Yesterday, White House trade advisor Peter Navarro made it sound like trade deal talks were over, then later claimed his words were taken out of context. Stock market futures proceeded to tumble more than 400 points, but as of this morning, futures are positive for the day. That’s how volatile these things can be. Everything eventually boils down to whether companies are selling more goods or services since stocks trade based on future cash flows. Ignore the short term and invest for the long run.
Announcer: The views and opinions expressed in the program are not necessarily those of this radio station or its sponsors and should not be construed as legal tax or investment advice. You should always consult the appropriate advisor before making any financial decision. All rights reserved. Now, AM 1220 KDOW presents New Focus on Wealth with certified financial planner, Chad Burton, drawing from his 20 year background in finance and investing to help you make sense of your money matters. New Focus on Wealth. Get a new focus on personal finance, wealth management, Wall Street, and the economy. Now your host for New Focus on Wealth. Chad Burton.
Chad Burton: Welcome into the show. I’m your host, Chad Burton, certified financial planner. If you have a money question for the show, shoot me an email. It’s Chad@ChadBurton.com, it’s Chad@ChadBurton.com. Well, an interesting couple of, well, day here I guess. We had Peter Navarro, he’s a White House trade advisor. And he was speaking yesterday and it sounded like a trade deal was all but over. Then the president said, “No, it’s not. Where are you guys getting this?” And then Peter Navarro indicated on another interview that these words were taken wildly out of context. So the stock market futures tumbled more than 400 points as he said this. And then as we’re sitting here right now, stock market futures are positive for the day. That’s how volatile these things can be. Lately, the entire market has been driven by Coronavirus, it’s been driven by trade issues.
Chad Burton: It eventually boils down to whether companies are selling more goods or services, depending on what they do, and stocks trade based on future cash flows. So ignore the short term. I’m going to talk a little bit about later in the show about this erroneous data that was put out by, well, it wasn’t an error, it was like an incomplete dataset by Fidelity that some people started reporting that up to like 30% of the people sold all their stocks in March and April. That’s not quite true. The news is just, it’s so awful these days because it takes an issue, it blows it out of whatever term you want to use, the water, it’s a pay-per-click world that we live in. So anything that you’re seeing on social media, when it comes to some sort of a news item, it’s going to take a video clip, it’s going to distort it, make things worse than it actually is.
Chad Burton: It’s going to get you to click on it because that’s how they make more money by showing that, yeah, people are clicking on these ads, clicking on these stories. So they see these ads. It’s a click rate game. It’s almost disgusting, it really is. Now, there’s even so much bad information when it comes to the Coronavirus. Now in some areas you’re seeing these news articles saying that there’s a massive increase in new cases of coronavirus. Well, there’s a massive increase in the amount of testing that’s being done. And since so many people can carry this around without any symptoms whatsoever, of course you’re going to have more cases. What you have to pay attention to is new hospital cases. And there’s been some concerning news in the bay area. You’re starting to see a little bit of a resurgence in places like Arizona and Florida, that’s opened up.
Chad Burton: And as I mentioned there’s a bit of concern here that the price of certain large cap stocks are not reflecting a potential resurgence of the virus. But when we go over some of the holdings of the S&P 500, and even the Dow for that matter, we’ll talk about the difference here in a moment. You’ll see why. The market last week was up about 1.9% because there was retail sales that were much better than expected. Now it’s still a massive decline from the year before, but sales came out better than expected. You’re seeing a huge pent up demand.
Chad Burton: The S&P 500 is down before we opened today about 1.33% for the year or so. International stocks down somewhere about eight or 9% for the year, the Russell 2000, which is a representation of more smaller companies, is down about 12%. And that’s actually where you can kind of sift through and find some of the value there. But the QQQ is up 17.4%. That’s the NASDAQ. All right? So one of the ways that you can educate yourself on what are these indexes that people talk about? You have the S&P 500, the NASDAQ, and the Dow. Those are the main indexes that get reported when you’re watching these screens on Bloomberg, CNBC, whatever, you’re seeing three people talking, and then you’re seeing the boxes that show the returns. Well, they’ve got some similar holdings, right? So if we look at the QQQ, which is the ETF that tracks the NASDAQ, that’s how you invest in the NASDAQ.
