Importance of Interval Funds

Global headlines about the Middle East can fill distance, but history shows geopolitical

tensions often ripple directly into markets, oil prices and inflation.

Today we're impacting what retirees should actually pay attention to, and more importantly,

how to keep the retirement steady even when the world isn't.

You are moments away from getting the call to live your so-called dream with money to spare.

We want to go the extra mile because giving you the proper diversification is going to give you a better return.

It's time to pick up that phone.

You're listening to advisors on call with Greg Ramirez.

Here it changed to how the market is and that is the difference that we do here.

We want to direct the line to a California key cyber retirement.

Welcome in to advisors on call.

You're host is Greg Ramirez.

I'm Morgan Patrick, a special guest host.

We have, again, Jackie Selby is on assignment this week.

She's back next week.

I want to give you an opportunity to get on the counter with Greg.

We'll tell you more about that as we move through the program.

Speaking of Greg, how about this?

29 plus years and the financial services industry helping his clients get ready for retirement.

Registered investment advisor and a fiduciary.

Again, it's an opportunity for you to learn a little bit about retirement planning,

but also take the opportunity to jump on one of these appointments when we make them available.

No costs, no obligation.

We're going to get into this, Greg.

First, I always ask, man, how was the week?

Well, it's pretty good.

It's been a little volatile with the market, of course, but that's because of what's going on in geopolitical,

what's going on with the Iran.

Unfortunately, our lovely news media making it worse than what it is, but that's typical.

Well, I tell you, if you do stare directly at the television and all the news that's coming at you,

it can be overwhelming because there's a lot that's out there.

It's appropriate that we're going to go back in time and talk about what happened a number of years ago,

but it's mirroring what we're doing right now.

When conflict breaks out halfway across the world, it can feel like something that only impacts diplomats and politicians.

We see it a lot on TV, but if you're retired or you're getting close to retirement,

those headlines can quietly influence a lot of things like gas prices, market volatility,

even the interest rates.

We've seen it before, events back in 1973, the oil embargo, the Gulf War,

and more recently, tensions involving Iran, and, of course, that Red Sea area.

Again, this is an opportunity for you to kind of just dive in on this.

Today, where we want to talk about what's really happening beneath the headlines,

what retirees should be watching, and, most importantly,

how to keep your retirement plan stable when our global environment is anything but that.

Here's your first question, Greg.

Why do conflicts in the Middle East tend to impact the markets so much and so quickly?

Well, the reason for that is because of oil.

We use oil in everything.

It's one of the largest commodities that there is in the world.

And unfortunately, the world economy works off of oil.

So when there's an issue, it just doesn't affect us, it affects everybody.

Now, one of the things I would say is that I'm going to blame the media for what they're doing

by inflaming things.

You know, the United States, Saudi Arabia, United Arab Emirates,

all the countries of OPEC have actually opened up their spigots.

We have a national reserve.

There shouldn't be a spike.

Because they did three months supply of opening up their reserves.

But unfortunately, because here in California, the real reason why we have high gas prices

is because of Gavin Newsom.

He closed down three plans.

That's the real reason.

It's not the war that's going on in the Persian Gulf.

Now, you know, when you have media that inflames things making worse than what it is,

you know, we are winning from a winning perspective.

Yes, we are accomplishing our objectives.

But if you see what Iran is trying to do,

the objective is to try to get everybody against each other.

That's where they're hitting the oil refineries.

They're hitting the energy sectors of these countries that didn't want to be at war with them.

So when you have a rogue regime like that,

it only overemphasizes why they needed to go in the first place.

But now, let me get back to financial planning.

In order for you to not be affected by this,

it's very important that you have a good financial plan.

And what they mean by that is that you want to make sure you have the following things.

If you have a standard 60-40 portfolio, I'm sorry, folks,

but that's not going to work in this environment.

You're probably down 20 to 25% right now.

Maybe more if you're really aggressive.

You shouldn't be that way.

Here are the advisors on call.

We offer what's called a portfolio x-ray.

We will look at your portfolio.

And what we do in terms of our asset allocation,

we have interval funds, we have alternative investments,

we have insurance, we have equities, ETFs.

We have a nice mix of different investment.

Vehicles.

Some of them are not correlated to the market in particular,

the alternative investments.

Some of the insurance vehicles that we have pays income for life.

These are things that are not correlated to the market.

Our income for life, your income, your interest is paid on an annual basis.

In terms of alternative investments, not correlated to the market.

Interval of funds can also be things like preferred stocks

that are not correlated to the market.

So at the end, you're really looking at only 30% of a portfolio

that's really inequities.

And even at that point, right now I've got people about 20% cash.

So really your risk exposure is a lot less than someone

who has a normal 60, 40 portfolio.

So the important series that any time we have a situation like this,

it's about being prepared and being with the right person.

Here are the advisors on call.

We're a fiduciary.

I've been doing this for 29 years.

I've seen the dot-coms.

I've seen the COVID errors.

I've seen the 2008.

I've been through the cycles.

I know what's going on.

And that is one of the keys as to why we have, you know,

my clients right now are not down 20%.

You know, I have people that are actually up 9%, 10% or flat.

