00:01:19 Mario Iniguez
Hello, and welcome.
00:01:20 Mario Iniguez
You have found the right spot if you're wanting to learn about building your financial future.
00:01:26 Mario Iniguez
I am one of two hosts today, Mario Iniguez, about twenty years of helping people build in financial wealth, financial advisor for NFP alongside my partner in crime, Jesus.
00:01:37 Mario Iniguez
Later, Garzon, how are we doing?
00:01:40 Jesus Lira-Garzon
Hey, Mario.
00:01:41 Jesus Lira-Garzon
A pleasure being with you.
00:01:43 Jesus Lira-Garzon
Nice being here today.
00:01:44 Jesus Lira-Garzon
First of all, thank you everybody to join in, joining us.
00:01:48 Jesus Lira-Garzon
As Mario said, my name is Jesus, Jesus Lida Garzon.
00:01:51 Jesus Lira-Garzon
I am a financial coach with NFP.
00:01:53 Jesus Lira-Garzon
A little bit over five years of experience.
00:01:56 Jesus Lira-Garzon
A little bit less than Mario.
00:01:58 Jesus Lira-Garzon
Mario is well experienced here.
00:02:00 Jesus Lira-Garzon
But, yeah, I'm a pleasure sharing, co hosting today with you.
00:02:05 Jesus Lira-Garzon
How you been, like
00:02:06 Mario Iniguez
This is this is great.
00:02:07 Mario Iniguez
We're really excited for everybody to be with us today, and we're we have a jam packed agenda that is a little bit of everything, which has me thinking of my Spanish roots with it being Hispanic Heritage Month.
00:02:18 Mario Iniguez
I'm so happy Hispanic Heritage Month to you, Jesus.
00:02:21 Jesus Lira-Garzon
Thank you.
00:02:21 Jesus Lira-Garzon
Yes.
00:02:22 Jesus Lira-Garzon
Honestly, that that's something that I learned, when I moved to the to The US that it was so important, celebrating this week this month.
00:02:31 Jesus Lira-Garzon
And, because, you know, it goes way beyond than just remembering or honoring this, our culture.
00:02:38 Jesus Lira-Garzon
But it goes also as well for the contributions that we as as Latino has given to this, to this culture and country.
00:02:45 Mario Iniguez
Yes.
00:02:45 Mario Iniguez
Absolutely.
00:02:46 Mario Iniguez
If everything from music to food
00:02:49 Jesus Lira-Garzon
Wood.
00:02:50 Mario Iniguez
To art.
00:02:52 Mario Iniguez
I'm I'm getting hungry.
00:02:53 Mario Iniguez
It's lunchtime, so I'm thinking the top of the video would be great to eat right now.
00:02:57 Mario Iniguez
Or my wife was eating some menudo last night.
00:02:59 Mario Iniguez
So we hope everybody, has a chance to enjoy and partake in some of the festivities in your local community, which I'm sure there are.
00:03:07 Mario Iniguez
Where do you find yourself today, Jesus?
00:03:09 Mario Iniguez
I know you're traveling.
00:03:11 Jesus Lira-Garzon
Yes.
00:03:11 Jesus Lira-Garzon
I'm traveling.
00:03:12 Jesus Lira-Garzon
Actually, today, I am in Orlando.
00:03:14 Jesus Lira-Garzon
We are having some one on one meetings with some of our participants on-site.
00:03:19 Jesus Lira-Garzon
So, yeah, I'm traveling today.
00:03:20 Jesus Lira-Garzon
What about you?
00:03:21 Jesus Lira-Garzon
You home?
00:03:22 Mario Iniguez
It's it's I am not traveling.
00:03:24 Mario Iniguez
This is the the call before the storm.
00:03:26 Mario Iniguez
My traveling doesn't pick up till next week.
00:03:28 Mario Iniguez
It'll end at the November.
00:03:29 Mario Iniguez
So I'm trying to prep everything for all my trips over these next like eight weeks.
00:03:34 Mario Iniguez
I happen to be in Northwest Austin, ATX.
00:03:37 Mario Iniguez
I know South by Southwest is going on.
00:03:39 Mario Iniguez
So everybody who wanted to join today's building your financial future, but that couldn't because they're they're making their South by Southwest plans and all the festivities going on downtown.
00:03:49 Mario Iniguez
And what we thought, so, yeah, thank you for asking me about that.
00:03:53 Mario Iniguez
And I'm sure people are just wanting to itch itching to think about what's going on in the market and everything else.
00:03:58 Mario Iniguez
So we thought we'd give everybody a little bit of a market catch up as far as what's going on to so shifting gears a bit here, today marks the eighth day of the government shutdown.
00:04:07 Mario Iniguez
And so this marks the last government shutdown that happened since, like, 2018, 2019.
00:04:12 Mario Iniguez
That one lasted about thirty five days.
00:04:15 Mario Iniguez
And so everybody's asking, like, what impact will there be?
00:04:18 Mario Iniguez
What's going on?
00:04:18 Mario Iniguez
And and, honestly, there's been a lot of the the inflection or the hinge point to this particular government shutdown has to do with a stall where democrats are holding out trying to get these subsidies, which are part of the Affordable Care Act, which are set to expire by the end of the year.
00:04:36 Mario Iniguez
And and they're saying, let's talk about it now instead of opening the government and delay talking about it.
00:04:41 Mario Iniguez
Has any of this government shutdown hit any of your conversations, Jesus?
00:04:45 Jesus Lira-Garzon
Well, yes and no.
00:04:47 Jesus Lira-Garzon
So, honestly, people, it seems they are a little bit too worried a little bit about the the insurance.
00:04:53 Jesus Lira-Garzon
They are unsure how is it gonna be impact, the impact when it comes to insurance if maybe premiums going up.
00:05:01 Jesus Lira-Garzon
We don't know yet.
00:05:02 Jesus Lira-Garzon
We don't know yet until the the negotiation is completed.
00:05:06 Jesus Lira-Garzon
What I can tell you from my personal experience, at least, yesterday that I was traveling, my flight was delayed, I wanna say maybe, like, four fifty good minutes.
00:05:16 Jesus Lira-Garzon
It was, yeah, almost an hour delay.
00:05:19 Jesus Lira-Garzon
So we know that there are some, impacts on our day to day lives.
00:05:24 Jesus Lira-Garzon
But, yeah, when it comes, I would say, financially, what I've been asking more, it's what's gonna happen with my with my insurance.
00:05:31 Jesus Lira-Garzon
Particularly, I mean, one of the topics that we do have in our agenda today is going through the, benefit season.
00:05:39 Jesus Lira-Garzon
And this benefit season for everybody is is approaching.
00:05:42 Jesus Lira-Garzon
So they want to know what is gonna happen when it comes to the their
00:05:45 Mario Iniguez
I wanna know.
00:05:47 Jesus Lira-Garzon
Bill, yes.
00:05:48 Jesus Lira-Garzon
No.
00:05:48 Jesus Lira-Garzon
Totally.
00:05:49 Jesus Lira-Garzon
Right?
00:05:51 Mario Iniguez
Yeah.
00:05:51 Mario Iniguez
That makes a great point there.
00:05:52 Mario Iniguez
And it's interesting you have a personal even personally affected by the shutdown because there have been some major delays at some of the major airports because of the essential employees, which are air air traffic controllers.
00:06:03 Mario Iniguez
And those those are federal employees and having enough of them.
00:06:06 Mario Iniguez
I did see recent recent article this morning that there's been a spike in those calling out either for sick or unpaid time, you know, using their time and their bank or just not coming to work for whatever reason they listed.
00:06:19 Mario Iniguez
I saw a spike in that.
00:06:21 Mario Iniguez
You know, it is interesting.
00:06:22 Mario Iniguez
So, yeah, the premium thing you're talking about is one of the biggest, and we're gonna talk more about that in a bit.
00:06:28 Mario Iniguez
All of this has also been impacted the government shutdown.
00:06:30 Mario Iniguez
There's supposed to be a jobs report that was supposed to be released last week.
00:06:33 Mario Iniguez
It didn't get re released.
00:06:35 Mario Iniguez
It hopefully gets released in November.
00:06:37 Mario Iniguez
Another point on this too is there's a military paycheck that's due on October 15.
00:06:42 Mario Iniguez
That may not happen.
00:06:44 Mario Iniguez
It may not happen if, this doesn't get resolved.
00:06:47 Mario Iniguez
And so that's something also we're keeping a, keeping a track on.
00:06:51 Mario Iniguez
You know, something also like on the economy, it slows down gross gross domestic product, GDP growth in US.
00:06:58 Mario Iniguez
Because when you have people not getting paid, so employees that are furloughed, working without getting paid, that's what that means, then then that's money they're not getting that they can't put back into the economy.
00:07:09 Mario Iniguez
Yep.
00:07:09 Mario Iniguez
So good chunk of our economy, how it's dependent on running is people getting paychecks and then spending that money back in The US economy.
00:07:17 Mario Iniguez
And so if people aren't getting paid, it it is gonna it has a chance to like the last government shutdown back in 2018, 2019 to slow down GDP growth, which may not be a necessary thing you wanna do because the job report the job reports we've been getting have been a little bit dismal and weak, throughout the year, despite certain things like the Fed rate.
00:07:36 Mario Iniguez
So the Fed rate cut that we had back in September, quarter of a point.
00:07:41 Mario Iniguez
So we had yes.
00:07:42 Mario Iniguez
So the the the slow jobs report, you know, that could be good because sometimes the the White House really wants a good favorable jobs report, so maybe releasing it in, in November could help them, like, for optics and narrative and controlling the messaging and all that.
00:07:56 Mario Iniguez
But then you have on the February side, there's supposed to be about two more cuts potentially up to 80% likely.
00:08:03 Mario Iniguez
I know I was reading a JPMorgan report that said they're they're expecting two more rate cuts, and that could drop it again another half a point for the year.
00:08:12 Mario Iniguez
So that could be beneficial for some people.
00:08:14 Mario Iniguez
Maybe they're living in the in the business, in the market of buying a home.
00:08:17 Mario Iniguez
Exactly.
00:08:18 Mario Iniguez
In the car market.
00:08:19 Mario Iniguez
Right?
00:08:20 Jesus Lira-Garzon
You know what?
00:08:20 Jesus Lira-Garzon
That that that was also a conversation that I had, the beginning of this week, because I I was in a in a in a couple of one on ones meetings with another client, and they were they were wondering that.
00:08:31 Jesus Lira-Garzon
They were wondering if the rates are gonna be lower because they just bought a house, and they are planning to maybe Right.
00:08:37 Jesus Lira-Garzon
Refinance once the the, the interest are going low.
00:08:42 Jesus Lira-Garzon
And part of the conversation was that part of the conversation was that it seems that it it will be.
00:08:49 Jesus Lira-Garzon
We've been talking about it, and and it seems that more than likely it's gonna happen.
00:08:54 Jesus Lira-Garzon
But we don't know.