Chad Burton: It’s 11.87% Apple, it’s 11.6% Microsoft, it’s 10.33%, Amazon, 4.4% Facebook, and then between the two Googles it’s almost 8% there, then you’ve got 2.5% Intel, 2.28% Nvidia. Netflix is about 2% of that index. So it’s a very tech based index. And not as quite as much as it used to be. One of the reasons why the NASDAQ fell so much back in the tech correction is because there’s so many web based companies that didn’t really make much money. But companies like Cisco and other ones that were in it were trading at like 55 plus P/E ratios. But if you think about it, everybody’s working from home now, so you have Office 360, you have Microsoft Teams. I don’t know about you guys, but I have an Amazon package showing up almost every day at the house, more so than ever.
Chad Burton: Because as you’re stuck at home and you’re walking around the house thinking, “Oh, I need that to organize the garage. I need this. I need that.” It’s ridiculous. It’s a little bit out of hand, I will say. But some of the other indexes, let’s look at the Dow. The Dow Jones Industrial Average, right? That’s industrial stocks is what you think. Well, no, it’s 9.25% Apple, 7.7% United Health, 6.5% Home Depot, and 5.33% Goldman Sachs, and 5.16% Microsoft, and Visa’s 5%. These are all weighted averages. So some of these companies like United Health has done very well over the last several years, over the last probably five, six years, one of my best performing stocks. Home Depot, Lowe’s have done both really well lately, as again people are at home trying to organize, and build, and fix things up.
Chad Burton: And then we look at the S&P 500. S&P 500 is 5.7% Microsoft, 5.65% Apple, 4.3% Amazon. So it’s a very small number of stocks that are driving positive results for a lot of these indexes. Now again, the S&P 500 after last week was up, the week before I think it was the pullback down about 1.33%. but the NASDAQ is up almost 17.5% because of it’s weighting in Microsoft, and Apple, and things like that. So money’s flowing into the index has pushed those stocks up a little bit. It’s just interesting because you can kind of almost tell how dumb some newscast people are because when they report the differences in these indexes, they act like they’re so different, but they’re not anymore. A better look at how the overall economy is doing is say the Wilshire 5000, which is going to include smaller companies as well.
Chad Burton: And that’s the big question is some of the smaller companies that can’t access credit as quickly as large cap companies, if there is a resurgence in the fall, how will they do? That’s why they’re still down for the year. That’s why look at the Russell 2000, it’s still down about 12% or so for the year. Now, even with the retail sales numbers that came out, retail sales are still down on a year over year basis. And we’re sitting at a very flat market. So keep that in mind. And what I mean by that is you need to have an investment policy for yourself. How much do you have in stocks versus bonds versus cash versus real estate? And sometimes things need to get rebalanced and the market is pushed forward from its lows by quite a bit.
Chad Burton: So we go through periods of time where things look expensive, things look very attractive in March, very attractive. Now, I’d say fairly to fully valued based on no major resurgence. I would still take any dips as big buying opportunities for the longterm because stocks are positive 10 years later. And after big declines, they’re typically positive one year later. We’ll take a quick break. We’ll be right back and talk about that bad, bad report that initially came out from Fidelity. Not as many people sold stocks as you think. We’ll be back. (singing).
Announcer: You’re listening to New Focus on Wealth on AM 1220 KDOW.
Chad Burton: Welcome back into the show. I’m your host, Chad Burton, certified financial planner. You have a money question for the show and need some help with your financial planning, your investment manage, just go to ChadBurton.com or NewFocusFinancial.com. One of the things I was talking about was last week Fidelity released, and what they’re saying is an accurate dataset regarding how many people sold their stocks in March and April. Actually really between February and May I guess you could say, that’s the bigger time span. The decline started in February, the big virus fears were in February. I just remember being in Tokyo, Japan, finishing up a snowboarding trip from the Northern Island, and going to Tokyo for a few days, and sitting in Tokyo hearing about the virus issues. And then thinking, “Boy, yesterday I was near Mount Fuji at”… You can go all the way up to Mount Fuji and hike it at this point because it basically was the winter.
Chad Burton: But surrounded by lots and lots of Chinese tourists who were looking at each other going, “Oh, all right, well, hope we don’t get it.” But 31% of investors between the ages of 65 to 69 sold all their stocks between February and May. That’s what the initial report was. There’s a very active advisor on Twitter that started re-tweeting that, Wall Street Journal ran with it. And it was wrong. It was an inaccurate dataset. Only about 10% of the people out there, according to Fidelity, did that. And for one of the sharpest declines in a short period of time that we’ve ever seen because of a very scary issue called a pandemic. And remember I’ve said this before, typically what causes the major declines, you typically every five years have one of these big events, five to seven years, is something that people aren’t talking about, right?