But we don't have people down 10%, 20%.

And that's because of our asset allocation strategy and what we do.

And one of the things I'm going to tell you about folks,

I'm curious.

You know, I mentioned alternative investments.

Alternative investments are for people that are accredited investors

with a net worth of $1 million separate from your primary residence

or an income of $250,000.

If you want to educate yourself and know about what does his

advisors on call do, we have a book called To All or Not To All.

It's online.

It's actually doing very well because people want to know

what makes advisors on call dear friend.

Well, the alternative investments, 30% of your assets are going to be invested in there.

So I think it's important that if you want to work with us or you want to know more about what we do,

I've written a book to explain why I think that's a very important asset class

that if you go into a bank, a warehouse, or a credit union,

that's not going to be discussed because they're not allowed to talk about alternative investments.

But being a fiduciary and being independent, you know,

we're not told to sell proprietary products.

We don't have that here in the virus on call.

At those places, you're going to be giving proprietary products.

We will give you what's in your best interest in us a fiduciary.

That's what our job is.

So if you're out there and your portfolios down, give us a call, shoot us an email,

or use that number.

What is that number?

Number is 562-269-1-007.

That's 562-269-1-007.

Of course, you can visit the website, advisersoncall.com.

Real quickly, Greg, the book and how they can get it again.

Oh, they can get it online.

It's an Amazon, Google Books.

It's available on all platforms.

And it's obviously in paperback.

It's electronic if you want to read it electronically.

It's hardcover.

But it's a very good book to read because it'll educate you on what alternative investments are

and how we are different than everyone else that's out there.

All right. And again, the title, Too Alt or Not Too Alt.

And that's alternative investments.

And again, check that out.

Now, opportunity to get on the calendar is coming up with Greg.

And these are no costs, no obligation appointments.

Get that portfolio x-rays.

See if you're on track for your retirement.

Do you want to get to one more of these?

And we kind of touched on it a little bit with everything that's going on in our world today.

Why do investors often move toward the safe haven assets during conflicts that we're seeing right now?

Lack of education.

I'll give you an example.

I've had a couple of prospects that called in.

They're sitting in cash because they're afraid.

And the reason why they're afraid is they don't know what investment vehicles are out there.

So it's very important, folks, that if you're out there and you're thinking of retirement,

you want to have the proper diversification.

You want to educate yourself on what type of investment vehicles are out there.

You know, right now, I have people that want to get in the market.

I mean, right now, it's a great time to get in the market.

Look at where the, we're at about 45,000 on the Dell right now.

You know, we had a high of 50,000.

So we, you know, we will go back up.

This world will be over.

This is not a long term war.

This is not something like World War II.

It's not something like Vietnam or Korea.

This is a short incursion that will be over.

Remember, folks, we have midterms.

So midterms mean votes.

People don't want a long war.

So I will say this will probably be over.

I'm going to say probably in April.

And let's see if I'm right.

So let's take a look.

Again, back in time, it's history.

What lessons can retirees learn from just the past?

I mean, we've talked about 1973, and we're going through it again today.

Yeah. Well, the history tends to repeat itself.

Unfortunately, people don't read history.

That's why things happen.

You know, we should have been dealing with this, this, this, this, this Mula regime,

the Iranian regime should have been taken down years ago.

But the problems that we have, a lot of feckless presidents,

particularly Democrats, that rather apiece people,

appeasement doesn't work, folks.

It didn't work in World War II.

Look at Neville Chamberlain.

And look at what happened with Hitler.

He never stopped.

These Mula should have been taken out years ago.

Ronald Reagan wanted to bomb them.

And guess what?

When he was really, when he came to, when he came to be president,

they released all those hostages that the, that they were holding,

because they were afraid of him, because of his diplomacy,

which is known as gunboat diplomacy.

Now we have a president.

It's very similar to Ronald Reagan.

He doesn't fool around.

He doesn't mince words.

When he says he's going to do something, he backs it up.

Unfortunately, we've had people in the past that have read lines,

and their read lines are meaningless.

You know, even in a relationship, you've got to have lines.

You know, here are the advisers on call.

We have lines for you.

And we are going to make sure that your portfolio is not going to hit certain red lines

because of the diversification and what we do.

So if you're worried about your portfolio and your adviser is not doing anything,

give us a call, shoot us an email.

Our email is advisersoncallinfo at advisersoncall.com.

And we also accept text messages.

So if you are not able to call Texas or call us.

Opportunity right now.

Get on the calendar.

Call this number 562-269-1007.

Again, 562-269-1007.

If you're just sitting on a portfolio, that is not a plan.

If you're halfway down the path in planning and you're frustrated,

your appointments possibly getting bumped around.

Get a second opinion.

562-269-1007.

Get that portfolio x-ray done.

462-269-1007.

When we return, we are going to get into this.

Most retirees worry about market crashes or inflation.

But there's another risk that can quietly derail retirement.

It's called sequence of returns.

We talk about that.

Come it up.

Next.

We are back on advisersoncall.

Your host is Greg Romirez.

I'm Morgan Patrick sitting in for Jackie Selby.

She's on assignment this week.

