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Top 10 Investing Myths DEBUNKED | Don’t Let These Mistakes Ruin Your Financial Future
17 Plays1 month ago
In this myth-busting episode of The Future of Finance, hosts Marissa Wood and Lisa Green break down 10 of the most common investing myths that could be holding you back from financial freedom. From Social Security illusions to outdated advice on annuities, debt, and 401(k)s — they tackle it all with facts, clarity, and a dose of humor.
Whether you're a first-time investor or thinking about retirement, this episode is packed with eye-opening insights that will challenge what you think you know.
⏱ Timestamps:
0:00 – Introduction: Perception vs. Reality in Finance
1:50 – Myth #1: “You Need a Lot of Money to Work with an Advisor”
3:50 – Myth #2: “Annuities Will Lock Up My Money”
6:00 – Myth #3: “Bonds Are Always Safe”
8:10 – Myth #4: “I Can Retire on Social Security Alone”
11:00 – Myth #5: “Pay Off All Debt Before Investing”
15:15 – Myth #6: “Medicare Covers Long-Term Care”
18:00 – Myth #7: “Sell When the Market Drops”
21:00 – Myth #8: “The Bank is the Safest Place for My Money”
25:45 – Myth #9: “Life Insurance is Only for Wage Earners”
31:00 – Myth #10: “My Former Employer is Managing My 401(k)”
33:20 – Final Thoughts: Which Myths Have You Believed?
35:10 – How to Take the First Step Toward a Better Financial Future
📝 Mentioned in the Episode:
✔️ Why annuities are no longer your grandfather’s investment
✔️ The real math behind market losses
✔️ How high-yield savings and FDIC limits really work
✔️ The truth about 401(k) fees and management
✔️ How long-term care and estate planning protect your family
🔗 Book your FREE consultation: https://union-financial.com
📧 Contact Marissa or Lisa directly through our website to get started.
💬 If you learned something new, give us a thumbs up, leave a comment with your favorite myth, and share this with someone who needs to hear it!
Recommended
Transcript
Introduction to the Future of Finance Podcast
00:00:09
Speaker
Hi, everyone. Welcome back to the Future of Finance podcast. I'm your host, Marissa Wood, with Union Financial Services. And today I'm joined with my business partner, Lisa. Thanks, Marissa.
00:00:20
Speaker
It's great to be here again. appreciate the invitation.
Debunking Investing Myths: Yield Sign Example
00:00:24
Speaker
And so today have a fun episode ahead. We're going to be debunking some common investing myths that we've heard clients say You might even believe some of these myths.
00:00:36
Speaker
And I wanna start off this episode by reminding everyone that perception is not always reality. Now, we like to use this example of the yield sign.
00:00:48
Speaker
Think about what color do you think a yield sign is? Immediately in your brain, when you think yield sign. Can I answer? What would you think immediately?
00:01:00
Speaker
ah yield sign is yellow.
00:01:03
Speaker
I would say so too. You know, the first thought in my brain would be that a yield sign is yellow. That is not, in fact, true. a yield sign has been red since 1971. Wow.
00:01:16
Speaker
So, I mean, I have no excuse of thinking that a yield sign is yellow because I wasn't even alive. It's been red my entire life. But it goes back to that, you know, perception is not always reality.
00:01:28
Speaker
What we have in our brains might not be the case. And so keep that in mind as we go through all of these things. myths versus truths that, you know, what you have in in the back of your mind might not be, in fact, true.
00:01:44
Speaker
And so, you know, try to keep your mind open as we go through these myths, and I'm sure you'll learn a thing or two.
Is a Lot of Money Needed for Financial Advisors?
00:01:50
Speaker
Great. Now, the first myth that I want to address is that you need a lot of money to work with a financial advisor.
00:02:00
Speaker
A lot of people think that. They think, oh, I can't go get a a financial advisor's opinion. I don't have enough money. Well, what is that compared to? Yeah, it's all relative.
00:02:12
Speaker
Right. You know, everyone deserves to have that financial plan, whether it be on, you know, multiple millions or whether that be, you know, your first Roth contribution. Right.
00:02:25
Speaker
So I like to compare that to getting in shape before you go to the gym. Mm-hmm. Okay, that well, that's counterproductive. Yeah, I need to already be in really good shape before I go to the gym. Well, no.