00:08:54 Jesus Lira-Garzon
We don't know yet because particularly not knowing or not having that job report, they may not be sure taking that decision until we know, what other, numbers are involved.
00:09:05 Jesus Lira-Garzon
You know?
00:09:06 Mario Iniguez
Absolutely.
00:09:07 Mario Iniguez
And you wouldn't be able to tell from looking at the stock market this year that any of this has really affected it.
00:09:12 Mario Iniguez
There's been we've hit stock market highs, year to date.
00:09:15 Mario Iniguez
I was just checking this morning.
00:09:17 Mario Iniguez
The S and P is up almost 15% year to date, 14.76%.
00:09:22 Mario Iniguez
The S and P, the largest 500 companies in The United States.
00:09:26 Mario Iniguez
And if you kind of peel back into it, unpack it a bit of why that is, there's been a large spending from the large cap growth companies like your your big tech companies, Apple and Nvidia and Microsoft and, and Tesla to some degree buying up more AI infrastructure.
00:09:43 Mario Iniguez
So that includes, like, data centers, for example.
00:09:46 Mario Iniguez
And that's been a big part of the growth from the S and P side.
00:09:50 Mario Iniguez
But I'll tell you, as much as we like the S and P 500, the largest 500 companies, international markets have been just killing it this year.
00:09:57 Mario Iniguez
Yeah.
00:09:57 Mario Iniguez
So if you have any international exposure in your account, your four zero one k's, your retirement plans, your IRAs, up 25.94% year to date.
00:10:06 Mario Iniguez
You did not you did not hear me incorrectly.
00:10:10 Mario Iniguez
Hopefully, heard almost 26% year to date, And that is remarkable.
00:10:15 Mario Iniguez
And then the reason why I put such a emphasis on that, Jesus, is because for the you're going back over a decade, the international has never outpaced the S and P.
00:10:24 Mario Iniguez
It looks like it's gonna maybe close positive over the S and P for the year.
00:10:29 Mario Iniguez
So make sure you are diversified in your portfolios that you whether you're 20 or you're 65, that you have some international and you're risk appropriate.
00:10:39 Mario Iniguez
Are are you kinda blown away by all the stock markets just kinda taken out?
00:10:42 Mario Iniguez
Totally.
00:10:43 Jesus Lira-Garzon
And part of the conversations that I have had is that why the market is showing that, like, those big numbers and those high numbers when the economy seems to be getting slowing down, you know.
00:10:57 Jesus Lira-Garzon
And definitely, something that that you mentioned, technology.
00:11:00 Jesus Lira-Garzon
Technology is that it's been a big motor with the, when it comes to the the economy and particularly with the markets, you know.
00:11:08 Jesus Lira-Garzon
And, and something that you mentioned and that I just want to reinforce that idea is the importance of having our portfolio diversify so we can take advantage of different markets, of different, I don't know, like, behaviors, some different type of companies.
00:11:26 Jesus Lira-Garzon
Definitely, that is totally, like, key when it comes to our, our portfolios.
00:11:33 Jesus Lira-Garzon
And, I don't know if the people that is, is watching, you have noticed, but right there on your screen, you are seeing a banner.
00:11:40 Jesus Lira-Garzon
You can schedule a one on one sessions.
00:11:42 Jesus Lira-Garzon
If you want to review or to double check your account, your retirement account, your 401K, feel free to reach out.
00:11:50 Jesus Lira-Garzon
We are more than happy to help you out.
00:11:52 Jesus Lira-Garzon
Because as Mario said, the importance having that, your account diversified, it will allow you to take advantage of these, of these different markets.
00:12:01 Mario Iniguez
Yeah.
00:12:02 Mario Iniguez
I I couldn't agree more.
00:12:03 Mario Iniguez
I did I had a gentleman I spoke to.
00:12:04 Mario Iniguez
All he had was the S and P 500.
00:12:07 Mario Iniguez
And I said, how long have you been in only this fund?
00:12:10 Mario Iniguez
He goes, for several years.
00:12:11 Mario Iniguez
I go, well, you're missing out on international growth, and you're also missing out on small mid cap companies in The US as well.
00:12:18 Mario Iniguez
He goes, why would I wanna do that?
00:12:19 Mario Iniguez
I go, the diversification does a couple of things for you.
00:12:22 Mario Iniguez
It does one, it helps you pick up growth when other markets are doing well.
00:12:26 Jesus Lira-Garzon
Mhmm.
00:12:26 Mario Iniguez
It also helps minimize the risk and volatility on the portfolio.
00:12:29 Mario Iniguez
If you're only invested in one sector of the economy, you're solely dependent on what that's evident flowing, that up and down.
00:12:36 Mario Iniguez
So, Jesus makes a really good point here.
00:12:38 Mario Iniguez
If you have not reached out to a financial pro, do so.
00:12:41 Mario Iniguez
I know Kelly, our our producer in chief here, she has our contact information, both Jesus and I, and she's gonna list that.
00:12:48 Mario Iniguez
So make sure you you see that, you pull it as well as the NFP that goes to our team as well.
00:12:55 Mario Iniguez
You know, one more thing I'll say on the on the stock market thing, I was reading another something else about the tariffs because it gives you haven't really been hearing so much about the tariffs with the government shutdown now on day eight.
00:13:05 Mario Iniguez
And something that I found that was interesting is they delayed one of the tariffs that was supposed to be in effect on 10/01, October 1, and that was for trucks that were being imported.
00:13:15 Mario Iniguez
So when when will that take effect?
00:13:17 Mario Iniguez
Will it be pushed and what will it be, right?
00:13:19 Mario Iniguez
Because maybe the rate will be changed again on the tariffs.
00:13:22 Mario Iniguez
So I thought that was pretty interesting, which kind of blends well.
00:13:25 Mario Iniguez
So you were talking about the season coming up.
00:13:28 Mario Iniguez
Companies are all trying to get into the black.
00:13:30 Mario Iniguez
We have retail season.
00:13:32 Mario Iniguez
We have holiday season.
00:13:34 Mario Iniguez
Jesus and I thought we'd be it'd be good to open up this talk topic with a question for everybody.
00:13:38 Mario Iniguez
And the question is this, if you came in to $5,000 you just they put it right in your hand right now, What would you do with it?
00:13:48 Mario Iniguez
What's your first move here?
00:13:50 Mario Iniguez
We put some potential choices here, hopefully to tantalize you.
00:13:55 Mario Iniguez
Option a, take a trip.
00:13:57 Mario Iniguez
Option b, pay down some debt.
00:13:59 Mario Iniguez
C, add the savings.
00:14:01 Mario Iniguez
D, invest for the future.
00:14:03 Mario Iniguez
E, spend on the holidays.
00:14:05 Mario Iniguez
And while you're keying in your, what what you would do I'll I'll kick it to Jesus.
00:14:09 Mario Iniguez
I'm interested, Jesus.
00:14:10 Mario Iniguez
What would you do if someone just put $5 in your hand right now?
00:14:13 Jesus Lira-Garzon
Honestly, I would say, option a.
00:14:17 Jesus Lira-Garzon
I would take a 9.
00:14:19 Jesus Lira-Garzon
You just say where's it going?
00:14:22 Jesus Lira-Garzon
So let me tell you.
00:14:24 Jesus Lira-Garzon
I have been trying to go and some reason or one reason or another, I'd say Brazil to the carnival because it's coming this, this February.
00:14:32 Jesus Lira-Garzon
Oh.
00:14:33 Mario Iniguez
So I would I would take that.
00:14:36 Mario Iniguez
I am tempted.
00:14:37 Mario Iniguez
If if there is room for two on this trip and I can spend my $5, I'd wanna go with you to the the carnival over there in Brazil.
00:14:44 Mario Iniguez
It's Rio De Janeiro.
00:14:45 Mario Iniguez
Right?
00:14:45 Mario Iniguez
Is this right?
00:14:46 Jesus Lira-Garzon
Or is it Rio De Janeiro?
00:14:47 Mario Iniguez
Yes.
00:14:48 Mario Iniguez
Oh, I've never been.
00:14:49 Mario Iniguez
That'd be a bucket list item.
00:14:51 Mario Iniguez
So that'd be my my, my, impulsive decision is just to go.
00:14:57 Mario Iniguez
My wife would probably not like it.
00:14:59 Mario Iniguez
I have I have my three, five, and 13 year old that I leave behind, but my my heart is pulling to to Rio De Janeiro.
00:15:06 Mario Iniguez
My my wealth management part of my brain that I've grown and developed over these last twenty years Looks at maybe savings, maybe invest for the future.
00:15:16 Mario Iniguez
Okay.
00:15:16 Jesus Lira-Garzon
Yeah.
00:15:17 Mario Iniguez
Yeah.
00:15:18 Mario Iniguez
So that's that's something to kinda I kinda go to c and d on that.
00:15:22 Mario Iniguez
And I I wonder if anybody has popped in any decisions in the chat.
00:15:25 Mario Iniguez
Kelly, let us know.
00:15:27 Mario Iniguez
Seems that
00:15:28 Jesus Lira-Garzon
we do have some here.
00:15:30 Jesus Lira-Garzon
This says Emily would choose b, c, and d.
00:15:33 Jesus Lira-Garzon
Great.
00:15:33 Jesus Lira-Garzon
Well, hey.
00:15:35 Mario Iniguez
Look at that.
00:15:36 Mario Iniguez
That's a bit a mess.
00:15:37 Jesus Lira-Garzon
Yeah.
00:15:38 Jesus Lira-Garzon
Definitely.
00:15:40 Mario Iniguez
And the link is populated too.
00:15:41 Mario Iniguez
What else you got?
00:15:43 Jesus Lira-Garzon
Then would take a trip?
00:15:45 Mario Iniguez
I'd like that.
00:15:46 Mario Iniguez
Trip.
00:15:46 Jesus Lira-Garzon
Yep.
00:15:48 Jesus Lira-Garzon
Yeah.
00:15:48 Jesus Lira-Garzon
Yeah.
00:15:49 Jesus Lira-Garzon
And it seems that Christine, she will pay down some debt.
00:15:54 Mario Iniguez
So this this is really good.
00:15:56 Mario Iniguez
So what I would tell people is if you are answering the question with multiple options, that's a really good sign of financial maturity.
00:16:05 Mario Iniguez
Exactly.
00:16:05 Mario Iniguez
We we really try on the financial space to try to live in the moment, but also think about the future.
00:16:12 Mario Iniguez
And, you know, that's one of the muscles you try to grow as through your adolescence as a young adult.
00:16:17 Mario Iniguez
You you don't wanna be you wanna grow a muscle.
00:16:20 Mario Iniguez
Like, you wanna spend wisely.
00:16:21 Mario Iniguez
You wanna invest wisely.
00:16:22 Mario Iniguez
You wanna save wisely.
00:16:24 Mario Iniguez
And the way to do that is have a well rounded relationship with money.
00:16:28 Mario Iniguez
These are some what else do you see in the chat there?