Opportunity to get on the counter with Greg and his team.

That's coming up.

So stay tuned and it's no cost, no obligation.

The website treated as a resource.

Advisersoncall.com.

Again, Greg got 29 plus years experience in the financial services industry,

helping his clients get ready for retirement,

registered investment advisor, and a fiduciary.

Well, let's get into this.

When people think about retirement risk, Greg,

they usually think about things like, well, market volatility,

maybe a little inflation thrown in there.

But there's another risk that financial planners often worry about even more.

And especially in the early years of retirement.

It's called sequence of returns risk.

And it refers to the timing of the market and the market losses,

particularly if they happen right when someone begins withdrawing income from the portfolio.

So what's interesting is that some of the events most likely to trigger those early downturns

aren't purely economic.

Geopolitical, absolutely wars, oil shocks, global crises,

have historically created sudden market drops.

And we've seen some of that that can have long-term effects on retirement income strategy.

So today, we kind of want to unpack the sequence of risk and what it is,

and why global instability can make it even worse,

and what retirees can do to protect themselves.

So here's a question for you.

What exactly is, let's define it, sequence of returns risk.

Well, sequence of returns is basically when you retire,

you're taking money out, and there's events that mean you may be forced to take more money out than you need to,

because it's based on your portfolio.

So if your portfolio is down, okay, let's give you an example.

You have a million dollar portfolio, and you need to take, let's use,

I don't like using the 4% rule.

I like, let's use the 6% rule.

You have to take out $60,000 a year.

So that works out to $5,000 a month.

But if your portfolio is down 20%, you still need that $5,000 a month.

Well, you're killing your portfolio because now it's at $800,000,

and so if you're someone who has a traditional 6040 portfolio or bonds equities,

you know, that's not going to work in this environment.

You're going to go through that money pretty quickly.

That's why here, the dividers on the call,

I have different asset allocation strategies,

insurance, equities, alternative investments,

interval funds.

That mix is going to be much better in an environment like what we're in,

because you've only got about 30% to 40%, 30% of your portfolio is going to be in equities.

The rest is going to be not correlated to the market.

That's going to take significant risk.

So now, let's look at a million dollar portfolio.

Instead of a million dollars in the market, you've got 300,000.

If you were down 20%, you're not going to be down 20%,

well, that's because of how we invest.

Let's say you're only, let's say you are down 20%.

Let's just say, well, that's 60,000.

That's not 200.

So if you still needed that income, because remember, folks,

when we have alternative investments and we have interval funds,

those are not correlated to the market.

And in some cases, if we started your plan before you retired

and we had the income for life, guess what, folks?

It's not correlated to the market,

and it's guaranteed for as long as you live.

So regardless of what the market does,

you're not going to be getting into your portfolio and seeing that,

because when the market does recover,

in order for you to go back to a million dollars

and get a positive return,

you're going to have to swing it at about a 30% return.

When you're retired, you don't want that.

That's a lot of risk.

So why would you want to take more risk?

The key is being prepared before this happens

so that you won't have to take more money out

and you'll be spared the sequence of returns risk.

Folks, there's so many advisors out there

that unfortunately are one trick ponies.

They're going to do just equities

or maybe they're going to do annuities only,

and you can't do that.

You need to have a little bit of everything.

You know, for those people out there that don't work for

the federal government or for the state,

you don't get a pension.

And I'm going to tell you folks,

if you're a generation X or younger,

it is up to ourselves to make sure

that we have an income stream for life

because I believe only half of the social,

you're only going to be getting half of your social security.

Folks, you know, so security is supposed to run out,

but I think it's seven years.

Well, it's not changing.

They may kick the world, you know,

what they're probably going to do is they're going to make

full retirement at 875 for us

and when it does come,

we're only going to see half that benefit.

So it is up to us to make sure

that we have our own streams of income.

Now, for some of us,

we're fortunate enough that maybe we have rental properties

for some of us that can't stomach that.

We need to make our own streams of income.

That's why I recommend 20 to 30% of our portfolio

goes into some vehicle that will pay income for life

with an inflation rider,

so that if that's, you know,

you don't have to be concerned,

you will get, you know, eight or nine more streams of income

that you can get an increase.

These are the things that we do

who had our riders on call.

Now, I do have a second book that I'm working on,

which is a not out yet,

which is called 21st Investment Financial Planning,

which discusses this.

But this is why you listen to me on the radio,

because I explain to you what makes us different

to anyone else that's out there.

Tell you, it's an opportunity right now

to get on the calendar with Greg and his team

and advisors on call.

And the appointments we open up through the show

are complimentary, meaning you're not paying for it.

You're leaving the checkbook at home

and you're not obligated to become a client.

And guess what?

Greg's not obligated to take you as a client.

This is a great way to see if it's a good fit.

And if you want to roll forward, you certainly can.

Again, the number to call is 562-269-1007.

That's 562-269-1007.

You can always visit the website,

great resource, advisorsoncall.com.

But back to it, thinking about sequence of returns risk.

I want to jump to this one.

Why are the first five years of retirement

so important when it comes to sequence of returns?

Because it sets up where you're going to be later in life.