00:02:38
Speaker
You know, oftentimes we meet with clients that aren't really financially in a great spot, or they have a lot of questions, or they don't feel like they have a ton of education around investing, and that's what our job is, to help them get started. And so, no you don't need to already be wealthy.
00:02:57
Speaker
No, and you don't need to be good at math to be good at investing. Okay, so we need we always like to talk about starting early, compounding interest, and it'll it'll be a good place to start to get that initial conversation going and then get that plan going.
00:03:21
Speaker
So we always want to stress that there is never a time that's too late to start or there's never a time that's too early. There's never the right amount of money. It is whatever you have.
00:03:35
Speaker
Absolutely.
Modern Annuities vs. Traditional Ones
00:03:37
Speaker
What would you say another myth that you hear super often? Oh, what we hear a lot of is that annuities will tie up my money.
00:03:49
Speaker
Now, annuities happen to be my favorite investment. so And I happen to be extremely knowledgeable on annuities. Now, the annuities of today are not the annuities of yesterday.
00:04:04
Speaker
I like to compare things like, is the cell phone of today the same cell phone that was available 20 years ago? The cell phone 20 years ago had a bag and you had to plug it in. Now we have little computers in our hands and that is the cell phone of today. Well, the annuities of today are amazing investments.
00:04:28
Speaker
They can be short term. They can be ah guaranteeing income. They can guarantee other features such as health care features.
00:04:39
Speaker
The annuities of yesterday were long-term investments. Today, they are an incredible vehicle that gives you the opportunity to ah participate in the upside of the market without any risk.
00:04:57
Speaker
And there are withdrawal features now that you can take up to 10 to 30 percent per year from your annuity. So that that myth of the annuity locking up my money or I don't have access to my money is the annuity of yesterday.
00:05:15
Speaker
That is not true. And if you haven't looked into annuities recently, you might be pleasantly surprised because it's an incredibly great saving vehicle.
00:05:28
Speaker
And there's so many different types of annuities. you know You have deferred, you have immediate annuities, you have fixed, you have fixed index, you have variable. And so making any kind of blanket statement around annuities is a myth in and of itself because You know, which one are you talking about?
00:05:46
Speaker
And then which and investment carrier, which specific product? There's so many nuances to all of them. But yeah, and that locking up my money. That's a big annuity myth.
00:05:58
Speaker
And it's time to open up your mind because they are not your grandfather's annuities. so true.
Are Bonds Entirely Safe?
00:06:04
Speaker
um Another thing that I want to address as well is the myth that bonds are a safe investment vehicle and they're safe from market volatility.
00:06:16
Speaker
It's not true. It's just not true. Now, bonds are less risky typically than stocks or mutual funds. They're going to be more of a conservative strategy, but they're not safe from ever losing value.
00:06:32
Speaker
And so, you know, that 60-40 blended portfolio that as you get closer to retirement, you go heavier into bonds and you go less into stocks, which is equity.
00:06:43
Speaker
That was the traditional way of investing for many years. And it doesn't really work anymore. There's too much uncertainty around bonds between you know what we're experiencing right now with where do we think interest rates are going to go.
00:06:59
Speaker
There's uncertainty with tariffs, lot of market volatility. And so, you know, you're marking that bond portion of your portfolio as safe. It's just not true.
00:07:12
Speaker
You know, and so to keep on that annuity conversation, lot of times, you know, we do still want stock market exposure, of course. We want to have some more aggressive assets, but maybe we replace that bond component of your portfolio with an indexed annuity that truly is safe for market volatility.
00:07:32
Speaker
I don't know anyone that would want their safe money to not actually be safe. That's a crazy strategy. That's true. You know? That is myth. I want my aggressive money to actually yield potentially high results, but I want my safe money to never lose a dime.
00:07:51
Speaker
And so, you know, those target retirement dates... funds and and those you know set it and forget it, bond equity portfolios, I would say, you know let's let's take a look at that and let's review if we can tweak that so that you can still have some upside, but your downside is truly protected.
Is Social Security Enough for Retirement?
00:08:13
Speaker
Sounds good. Yeah. so oh, this is a this is a myth that we hear quite often. I can live and retire on my Social Security check.
00:08:29
Speaker
Now, the average Social Security is between $22,000 and year. Now, maybe in years past, people were living on Social Security because they may have had a pension.
00:08:47
Speaker
Pensions are a thing of the past. Unfortunately, most of us don't have them and have access to it. So what we've experienced in the last few years with inflation Our food prices were something that we never thought we would see, you know, that that so much of our earnings are going towards feeding our families.
