is essentially a tool to solve a problem. So as a fiduciary, because we’re held to a higher standard are required to have a higher education, we’re also required to deliver a written plan. And so, people working with a fiduciary today are starting to understand that the fiduciary by law has to do what’s in the best interest of the client. Now, you’d like to think that anybody working in the financial space is doing what’s in the best interest of the client. But I mean, we can compare it to the medical community, right? I mean, there’s doctors out there that do the wrong things. And same thing with financial planning. So, you want a comprehensive wealth management firm, someone that’s going to take the time to understand the five areas that I talk about all the time, yes, your income strategy, your tax strategy, your investment strategy, your healthcare strategy, and of course, your estate planning strategy. And so, you want to work with someone that’s going to help align all of those and make sure that you’re accomplishing and completing all of the best practices in those specific areas. Because you just want to make sure every i is dotted and T’s crossed, you want that you don’t want things left undone, no loose ends, essentially. So, you want something that’s buttoned up and, and clean and done and complete.
Rebecca Powers 02:58
And when you have that beautiful binder. And I can tell you, when you walk out with it, my husband, I have it up on the shelf, and it feels amazing that you can open up and see exactly what your true plan is. So being a fiduciary you in that first meeting, learning their hopes, dreams, their children’s ages, if they have a disabled child, whatever their dreams are for retirement is the opposite of a cookie cutter. Let’s talk about that. You know, some of the phrases we’ve heard from this cookie cutter approach.
Brian Quaranta 03:26
Yeah, well, look, there are people are wired differently when it comes to how much risk you’re willing to take and how much risk they’re not willing to take. And so, as a fiduciary, you really have to do interview someone appropriately to understand how they’re wired and what’s going to be best suitable for their situation. We always want to make sure that someone’s basic needs are always taken care of first. And that essentially is enough predictable income coming in, that they can pay their bills and continue to pay their bills and live their life, no matter how long they live.
Rebecca Powers 04:00
To never run out of money.
Brian Quaranta 04:02
To never run out of money. There are tools, there are tools to do that. And you know, unfortunately, you know, you go back 25 years ago when I was with the big box firm, we were taught simply to put together a diversified portfolio of stocks or mutual funds. And if the mutual funds didn’t perform well, you know, you were taught to say things like, don’t worry about it. It’s just a paper loss. Hang in there. You’re in it for the long haul. You know, when I got into the stock business, and right at the end of 99 going into 2000 working for a big box firm. I’ll never forget the day I started. It was my first day I just had passed my exam. I was really excited about being a financial advisor. And the first day on the job, my boss taps me on the shoulder, and he says come with me brings me to my cubicle and says today you’re going to be answering the phones. Now. This was right when the stock bubble had just burst, or the tech bubble had just burst at the end of 99. So, the phones were ringing, and they were ringing a lot And people were not happy with what was happening in their mind. People were losing money, people that couldn’t afford to lose money, were losing money, panicking, feeling helpless. And he says, Brian, you know how to do this. Just tell these people not to worry about anything. They’re in good hands. It’s just a paper loss, remind them that they’re in it for the long haul taps me on the back, you’ve got this go to work, son. So, what do I do? I’m a good employee, I’m a really good employee, right? I can do this. Yeah, I can do this. I follow the rules. So, you know, the phone calls start coming in. And I remember taking a phone call and I write about the story of my book. Yes, I love the individual that called, he was very upset that he had lost money, I did not know what to say to him. So of course, I put him on hold, I go to his advisor, his advisor tells me exactly what my boss just told me. And that is, tell him not to worry about anything. It’s just a paper loss, tell him to hang in there. He’s in it for the long haul. Now, Rebecca, keep in mind, these are the same people that you will sit down with that will look you in the eyes and tell you that they don’t have a crystal ball. And they don’t know what’s going to happen. But yet, when you lose money, they tell you not to worry about it, that everything is going to be fine. And just remember, you’re in it for the long haul. How is that possible? That’s a good point, you’re talking out of both sides of your mouth, right? And so, when I picked up the phone call from this individual, he wanted out of the market. So, when I told him not to worry about it, hang in there. He’s in it for long haul. He said to me, Brian, I’m 65 years old, how much damn long? How does this guy think I’ve got left, I need this money right now to live off of. Now. 65 is still young, right. But most people when they were want to retire these days want to use their money right now. That’s when they want to use it. So, we have to have a plan in place. That’s going to allow you to continue to live your lifestyle, even when things get volatile. And that’s why I wrote the book.