You know, the first four or five years,

people are spending more than what they normally do.

After the five years are gone, people are traveling.

Maybe they're still adjusting to retirement.

Maybe they're downsizing.

Maybe they're helping kids.

So you're going to spend more money in those first five years

and you would the next 25.

So it's very important that if you have the right

diversification strategy, and if something like this happens,

you're going to be set.

That's why you cannot have a 20th century financial plan

of 60, 40, 70, 30, 80, 20.

It's not going to work.

Having what we have and having it before this happens

is going to prevent you from taking those sequence of return losses.

Because one of the things that we do who have items on call folks

is that we give you a plan, we give you structure.

Other places talk about returns.

Returns are great, but it's not about returns folks.

Sometimes when you get to a certain point in life,

it's more about how much can we save you in taxes?

How can we maximize the amount of returns and minimize risk?

Those are very key things that we do who have items on call.

The other places don't.

Why?

Because for a fiduciary and we're independent.

We don't have somebody breathing down our backs.

You've got to sell X amount of proprietary products

or you have to do this to push that for the bank or the credit union side.

Or if you're on the wirehouse side,

oh, we have a new offering that you've got to push out.

We don't do any of that.

We're going to do what's in your best interest.

And that's the key here to invite us on call.

Tell you it's important to have that plan,

have that structure as Greg is talking about.

Have that map as you move forward.

I mean, come in, grab one of our complimentary appointments,

get that portfolio X-ray, but talk about your retirement goals

and kind of see where you are and then create that map

in the middle to get you there.

That's what planning is all about.

And as a fiduciary, if you are looking for a second opinion

and you bring your plan in and Greg takes a look and it looks good,

you know, he's a fiduciary.

He's going to say, you know what?

Wouldn't change a thing.

But if he does take a look and things can be tweaked or a massage a little bit,

that conversation's going to be had as well.

This is an opportunity for you to grab one of our complimentary appointments right now.

562-269-1007 and get that portfolio X-ray.

Again, that's 562-269-1007.

There's no cost to that.

There's no obligation to that.

And its knowledge is power.

That's the theme there.

All right.

So the final one I want to get to in this segment, Greg,

is the last one.

What strategies?

You kind of talked a little bit about it.

But what strategies can protect us against sequence of returns risk?

Let's have the white diversification strategy like I talked about earlier.

Alternative investments, interval of funds, insurance,

and a smaller portion in equities.

If you can do that, like right now, on my portfolio,

yeah, we're not down 20%.

Like I said, we have people that are up 9 or 10.

We have some people that are flat.

Maybe some people down, maybe 6%.

But the key is that we have the different asset classes.

Having that before saves you so that when something like happens,

that's the honest folks.

The market is very cynical.

It keeps it goes up, it goes down.

We have to be prepared for when that happens.

And having the portfolio before that time is going to save you so when you're in times like this.

Because the other thing is that when I talk about interval of funds, folks,

I usually means that I have funds that I can get out on a liquid basis

and maybe put that into equities so that when the equities do turn around,

we're going to generate some nice returns.

Because when you have a market that's volatile like this,

there are a lot of good-looking stocks out there right now.

And the key is just being patient.

But it's making sure that you have the funds in a place

that is safe so that when the things do turn around,

you'll be a part of that uptick.

And that's the thing that we do here at Aviders on Call.

I tell you, now's the opportunity.

We've got available appointments with Greg and his team and advisors on Call.

Greg kind of walk us through how the appointment's going to go.

So basically, when you do a portfolio X-ray, obviously I'll talk to you first.

I'd ask if you want to do a Zoom call, a phone call, or in-person.

You know, it's up to you how you'd like to it.

And remember, we're on Call so we can come to you.

You can come to us. Some people would like to see our office.

That's fine. We're here. We're not going anywhere.

And Or if we want to just do a Zoom call.

The first meeting, we're going to gather your information.

And then once we get that information,

I'm going to find out what your risk tolerance is.

Find out what you're happy about or not happy about your portfolio.

Then after that first initial meeting,

which should take about 25 minutes, kind of quick,

I'll have a follow-up meeting where I'm going to have all your information.

I'm going to give you that X-ray.

Basically give you about a one to one and a half page summary

of what I think needs to be done.

And one of the things I'd like to use in an analogy is that

you folks have the pieces of the puzzle.

It's up to us to make that puzzle complete.

I will present it to you. Then I'll follow up with you.

And give you time to look at my recommendations.

I'll explain to you in the second call.

And then by the third call,

if you want to go from being a prospect to a client,

then we will onboard you.

And that's basically how we do things.

Tell you it's important to get on track.

Have a plan sitting on a portfolio, not that.

I mean, we applaud the fact that you've saved

and you've done the heavy lifting.

Now you've got the nest egg.

What are you going to do with it?

You need a plan.

Or if you're in the middle of something,

need that second opinion.

Grab one of our appointments.

Get that portfolio X-ray done.

Contact us 5-6-2-269-1007.

That's 5-6-2-269-1007.

No cost, no obligation.

Appoint me.

Get that portfolio X-ray.

5-6-2-269-1007.