00:09:10
Speaker
So I don't see that people can live on Social Security alone. A $2,000 a month paycheck is not going to do it.
00:09:21
Speaker
You have all of your bills, and inflation is a real thing. Now, we do have a little bit of ah ah cost of living increase with Social Security, but you know sometimes years go by and we don't see that.
00:09:34
Speaker
So when people come to us and they tell us that they're going to retire at 62 because that's the time that they can collect Social Security, we have to have a conversation. Mm-hmm.
00:09:51
Speaker
it's not going to work. First of all, that's a little bit young to be collecting so Social Security. you know you need to You need to give it a few more years at least. And if you're going to continue working, you certainly need to wait until 67 or whatever that age may be for full retirement age.
00:10:10
Speaker
um But let's get off the idea that we can retire on our Social Security. It's not going to give us a happy retirement.
00:10:22
Speaker
We're barely going to make it. So either we have to work longer or we have to invest properly ahead of time where we can have some type of guaranteed income that can supplement Social Security.
00:10:37
Speaker
you It's just not going to be enough. Yeah, just because you've reached that age that you think people should retire at or you wanted to retire at doesn't mean that you should.
00:10:49
Speaker
Because retirement is not an age. It's a number. Yeah, it's a dollar a mil. Yeah, absolutely. um That's a huge myth that... That retirement is not an age. Yeah. Mm-hmm.
00:11:04
Speaker
Yeah.
Investing vs. Paying Off Debt Dilemma
00:11:05
Speaker
So another one you know that I want to address is that you know myth of you need to pay off all of your debt before you start investing. you know we've We've met with many clients that are obsessed with not having a mortgage.
00:11:21
Speaker
And you know I do believe that a happy retirement is one with little to no debt. That's wonderful. you know We want to have your bills be as low as possible by the time you're you're at that age.
00:11:34
Speaker
But, you know, especially in younger years, you know, I have friends that, you know, want to pay off their student debt or they want to pay off a car loan. They want to pay off any other loan they might have, maybe even a mortgage they want to pay off really early before they start investing.
00:11:53
Speaker
But that's doing yourself such a disservice because you're losing out on all the those years of compounding interest. You know, you're putting that extra $200 a month towards your car payment.
00:12:07
Speaker
But then what happens in the future? Okay, now you just have a car that's depreciated in value. So true. paying off debt, of course, if you have credit card debt, that's one thing.
00:12:20
Speaker
But if you have a 3% mortgage, why are you paying that off early? There's no reason to. You can earn more than that with investing and keeping that that mortgage and and having the 30-year luxury of paying it over the course of all those years and having your other money work for you.
00:12:41
Speaker
Paying off debt is probably, it's it's a mental it's a mental stigma that people can't get rid of. You have to understand. Because hangs over our head. But it shouldn't hang over. We're all going to have debt at all ah ah different times of our lives.
00:12:59
Speaker
Sometimes the debt might be overwhelming. Well, at that point, what you need to do is work on a budget. But debt is not always bad. Good debt is low mortgage rates.
00:13:12
Speaker
Good debt is maybe a ah student loan that you have X amount of years to pay off and use your other money wisely to make it work for you.
00:13:24
Speaker
Yeah, I mean, the one thing that is the biggest benefit in investing is time. And so, you know, starting as early as possible, regardless of the dollar amount, you want to have those years of earning potential and compounding interest.
00:13:41
Speaker
And so, you know, waiting until 20 years from now when you're debt free to start, it's not going to It's not going to do it. You lost those 20 years of interest.
00:13:52
Speaker
And yes, now you have an asset, but if all you have is your house, you know, your house rich and your cash poor, you don't want to retire with no investments and just a house because...
00:14:05
Speaker
How are you buying food? How are you traveling? How are you paying for you know your grandchild's Christmas present? You can't pay for that with a house. No, and people people always say, well, real estate is a great investment, which it is. Not until you sell it.
00:14:20
Speaker
Not until you sell it. And then where are you going to live? you know there's it's a We're in a funny place right now with real estate because if you sold something, well, even if you downsize, you're probably going to but it's going to be a lateral move.
00:14:34
Speaker
Because of the interest rates. Yeah. you're You're not really going to have that big wad of cash that that people seem to think. So some debt is good. you know, debt is fine as long as you can manage it.