00:16:30 Mario Iniguez
This is I see, Cheryl will add to savings.
00:16:34 Jesus Lira-Garzon
Patricia will invest and spend on holidays.
00:16:37 Jesus Lira-Garzon
Because you okay.
00:16:38 Jesus Lira-Garzon
Let me let me stop right here.
00:16:40 Jesus Lira-Garzon
Because holidays, it can be, like, super expensive.
00:16:44 Jesus Lira-Garzon
So Oh, yeah.
00:16:45 Jesus Lira-Garzon
True.
00:16:46 Jesus Lira-Garzon
And and let me just add this.
00:16:48 Jesus Lira-Garzon
Please, when you are doing your financial planning through the year, just take that into into account because it can be, like, really good amounts of money spent on holidays, and holiday season is coming up.
00:17:02 Mario Iniguez
Yeah.
00:17:02 Mario Iniguez
Just to chime in there, the for what the reason why we wanna talk about this is because it happens every year.
00:17:08 Mario Iniguez
We have Thanksgiving.
00:17:09 Mario Iniguez
It's always it's giving you the November 27.
00:17:11 Mario Iniguez
You know, whether people come to town, family comes to town, you're gonna go visit family.
00:17:16 Mario Iniguez
The the dates don't really move that much.
00:17:17 Mario Iniguez
It was something to anticipate.
00:17:20 Mario Iniguez
And so we try to get people to get out ahead of, what they were gonna do.
00:17:23 Mario Iniguez
So try to put limits on your spending.
00:17:25 Mario Iniguez
We know from the data that people when they go out to spend, they end up spending stuff up for themselves too.
00:17:30 Mario Iniguez
It's it's it's it's, you know, if I'm buying all these gifts for other people, I wanna buy something for me too.
00:17:38 Mario Iniguez
And I would say shop for deals.
00:17:40 Mario Iniguez
Get really, really good deals.
00:17:43 Mario Iniguez
Mhmm.
00:17:43 Mario Iniguez
Look for Black Friday, the Friday you know, the the day after Thanksgiving.
00:17:46 Mario Iniguez
Hold off on some of those bigger ticket items to see if you can get some really good deals through your favorite online stores or your brick and mortar stores.
00:17:53 Mario Iniguez
Make sure your dollar is being stretched the, you know, the farthest as far as getting the most bang for your buck.
00:18:00 Mario Iniguez
Do you have any other consumer tips where they're out there buying Jesus?
00:18:05 Jesus Lira-Garzon
Before before telling you that, I just wanna I just wanna mention a couple of, couple of, the the responses that we have on the chat.
00:18:14 Jesus Lira-Garzon
And Amanda said that, she did ask to happen to her, and she did actually paid off her car.
00:18:21 Mario Iniguez
Oh, look at that.
00:18:22 Mario Iniguez
I love it.
00:18:23 Jesus Lira-Garzon
Praise to that.
00:18:24 Jesus Lira-Garzon
Hey.
00:18:25 Jesus Lira-Garzon
Yes.
00:18:25 Mario Iniguez
Love it.
00:18:26 Mario Iniguez
No car payment.
00:18:28 Mario Iniguez
Love that.
00:18:29 Mario Iniguez
That That's extraordinary.
00:18:31 Mario Iniguez
Yeah.
00:18:31 Mario Iniguez
The car payment in The United States, I mean, it's over $500.
00:18:34 Mario Iniguez
People are getting $6.07, 8 year notes.
00:18:36 Mario Iniguez
So not to have a car payment is wow.
00:18:39 Mario Iniguez
It's a blessing.
00:18:40 Mario Iniguez
It's a it's a huge lift to your budget where you have more money you're retaining that can go towards other things like making yourself wealthy.
00:18:46 Mario Iniguez
You see anything else there you want to mention, Jesus?
00:18:50 Jesus Lira-Garzon
Just, Sabrina said that she will put it as a down payment on a house, and Debbie said that she will buy new windows.
00:18:57 Jesus Lira-Garzon
Woah.
00:18:58 Jesus Lira-Garzon
Nice.
00:18:58 Jesus Lira-Garzon
Yep.
00:18:58 Mario Iniguez
Hey.
00:19:00 Mario Iniguez
That could help for fuel efficient, you know, house with energy, you know, your AC costs, your heating costs, having I like that too.
00:19:07 Mario Iniguez
Yeah.
00:19:07 Mario Iniguez
Well, very cool.
00:19:08 Mario Iniguez
You know, going into this retail holiday season, have a game plan, make sure that you are you you kind of cap the spending what you're gonna do.
00:19:17 Mario Iniguez
And honestly, I I what I really love the most is just being around family.
00:19:22 Mario Iniguez
I can't tell you what I received back in 2015 for a Christmas gift or from this person, but I can remember the time I spent with that individual.
00:19:31 Mario Iniguez
Alright.
00:19:31 Mario Iniguez
And I I think, you know, although my kids would probably tell you something different if they were on this this virtual podcast as far as what they remember for Christmas, but it's really those family moments, you know, and I I would really encourage people to really, you know, spend the money on time with spend the money, getting with people, time with people.
00:19:50 Mario Iniguez
You know, that air that airfare ticket to go see your parents, to go see a sibling, that that gives you a really good connective tissue, you know, to keep to have thriving relationships.
00:20:02 Mario Iniguez
Any other any other tips you can you can pass on to people when they're out there spending?
00:20:07 Jesus Lira-Garzon
I would say just two things.
00:20:09 Jesus Lira-Garzon
And just, going back to what you just said, I can tell you from my personal experience, my my family, my mom and dad, they are all back in Mexico.
00:20:19 Jesus Lira-Garzon
And when when I started planning for holidays and so my mom always says that she doesn't want any any gift or so.
00:20:25 Jesus Lira-Garzon
She's just like, I just want you to be here.
00:20:28 Jesus Lira-Garzon
So whatever you want to spend on buying me anything, just spend it on a flight ticket and come here.
00:20:35 Jesus Lira-Garzon
I would rather to see you.
00:20:36 Jesus Lira-Garzon
So definitely, I would say quality time is the best gift that you can ever give.
00:20:41 Jesus Lira-Garzon
But if you want to give something, as Mario said, planning or taking advantage of these, sales, you know, what I do like to do is throughout the year, and I'm gonna honest I'm gonna be honest with you.
00:20:55 Jesus Lira-Garzon
I hate going shopping during season, during holiday season because it's super crowded.
00:21:01 Jesus Lira-Garzon
It's a I hate it.
00:21:04 Jesus Lira-Garzon
So what I do is throughout the year when it comes like, I don't know, like memorial sales or president's day.
00:21:11 Jesus Lira-Garzon
Throughout the day, just trying to get some, gifts here and there.
00:21:15 Jesus Lira-Garzon
So try to not to spend as much as, as much as is usual during the holiday season, as well as having just peace of mind and not being out there when it's too crowded.
00:21:26 Mario Iniguez
Yes.
00:21:26 Mario Iniguez
And you you make a good point.
00:21:28 Mario Iniguez
Like, do you wanna be a part of all that congestion and traffic?
00:21:31 Mario Iniguez
Some people thrive in it, some people wanna stay away from it, which leads us to our next question.
00:21:35 Mario Iniguez
We want to ask everybody that's that's listening or watching or both, maybe what's one thing this year you delayed in buying?
00:21:43 Mario Iniguez
What's one thing you've delayed in buying?
00:21:45 Mario Iniguez
We put some potential options here.
\00:21:48 Mario Iniguez
A, a home, b, a vehicle, maybe some jewelry, maybe some some some clothing, some wardrobe, or e, other.
00:21:57 Mario Iniguez
Feel free to put in the chat.
00:21:58 Mario Iniguez
If we're completely off base and there's something else you've delayed buying, I'll I'll start this one off.
00:22:04 Mario Iniguez
Something I've delayed buying.
00:22:05 Mario Iniguez
I've kept my my commuter car for a very long time, so I've delayed buying another vehicle.
00:22:11 Mario Iniguez
And so,
00:22:12 Jesus Lira-Garzon
you know what, Mario?
00:22:14 Jesus Lira-Garzon
Yeah.
00:22:17 Jesus Lira-Garzon
You know, some of the answers that we have had, with our previous, question, it seem maybe answer already this one.
00:22:24 Jesus Lira-Garzon
So for instance, I'm thinking that maybe Sabrina maybe Sabrina, she was she's been putting aside or, yeah, putting off buying or putting that as a down payment on a house, which is totally understandable.
00:22:38 Jesus Lira-Garzon
You know, one of the conversations that I have had with my participants is they want to wait until, let's say, for instance, the the interest rate's going down.
00:22:49 Jesus Lira-Garzon
So, of course, we are waiting for for better, like, a better conditions, maybe to buy a house.
00:22:57 Jesus Lira-Garzon
Individually, I can tell you on my own, I haven't put enough to renew my car.
00:23:04 Jesus Lira-Garzon
That's something, that as you said, it it needs to be added to the budget, and it will be like a portion an important portion of, on the budget.
00:23:17 Jesus Lira-Garzon
Well, yeah, I'd I'd just be putting off renewing my car.
00:23:20 Mario Iniguez
Yeah.
00:23:20 Mario Iniguez
That's we we were talking in preparation for today's call that, things I'm kind of curious in buying there's been some of the vehicle disruptors.
00:23:28 Mario Iniguez
There's a company called Slate.
00:23:31 Mario Iniguez
And Slate is bringing to market, it's a US based company that is a electric vehicle for a truck.
00:23:36 Mario Iniguez
It's a small truck.
00:23:40 Mario Iniguez
And people are they're taking deposits now and they're supposed to go into production next year.
00:23:45 Mario Iniguez
And, you can do you can customize it and you could they they three d print the parts.
00:23:51 Mario Iniguez
So if your hood gets dented and so I'm I'm all I'm thinking back to the first question of $5,000 a little bit, but also it coincides like you say with this question or like, what what are something you delayed buying?
00:24:03 Mario Iniguez
I try I really detest having a car payment.
00:24:05 Mario Iniguez
If all possible, I like having vehicles paid for.
00:24:08 Mario Iniguez
Because I'm a I'm a wealth manager.
00:24:09 Mario Iniguez
I'm trying to make the next dollar best saved and hold on to my cars as long as possible.
00:24:14 Mario Iniguez
I'll look do you do you see anything, Jesus, in the in the chat regarding this question?
00:24:19 Mario Iniguez
Anything popped
00:24:21 Jesus Lira-Garzon
up?
00:24:21 Jesus Lira-Garzon
Actually, you know what?
00:24:22 Jesus Lira-Garzon
If we can divert a little bit from the, from this question and the topic, I just saw a question from Mark.
00:24:28 Jesus Lira-Garzon
Okay.
00:24:30 Jesus Lira-Garzon
He asked about the Roth versus pretax.
00:24:36 Jesus Lira-Garzon
Why one versus the other?
00:24:38 Jesus Lira-Garzon
What are your thoughts?
00:24:39 Mario Iniguez
Oh, this is a really good question.