When we return on advisors on call,

global tensions, market swings,

economic uncertainty can make retirement feel

a little less predictable.

But history is showing us that some of the best retirement

strategies are built during uncertain times.

And hello, we're right in the middle of that.

That's coming up next.

Welcome back to advisors on call.

Your host is Greg Ramirez,

and I'm Morgan Patrick, guest hosting.

Again, we have Jackie Selby on assignment this week.

She's back next week.

Want to remind you that there's a website

that you can check out,

and you can do that right now.

It's a resource,

advisorsoncall.com.

It's advisorsoncall.com.

29-plus years for Greg in the financial services industry.

Helping his clients get ready for retirement,

registered investment advisor,

and a fiduciary,

and it's all about the plan,

the structure, being proactive.

Let's get into this, Greg.

In the past few years,

if it's taught us anything,

it's the world can change very quickly.

We've seen it over the last couple of months.

Global conflicts, energy shocks,

to inflation spikes,

market volatility,

retirees today are navigating

an environment that can feel, well, unpredictable.

So the uncertainty doesn't have to mean panic.

In fact, many of the most successful retirement strategies

are built around preparing for moments

exactly like the ones we're in right now.

So today, we want to walk through some financial moves

that retirees may want to consider

when there's global uncertainty,

or how the steps they can take

to help protect their income,

reduce their risk,

but also keep that long-term plan on track.

So here's your first one.

Why is it so important for retirees

to review their strategy

during times like these?

Because if you have an old portfolio,

it's not going to work.

You're going to be taking more from your principal.

So it's important to look at,

where am I getting my income from?

You know, that's one of the reasons why I hear it

a virus is not called.

We talk about income for life.

A portion of your portfolio,

I'll use them, you know,

a million dollars, five hundred thousand dollars

is an example.

Thirty percent,

which, on a million dollars,

portfolios, three hundred thousand,

on five hundred thousand would be,

what, 150, we're going to make sure

that that income comes out

regardless of what the market does.

So there's no market exposure.

In addition to that,

you're going to have another component,

a piece called alternative investments,

not correlated to the market.

Guess what, folks?

The income will pay,

your principal's not going to fluctuate,

and that's not going to be an interruption

because sometimes what happens right now

is if you have an older portfolio,

you may be getting less income

because your portfolio's down,

which means you have to draw more of the principal,

which means that you're going to lose more

because you need that money.

Now, there are many different strategies

that can be taken to avoid that.

You know, if you have one of the older portfolios,

you could take a portion of that portfolio out

and do what's called an immediate speed,

which is a single premium,

immediate anewity,

pay you out for a period of five years,

and that way,

when your stream of income's covering,

that would allow your portfolio to,

whether the storm,

but we don't do that here at an advisor's own call

because of how we do our planning.

We do this before,

so that you don't have to worry about.

We talk about our component pieces.

So the key that I'm going to emphasize to you here, folks,

is make sure you have someone

that you're working with that is prepared

and has done this before this happens

because nobody wants to do things after.

After means you're going to have to take more risk.

When you retire,

the last thing you want to do is play catch-up.

You know, that's one of the reasons why you retired.

You're retired because you don't want to have to worry about that.

And nobody wants to go back to work

because they have to.

If you work, you work because you want to.

So, you know, having a plan is very important.

That's one of the things that we do.

And our plan adjusts.

You know, we adjust to how the market goes.

You know, today we have the Iranian crisis.

Maybe a year from now,

we have a crisis in Taiwan.

Who knows?

But we have to adjust to how the market goes.

We don't know what curveballs

are going to be thrown our way.

But as a fiduciary,

if you have a right portfolio mix

in your in asset location strategy,

you're going to be okay.

But the only way you're going to get that

is allowing us to give you a portfolio X, right?

Or giving us a call so that you can contact us at info

at advisorsoncall.com

or you can text on our phone number or call us directly.

It's very important.

The review part of this.

And especially during uncertain times.

But there should be regular reviews.

And if you're out there,

and you're sitting on a portfolio,

you have a current plan.

And you're not getting phone calls.

Hey, come on in.

Let's review what you're doing.

Let's take a look at the strategy.

Let's make some adjustments.

If you're not getting those kind of phone calls,

that communication's not there.

Get a second opinion.

Get a portfolio X-ray from advisorsoncall.

Meet with Greg and his team.

It's no cost.

It's no obligation.

Call the number 562-269-1007.

That's 562-269-1007.

Portfolio X-ray.

Take a look at what's going on.

Put your puzzle pieces on the table.

And see where you want to go from there.

Again, this is no cost.

No obligation.

562-269-1007.

So, talking about the reviews.

Very important to do that.

It's almost like the doctors check up.

You want to make sure you're getting at least one a year.

And then if there are events that are happening,

you may want to make that phone call.

All right, so here's the next one for you, Greg.

How important is it for retirees

to have a financial buffer

during uncertain times?

Well, it's very important.

Because you want to take the stress factor out.

So, that buffer for us is the income for life portion

because it's guaranteed income for life.

And it's the alternative investments.

They're not correlated to the market.

The other two components.

Well, the interval funds are not all either.