00:14:49
Speaker
And you know, you know, credit card debt is not good. No. That's the only debt that I don't realize. Because those kind of interest rates, what, 20%, 25%? 21, yeah, sure. You're not going to average that in the stock market on a normal year. Mm-mm.
00:15:02
Speaker
So let's let's talk about your debt. Let's see where the smarter debt will be or the the easier debt. And and then we can we can move forward with a plan.
00:15:13
Speaker
Absolutely.
Does Medicare Cover Long-Term Care?
00:15:14
Speaker
Now, our next myth I'm going to let you take because I know it's a passion of yours. And that is, you know, the topic of long-term care. Right. Right. it's ah It's a passion of mine because so many of my friends and so many people in my family, including myself, have dealt with relatives or loved ones that have gone through long-term care events, medical events that that maybe drug on for years, that maybe be financially drained the family, ah the one that was left over, maybe the spouse. you know that That spouse is now struggling because
00:15:53
Speaker
His wife pretty much had to go through all their savings in order to make her life comfortable. And and inevitably, you know, it does end. And then where does that leave the other family member?
00:16:06
Speaker
Sometimes it leaves them devastated financially, emotionally, of course. So because I have lived it myself with a family member, I have so many friends that have gone through this, that when the insurance companies came out with investments that will help cover those long-term care events, and I'm not talking about a standalone long-term care policy,
00:16:36
Speaker
They're sometimes very difficult to get, and they can be expensive. I'm talking about an investment with long-term care features built in. When the insurance companies came out with that quite a few years ago, my eyes lit up. my My heart opened up because it was, this is an answer.
00:16:58
Speaker
This is a solution. This can help so many people. and I have multiple policies like that for my own self.
00:17:10
Speaker
I want to be able to pay for my care. I want to be able to direct it. I don't want to be a burden on my family. I don't want to be that financial burden. and And when you know when someone's going through a long-term care event,
00:17:25
Speaker
It's not just a financial burden. You know, it is people putting their lives on hold, family members usually. And ah it's an emotional, it's it's draining.
00:17:37
Speaker
So when people come to us and they tell us that Medicare is going to cover their long-term care. and That is a big myth.
00:17:49
Speaker
Medicare will not, that we wouldn't have a Medicare system. No, it would be. It would be broke. If it was caring for people you know into their 90s or 100 years old, it just would never be able to sustain that.
00:18:06
Speaker
So Medicare will cover your hospital bill, your doctor bill, surgeries, but it does not go into any type of extended care.
00:18:17
Speaker
It will never cover any of that. it will cover the medical portion, maybe medicines. But um people need to... think what they're thinking of and maybe confusing it with is Medicaid.
00:18:31
Speaker
So Medicaid is totally different. is entirely different. And you do not want to be on Medicaid. No. Because to be on Medicaid, you have to have a net worth of $2,000 or less. Yeah.
00:18:42
Speaker
That's worst case scenario. That is not a plan. That's not a plan. No. that is That is, you know, unfortunately, people sometimes find themselves having to go on Medicaid.
00:18:54
Speaker
And it's not the most pleasant environment to be in. the The treatment is is usually government-run facilities, and it's not it's not what most of us would want for our our end-of-life days.
00:19:07
Speaker
So let's have a conversation. If people need some type of added information, money to pay for care.
00:19:18
Speaker
We never know. But it can be there as that safety net. And it can be an investment because Medicare is not going to cover it. So true. Yeah, thank you for sharing that.
Should You Sell Stocks When the Market is Down?
00:19:30
Speaker
Now, shifting gears a little bit, I want to talk about a myth or two regarding the stock market. And myth number one is that you should sell when the market is in trouble.
00:19:43
Speaker
huge mistake. We all know the buy low, sell high philosophy, and that's how you make money in the stock market. And so, you know, why would you sell when it's low?
00:19:55
Speaker
And it's it's the reason why is it's an emotional thing. We hate seeing you know, so much of our money, we feel like running through our fingertips, even though it's not, you know, it's not a legitimate gain or loss until you actually do make that sale. But instinctively, we want to cash out when we see the market starting to go down.
00:20:17
Speaker
And then what does everyone want to do when we're having a great year in the economy? You know, the 2017s of the world. I got to get in the market. I'm getting in the market. I'm buying in. Okay, well, you're buying high. That's not as big of a mistake as selling low.
00:20:31
Speaker
But part two of that myth is that if I lose 25%, twenty five percent I just need to make 25% again to get back even.
