The Setup:
We’ve been hearing from a number of listeners who have sent in questions on a wide range of topics so we decided to dedicate an entire episode to answering as many as we can. From rental properties to fees and commissions to 401k company investing and more, we cover a lot of ground on this episode.
Click the timestamps below to skip to a specific topic in the episode.
The Combination and Key Points:
You’ve reached out and we’re listening. After sorting through some questions we’ve gotten online and on Facebook, let’s answer six of them that we think provide information that many people can use. It’ll be a busy show that’ll cover many different topics but every question can give us a better understanding of our retirement plan.
We’ve laid out the main topics below. Click the timestamps to jump around in the episode.
Black Friday
Before we get started with the mailbag, let’s find out if Ben takes part in Black Friday every year.
0:43 – Does Ben get into Black Friday?
Moving Into a Rental Property
The goal for many when they reach retirement is to own their house without a mortgage payment, but have you ever considered selling your house and moving into a rental? That’s the first question we’ll answer and you might be surprised by what Ben thinks about this idea.
2:20 – Question from Charlie: It seems counterintuitive to move out of a house I’ve paid off to move into a townhouse rental. But I don’t want to worry about repairs. Is that a good idea?
3:17 – This could be an idea that more and more people begin to embrace for multiple reasons.
Fees and Commissions
Have you ever wondered about the money you’re paying for investment advice? The financial industry uses many different fee structures and clients can get confused pretty easily. So what exactly is the difference between fees and commissions and how does B.A. Schrock Financial Group approach this?
4:00 – Question from Sally: Are fees and commissions the same thing in the financial world or are they different?
4:51 – Here’s Ben’s perspective on fees vs commissions.
Financial Advisor Communication
How often do you talk with your financial advisor? Do you ever feel like it’s difficult to get on the schedule or find time to get into their office to go through your plan? That’s what Lucy is concerned about so we’ll try to give you some general guidance on how much you should be communicating with your advisor. Find out what we recommend and why our conversations ramp up when you retire.
5:54 – Question from Lucy: How often should I be meeting with or talking to my financial advisor. I get a birthday card every year but that’s about it.
6:55 – We meet with first-year retirees 6-8 times over that year and here’s why.
7:41 – Ben encourages clients to reach out as frequently as they feel necessary.
401k Investing
We received two questions about 401k investing but both were great. The first touches on a common trend where companies are no longer matching your contributions. So what’s your best option if that happens? Should you keep contributing or invest elsewhere?
The second is about the type of investments in your 401k. Annie has put most of her money in company stock and wonders whether that’s a good idea. Many great Ohio companies offer company stock and sometimes it can be a good thing but what about diversification?
8:06 – Question from Kevin: My company is going to stop matching 401k contributions because of rising healthcare costs. Should I stop contributing to my 401k and invest somewhere else?
9:46 – Question from Annie: Most of my 401k is invested in company stock. Is that bad?
11:00 – How much company stock we typically limit our client to.
Market Volatility
No one likes seeing their retirement money go up and down with large swings. Some of us can handle the volatility but others would rather take a more conservative approach.
11:13 – Question from Beth: My IRA seems like it’s bouncing up and down every single day and it’s driving me crazy. Does that mean it’s time to get out of the market?
11:52 – The question you should be asking yourself if you are seeing a lot of fluctuation.
Thanks for listening to another episode of Unlocking Your Financial Future. We’ll talk to you again next week!