Rebecca Powers 07:02
Yes. And that’s why you went independent.
Brian Quaranta 07:04
That’s why I went independent, because I wanted to sit down across the table from my clients with no agenda. And know that the things that we were doing were the very best for their situation. And if you’re working with a fiduciary, congratulations, because hopefully, that’s exactly what they’re doing. But today, I want to offer you the opportunity to come into our office and get a second opinion at no cost. It’s absolutely free. All you got to do is go to onthemoneyoffer.com where you can get a copy of my book, and also schedule your meeting there. That meeting is going to last about an hour you’ll come in, don’t worry about how much money you have or what you’ve done. At this point. We’re not there to judge you, we’re there to help. So come in, and we’ll walk you through whether or not you’re on the right track, we have questions, very specific questions that will ask you to help you determine that, all you got to do is call 1-888-382-1298. Again, it’s 1-888-382-1298, my team is standing by to take your call and get you scheduled. And again, get you a copy of the book, we’ll see you there.
Rebecca Powers 08:04
And even pays for shipping and handling, there really is no cost. When we come back, we’re going to talk about chapter two in this book, Think like a pensioner, and not a gambler. Stay with us.
Brian Quaranta 08:15
So, everybody can tell you how to invest your money. There’s not a lot of people out there and a lot of firms that can teach you how to use your money. Most people also tell you that they’re scared. And the reason they’re scared is because they’re afraid of running out of money.
Neil Major 08:28
The last thing you want to do is have a really good job and you’re in your 60s retire, be looking for work again in your late 70s.
Brian Quaranta 08:36
The average person might say, well, a good portfolio would be a good mix of stocks, bonds and mutual funds. A good portfolio is all designed around the five key areas income, taxes, investments, health care and legacy planning.
Neil Major 08:51
Because we’re not just product pickers here, what we do best here as we build retirement plans,
Brian Quaranta 08:56
9 out of 10 people when they walk through the door would ask us, we just want to know if we’re on the right track. And I always say if you’re not on the right track, when would be a good time to know it? Probably now.
Neil Major 09:07
People, you know, can actually see a vision once we start to really build out their plan.
Brian Quaranta 09:12
This is about you if you’re not getting what you need. And you feel that when you walk out of the advisor’s office, it’s time to get a second opinion. And you can’t get a second opinion from the person that gave you the first the difference at secure money advisors as a fiduciary firm, we help you manage the risk, build the income and give you the retirement you dream of.
Rebecca Powers 09:42
Welcome back to On the money with secure money with Brian Quaranta. Of course you put the words secure money in the title of this show. And I love that because the words risk and retirement do not belong in the same sentence. Right? Yes. So, let’s talk about chapter two. Thank you Like a pensioner in 1978. You know, the Jimmy Carter Administration got rid of pensions and started the 401k. But we didn’t really get much education. Yeah. So, what about 90% of us with no pensions? Yeah, right. What do we do? and I love chapter-
Brian Quaranta 10:13
Well, it didn’t, it didn’t take long for the, for companies to realize it was a lot cheaper to provide a 401k than have to worry about providing a pension, where they were, they were going to have to provide an income to somebody for the rest of their lives. But they still wanted to give people an opportunity to save. And the reason why I wrote, think like a pensioner, not a gambler is because since you don’t have a pension, or at least, I should say, not everybody has a pension, you have to first think about how you’re going to create the pension. Social Security is a form of a pension, right? You’ve paid into it; you’ve gotten so many credits. And depending on when you decide to turn your Social Security on will depend on how much that Social Security or pension will pay you. Now, Social Security is only good, as long as you’re alive, right? Because when you die, your check goes away. If you’re a married couple, the lowest check goes away, and you keep the highest check. But the reason why we have to think like a pension or not a gambler is because for most people, sole security is not enough income. So, we have to think about creating a pension for the rest of the money that we need. So, let’s suppose that you’re getting $40,000 a year in Social Security income, but you and your husband need $80,000 A year to live off of, well, that means we’re going to need $40,000 from your retirement savings. Now, your retirement savings where it was designed for one purpose in the future. And that was to provide you with a way to replace your paycheck. But when people retire, they continue to roll the dice and gamble with their money. And this makes no sense to me. When you’re going into an income phase of why you would risk 30-40 years of accumulating money. There is no rate of return worth risking your entire life savings for but there is one thing you need to do. And that’s get yourself a good amount of guaranteed income like a private pension.