00:20:42
Speaker
We are mathematicians, but that's simple math, and it's not true. If you lose 25% in the market, you know, and you make a sale or whatever the case may be, the true return that you actually need to get back to where you started is 34%.
00:20:59
Speaker
is that? It's not 25%. and why is that Well, let's think about it. You know, if you have $100,000 and you lose 25%, you're down $75,000. 25% $75,000 not going to get you back that $100,000 because it's based on smaller number You actually need 34% to get you back that $100,000.
00:21:14
Speaker
twenty five percent of seventy five thousand is not going to get you back to that hundred because it's based on a smaller number now you actually need thirty four percent to get you back to that hundred When have you seen the market come back at 34%?
00:21:28
Speaker
thirty four percent ah Hardly ever. mean, the S&P's average rate of return throughout the last 30 years is about 9% a year. And so, you know, those years where we see 20, 25, 30, 35%, they do happen, but they're the norm And you know it goes back to, obviously, you don't want to make a sale when the market is down and then you know wait to get back into the market until it's up again.
00:21:58
Speaker
That's a terrible mistake. But you know you also don't want to stay in the market when you're approaching or in retirement. You don't want to have all of your money in the market because if you experience that kind of loss and couple it up with you know a withdrawal that you're using to pay your bills,
00:22:18
Speaker
The reality is it's going to be a really hard time to get back to where you started. And you don't want to be climbing out of that hole, especially in retirement.
00:22:29
Speaker
You know, it's all about having that diversified plan. We don't want to have 100% exposed to market volatility. And we don't want to have 100% in a totally safe investment either. We want to have a nice blend and adjust that as we go through our life.
00:22:46
Speaker
Right. Once again, you need a professional to help you along the way. Yeah. Because every stage of life is different. Every stage requires different types of investments.
00:22:58
Speaker
And to to go alone to do that is sometimes a little daunting. Yeah. You know, and and strategies need to change over time, too. You know, that accumulation phase Maybe, you know, the strategies that you've had, the investments you've had have worked really well.
00:23:17
Speaker
But once you cross over into that distribution phase of your life when you are retired and you're no longer putting that money away, you're actually pulling it out. That strategy needs to be totally different. And that's so contrary to what our minds have taught us over the years.
00:23:36
Speaker
You know, we're we're so used to saving, accumulating, building that nest egg, climbing that mountain. And then when we have to go down the other side of the mountain, it can be extremely challenging.
00:23:50
Speaker
And it can frightening. think hikers would agree with that, too. You know, going down right the mountain is probably more dangerous. Right. Mm hmm. If you need a little help going down that mountain and being able to take a slow and steady pace so that you don't run out and fall. Mm hmm.
Is Keeping Money in Banks Safe Enough?
00:24:09
Speaker
Now, recently, we've had some decent rates with high yield savings accounts, and that's wonderful. And they probably will be changing soon.
00:24:20
Speaker
So now is the time to talk about how how safe is it to have your money in the bank. Because the myth is that the bank is the safest place for my money. Right. Besides underneath my mattress. Right.
00:24:34
Speaker
So now we all know about the Great Depression. Yes, it was many, many years ago. But during the Great Depression, brief depression the banks failed.
00:24:46
Speaker
The banks, people went to go withdraw their money, and the banks did not have enough money to pay out all the all their customers. So that was a big problem. Now, in came the FDIC many years ago, and the FDIC...
00:25:03
Speaker
is an insurance company and it will insure each individual for 250,000. Now that 250,000 can be in savings, it can be ah an accum, it will be an accumulation of all of your accounts, whether you have CDs, ah savings account, checking account, the max you are insured for 250,000.
00:25:27
Speaker
is two hundred and fifty thousand And the bank has many, many years to pay you back that $250,000 if, in fact, the bank would fold. Now, highly unlikely because there are so many other banks that would take over and bail out. I mean, it's probably never going to happen again. I hope it will never happen again.
00:25:49
Speaker
But let's get back to that FDIC. That is an insurance company.
00:25:56
Speaker
We like to go directly to the insurance company with our investments because we we know that that insurance company is solvent. they are They are scrutinized on a daily basis.
00:26:10
Speaker
And so having your money invested with an insurance company is pretty smart. Yeah, I mean, you know, the insurance companies are the ones that really got us out of the Depression.