But, you know, having that strategy set up

takes out the concern about having a large cash reserve.

And a lot of times when I talk to people,

everybody has a certain number that they're comfortable with

that they don't want to include in their financial planning.

And I talk to people.

You know, I have some people to say,

I'll give you an example.

I have one client.

She's been with me for about 14 years.

She's actually going to retire this year.

And she likes to have $150,000 in her account.

Personally, I would probably want to have maybe 60.

But she has to have 150.

So we don't include that in her portfolio.

I never talk about that.

I have other people that like to have $75,000.

And they always, so we don't count that.

So if you're someone that you have to have a buffer.

And that's part of that is knowing your client.

It's very important to know your client.

Know what their risk tolerance is.

What their, you know, their peculiarities are.

And, you know, once you identify that,

and you, you know, that's part of, you know,

having that good relationship, that communication.

I believe it's very important that, you know,

one of, to me, in my opinion,

one of the most important relationships is

an advisor relationship.

If you can't get along or if you can't talk to a person,

then that advisor may not be the right person.

If this, you know, one of the first calls you should make,

if you have a financial decision,

is your financial advisor.

And I get that from a lot of my clients.

I have other people that I've talked to,

that are prospects.

You know, I didn't think I could call you.

You know, I don't talk to my advisor about these things.

I don't really these things up.

Well, you're probably with the wrong person.

And this is the things that we do here,

edify your zone call.

We have that value ad.

We can give you advice about,

maybe you have a 1031,

DST 1031 that you want to do.

Maybe you're going to sell a business.

Maybe you want to do a Roth conversion strategy.

Maybe you want to do some estate plan.

You need some life insurance.

You know, one of my favorite things I haven't talked about today

in this segment is long-term care.

That also is part of our insurance component.

Long-term care folks, when you get older,

you know, one thing we know,

medical insurance and premiums are always going up.

So it's very important that part of that insurance portfolio

in addition to income for life includes long-term care.

Because we're all going to need it.

And eventually, once you get to 878,

it is a 97% chance that you are going to need long-term care.

Which means you can't do two of the six activities a day living.

So that means that it can be done at home,

maybe done in adult day care,

maybe done in a 24 hour care, but you will use it.

Tell you, it's important to be on top of this.

And I love the phrasing,

know what their peculiar are, their particular are.

That's interesting.

And if you are working with somebody

that doesn't know those things about you,

maybe it's time for that second opinion.

You can grab one at any time during our show

by calling 562-269-1007.

That's 562-269-1007.

You can also visit the website advisorsoncall.com.

But going back to it,

when you start talking about just the volatility that we're in

and some things that you can do to kind of protect yourself,

have those reviews,

have that financial buffer,

but as Greg pointed out,

that's going to be different for everybody.

What are you comfortable with?

What do you want in cash?

What do you want immediately available?

And the next one, Greg, is tax planning.

It becomes even more important

when we're going through what we're going through right now.

Oh, yeah.

Tax planning is one of the most important things.

I'll give you an example.

I have a couple of clients retiring this year.

Actually, this month.

I don't have a lot of people retiring this year, actually.

And fortunately for them,

they're prepared.

Reason why?

Because by strategy,

she said, I've put in.

And one of the biggest concerns is I have one lady in particular.

She's 71.

So her RMD is going to be at 73.

And we've done probably a majority for portfolio.

About 70% of it has been converted to a Roth,

but we still have another 30% to go.

So we have 18 months to come up with a strategy of how to do that.

And that's one of the things that we do here at Amazon called.

We have tax mitigation strategies that can get you there.

Not just in regards to,

when I'm talking about the mitigation strategies,

and again, these are for accredited investors

with a net worth of $1 million,

separate from your primary residence,

or an income of $250,000.

So what I do with these alternative investment strategies

is we have something called a fee simple.

So what a fee simple does is that,

if you're looking to convert an IRA to a Roth,

we will give you a mitigation strategy that will show you

uncharitable contributions,

reducing the amount of taxes that you pay now.

I know that I'm saying this a little bit fast online.

I obviously explain it to you more.

If you're someone out there that's looking for some strategies

on how to save on taxes when you're converting,

we can do that.

We also have investments that are, again,

for accredited investors,

where if you're going to invest and do a conversion,

some of these are real estate based.

So you take a problem,

let's take $100,000 for example.

You invest $100,000,

and what's going to happen is that this money is going to go down

to $50,000,

because this is investing in real estate or land,

or what's called built for rent, BFR.

The property, when there's nothing there,

they're going to re-evaluate the property once it goes down,

now you have a loss of paper loss.

So it'll be $50,000 that's going to be transferred over,

and then we can do the mitigation strategy.

So if you're someone out there that needs that,

please give us a call or shoot us an email.

I mean, this is your opportunity right now

to get a portfolio x-ray.

Come in, ask questions about your own situation.

And if you're sitting on a portfolio,

you have not started planning yet.

This is a great way to get out of the starting gates.

And if you're halfway down that front stretch,

and you need a second opinion, this is for you as well.

Call 562-269-1007.

That's 562-269-1007.

There's no cost, there's no obligation.