Rebecca Powers 12:17
And we talked about it last week, and we got a lot of comments about it. Tell me more about annuities. Yeah, because they are not all created equally. They’re all very different variable is not great. A fixed is what I liked. Right? Yeah. Let’s talk about the difference and why it’s gotten a bad rap when it really especially now is the zero is your hero. They have Sunday when the stock market goes down, you lose nothing. Yeah.
Brian Quaranta 12:39
Well, it all goes back to you know, you’ve been you could trace an annuity back to the Babe Ruth days. I mean, actually, you go back even further. Matter of fact, I write about Babe Ruth in my book, because in 1929, when we went through the Great Depression, Babe Ruth manager at the time, had convinced babe to take some of his salary and go see an insurance agent and buy an annuity. Well, when that Great Depression hit, and baseball wasn’t being played, most baseball players didn’t have two pennies to rub together. Hey, but Babe Ruth, because he bought an annuity had $17,500 a year in income for the rest of his life, which is equivalent to over $250,000 today in today’s dollars. So, even Babe Ruth, Herman Walker was his name I think, was it? I can’t remember.
Rebecca Powers 13:29
I know nothing about sports.
Brian Quaranta 13:30
Are you baseball fans? I apologize if I got that wrong. But he gave him great advice. But he had a pension. That’s essentially what Babe did. And this is exactly what most of us need to consider. When we retire. Take a portion of your money, whatever amount that is, and create a pension that is guaranteed for your life. If you die guaranteed for your spouse’s life. If your spouse dies, the balance goes to your kids. Now, you asked why did they get such a bad name? Yeah. Why is it that there’s such a stigma out there? Yeah. Well, there’s a lot of big talking heads out there. Okay, which I would love to name, but I won’t name them. Two in particular that I could think of one’s a man, one’s a female. And the tagline is, I hate annuities, and you should too, right? This is this is one individual’s marketing strategy. Now, the reason why this is a very unfair statement to make is because annuities do something that stock investments can’t do, and that’s provide a contractual guarantee of income. So, but the reason why annuities got a bad name for a long time is because take my grandfather, for example. He worked for Kirby. You remember Kirby Vacuum Cleaner?
Rebecca Powers 14:41
Vacuum cleaner. Yes.
Brian Quaranta 14:42
So, when he retired, he got a pension. Right. And him and my grandmother had Social Security also, but he also bought an annuity that paid my grandmother and him additional income. But the difference back then compared to today, was the money knew that my grandfather gave to get income for the rest of his life to the insurance company. If they die, the insurance company kept the money. Gotcha. So people didn’t like the idea that okay, if I give $200,000 to an insurance company, and three months later, we both die in a common accident together, the insurance company kept the money instead of our kids instead of our kids. Well, why was that? Well, actuarial science and math wasn’t where it’s at today. Gotcha. So, because of advances in technology, think about the sick about the cell phones back in the early eight, or the phones back in the early 80s. I mean, well, I don’t even think when the cell phone came out, regardless, it was a big brand, right, it was a big brick. And then eventually it turned into a little flip phone. And then remember, used to have the text. I mean, if you wanted to get to the letter T, you had to press like the number three button three times. So, but today, our phones our computers, most people don’t even use a laptop anymore, because the computer gets everything. I mean, the phone gets everything done. Absolutely. Same thing with annuities. They’ve advanced so much in technology, that now you can get these annuities that provide you with that pension income, and if you dies, provides it to your spouse. But if your spouse dies, rather the insurance company keeping the money now it’s paid out to your family, or whoever your beneficiaries are, and that made things a lot different, but yet the annuities that these individuals talk about that are so bad, they’re talking about the annuities of the past, not the annuities up today.
Rebecca Powers 16:32
And honestly, they don’t really want you to take your money out of 401k they mean in the American engine needs to go they want you to for the most part, keep your money in the stock market. And in Forbes a few months ago, they had an article about annuity sales through the roof multibillion since the market is rundowns that should say at all people want safety.