00:26:21
Speaker
Yes. They were the only companies that survived the Depression, kind of thrived, actually. And, you know, to be able to go right to the source and maybe cut out that middleman and, you know, go right to the only thing that is adding protection to the banks, which is the insurance company.
00:26:40
Speaker
Yeah, you know, I'm just going to go straight to the source. Mm-hmm. with a portion of my money obviously you have to keep some in the bank and sure you have to you know have your checking account for your bills and whatnot i i like taking advantage of a high yield savings account as well but you don't want to have all of your money in the bank that is not safe no and that is a myth it is a myth and and this is just a little tip that is alongside speaking of banks Your bank account needs a beneficiary or multiple beneficiaries.
00:27:15
Speaker
Banks do not ask you when you open an account Our bank does not anyway. Most people that I tell this to, they say, I don't think I have a beneficiary on my bank account.
00:27:27
Speaker
They call it a COD form, right? and Transfer on death. Yeah. Go to the bank and add your beneficiary. Because if you die and you have that $250,000 in the bank account or in multiple bank accounts,
00:27:43
Speaker
That will wind up in probate. You need to add it. and And so many people that we speak to don't have one on there. And after meeting with us, they say, I i went to my bank.
00:27:56
Speaker
And guess what? I didn't have a beneficiary. So just little. Take one thing from this episode. Just a little tip. Do that. It's very important. Yeah. And I was shocked because I got caught in that.
00:28:07
Speaker
Mm-hmm. And i pride myself on being very, very studious with my beneficiaries. I did not have a beneficiary on my bank account. I do now.
00:28:18
Speaker
Yeah. Yeah, that's a really good tip.
Is Life Insurance Only for Income Earners?
00:28:22
Speaker
All right. So I want to go through two more myths. And, you know, this one is that.
00:28:30
Speaker
It's pretty common, and you might be thinking it yourself while you're listening to this, and that is that life insurance is only for wage earners. Say if there is stay-at-home mom that has three kids, age one, three, and five.
00:28:47
Speaker
They are all at home with that mom. Now, what if something tragic happens to that mom and she passes away?
00:28:59
Speaker
Well, that father now has to pay for childcare, pay for someone to handle all the household hold duties.
00:29:10
Speaker
There is a definite monetary price on all of that all of those chores that that stay-at-home mom does, including the childcare, which is expensive.
00:29:23
Speaker
I mean, tens of thousands of dollars we hear for a month. think the average daycare is about $10,000 year per child. a year? or child Per child. Okay.
00:29:34
Speaker
And that's just the average, I mean, depending on which state you're in. And then even when they go to school, well, you might need tutoring. You might need transportation to and from school. I mean, the cooking, the cleaning, the laundry, it goes on and on. Mm-hmm.
00:29:49
Speaker
Just because in in your mind there was no monetary value does not mean that is true. Just because there was no paycheck coming in. But when that money has to go out, it needs to come from somewhere.
00:30:02
Speaker
So both parents need to be covered with life insurance. yeah maybe not equal amounts, but let's talk about what amount makes sense. um you know and And part two of that myth is that I have enough coverage already through my workplace insurance. um you know Oftentimes that is only one, maybe two times your salary.
00:30:29
Speaker
And so then what? What happens when you leave that job? That too. I mean, first of all, i don't even think it's enough to begin with. Right. Because one or two times your salary is not going to take care of your family very long. Right.
00:30:41
Speaker
But then, yeah, if you leave that job in your 40s or 50s or 60s and you're no longer insurable, You lost your life insurance, and you might not be able to get improved approved for one on your own, or it's too expensive at that point.
00:30:57
Speaker
um So just because you have a benefit through work doesn't mean it's sufficient. Right. So there are a lot of myths surrounding life insurance. A lot. We can talk about it for an hour. Yeah, we we could. Yeah. Absolutely.
Managing Your 401(k) After Leaving a Job
00:31:10
Speaker
We won't.
00:31:11
Speaker
No. Okay. um You know, and so then the last one I want to touch on today kind of also in that same conversation of of your employer, but that's the myth that my former employer is managing my four o one k Your former employer. My former employer. Oh, so when you leave a job.
00:31:32
Speaker
But, you know, it's with Voya or it's with Vanguard or Empower. And, you know, I had a good relationship with the employer in the HR department and it's done really well so far. And so I'm just going to leave it there. They're managing it.