And again, this is an opportunity to get to know Greg and his team.

Call the number, 562-269-1007.

That's 562-269-1007.

We've gathered some scenarios from around the country.

We've got some different categories for Greg this week.

We'll see how he's going to handle them.

That's all coming up next.

You're listening to Advisors on Call.

We are back.

Advisors on Call is the show you're tuned to.

Greg Ramirez is your host.

And again, you can find them at Advisors on Call.

Check out the website and treat it as a resource.

Advisors on Call.com.

Easy to remember, rolls off the tongue.

Advisors on Call.com.

29-plus years in the financial services industry.

Helping his clients get ready for retirement.

Registered investment advisor and a fiduciary.

I'm Morgan Patrick.

Pleasure to fill in for Jackie Selby this week.

She's on assignment.

She's back next week.

And now we are into our scenarios.

And these happen all over the country.

We've gathered a handful.

We're going to throw them at Greg and see what he comes up with.

We're going to throw them in a very polite way.

But we're going to throw them at him.

Here's the first category.

Global conflict and energy prices.

Obviously, that is a good one to have this week.

And here's the scenario.

With renewed conflict overseas, pushing oil prices higher,

retired couple living on about 6,000 a month,

plus social security.

The portfolio withdrawals, that's in there too.

They're feeling squeezed at the gas pump,

at the grocery store, pretty much everywhere.

They have about a million invested,

but nearly 65% of that is in stocks.

If energy prices stay elevated and markets turn volatile,

again, they're unsure whether to reduce withdrawals

or rebalance the portfolio.

So here's the question, how should retirees respond

when geopolitical events start impacting both their investments

and their day-to-day expenses?

Well, first thing.

I always like these mail-back questions.

I'm going to assume that these people are in their 60s or 70s,

because it doesn't really say.

So we're going to have to say that they're in there.

We're going to say they're probably late 60s, maybe 68, 69.

It seems to me that the $6,000, I'm going to assume that they're getting,

because it said they're getting retirement,

okay, so it says they're getting social security

and doing portfolio withdrawals.

So does that mean that the $6,000 is half social security,

half from the portfolio, or $6,000 plus social security?

So let's just assume it's $6,000 total.

So that means it's probably taking, let's say,

and if they're married, if they were married,

I'm going to assume both people were working.

Let's say they're only taking about $1,500 out of their portfolio,

because they're getting $4,500 and social security.

What I would do is I would take that million dollars,

and like I talked about earlier, folks,

60, 40, the old-style portfolio doesn't work.

We're going to have to give us some alternative investments

that are not correlated to the markets, some interval funds,

and we're going to have to give them income for life.

Now, unfortunately, because I just met these people,

the income for life, we're going to have to wait a little bit.

You know, maybe we can do the investment,

but before we turn that income on, I wanted to wait about four or five years,

and what that's going to do is that's going to limit the amount of volatility

that they're going to have.

It's going to give them a third stream of income

separate from social security,

and from what they're taking out of the portfolio.

And if one, remember, folks,

one of the things we're not talking about here is that

if one of these people pass away when you have social security,

you don't keep both of them, you lose one of them.

So it's very important that we give them an income stream for life

that's going to last for both of them,

and that amount doesn't change.

That's how we need to take 30% of that million dollars

and put it into an income for life

where that income will not change.

Now, other than that, those are the biggest changes

that I would do for this portfolio,

but they look to be in a pretty good position.

We just have to, like I said earlier, folks,

you got the pieces of the puzzle.

We're going to complete that puzzle for you,

and by adding those pieces that you're missing,

which is income for life and alternative investments,

then I think your portfolio will be much better

and perform better and have less volatility,

especially if something, because again, folks,

the market has very up and down.

This will happen again, but you will be better prepared.

Think about your own scenario,

and again, have an opportunity in front of you right now

to have a cost-free no obligation appointment

and bring those puzzle pieces to the appointment

and talk about it.

Again, you can grab one at any time,

five, six, two, two, six, nine, one, zero, zero, seven.

That's five, six, two, two, six, nine, one, zero, zero, seven.

That's an appointment with Greg and his team

and advisors on call.

An opportunity for you to talk about your scenario,

and again, no cost, no obligation.

All right, next category, Greg, is market highs

and the fear of the pullback, and here's the scenario.

The market recently hit new highs,

and a 70-year-old retiree has 850K invested.

They're wondering if now's the time

to lock in the gains.

They remember 2008, they remember 2020,

and they don't want to relive those sharp drops,

but at the same time, they know they could be retired

another 25 years.

How do you help retirees decide when caution makes sense

versus when fear might hurt long-term growth?

Now, I have two questions here because this 850,

we don't know if it's qualified or non-qualified,

so I'm going to assume it's half and half,

because there's consequences.

If this is a non-qualified portfolio,

we're going to create a taxable event,

so we'd have to do some tax mitigation strategies.

If it's qualified, obviously, it doesn't matter

because it's qualified.

Now, this individual has concerns.

It's interesting because might have a lot of clients

who are now that have concerns that say,

Greg, maybe we should take some of the gains.

And I think, depending on, you know,

like right now, if you've got a stock that's up 100%,

take the gain, keep the principle.

