Not Just Numbers: Honest Conversations with a Financial Advisor (and Lawyer!)

Send us a textIn this episode of Not Just Numbers: Honest Conversations with a Financial Advisor and Lawyer, Madison and Mike dive into the fascinating world of stock market gains. They discuss a recent article by Russ Wiles, highlighting research by Dr. Hendrik Bessembinder, which reveals that just over 4% of stocks account for all net wealth growth in the stock market over the last 100 years. Mike, a CFP® practitioner and estate planning attorney, breaks down the forces behind why such a small percentage of stocks drive long-term gains and challenges common assumptions about stock picking versus index investing. They explore the role of compounding, the challenges of identifying future high-performing stocks, and the importance of diversification for long-term success. Whether you're a seasoned investor or just getting started, this conversation offers valuable insights into the dynamics of market growth. Tune in for an honest discussion that could change how you approach your portfolio!

Send us a textIn this episode of Not Just Numbers: Honest Conversations with a Financial Advisor and Lawyer, hosts Madison Demora and Mike Garry explore the complexities of managing your retirement savings. In the beginning of the episode, they tackle a listener's question on long-term care insurance. Then, dive into a Wall Street Journal article by Olivia Mitchell, discussing the pros and cons of rolling over a 401(k) into an IRA versus leaving it in an employer-sponsored plan. Mike shares expert insights on investment options, fees, fiduciary protections, and estate planning considerations. Whether you’re nearing retirement or simply planning ahead, this episode is packed with valuable advice to help you make informed decisions about your financial future.Wall Street Journal article: https://www.wsj.com/personal-finance/retirement/what-to-do-with-401k-after-retirement-22b9b787

Send us a textMadison and Mike discuss three articles from the Wall Street Journal related to the financial industry, focusing on the implementation of a fiduciary rule, the pros and cons of interval funds, and the high fees and lack of transparency in closed-end funds. They also explore the potential risks and returns of interval funds, the importance of educating investors about complex investment products, and the missed opportunities by Bill Ackman due to not innovating with lower fees and a direct approach to individual investors. The discussion concludes with the importance of lower expenses, transparency, and liquidity in investment products, and the suggestion of a globally diversified portfolio with reasonable costs.Wall Street Journal article links: Insurers Are Winning a Fight To Curb Retirement Saver Aids: https://www.wsj.com/personal-finance/retirement/the-insurance-industry-is-winning-a-fight-to-kill-new-protections-for-retirement-savers-54030e41The Fees on These Funds Will Leave You High and Dry: https://www.wsj.com/finance/investing/the-fees-on-these-funds-will-leave-you-high-and-dry-4b556475What Bill Ackman Got Wrong With His Bungled IPO: https://www.wsj.com/finance/investing/bill-ackman-pershing-square-psus-6b8db4fa

Send us a textMadison and Mike discuss the rising need for umbrella insurance due to increasing costs and larger claims, emphasizing its role in providing additional liability coverage. They highlight the importance of considering one's personal assets, risk profile, and net worth when determining the amount of umbrella coverage needed, especially for individuals with high visibility or in certain professions. Later, Mike turns the employee spotlight on Madison for a change! Madison discusses her journey at Yardley Wealth Management, her role in producing the company's podcast, and her personal interests outside of work. Madison also shares her pride in the podcast she produces and her fulfillment in assisting her colleagues and interviewing local businesses. The conversation concludes with Madison expressing her gratitude for being featured in the employee spotlight.Link to Wall Street Journal article: https://www.wsj.com/personal-finance/umbrella-insurance-covers-worst-case-scenarios-there-are-now-more-of-them-e655f2d3

Send us a textMadison and Mike discuss why investors might be drawn to high dividend yields, such as the potential for steady income and the allure of getting returns without waiting for stock appreciation. However, Mike cautions against the risks, including the possibility that a high yield might result from a declining stock price or unsustainable payouts. He also advises against focusing solely on high dividend yield stocks and instead considering a broader investment strategy, aiming for a globally diversified portfolio based on other factors. Later, we sit down with Ben Madden, the owner of Allied Cleaning Services, a well-established local business in Yardley. Ben shares the story of how the company was founded by his father 43 years ago and the journey of taking over and expanding the business. He discusses the range of services they offer, including residential and commercial cleaning, windows, floors, carpets and power washing. We delve into the importance of quality work and strong customer relationships, with Ben emphasizing how word-of-mouth and community referrals have been vital to their success. Allied Cleaning Services website: https://www.allied-cleaning.com/Allied Cleaning Facebook: https://www.facebook.com/AlliedCleaningServicesLLCAllied Cleaning Instagram: https://www.instagram.com/allied.cleaning.llc/Allied Cleaning phone number: 215-493-0759

Send us a textMadison and Mike discuss the complexities and financial implications of transferring a house to a child, including potential risks, tax liabilities, and the impact on Medicaid eligibility. They emphasize the importance of consulting with a financial advisor and elder law attorney to make a well-informed decision and stress that each individual's situation is unique. The discussion concludes with a call for listeners to gather all necessary information and seek expert advice before making any decisions.

Send us a textMadison and Mike discuss the key decisions to be made before and during retirement, emphasizing the importance of maintaining strong relationships, planning for uncertainties, and creating a retirement budget. They also underscore the need to prioritize physical and mental health, and to have essential legal documents in place. Lastly, they highlighted the importance of finding a balance between relaxation and staying active in strengthening relationships with family and friends.

Send us a textMadison and Mike discuss the intricacies of Medicare, focusing on its different types of coverage and eligibility criteria. Mike underscores the significance of enrolling during the initial period and the advantages of supplemental coverage like Medicare Advantage plans and Medicaid Gap policies. They also highlight the need for consultation with a Medicare specialist to tailor coverage to individual needs and budget.

Send us a textMadison and Mike consider the significance of long-term care insurance in retirement planning, discussing its role in covering costs for individuals needing assistance due to aging, disability, or illness. They also address the complexities and challenges of long-term care insurance, including policy considerations and potential limitations, and highlighted the value of a personal assessment and the role of a financial advisor. Lastly, for those who wish to look into  Long-Term Care insurance, they suggest the need for customizing policies to individual circumstances and recommended starting the search for such policies in your late fifties or early sixties. The next episode focuses on understanding Medicare basics.

Send us a textMadison and Mike kick off series 2 of 5 of pre-retiree education. They discuss the role of social security as a retirement strategy, including its eligibility requirements and the benefits and drawbacks of claiming benefits at different ages. They also explore the impact of spousal and survivor benefits, and emphasized the importance of financial planning in optimizing social security within the larger context of retirement goals.