00:24:40 Mario Iniguez
I think this comes down to a couple of things.
00:24:43 Mario Iniguez
How do you wanna interact with this money in retirement?
00:24:46 Mario Iniguez
If we're if it's truly retirement savings and we're living longer, we're living two to four decades in retirement as opposed to great grandma that maybe got a decade, decade and a half at most.
00:24:55 Mario Iniguez
I would tell people you're gonna want both.
00:24:58 Mario Iniguez
Both the pretax and the rough because it gives you options.
00:25:01 Mario Iniguez
It gives you flexibility.
00:25:03 Mario Iniguez
It gives you the convenience in a in a heavy withdrawal year where you can decide, okay, that $50, it's not coming out of the pretax.
00:25:11 Mario Iniguez
I wanna maybe split it between both or maybe it only comes through the Roth.
00:25:16 Mario Iniguez
If you are looking at your retirement and you want to have heavy withdrawals and you know those heavy withdrawals if taken from pre tax would jump you into a higher tax bracket because we have a progressive tax system in The US, then having a Roth bucket to pull from is where you wanna go.
00:25:31 Mario Iniguez
Now what does this mean, contextually when you look at the application of it?
00:25:35 Mario Iniguez
I would tell people, if you have ten years to go before retirement and you've never contributed a cent to Roth, Okay.
00:25:44 Mario Iniguez
Ten years, and let's say you contribute 2,000 to Roth for ten year.
00:25:47 Mario Iniguez
That's $20.
00:25:49 Mario Iniguez
$20 in cost basis, maybe with some growth, we we kick up to 30, maybe.
00:25:53 Mario Iniguez
You're gonna have about $30 in Roth.
00:25:55 Mario Iniguez
We have some flexibility and convenience.
00:25:57 Mario Iniguez
Is that enough?
00:25:58 Mario Iniguez
And that's how we start to look at it when we're building income portfolios, taking money out.
00:26:03 Mario Iniguez
But I will be perfectly honest.
00:26:05 Mario Iniguez
I have a lot of people, especially the baby born generation, see the the true benefit of taking of having Roth in retirement because of what I just said.
00:26:15 Mario Iniguez
I mean, if everything happens, you have to get a new car, a new roof, you have to get a knee, you have to fly away fly, halfway around the world.
00:26:23 Mario Iniguez
How are you gonna do that?
00:26:24 Mario Iniguez
If it's all from the pretax side, those are all withdrawals that have to be added to your income.
00:26:29 Mario Iniguez
So that's how I really look at it.
00:26:31 Mario Iniguez
I mean,
00:26:32 Jesus Lira-Garzon
one more
00:26:33 Mario Iniguez
thing I'll say is I wanna be interested to hear what you have to say on this, Jesus, is from a wealth stand wealth standpoint, we try to get everybody to 15% contributions in their retirement plan or lose 15% household of income.
00:26:44 Mario Iniguez
So if if, if a couple is making a $100 total before taxes, we try to inch them towards 15% between the two of them.
00:26:54 Mario Iniguez
And I I don't care how they get there if it's, you know, if it's 3% pretax, 3% Roth, but they're they're having that in mind.
00:27:00 Mario Iniguez
Jesus, do you have any thoughts on this?
00:27:02 Mario Iniguez
I know you're having these conversations.
00:27:03 Mario Iniguez
So
00:27:04 Jesus Lira-Garzon
Thank you.
00:27:05 Jesus Lira-Garzon
Actually, just adding up to what you said.
00:27:08 Jesus Lira-Garzon
I guess the the the key point here, it's, the the the taxes.
00:27:13 Jesus Lira-Garzon
How you want to deal with the taxes now and how do you want to wield it, deal with the taxes in the future.
00:27:19 Jesus Lira-Garzon
Having those two having those two options or having those two buckets, it will give you the option, as Mario said, to, plan.
00:27:29 Jesus Lira-Garzon
When you are in retirement, you can plan what you get money out of.
00:27:33 Jesus Lira-Garzon
So, I mean, if you want, Mark, if you want to have, I would say, like, a more individual quest more individual answer because, of course, that depends on every single one of us.
00:27:45 Jesus Lira-Garzon
Right?
00:27:45 Jesus Lira-Garzon
Sure.
00:27:45 Jesus Lira-Garzon
It depends on income.
00:27:47 Jesus Lira-Garzon
It depends on filing status.
00:27:48 Jesus Lira-Garzon
It depends on on different different, reasons, which one will be best for your case.
00:27:55 Jesus Lira-Garzon
But feel free to reach out.
00:27:56 Jesus Lira-Garzon
We are more than happy to talk to you individually, and we can, we can help you out to identify which one is best.
00:28:04 Jesus Lira-Garzon
As a matter of fact, Mark just, also asked if Roth is exempt from RMDs.
00:28:11 Jesus Lira-Garzon
The answer is yes.
00:28:12 Jesus Lira-Garzon
As of right now, the the Roth portion, it's already exempt from IRD RMDs unless that anything else changes.
00:28:21 Jesus Lira-Garzon
But, yeah, the the Roth portion will be will be exempt from RMDs.
00:28:26 Mario Iniguez
And to give an added answer to that, to get to expand on that, if you have Roth inside your four zero one k and you retire, the move is to roll it to a Roth IRA.
00:28:39 Mario Iniguez
And that helps you get that where it's exempt from r and d.
00:28:41 Mario Iniguez
But if
00:28:42 Jesus Lira-Garzon
you leave
00:28:42 Mario Iniguez
it in your four zero one k, it's still subject to required minimum distributions.
00:28:47 Mario Iniguez
I'm checking the chat here too.
00:28:49 Mario Iniguez
There's some people actually chimed in the last question.
00:28:52 Mario Iniguez
One individual said they were they were, Christine said they were looking at, putting up new windows.
00:28:57 Mario Iniguez
Yeah, we've been.
00:28:58 Mario Iniguez
Maybe, putting off buying a new deck, delaying vacation, delaying buying a new car.
00:29:03 Mario Iniguez
I've seen that.
00:29:05 Mario Iniguez
Stephanie wants
00:29:05 Jesus Lira-Garzon
Stephanie said that she wants to ride on a lawnmower.
00:29:10 Mario Iniguez
Well, riding lawnmower, I would I would love to have one of those zero turn lawnmowers.
00:29:14 Jesus Lira-Garzon
Yeah.
00:29:15 Mario Iniguez
When I see them, I can't right now justify spending that much on a lawn mower.
00:29:22 Mario Iniguez
So I just got the push one.
00:29:23 Mario Iniguez
I as a matter of fact, that's I'll add that to the list.
00:29:26 Mario Iniguez
That's one thing I'm delayed buying.
00:29:28 Mario Iniguez
I have one of those automatic push lawn mowers, except the automatic doesn't work anymore.
00:29:33 Mario Iniguez
So I'm I'm actually pushing the automatic lawnmower.
00:29:36 Mario Iniguez
I'm I'm the force behind it.
00:29:37 Mario Iniguez
Oh my god.
00:29:40 Mario Iniguez
Looks I'm gonna I may be pronouncing it wrong.
00:29:42 Mario Iniguez
Marilee said updating her wardrobe.
00:29:44 Mario Iniguez
She's delaying on that too.
00:29:46 Mario Iniguez
Kate said at home.
00:29:47 Mario Iniguez
I I see another one with a driveway too unless I said the same thing.
00:29:50 Mario Iniguez
This is very interesting.
00:29:51 Mario Iniguez
So I I really appreciate all the candid responses candid responses in here.
00:29:56 Mario Iniguez
I know we're the benefit season around the corner.
00:29:59 Mario Iniguez
We were alluding to this earlier about health insurance, And I know some people want to talk about that, but we want to get into it.
00:30:05 Mario Iniguez
We want to go into the next question.
00:30:07 Mario Iniguez
We're gonna talk about health insurance.
00:30:09 Mario Iniguez
We're talking about life insurance.
00:30:10 Mario Iniguez
The question has to do with life insurance.
00:30:12 Mario Iniguez
How do you view life insurance?
00:30:15 Mario Iniguez
How do you view life insurance?
00:30:18 Mario Iniguez
And a, necessary, essential, b, not necessary, c, prefer to spend money elsewhere, or d, need more information to decide.
00:30:28 Mario Iniguez
Jesus, what are your initial thoughts on this question?
00:30:31 Mario Iniguez
Well, I can tell you.
00:30:34 Jesus Lira-Garzon
Life insurance, that depends on every single one of us.
00:30:39 Jesus Lira-Garzon
Of course, it's, I mean, of course, it's guaranteed that nobody will live or will live forever.
00:30:44 Jesus Lira-Garzon
Right?
00:30:44 Jesus Lira-Garzon
Definitely.
00:30:45 Jesus Lira-Garzon
And a life insurance product, definitely, it will pay that benefit when it comes, a time for us to live this this world.
00:30:53 Jesus Lira-Garzon
Right?
00:30:53 Jesus Lira-Garzon
However, when we are working on a budget planning, we just need to see what are the needs for your life insurance as well as, like, how much you need.
00:31:06 Jesus Lira-Garzon
I always like when I do have these meetings with my, with my clients and we talk about life insurance, we talk about the the importance of having a life insurance, definitely, but how is it gonna be like if it's gonna be really needed for your case.
00:31:22 Jesus Lira-Garzon
I always like to use this example thinking of somebody 25 years old, single, nobody financially depending on them.
00:31:31 Jesus Lira-Garzon
More than likely, I mean, it may be a good thing to have, but then not necessarily.
00:31:38 Jesus Lira-Garzon
But if you do have somebody depending on you financially, then definitely that definitely, that's something that you may want to be looking at.
00:31:46 Mario Iniguez
Yeah.
00:31:46 Mario Iniguez
I couldn't agree more.
00:31:47 Mario Iniguez
Yeah.
00:31:47 Mario Iniguez
If if you have dependents in your life, spouse, kids Yeah.
00:31:51 Mario Iniguez
If you're if you're no longer with them and that how they're gonna replace that income.
00:31:57 Mario Iniguez
Ideally, life insurance should help the surviving family members that were dependent on your income to be able to replace what you're no longer able to give them.
00:32:06 Mario Iniguez
That income, especially if there's young kids, hopefully to help pay off liabilities like cars, like a home, that puts the surviving surviving family members in a better position to move on forward or they're already grieving for you.
00:32:20 Mario Iniguez
And you can go about it many different ways.
00:32:22 Mario Iniguez
The the cheapest of all life insurance, the most bang for your buck is term, term life insurance, and term represents basically the word of like how many years you need to be covered for.
00:32:32 Mario Iniguez
So, for example, I have term life insurance on me.
00:32:34 Mario Iniguez
It's a twenty year term.
00:32:35 Mario Iniguez
I think I'm in what year I'm in?
00:32:37 Mario Iniguez
I think I'm in year thirteen of it.
00:32:39 Mario Iniguez
But basically, if I don't pass away, I'm trying to like, when did I get this?