Here, I would probably tell this individual,

I would take some of the gains, but what I would also do

is that I would make sure he has an investment vehicle.

We have an investment vehicle called Lincoln Financial.

It's an advisory vehicle, which is 100% liquid,

and what this can do is you have what's called a,

because he's only 70, so there's something

he can take advantage of up to 875,

where it's called an earning enhancement.

So what this will do is this will guarantee you,

if you pass away to your beneficiaries,

because there's something he's concerned with,

40% on the earnings.

You cannot get that anywhere.

And it has a step up.

So every year, it locks in your step

upon your death benefit for your gains.

So if this is something you're concerned with,

and in addition to that,

it also has an income for life called I for Life,

where it can lock in the amount that you get.

And if you want to go even a step further,

we have something called a state lock,

where if you want to get income for life,

and keep the principle there,

all these things can be done.

And this is done through insurance,

and it's done through an advisory,

so it means 100% liquid.

These are things that we can add in the portfolio,

because this gentleman's 70 years old.

He obviously doesn't have time to make up

for a loss in the market.

These are things that we add.

I mean, I can give you an example.

I had a client, a prospect that we've been talking about,

and I made the same recommendation.

I said, look, if we can do this,

I can control your RMDs.

I can lock in your gains.

I can give you that a state lock,

and give you all the things that you need,

and then guess what, folks,

on your requirement or distribution,

if someone says qualified money,

you can turn around and put that into a Roth IRA,

and get it income tax-free.

So there are many different things,

and that's the things that I would make for this individual

in terms of recommendations.

I tell you, there are a lot of scenarios out there,

and you've got your own,

and the opportunity to come in and talk about it,

no cost, no obligation,

and just see if you're on track for your retirement,

get that portfolio x-ray done for you.

It's ongoing during the course of the show.

Simply call, five, six, two, two, six, nine, one, zero, zero, seven.

That'll get you on the calendar with Greg Ramirez,

and his team at advisors on call, five, six, two, two, six, nine,

one, zero, zero, seven, again, no cost, no obligation.

See if you're on track for your retirement,

get that portfolio x-ray done.

I want to jump to the last scenario, Greg, and here it is.

Delaying retirement due to economic uncertainty,

we have a 64-year-old in this scenario,

planning to retire this year, 780,000 saved,

but is reconsidering because of inflation

and also market volatility.

Working two more years could mean another 120,000 in savings

and a higher social security benefit.

They're burned out, but nervous, burned out at work,

but they're nervous about stepping away during uncertain times.

How do you help someone weigh emotional readiness

against financial timing?

Well, we've given the right diversification.

We show them by giving a portfolio x-ray

that they're actually in good shape.

Now, I'm going to assume here that they own their house free and clear.

It doesn't say, but let's assume that.

And the reason why I'm going to say that is because folks,

your house is another asset.

Now, I assume that this individual is single

because we're only talking about them.

So they have 780,000 dollars saved.

Great job.

Now, the average home here in California is about a million bucks.

So I'm going to assume they have a home.

It seems to be like one of these people

that probably have lived in their home for 30 years is paid off.

Well, guess what, folks?

If you're worried about that another 120,

take it out of your home.

We have things that are called,

and these are things that I've been telling people to use.

I'm not going to say do a reverse mortgage.

What I'm going to say is that you can do what's called a partial equity

take out of that home.

So you have a home for a million bucks

and you have a shortfall.

You can take up to 500,000,

have no payments for 30 years.

Guess what?

Now you have a nest egg that's close to $1.3 million.

And I take the equation of,

you don't have to work another 18 months

because you don't want your job.

Now you can retire on your time

and you work because you want to,

not because you have to.

Now, I'm going to take that a step further.

We're going to give you the right diversification

because I'm going to consider this individual.

It's probably sitting in a 401k plan.

That's doing the service rollover.

Let's take that money.

And let's put those pieces in the right places.

Let's give you the income for life.

Let's give you the alternative investments.

Let's give you the equities.

And let's give you the interval funds.

This is something that you're not going to get

inside of your 401k plan folks.

That's why it's important that this individual do an inservice rollover.

We give you that proper diversification.

And if you decide to work a little bit longer,

you're only working because you want to

and you have things that are going to be working for you

so that when you do retire,

you're going to be in a very good situation.

And that's what I would do for this individual.

Opportunity right now to get on the counter

with Greg Ramirez and his team and advisors on call.

These are no costs, no obligation appointments.

Again, you'll get that portfolio X-ray.

Bring your scenario to this meeting

and have this kind of conversation with Greg.

Again, the number to call 562-269-1007.

That's 562-269-1007.

In a time of uncertainty, you want clarity.

You want confidence.

You want peace of mind as you head off into retirement.

And if you're already there, get that second opinion.

We offer that right now.

562-269-1007.

That's 562-269-1007.

Another addition of advisors on call with Greg Ramirez is in the books.

I'm Morgan Patrick Fillon in for Jackie Selby.

She's back next week.

See you on the radio.

Good week in folks.

Good week in folks.

Good week in folks.

Good week in folks.

Good week in folks.