Brian Quaranta 16:52
They want safety. Less risk. Yeah, I give me safety, give me safety. I’ve been screaming at the top of my lungs for the last 20 plus years. Why it’s a good idea to consider not for everybody, right. But for some to consider the use of an annuity as a way to get the additional income that they need. Right. But I was, you know, I was I was rowing upstream. But finally, things are starting to change. And people are realizing they’re coming in and saying, Tell me more about these annuities. My friend just bought one my mom has one. This is the this is a type of simplicity and peace of mind that we want with some of our money.
Rebecca Powers 17:29
And you still get little return. You still get some of it, but you’re not risking all the loss, and for me at 54. I’m like, Sign me up. Look, I’m thrilled, we did that.
Brian Quaranta 17:38
At 46, I buy one every single year, my wife and I and I ladder them, right? So, every year when I buy one, it’s given me a new stream of income. It’s down the roads. And now I will continue to buy those until I have my set base of income right now. It doesn’t mean I don’t take risk with some of my money. Sure. But I have to focus on what’s most important. First, how am I gonna retire? I need income. Well, do I really want to go out there and manage rental properties? Do I really want to go out and buy? I
Rebecca Powers 18:06
don’t. I did that for 10 years; Yeah, exhausting. And people are, you know, high maintenance,
Brian Quaranta 18:11
Well, folks, this is why I want to make sure that you’re on the right track. It’s why I wrote the book right track your retirement because the number one question I get all the time is Brian, are we doing the right things? Are we on the right track? Let me ask it if you weren’t on the right track. When would you want to find out? If you read my book, it’ll go through the five key areas of retirement it will give you the clarity and peace of mind you need to start to really understand what a retirement strategy is really built around. The five key areas are your income, your taxes, your investments, your healthcare strategy, and your estate planning strategy. Go to onthemoneyoffer.com or scan the QR code. And you can schedule your appointment and for scheduling, I will get you a copy of my book absolutely free. We pay for the shipping and handling to come to the very next day. Or my team standing by you can call 1-888-382-1298 Let them know you want to schedule. And we’ll also send you a copy of the book but you got to do your part. You’ve got to call us don’t procrastinate on this. I know that it can be intimidating to come in and see a financial adviser, but it’s not at our office. My promise to you is this. If you come to my office, nobody will ever try to sell you anything and nobody will ever pressure you to do anything. The appointment that you will sit through with us will be very informative and very eye opening. So do your part call 1 (888) 382-1298
Rebecca Powers 19:34
And more with Brian Quaranta right after this quick break.
Announcer 19:44
The work never seems to end until the day it finally does. After nearly a lifetime on the job. You should be rewarded for all the time you spent working. Whether that’s crossing off items on your bucket list, learning a new passion or rekindling the love of an old one after all Life isn’t over when you stop working. It’s the start of an all-new chapter, the one where you’re the writer and you get to choose how your story will go. A way to achieve that is by having a clear financial plan to sustain your golden years, the biggest fear most retirees have is if they’ll have enough money to maintain the lifestyle they’ve always enjoyed. Having a plan to help protect you against the curveballs, life often throws will help to maintain your lifestyle. Call today to get your free written financial plan. See me live everyday to the fullest and enjoy the retirement of your dreams.
Rebecca Powers 20:35
Welcome back to On the money with secure money. I’m Rebecca Powers, so honored and happy to be with you. And of course, Brian Quaranta you give us so much great advice, finding out if you’re on the right track for your retirement getting this book. And that first appointment really is absolutely free. And there’s no pressure or obligation. Let’s talk about the two buckets. What is leveraging mean? Does it mean? Instead of putting your money in a bank or under your pillow, go buy a fast car or leverage equity in your house? Well, what does it Yeah, what does it mean?