00:32:42 Mario Iniguez
If if I don't pass away in those twenty years, I don't get any of the premiums that I would that I paid back that I paid into it annually.
00:32:49 Mario Iniguez
But if I do happen to pass away during those twenty years, then, my my surviving spouse, my my wife would get the, the payout to her.
00:32:58 Mario Iniguez
And that's like the biggest bang for your buck.
00:33:00 Mario Iniguez
Now you can do other bells and whistles like just whole life insurance
00:33:04 Mario Iniguez
But when you start deviating to that realm, you you start paying extra.
00:33:08 Mario Iniguez
You're gonna start paying a lot more on the premium to be able to access to it, to be able to take a withdrawal, you know, where's the money, where's the premiums going to.
00:33:18 Mario Iniguez
But if you're just looking for just pure insurance, like, term is for, like, for the price of, like, a pizza or two a month Yep.
00:33:25 Mario Iniguez
Could really cover somebody.
00:33:26 Mario Iniguez
And a lot of people have insurance through their employers as well.
00:33:30 Mario Iniguez
So
00:33:30 Jesus Lira-Garzon
And you know what?
00:33:31 Jesus Lira-Garzon
One of the comments that I am looking at the chat, it says that Kelly reminded us, that it's very expensive to bury a loved one.
00:33:39 Jesus Lira-Garzon
And, definitely, definitely, it's it's getting even more expensive, with a, with a time.
00:33:45 Jesus Lira-Garzon
And, what I always tell my participants is that if we are not having a life insurance, but if you are not in need of having a life insurance, there are some other products that, they call, like, less expenses, coverage, if I'm not wrong, that the the name, on this type of policy, which essentially will cover for your varying expenses.
00:34:07 Jesus Lira-Garzon
You know, like, if you if you are not in a in a position where you or what somebody is financially depending on you, but you don't want to put that burden on somebody else to spend when when that moment happens, there are also another, another options for you to take care of.
00:34:22 Mario Iniguez
Yeah.
00:34:22 Mario Iniguez
I'm glad we glad we talked about this.
00:34:25 Mario Iniguez
If you have not seen already in the ticker, if you're just listening to us in the car, there is, there's this passphrase we have which is boo to bad budgets.
00:34:33 Mario Iniguez
So it's a little little pun that that Kelly, our producer in chief, put together to receive your points as an employee.
00:34:40 Mario Iniguez
So it's boo to bad budgets.
00:34:42 Mario Iniguez
A little bit of Halloween pun there as Halloween is coming.
00:34:45 Mario Iniguez
You know, even just in general, we can pivot this life insurance discussion into health insurance premiums.
00:34:49 Mario Iniguez
We were talking a little bit about it earlier with the shutdown and what that all means and subsidies from the Affordable Care Act.
00:34:55 Mario Iniguez
People are having to make some really tough decisions this over the next weeks deciding what insurance do they get through their employer, high deductible, PPO, HMO, and it's you have to make a lot of decisions in a short amount of time.
00:35:10 Mario Iniguez
Dental, vision, how do you do it?
00:35:13 Mario Iniguez
And it all has to coexist with your budget, how you're forecasting for next year.
00:35:18 Mario Iniguez
And it is a bit of a wrench knowing not knowing exactly what the, the premiums are gonna be.
00:35:23 Mario Iniguez
But once you actually enroll, it'll tell you, like most employers will tell you what the actual premiums would be.
00:35:29 Mario Iniguez
It'll be it'll be interesting to see how what kinda increase there is from last year to this year.
00:35:35 Mario Iniguez
And one last thing I'll say on this, and I wanna hear your thoughts on this too, Jesus, is the like a health savings account.
00:35:42 Mario Iniguez
So a health a high deductible health plan, HDHP, that could be the tick.
00:35:47 Mario Iniguez
I know from the wealth management standpoint, we'd love health savings accounts because it's money that can grow and being invested usually after $2,000.
00:35:55 Mario Iniguez
And that's a really great way to offset out of pocket expenses when you are in retirement, which I saw one article.
00:36:03 Mario Iniguez
It's estimated up to $270,000 could be out of pocket expenses, for for soon to be retirees.
00:36:11 Mario Iniguez
So lot lot of things to consider here.
00:36:13 Mario Iniguez
What are what are thoughts you have around this topic, Jesus?
00:36:16 Jesus Lira-Garzon
I mean, honestly, HSA, they, as you said, I am a fan of those accounts because, accounts because, they are an extraordinary vehicle for you to save on save on taxes, for you to save money, as you said, for your retirement, for your medical expenses.
00:36:31 Jesus Lira-Garzon
And as long that those expenses are, qualifying expenses, you will ever you will never pay pay taxes on this money.
00:36:40 Jesus Lira-Garzon
So I'm a totally fan of the high I mean, the the, HSA accounts.
00:36:45 Jesus Lira-Garzon
However, I know that it's not for everybody.
00:36:47 Jesus Lira-Garzon
I know that it's not for everybody, particularly when it comes if you are dealing with willing dealing with some, I don't know, like, chronic conditions or so that you know that throughout the year, you will need to, to use your your insurance.
00:37:01 Jesus Lira-Garzon
And you may want to have a lower lower deductible for your insurance to start kicking off, paying earlier rather than later, then definitely I totally understand that it's not for everybody.
00:37:11 Jesus Lira-Garzon
But HSA, they are, like, an extraordinary vehicle.
00:37:15 Jesus Lira-Garzon
And, unless that we are not on a situation where we need to not to take advantage of it, I normally suggest to take advantage of the of these type of accounts.
00:37:26 Mario Iniguez
Yeah.
00:37:26 Mario Iniguez
I couldn't agree more.
00:37:28 Mario Iniguez
And so we we are getting prime for everything, benefit, enrollment, retail, holiday.
00:37:35 Mario Iniguez
We we have another question here.
00:37:36 Mario Iniguez
We didn't see many responses on the insurance questions.
00:37:39 Mario Iniguez
We'll make sure not to limit the insurance questions going forward.
00:37:42 Mario Iniguez
Yeah.
00:37:42 Mario Iniguez
But it's always nice to get to tend to kinda test the waters on different stuff.
00:37:46 Mario Iniguez
Correct.
00:37:47 Mario Iniguez
Maybe this next question, it we will maybe pull them back a bit.
00:37:50 Mario Iniguez
And this one question talks about, what do you think of a bucket list as?
00:37:55 Mario Iniguez
A bucket list.
00:37:56 Mario Iniguez
And and so that's the next question.
00:37:58 Mario Iniguez
And this is this is interesting because when I get to talking with individuals and families and couples, sometimes wealth managers, we kind of get a bad rap because you're just we're just helping people build wealth for retirement.
00:38:09 Mario Iniguez
So I always try to re refocus the conversation.
00:38:11 Mario Iniguez
If there's things we can get you to do in your thirties, forties, and fifties before retirement, knock out some of those bucket list things.
00:38:19 Mario Iniguez
That'd be great.
00:38:20 Mario Iniguez
So here's your here's your options here.
00:38:23 Mario Iniguez
Do you think of a bucket list as something to accomplish in retirement?
00:38:27 Mario Iniguez
Something to do before retirement, or both before and during?
00:38:31 Mario Iniguez
So this is interesting.
00:38:32 Mario Iniguez
Jesus, your thoughts.
00:38:35 Jesus Lira-Garzon
So, my personal, I would say, thoughts on this is that trying to do something, some of them before retirement.
00:38:47 Jesus Lira-Garzon
Obviously, depending on what is in your bucket list, you know.
00:38:52 Jesus Lira-Garzon
Maybe if it's more like when let's say that just having more peaceful time and just maybe spending more time with family, friends, definitely that will be something, that I will suggest doing, right away because we don't know when it how long we will live right so when it comes to time with family and friends I will suggest like do it right away.
00:39:16 Jesus Lira-Garzon
When it comes more to numbers or like to spending money definitely I guess that will be depending also on energy.
00:39:25 Jesus Lira-Garzon
You know, when we are in retirement, energy tend to be a little bit lower.
00:39:31 Jesus Lira-Garzon
So, we may want to think, oh, definitely, when it come, definitely.
00:39:35 Jesus Lira-Garzon
We need to look at numbers, but also we need to look at our personal situation, our personal, how is our personal health?
00:39:41 Jesus Lira-Garzon
How how challenging will be required will be required for this activity or this thing in our bucket list?
00:39:48 Jesus Lira-Garzon
What are your thoughts, Mario, about it?
00:39:50 Mario Iniguez
Well, looking at the chat here, I'm getting a lot of input here.
00:39:52 Mario Iniguez
So Fernando and Patricia says b, something to do before retirement.
00:39:56 Mario Iniguez
Debbie says a, something to accomplish in retirement.
00:39:59 Mario Iniguez
Mhmm.
00:40:00 Mario Iniguez
I have a lot of people saying c here.
00:40:02 Mario Iniguez
People also, Heather asked on HSAs, can HSA accounts be used to pay for health insurance premiums?
00:40:09 Mario Iniguez
That's a good crush that's a good question.
00:40:10 Mario Iniguez
I think they can.
00:40:11 Mario Iniguez
I have to double check on the if if we're talking about in retirement as far as what part of it is, that can be if you're talking about gap insurance, for example, I'd have to, like, double check my notes.
00:40:23 Mario Iniguez
If somebody has a Medicare at 65, can you can you pay for your gap insurance?
00:40:27 Mario Iniguez
I'm I'm leaning towards yes, but I wanna I'd have to recheck my notes.
00:40:31 Mario Iniguez
Kendra's chiming on this question.
00:40:32 Mario Iniguez
She said said before, you may not make it to retirement.
00:40:36 Mario Iniguez
Obviously, in the in Latino culture, we're we're primed to live in the moment.
00:40:40 Mario Iniguez
We have this we're almost.
00:40:42 Mario Iniguez
We're very party like people, live in the moment.
00:40:44 Mario Iniguez
My wife is from Mexico, and she knows what I do for a living, but I don't think she really knows what I do for a living because it's, like, it's so foreign.
00:40:53 Mario Iniguez
I mean, there's not like there's, like, the four zero one k equivalent, like, in Mexico.
00:40:57 Mario Iniguez
Right?
00:40:57 Mario Iniguez
For example, there's no exposure to that.
00:41:00 Mario Iniguez
But I would tell you, yeah, my 91 year old grandma is not getting on the plane anytime soon.
00:41:06 Mario Iniguez
As a matter of fact, she's she's probably at the point where she really can't drive anymore.
00:41:09 Mario Iniguez
My mom has her license because she's worried about her safety on the road.
00:41:12 Mario Iniguez
So I always try to tell people those physical things, up and downstairs, in and out of airports, up and out of planes and all that, Walking the streets of Rome, of Venice, Tuscany, Greece, whatever you're envisioning.
00:41:25 Mario Iniguez
Even if it's a white sandy beach, make it might be best to sprinkle some of that in be before you might need some assistance in getting around.