00:31:46
Speaker
That's a big myth, and that's a big mistake on many levels. We meet with too many people that have and multiple 401ks with former employees employers, i'm sorry and they don't know where they are.
00:32:03
Speaker
They have no idea what the cost is to have that 401k still with that company. They have no idea what the performance is. And do you really think that someone in that office is concerned with a former employer employee's 401k? Are they actively managing it? No.
00:32:25
Speaker
No. Are they calling you to make sure that your beneficiaries are updated, that your address is always updated? no no course not. No. it's kind of It's kind of in that dead file. It's just off to the wayside, and and it's not really doing you any good.
00:32:43
Speaker
You need to consolidate all of your four ah one case from previous employers, and you can put that right into an IRA where you have control, you have choices, you have benefits that that may not be available in any other plan.
00:33:02
Speaker
So let's not leave those four ah one case No, no matter how good you think the performance is. And even if you like the funds it's invested in, you know, oftentimes when we meet with clients and we open up that individual retirement account IRA, we can move the funds over from your 401k. And if you want to keep those same Vanguard funds or, you know, whatever the holdings are, it can be moved like to like. But now you at least have eyes on it.
00:33:31
Speaker
hmm. We might be able to lower the fees because, man, 401ks carry fees. right And you have more choices if and when you do want to make changes. um And so it's a no-brainer. You should never leave a 401k behind when you leave
Encouragement to Question Financial Myths
00:33:47
Speaker
a job.
00:33:47
Speaker
Right. And just once again, it's a simple process. yeah And that's probably the number one reason that we do it don't do it. We do all the work. They think they have to call their former boss.
00:33:59
Speaker
yeah They do not. This is this is taken care of company to company. And it's a very easy process. And like you said, we do it. Yeah. and We don't charge to do it. You know, we it's a very seamless process that we do all day long.
00:34:12
Speaker
um But I would say, yeah, that is a huge myth and a huge mistake and one that can easily be resolved. You know, so if if you're thinking right now, well, I did leave that employer years ago.
00:34:27
Speaker
What happened to that investment? Even if it's only a couple thousand in there, you know, let's have that conversation and help you out with that. Right. it's So with all of these myths, I think that there's probably one or two that a few of our listeners have said, i think that's me doing that.
00:34:47
Speaker
Or I think that was what I believed. And hopefully we can maybe make some progress in just explaining some things and and helping you out with Maybe some of these questions that you didn't know to ask or that you thought weren't proper to ask.
00:35:06
Speaker
There's no silly question. There's no myth that is so unbelievable. You're not alone in believing these things. So let's have a conversation.
00:35:17
Speaker
Yeah. I mean, and I guarantee you're all going to laugh now next time you see a yield sign. You're going to take a closer look at it and you're going to laugh and you're going to say, you know what? Yeah. Not everything I believe is always true. That's great.
00:35:29
Speaker
So, you know, that's it was a fun episode to have. Lisa, thank you again for coming on. Always. It's always a great time. you. And, you know, I love working side by side with you with our clients every day. As do Mm-hmm. And for everyone listening, if you have a question that you would like answered or something today sparked your interest, feel free to go to our website, union-financial.com.
00:35:52
Speaker
You can click schedule a meeting and that'll take you right to our personal calendar where you can book a time to have a conversation with either myself or Lisa. And for everyone watching, we look forward to seeing you again on the next episode of the Future of Finance podcast.
00:36:07
Speaker
And we can't wait to help you live a better financial future.
00:36:12
Speaker
Investment advisory services offered through Brookstone Capital Management, LLC, a registered investment advisor. BCM and union financial services are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents.
00:36:27
Speaker
The opinions expressed by Marissa Wood and guests on this show are their own and do not reflect the opinions of this radio station. All statements and opinions expressed are based upon information considered reliable, although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Investments involved risk and otherwise stated are not guaranteed. Past performance cannot be used as an indicator to determine future results. Any strategies mentioned may not be suitable for everyone. Information expressed does not take into account your specific situation or objectives and is not intended as recommendations appropriate for you. Before acting on any information mentioned, please consult with a qualified tax or investment advisor to determine if it's suitable for your specific situation. This program is designed to provide accurate and authoritative information with regard to subject covered. Indexed or fixed index annuities are not designed for short-term investments and may be subject to caps, restrictions, fees, and surrender charge as described in the annuity contract.
00:37:24
Speaker
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00:37:43
Speaker
Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company and are not offered by Brookstone.