Brian Quaranta 21:03
Well, first, we have to get away from pie charts, and line graphs, and all these things that are confusing to us using. So, let’s start talking buckets for a moment. Okay. So, I always like to talk about three buckets first, right now in my book, I write about two, but I’m going to simplify it for you. The reason I always talk about three buckets first is because essentially, we have to start to think about our money differently. Most people think about their money as a one lump sum value, right? But we can’t think about it that way. Our money has different uses at different times. So, for example, we all need bank money. Let’s call that bucket number one. Then we need income. Let’s call that bucket number two in that bucket. And then bucket number three is we need growth. So, let’s call that our market money. Right? Okay. So, we’ve got bank money bucket, we’ve got income money bucket, and then we have growth money bucket. Okay, now, now we have to take the money that you’ve accumulated, and we have to decide which amount belongs in the bank bucket, which amount belongs in the income bucket, and which amount belongs in the growth bucket. All right, so let’s just use a unit a case that I just worked on a couple of weeks ago, of an individual that I just retire. Well, he’s not retiring at 61. And he’s going to be retiring in five years. Okay, nice. So, he had about, what was it roughly about 500,000. Okay. And so what we did was, we had money at the bank, he had about $50,000 at the bank. And then with his retirement accounts, there was about $500,000. In retirement accounts, we put 250 of the money in the income bucket, and we put 250 in the growth bucket, which is stock market money. Okay, the 250 that we put into the income bucket, that account that we chose to use for him, which was an income annuity, in five years will generate over $27,000 of income for him for the rest of his life. Amazing. And if he dies, the remaining balance will pay to his daughter, the other $250,000 that we put in the growth bucket that stock market money, but because he’s going to have social security, plus that money that we’re generating from the annuity, he’s gonna have enough money just from the income bucket, to pay his bills and do the things that he wants to do. Now, what does that mean for the growth bucket? That means that that growth bucket now has time to grow?
Rebecca Powers 23:34
And you’re also not as worried you’re not worried? Because it’s kind of like going to the casino with $100. If I lose, Oh well, we drink free, and we had fun. It does, right, don’t you? sense that, that he got that feeling of relief?
Brian Quaranta 23:47
Well, because he knows now that look, the markets always going to be volatile, volatile on the wage hour, and it’s volatile on the way up, people don’t realize that right? It goes up and down on the way up to Yeah, right market just doesn’t go straight up. So, there’s always going to be volatility with your stock market money. Again, and we’ve talked about this a number of times the show, you cannot pull money out of the stock market account. And the reason is, is if you pull money out, and the markets down, even if it’s just down for that one month, you’re compounding the loss and locking into the loss. So, to take the pressure off of the stock market money, we take enough money, and we put it into the income bucket to generate that income. So, we have all the income coming from that portion of the money. And now the stock market money just has time to grow. And this goes back to basic fundamentals right. The one thing we were always taught is that time will be your best friend when it comes to your stock market money. But when you approach retirement, you don’t have the time. If you lose money, right before retirement or do Retirement, it’s not a question of whether or not the stock market will come back. The real question is, when will it come back? And will it come back in the time that you need it to come back in. So, it’s really easy to tell somebody else to risk their money, especially if it doesn’t impact them if it doesn’t go the right way. So, you have to take care of your income. First, it’s the most important thing studies have shown, the people that are happiest in retirement are those that have the highest amount of guaranteed predictable income, take an opportunity and learn about it, order my book, go to onthemoneyoffer.com, you’ll get a copy of my book by going there. But you’ll also be able to schedule a complimentary appointment, folks, it’s absolutely free. I don’t know any other way to say it. And I hate even saying the word free, because the appointment is so valuable, that you will get a lot of clarity out of it. So again, go to onthemoneyoffer.com, you can scan the QR code down at the bottom of the screen, or my team is standing by right now to take your call. You can call 1-888-382-1298 and schedule that appointment today. Please, don’t procrastinate on this. Retirement is something you do not get a second chance at. And this is this is it’s not a dress rehearsal. Right, we got to get it right from day one. Because I’m sure you know, as I know, many people that didn’t get it right, and had to go back to work take part time work, or worse yet, we see people that are running out of money. And when they do run out of money, it’s not in their very early years of retirement, it’s probably 20 years in when they’re older, and they don’t have the capability or physical wellbeing, to go back to work to make that money. And I don’t want to see that happen to you. So, get yourself with a good fiduciary advisor, get yourself with a good a company that will write a written plan for you. So again, go to 1-888-382-1298 Get your retirement on the right track today.
Rebecca Powers 27:11
And as Brian said, no other way to say it, it really is free, and his team is amazing. And you can always get that appointment, easily get your calendar out, leave your checkbook at home, go to onthemoneyoffer.com Not only for your book, but for your appointment. The first appointment really is just to get to know you. The number is 888-382-1298. Please keep those questions coming in any emails, any questions? We get a lot of ideas for our show, don’t we Brian? On the questions and when your clients come in. And if you’re on the right track, like you said they’ll shake in and say, great job. But if you feel like most of us uneducated about your retirement, now is your chance. We’ll see you again next week. Thanks so much for joining us.