00:41:37 Mario Iniguez
So, yes.
00:41:38 Mario Iniguez
Is there anything else in the chat there you see, Jesus?
00:41:40 Jesus Lira-Garzon
No.
00:41:41 Jesus Lira-Garzon
It seems that, we are having a lot of people saying c.
00:41:45 Jesus Lira-Garzon
Definitely, I guess I will agree with the c option.
00:41:49 Jesus Lira-Garzon
Because, of course, we need to plan for our future, and we need to plan we cannot go blind when it comes to retirement.
00:41:56 Jesus Lira-Garzon
I had this question last meeting I had, because he was wondering, like, what if I don't make it all the way through my retirement?
00:42:03 Jesus Lira-Garzon
What's gonna happen with that money?
00:42:05 Jesus Lira-Garzon
Why did I, like, I didn't spend this money?
00:42:08 Jesus Lira-Garzon
You know?
00:42:08 Jesus Lira-Garzon
And I always tell them that, well, when it comes to at least you are leaving that money to somebody else.
00:42:14 Jesus Lira-Garzon
You know?
00:42:15 Jesus Lira-Garzon
But and and definitely, you may want to also take into account when it comes to budget or to spending or saving, what you want to do today, and be sure that that you enjoy, because, of course, we don't know if we're gonna make it all the way through retirement.
00:42:33 Jesus Lira-Garzon
So yeah.
00:42:34 Jesus Lira-Garzon
I guess I'm leaning This is a great point.
00:42:36 Mario Iniguez
Yeah.
00:42:36 Mario Iniguez
I saw that too about, like, outliving money.
00:42:38 Mario Iniguez
You don't know how long you're gonna live.
00:42:40 Mario Iniguez
We actually have a slide that talks a little bit about market volatility because it coincides with how long your how well your investment portfolio is gonna do on the long haul.
00:42:49 Mario Iniguez
So we have a market volatility slide that we might be able to show you
00:42:52 Mario Iniguez
And there's a couple of things around this that kinda coincide with the bucket list.
00:42:55 Mario Iniguez
It's because if you if you look at market volatility over the since nineteen o one, this slide runs through data of 1921, excuse me, 2021, 2022.
00:43:05 Mario Iniguez
If you're gonna live for three or four decades in retirement, you're gonna experience some volatility.
00:43:10 Mario Iniguez
Six times over a hundred years, the market's dropped between 3040%.
00:43:15 Mario Iniguez
Six times the market's dropped between 3040%.
00:43:19 Mario Iniguez
So if you live thirty years in retirement, chances are you're going to experience another one of those downturns, those sell offs.
00:43:26 Mario Iniguez
And the bear market, you know, as they attack going down from the from the pulse.
00:43:30 Mario Iniguez
So volatility is is gonna be already a part of your retirement.
00:43:34 Mario Iniguez
Learning to be able to absorb it, to weather the storm, to stay the course, those are all really good mantras.
00:43:40 Mario Iniguez
I will tell you, this is why it's pivotal you're actually speaking with a financial pro during retirement because making sure you're risk appropriate.
00:43:49 Mario Iniguez
We don't want a 65 year old invest like a 20 year old and vice versa.
00:43:52 Mario Iniguez
We want you to get the most, both worlds at retirement.
00:43:56 Mario Iniguez
You're preserving what you accumulated, getting growth to outpace things like inflation, to keep up your purchasing power.
00:44:03 Mario Iniguez
And really, I think the the headline on this slide here as you're as you're learning about market volatility, thinking about your bucket list average annual returns is nineteen and one.
00:44:12 Mario Inigez
So this is over one hundred years of data.
00:44:14 Mario Iniguez
Mhmm.
00:44:14 Mario Iniguez
Stock markets average almost 12%, 11.7.
00:44:18 Mario Iniguez
So really the takeaway here is short term volatility is usually squashed by long term growth.
00:44:23 Mario Iniguez
We don't know how long the the sell offs will last.
00:44:26 Mario Iniguez
They're all unique in of themselves.
00:44:29 Mario Iniguez
Still though, having an idea how to do it, I'll give you a tactical way that can help you on weathering volatility in in retirement.
00:44:38 Mario Iniguez
And what we do with some of my clients is we try to increase their cash position with, their savings, their emergency funds leading up to retirement.
00:44:47 Mario Iniguez
Because one tactical way to look at this is if your market if your stock portfolio if your investment portfolio is down, I I shall put it this way.
00:44:54 Mario Iniguez
If the stock market's down, say 40%, it's one of those six times it's adding to it.
00:44:59 Mario Iniguez
You can press pause on that on your monthly drip that you're getting and pull down from your cash reserves to let your retirement account heal.
00:45:07 Mario Iniguez
And most, not all, but most bear markets are resolved within about nine months.
00:45:12 Mario Iniguez
It usually depends.
00:45:13 Mario Iniguez
Obviously, o 08/2009, it took a year and a half to get 80% of it back, and then we went on and tripled the market.
00:45:20 Mario Iniguez
And then there's a there's another slide here I just want to introduce.
00:45:22 Mario Iniguez
It's it's the kaleidoscope slide, which really underscored what we're talking about with stock market and returns.
00:45:29 Mario Iniguez
If you look at from 2014 to to year to date through Q2 through 06/30, The red is international markets.
00:45:37 Mario Iniguez
So this is why you can't day trade your four zero one ks.
00:45:39 Mario Iniguez
This is why we don't make we don't want you making a lot of moves.
00:45:42 Mario Iniguez
The blue is large cap growth and the purple is large value.
00:45:46 Mario Iniguez
So large cap growth would be like Apple, Amazon, Alphabet.
00:45:50 Mario Iniguez
Large cap value would be something like Disney or Home Depot.
00:45:53 Mario Iniguez
So really the S and P 500 is a blend of both the blue and the purple.
00:45:57 Mario Iniguez
And you can see here matter of fact, if you look at the yellow, that's a diversified portfolio.
00:46:09 Jesus Lira-Garzon
So you
00:46:09 Mario Iniguez
don't get the true true high, you don't get the true true lows.
00:46:12 Mario Iniguez
You get more of an even roller coaster on this.
00:46:16 Mario Iniguez
Your thoughts on this?
00:46:17 Jesus Lira-Garzon
Thank you.
00:46:17 Jesus Lira-Garzon
No.
00:46:18 Jesus Lira-Garzon
Just adding to definitely, I cannot agree more.
00:46:22 Jesus Lira-Garzon
And just adding to what you said, I always remember I remind my my participants too that it's gonna happen.
00:46:29 Jesus Lira-Garzon
Definitely, it's gonna happen that we will see downs and it's gonna happen that we will see times when the market is going down.
00:46:36 Jesus Lira-Garzon
The I would say the best advice that we can give here is to not to panic.
00:46:41 Jesus Lira-Garzon
You know, I have seen a lot of people panicking and taking money out of their accounts and locking in those, losses.
00:46:50 Jesus Lira-Garzon
And I always try to to remind them that this is just like a time game.
00:46:56 Jesus Lira-Garzon
We don't know when it's still gonna recover.
00:46:59 Jesus Lira-Garzon
More than likely, we have seen historically that it will recover.
00:47:03 Jesus Lira-Garzon
But when we when we see this time and that's for sure we're gonna see that.
00:47:08 Jesus Lira-Garzon
When who knows?
00:47:09 Jesus Lira-Garzon
But for sure, we it's gonna be a time when we see, markets going down.
00:47:14 Jesus Lira-Garzon
You know?
00:47:14 Jesus Lira-Garzon
And I would say just don't panic.
00:47:17 Jesus Lira-Garzon
When it comes that time, reach out to us.
00:47:19 Jesus Lira-Garzon
I cannot stress this enough.
00:47:21 Jesus Lira-Garzon
If you are wondering, like, what's going on or how to take better decisions, reach out to your financial professional, to whoever you trust.
00:47:29 Jesus Lira-Garzon
If you don't have any, just reach out to us, and we are more than happy to help you out going, through, through all these explanations.
00:47:37 Mario Iniguez
We yeah.
00:47:37 Mario Iniguez
We could jump right into the question.
00:47:39 Mario Iniguez
That's really good insight there.
00:47:40 Mario Iniguez
I love that.
00:47:41 Mario Iniguez
Mark asked, will an irrevocable trust protect against nursing home access to your money?
00:47:46 Mario Iniguez
Couple of points here on this one would be to consider that there is a look back period.
00:47:52 Mario Iniguez
I think it's five years.
00:47:54 Mario Iniguez
So whatever you put in the trust, there's a look back of five years.
00:47:57 Mario Iniguez
So it can't be, like, right before.
00:48:00 Mario Iniguez
But it's it's actually what we're saying is can can I put assets in a trust to be able to avoid it being, counted on Medicaid, for example.
00:48:08 Mario Iniguez
So there's a was I think it's a Medicaid asset protection trust.
00:48:12 Mario Iniguez
So MAPT.
00:48:13 Mario Iniguez
If I remember thinking back to one of my exams through my license this year.
00:48:17 Mario Iniguez
So obviously when you're when you're setting up a trust, whoever you're doing that with, these are the nuances you would ask them about, as far as what, what it protects from and and or it doesn't.
00:48:28 Mario Iniguez
I'm kinda leaning towards, yes, some trust can protect you on this.
00:48:31 Mario Iniguez
But again, it's it's an individual thing.
00:48:33 Mario Iniguez
So when you're getting a trust, make sure you, when you're setting that up, that you're asking these hard line questions and you're doing it well enough in advance to meet eligibility.
00:48:43 Mario Iniguez
I'll I'll put one more comment here and then we'll have Jesus chime in.
00:48:46 Mario Iniguez
But Tricia says, Bucket List is great to have experiences that before or during retirement.
00:48:51 Mario Iniguez
You may have health conditions at retirement.
00:48:53 Mario Iniguez
I love that.
00:48:54 Mario Iniguez
Sally says tomorrow is is is promised to no one, so enjoy as you work.
00:48:59 Mario Iniguez
Yes.
00:49:00 Mario Iniguez
I love that.
00:49:01 Mario Iniguez
And Feel free to put your questions in here.
00:49:02 Mario Iniguez
Do you see anything else in the chat, Jesus, that we have not gotten
00:49:05 Jesus Lira-Garzon
yet?
00:49:05 Jesus Lira-Garzon
Actually, I see Brenda's question.
00:49:10 Jesus Lira-Garzon
She said, sorry about life insurance.
00:49:12 Jesus Lira-Garzon
If it's not too late to ask, life insurance with cash value.
00:49:16 Jesus Lira-Garzon
Is it worth it?
00:49:20 Jesus Lira-Garzon
What are your thoughts about it, Mark?
00:49:21 Mario Iniguez
We're talking like whole life now.
00:49:23 Mario Iniguez
So, again, if you want to pay the insurance to, to basically to have access to some of that money that you're putting in, before you pass away.
00:49:31 Mario Iniguez
Right?
00:49:33 Mario Iniguez
Some people would say, I don't wanna pay that much more for the premium to have access to pull money out.
00:49:37 Mario Iniguez
I'd rather have money to go towards something else.
00:49:39 Mario Iniguez
It could be towards $4.00 1 k contributions.
00:49:41 Mario Iniguez
It could be towards paying down debt.
00:49:43 Mario Iniguez
It could be towards saving up for x y z.
00:49:46 Mario Iniguez
So you're gonna have to look at the premiums and really make the decision on that to see if it's actually worth it to be able to have access to it.
00:49:52 Jesus Lira-Garzon
Yeah.
00:49:53 Jesus Lira-Garzon
Yeah.
00:49:54 Jesus Lira-Garzon
I would say those type of insurance, they tend to be on the more expensive side.
00:49:59 Jesus Lira-Garzon
So, it's a good it's a good option.
00:50:02 Jesus Lira-Garzon
Yes.
00:50:03 Jesus Lira-Garzon
However, I will I will say let's look first into all other options that you do have out there.
00:50:11 Jesus Lira-Garzon
As Mario said, maybe your four zero one k or maybe, like, if there are other options.
00:50:19 Jesus Lira-Garzon
But definitely for you to know that it tends to be on that side.
00:50:26 Mario Iniguez
Good stuff.
00:50:27 Mario Iniguez
Yeah.
00:50:28 Mario Iniguez
Looks like I Senemies.
00:50:30 Mario Iniguez
I might be saying that wrong.
00:50:31 Mario Iniguez
Senemies.
00:50:32 Mario Iniguez
Tsunami.
00:50:33 Mario Iniguez
Oh, ask what are your thoughts about index funds?
00:50:38 Mario Iniguez
And so here's a couple of thoughts on that.
00:50:40 Mario Iniguez
So when you're looking at building more portfolio construction and the efficient frontier, trying to maximize the return, yes, you can include index funds, especially if you're if you're cost adverse, meaning you want just the cheapest of the cheap.
00:50:54 Mario Iniguez
Right?
00:50:54 Mario Iniguez
Fidelity, Vanguard comes to mind, BlackRock.
00:50:57 Mario Iniguez
You know, they and these are these are huge companies.
00:51:00 Mario Iniguez
You know, BlackRock, they have themselves have trillions of dollars.
00:51:03 Mario Iniguez
So when you look at these big companies that offer index funds, you can get more more of your contribution to go towards the investment and less overhead.
00:51:12 Mario Iniguez
And now the counterargument to that is is, well, what if there's really good actively managed funds that could that could potentially beat the index?
00:51:19 Mario Iniguez
So you're paying a little bit more, track history of those funds, those of those actively managed funds.
00:51:25 Mario Iniguez
And the the other another option C would be like a like a a combination of the two.
00:51:32 Mario Iniguez
Another option would be as a target date fund, which are most often index, with some plans do have actively managed target date funds.
00:51:40 Mario Iniguez
If you're asking me as a wealth manager, I like to use actively managed funds.
00:51:45 Mario Iniguez
Like, when I'm looking at my retail accounts, I like ETFs.
00:51:48 Mario Iniguez
There's a lot of good ones out there that are keeping up and beating indices in the respective markets.
00:51:56 Mario Iniguez
Your thoughts, Jesus, on this when you get asked about this.
00:51:58 Jesus Lira-Garzon
I totally agree with you.
00:52:00 Jesus Lira-Garzon
I guess they may be a good tool for, for your portfolio to be, diversified.
00:52:07 Jesus Lira-Garzon
However, yeah, they they are also other options that it may be, outpacing the index funds.
00:52:16 Jesus Lira-Garzon
So, I mean, those are really good options.
00:52:19 Jesus Lira-Garzon
But when it I will I will normally suggest to mix that with some other options so we can take advantage of, of both of them.
00:52:28 Mario Iniguez
Yeah.
00:52:29 Mario Iniguez
Looks like Jen asked, what's a good high yield savings account?
00:52:32 Mario Iniguez
They're still getting about 4%.
00:52:33 Mario Iniguez
I was looking at one that I use in my own clients' accounts.
00:52:36 Mario Iniguez
It's just under 4%.
00:52:38 Mario Iniguez
That's a great way to have liquid money.
00:52:41 Mario Iniguez
There there are websites out there that you could see coast to coast what are the best paying money markets.
00:52:46 Mario Iniguez
Keep your bank or your credit union honest by shopping to making sure your liquid money is getting good return, especially where, where interest rates have been high that also blends well with money markets tend to turn up wells in those types of environments that we're experiencing now.
00:53:04 Mario Iniguez
Yeah.
00:53:05 Mario Iniguez
If you're in your investment accounts too, it's a good option to have as well because if you're getting about 4%, that usually beats the inflation historical average about 3.5%.
00:53:16 Jesus Lira-Garzon
Correct.
00:53:17 Jesus Lira-Garzon
Yeah.
00:53:17 Jesus Lira-Garzon
I've seen that, so now, an average around, like, 3.5.
00:53:21 Jesus Lira-Garzon
So as long as we are beating up through the inflation, it's better than, than putting under in a traditional savings account.
00:53:28 Jesus Lira-Garzon
Definitely.
00:53:30 Mario Iniguez
Sure.
00:53:31 Mario Iniguez
Looks like Dana yeah.
00:53:32 Mario Iniguez
Go ahead.
00:53:33 Mario Iniguez
It says UCSF.
00:53:34 Mario Iniguez
No.
00:53:34 Jesus Lira-Garzon
No.
00:53:34 Jesus Lira-Garzon
No.
00:53:34 Jesus Lira-Garzon
Brianna asked, Roth IRA contributions can be deducted tax penalty free.
00:53:40 Jesus Lira-Garzon
That's a good question.
00:53:41 Jesus Lira-Garzon
That's a really good question because we want, we want to be aware that, we want you to be aware that even though your Roth contributions are considered like after tax, you may still be penalized.
00:53:53 Jesus Lira-Garzon
I want you to keep this in mind, this age, 59.
00:53:59 Jesus Lira-Garzon
59 is the, the age that you may want to have in mind to avoid any penalty, from getting money out of your IRAs or out of your four zero one k.
00:54:11 Jesus Lira-Garzon
Just keep that number, 59.
00:54:13 Jesus Lira-Garzon
Keep that number in mind.
00:54:15 Mario Iniguez
Yeah.
00:54:15 Mario Iniguez
There's some things to think about on this too.
00:54:17 Mario Iniguez
You you you tip there's there's there's a couple of ways you can pull money out, for example Yeah.
00:54:24 Mario Iniguez
That are that are on a Roth IRAs, for example.
00:54:27 Mario Iniguez
But the the big thing is we're this this account truly set up for retirement, that's where I always come back to.
00:54:33 Mario Iniguez
We we putting money in this thing monthly to be able to let it grow and compound in in the market.
00:54:41 Mario Iniguez
You know, so, yeah, the 59 and a half, you wanna avoid the penalty of 10%.
00:54:44 Mario Iniguez
You do typically have to have under certain conditions like be disabled, for example, to be able to pull it.
00:54:49 Mario Iniguez
Another one that comes to mind is first time home purchase.
00:54:51 Mario Iniguez
That's up to $10,000 lifetime limit.
00:54:54 Mario Iniguez
First time home purchase, so it can't be your second home.
00:54:59 Mario Iniguez
I think there's something also with like your estate after your death, like the withdrawals.
00:55:03 Jesus Lira-Garzon
Like that.
00:55:03 Jesus Lira-Garzon
Yeah.
00:55:04 Jesus Lira-Garzon
Mhmm.
00:55:04 Mario Iniguez
That could be one, two.
00:55:06 Mario Iniguez
So there's a couple things in there.
00:55:09 Mario Iniguez
There's another one too, like a stipulation on it that people often forget.
00:55:12 Mario Iniguez
I actually ran into this last night on the on a 401K account.
00:55:15 Mario Iniguez
It says a five year rule.
00:55:17 Mario Iniguez
So there's a five year rule.
00:55:18 Mario Iniguez
So when you're looking at from the first time you made your first contribution, it starts a five year clock.
00:55:25 Mario Iniguez
So five years have to have passed since your first Roth IRA contribution plus being 59 and a half to be able to pull it tax free both, you know, with the earnings, with the with the contributions as well.
00:55:38 Mario Iniguez
So consider that too.
00:55:40 Mario Iniguez
That's a really good question here.
00:55:41 Mario Iniguez
And again, I like having both pretax and Roth in retirement.
00:55:45 Mario Iniguez
It provides a lot of options.
00:55:46 Mario Iniguez
People don't wanna go to the buffet lineup in retirement and only have chicken.
00:55:50 Mario Iniguez
You wanna have chicken?
00:55:51 Mario Iniguez
You wanna have a good veggie alternative?
00:55:53 Mario Iniguez
You wanna have your beef, maybe good halibut.
00:55:56 Mario Iniguez
I don't know.
00:55:56 Mario Iniguez
Something in there.
00:55:57 Mario Iniguez
But you want options.
00:55:58 Mario Iniguez
Options are great.
00:55:59 Jesus Lira-Garzon
I apologize.
00:55:59 Jesus Lira-Garzon
Yep.
00:56:01 Jesus Lira-Garzon
I guess, also, it's Dana Dana, is it better to get an individual stock or an ETF?
00:56:08 Jesus Lira-Garzon
Oh. How do you think?
00:56:09 Mario Iniguez
I wanna jump on this one first.
00:56:11 Mario Iniguez
So I will tell people because sometimes I have clients that come really hot and, like, I wanna have individual stocks.
00:56:16 Mario Iniguez
And I'm okay, and I'm receptive and open to that because everybody's a little bit different.
00:56:21 Mario Iniguez
However, how much much volatility do we want to put on a portfolio?
00:56:26 Mario Iniguez
If I hearken back to the billionaire next door by Thomas Stanley that came out in the mid 90s, like in '95, less than 5% of your average Joe at Jane millionaire when they case study all these millionaires, So that means the lion's share, the majority of their investments were was in good growth stock mutual funds and ETFs.
00:56:49 Mario Iniguez
We can diversify risk, we can we can get good return, and we don't necessarily have to have individual stocks.
00:56:56 Mario Iniguez
Sometimes what I do as a as a like, like to to give conciliation as far as to find a happy medium, we keep it under that 5% or some people just have an affinity towards maybe just like tech.
00:57:10 Mario Iniguez
So we just they're like S and P, but they just want the tech side of it.
00:57:13 Mario Iniguez
Well, there are investments that just focus on the tech side, but still give you some diversification even within that sector.
00:57:20 Mario Iniguez
So we're not just going all in on company a.
00:57:23 Mario Iniguez
Right?
00:57:23 Mario Iniguez
Your thoughts on this.
00:57:24 Mario Iniguez
I'm sure you probably get this a lot.
00:57:25 Mario Iniguez
Right?
00:57:25 Jesus Lira-Garzon
No.
00:57:26 Jesus Lira-Garzon
Totally.
00:57:27 Jesus Lira-Garzon
What I do like from the ETFs is that by themselves, they are diversified.
00:57:32 Jesus Lira-Garzon
So you are adding that diversification when you are adding those ETFs to your to your to your portfolio.
00:57:39 Jesus Lira-Garzon
So and as as Mario said, that comes when it that comes to the question about the risk.
00:57:45 Jesus Lira-Garzon
When you are putting all in in just just one company stocks, basically, you are putting all your x with, in one basket.
00:57:53 Jesus Lira-Garzon
So, diversification is important.
00:57:56 Jesus Lira-Garzon
ETF by themselves, they will help they will help us, to get that diversification.
00:58:02 Jesus Lira-Garzon
So I guess the answer goes more than the risk that we want or we can assume.
00:58:08 Jesus Lira-Garzon
Yeah.
00:58:09 Mario Iniguez
Yeah.
00:58:09 Mario Iniguez
Absolutely.
00:58:10 Mario Iniguez
What else are we seeing here in the in the chat?
00:58:12 Jesus Lira-Garzon
I see Sabine asked I'm sorry, Sabine, if I'm pronouncing your name, incorrectly.
00:58:17 Jesus Lira-Garzon
She asked, what about four fifty seven?
00:58:19 Jesus Lira-Garzon
Is it also fifty nine and a half?
00:58:21 Jesus Lira-Garzon
I guess that that stream, about, the penalty.
00:58:26 Jesus Lira-Garzon
Right?
00:58:27 Mario Iniguez
Yeah.
00:58:27 Mario Iniguez
I think that's what it's talking about there.
00:58:29 Mario Iniguez
So the and I'm I'm trying to rack my brain on the Tactizem side.
00:58:33 Mario Iniguez
So turning 59 and a half does allow you to begin taking in service distributions without penalty.
00:58:38 Mario Iniguez
I think even if you're if you're still working, that's different from, say, a four zero one k or an IRA.
00:58:44 Mario Iniguez
Correct.
00:58:45 Mario Iniguez
So that that's something a little bit different on the taxes outside.
00:58:47 Mario Iniguez
So this is really four fifty seven has to deal with you're a city employee, you're a state employee.
00:58:53 Mario Iniguez
But, yeah, they may allow you to take in service withdrawals.
00:58:57 Mario Iniguez
It may allow you to take distributions from a traditional or pretax four fifty seven b.
00:59:01 Mario Iniguez
I mean, it's the big thing is on this one is that unlike a lot of other retirement plans, four zero one ks's, four zero three b's, the four fifty seven, because I worked at the City of Austin plan for a while apropos on this one, is that they don't impose, apply that 10% withdrawal penalty on distributions.
00:59:20 Mario Iniguez
You take out your job.
00:59:21 Mario Iniguez
That's been my take on this regardless of your age.
00:59:25 Mario Iniguez
That's what I have found to be true.
00:59:28 Mario Iniguez
So this it's it's a little bit interesting.
00:59:30 Mario Iniguez
Again, I would I will share this in with the group today here.
00:59:33 Mario Iniguez
I've seen reports where one in three individuals who leave their employer cash out their account.
00:59:41 Mario Iniguez
Mhmm.
00:59:41 Mario Iniguez
So what I would try to do is if you leave your employer, try to roll it into your next retirement account or to a a rollover IRA, for example.
00:59:49 Mario Iniguez
Yes.
00:59:49 Mario Iniguez
You have Roth dollars.
00:59:50 Mario Iniguez
Those Roth dollars go to a Roth IRA.
00:59:52 Mario Iniguez
Try to do everything you can to be able to keep it growing for you.
00:59:56 Jesus Lira-Garzon
Correct.
00:59:56 Jesus Lira-Garzon
So
00:59:57 Mario Iniguez
it's a good question by Sabina.
00:59:58 Mario Iniguez
We appreciate it.
00:59:59 Jesus Lira-Garzon
Mark asked, can you recommend a high yield savings company?
01:00:05 Jesus Lira-Garzon
What I normally tell my participants is that as long as it's FDIC insured, we should be fine.
01:00:13 Jesus Lira-Garzon
You may be hesitating, when it comes to deal with electronic banks.
01:00:18 Jesus Lira-Garzon
There are some, big names that may give you a little bit of peace of mind.
01:00:24 Jesus Lira-Garzon
So for instance, names that you may be familiar, it may be American Express, it may be Discover, it may be SoFi.
01:00:31 Jesus Lira-Garzon
There are those big names that, you may feel a little bit more comfortable.
01:00:36 Jesus Lira-Garzon
Right.
01:00:36 Jesus Lira-Garzon
It's important to mention or to for you to remember that normally this high yield savings account, you may not find it on a traditional bank.
01:00:45 Jesus Lira-Garzon
So more than likely, it will be on an electronic bank.
01:00:50 Jesus Lira-Garzon
I would say, as as I said, as long what are your thoughts?
01:00:54 Jesus Lira-Garzon
But I guess that as long as you have be FDIC insured and as long the the interest is over the inflation, we're on the safe side.
01:01:03 Mario Iniguez
Yeah.
01:01:04 Mario Iniguez
There there are aggregators out there on online that you can see the best high yield you can get coast to coast those, in so they're competitive or convenient.
01:01:17 Mario Iniguez
That's really important there.
01:01:18 Mario Iniguez
I see, Juliana or Juliana asked, are there ETFs which has international stocks or exposure?
01:01:24 Mario Iniguez
Yes.
01:01:24 Mario Iniguez
There are.
01:01:24 Mario Iniguez
You can get ETFs with, that are either indexed or actually managed that are that have international exposure, you know, like the EFI, for example, like, which is Europe, Australia, New Zealand, and Far Asia.
01:01:36 Mario Iniguez
So, yes, by all means, you can get ETFs.
01:01:38 Mario Iniguez
And an ETF is basically like the cousin of a mutual fund.
01:01:41 Mario Iniguez
And whereas a mutual fund, you can only buy and sell once a day at the close of the market.
01:01:46 Mario Iniguez
The ETF, the exchange traded fund, it can be bought and sold intraday.
01:01:50 Mario Iniguez
So there's a little bit more efficiency there that sometimes can be very helpful.
01:01:55 Mario Iniguez
So, yeah, those are that's a really good question.
01:01:57 Mario Iniguez
I'm looking to see we we I know we're at the hour here.
01:02:01 Mario Iniguez
We're happy to see on if there's more questions here.
01:02:03 Mario Iniguez
I know.
01:02:04 Mario Iniguez
I know.
01:02:04 Mario Iniguez
We've had a good breakfast, I'm sure.
01:02:06 Mario Iniguez
So we are ready to rock and to go if we need to keep going.
01:02:09 Jesus Lira-Garzon
Totally.
01:02:10 Jesus Lira-Garzon
Yeah.
01:02:12 Jesus Lira-Garzon
I mean, I just want to apologize in advance.
01:02:14 Jesus Lira-Garzon
If we just missed any question, please feel please feel free to reach out, and, we can just schedule one on one one on one sessions, so then, we can answer your questions if we miss that.
01:02:26 Jesus Lira-Garzon
We we apologize, on that.
01:02:28 Jesus Lira-Garzon
And I don't know, Mario.
01:02:29 Jesus Lira-Garzon
Any any final thoughts?
01:02:33 Mario Iniguez
I really love this group today.
01:02:34 Mario Iniguez
All the participation, all all everybody just kinda chiming in.
01:02:38 Mario Iniguez
It it felt we really made this interactive.
01:02:40 Mario Iniguez
Hope hope this gave you a little bit more pep in your step, here on 10/08/2025 as we near the end of the season.
01:02:46 Mario Iniguez
The last bit of daylight we have in this year before we welcome 2026.
01:02:50 Mario Iniguez
It's been really exciting to get in front of people.
01:02:53 Mario Iniguez
And again, like Jesus says, we can't say it enough.
01:02:55 Mario Iniguez
Reach out, to Jesus or I or to the general line.
01:02:58 Mario Iniguez
Set up a console.
01:02:59 Mario Iniguez
It's always good to have a financial adviser uncover your blind spots, provide emphasis where you thought you maybe were strong, but maybe you could leave a little more work.
01:03:08 Mario Iniguez
You're on track to hit somewhere.
01:03:09 Mario Iniguez
It's good.
01:03:10 Mario Iniguez
It's under it's good to unpack where that track is taking you, where that journey is, ultimately lifting you towards.
01:03:17 Mario Iniguez
Jesus, it's it's always been a pleasure connecting with you, my friend.
01:03:19 Mario Iniguez
I wanna wish you a safe travel before you come back, here to the Lone Star State.
01:03:24 Mario Iniguez
And as you come back, I'll probably be leaving, but and also a big thank you to Kelly, our engineer in chief, who keeps us where we need to be and and having it look the way it is on your screen and how you how we sound once we come to you.
01:03:39 Mario Iniguez
Jesus, any final thoughts?
01:03:40 Jesus Lira-Garzon
No.
01:03:41 Jesus Lira-Garzon
Any other than thank you.
01:03:43 Jesus Lira-Garzon
Thank everyone for taking the time to share this, with us.
01:03:47 Jesus Lira-Garzon
And, of course, I know that sometimes when we are planning financially, it may be scary.
01:03:51 Jesus Lira-Garzon
It may be overwhelming.
01:03:52 Jesus Lira-Garzon
It doesn't have to be.
01:03:54 Jesus Lira-Garzon
So just reach out, and we are more than happy to help you out.
01:03:57 Jesus Lira-Garzon
Alright?
01:03:59 Mario Iniguez
Excellent.
01:04:00 Mario Iniguez
Alright.
01:04:00 Mario Iniguez
Everybody, have a great rest of
01:04:02 Jesus Lira-Garzon
your week.
01:04:02 Jesus Lira-Garzon
Take care.
01:04:02 Jesus Lira-Garzon
Bye.
In this session of Building Your Financial Future, we covered seven key areas to help you strengthen your financial plan:
- Understand Economic Impacts: Learn how events like government shutdowns can affect federal employees, insurance costs, and the broader economy, and why staying informed matters for your planning.
- Invest Wisely: Review current market performance, the importance of diversification, and how international markets compare to the S&P 500.
- Plan for Windfalls & Holiday Spending: Discover strategies to manage unexpected financial gains and budget smartly for seasonal expenses.
- Maximize Retirement Accounts: Compare Roth and pre-tax contributions, understand withdrawal rules, and learn how having both types of accounts can provide flexibility.
- Protect What You Have: Explore life and health insurance, benefits enrollment, and the advantages and limits of HSAs.
- Choose the Right Investment Vehicles: Get clarity on index funds, ETFs, high-yield savings, and the balance between individual stocks and diversified portfolios.
- Prepare for the Future: Balance your bucket list goals with long-term retirement needs, manage volatility, and consider estate planning tools like irrevocable trusts.
This session provided practical strategies and insights to help you build resilience, stay flexible, and prepare confidently for your financial future.