Chad Burton: Most of the big issues that we’ve had in the past had been things like interest rates and the China Trade Deal. The what ifs, the what ifs, the what ifs. Not the black swans that come out of nowhere. Now only about 10% of the people at Fidelity sold all their stocks between February and May. So one in 10 people basically had damaged their retirement in a major way by trying to time the market. Now, how many of those got back in? I don’t know. Can they run that report? How many of those timed it perfectly? When you’re trying to time the market, there’s two right calls that you have to make, when to get out and when to get back in. And remember what I’ve said before you stay out, you start losing out on all the dividends and interest. The S&P 500, if you’re owning an index fund, yields around a little over 2%, right?
Chad Burton: So even when your stocks are down, even when your index funds are down, it’s still paying you. They’re still paying dividends. Those dividends you can either live off of them if you’re retired, and enjoy a very low tax rate on those dividends, or you use those dividends to reinvest. So when you’re younger, you’re 20, 30 years old and the market declines that much, you should be thinking, “Oh, sweet. I’m getting my dividends reinvested at a much lower share price. I know the stocks are going to be higher 10 years from now. I better fund my Roth IRA early or accelerate my 401(k) contributions, if I can.” Now, unfortunately in this case, some people got furloughed or laid off and they couldn’t work. And we’re seeing more of that.
Chad Burton: The tough times aren’t over here because we could very well get into an issue where we’re ordered to stay at home again in the fall. Remember when the flu season comes around? Well, yeah, same kind of deal. I’m still going to be investing in stocks though. I’m going to still look at pullbacks of 10% or more as a reason to trim some bonds and buy some stocks because bonds have done very well lately. Very well. And when stocks go on sale, you think, “Okay, I’ve got five, 10 years.” And you get to 10 year rolling periods and stocks are positive. 20 years, stocks are always positive. You don’t look back over a 20 year period even if you pick a horrible time to invest and say, “Stocks gave me a negative return over a 10 year period.” It didn’t happen. And plus you always need to focus on the yield of stocks.
Chad Burton: Yes, the yield of stocks, higher than bonds. In fact, if you look at the NASDAQ, the QQQ, right, got a dividend yield of about almost 0.7%, which is about the same as a 10 year treasury. So if you think about that, why would you buy right now a 10 year treasury bond from United States government, and know that all you’re going to get out of it is about 0.7% income for 10 years and then you’re going to get your money back. Do you think if you invest in the NASDAQ, which is Apple, Microsoft, Amazon, Facebook, Alphabet, Google, Intel, Nvidia, Adobe, Netflix, PayPal, Cisco, Tesla, Pepsi, Comcast, Amgen, Costco, T-Mobile, Broadcom, Qualcomm, Starbucks. Where would you rather put your money for the next 10 years? Do you think those companies are going to be worth more 10 years from now? Because we know a US 10 year bond is only going to be worth what you put back into it. You’re going to put in a dollar you’re going to get back a dollar plus that yield.
Chad Burton: So you can get about the same yield even on the NASDAQ. And I’m not telling you to go out and buy the NASDAQ. You always consult a broker advice before taking any action on anything. I’m just saying that you got to look out 10 years when it comes to stocks. People that look to the short term, six months, one year, three years, when it comes to stocks they get emotional and make mistakes, like apparently 10% of the people that invest in Fidelity. When they cashed in, they got emotional, they got scared, they made mistakes. And those that are still in cash, if they sold in the bottom in February after the decline and they went to cash, they could cost themselves five, six years more of work just to make that up. So instead of returning at 65, maybe it’s 70 now. So don’t make those timing mistakes.
Chad Burton: You need to train yourself to, if you get super, super scared, rebalance your portfolio or buy more. And that pays off every single time. If the market corrects 10%, 20% just keep buying. Eventually it’ll be higher. And think out 10, 20 years, not next week. Stop that whole, it’s different this time, deal. Volatility is not over though. So get used to it. We’re seeing some positives out there, we’re seeing that pent up demand, but we’re also seeing some resurgence in the virus issues. Got a call yesterday from a neighbor whose daughter, who was at the area barbecue over father’s day weekend. Everybody was social distancing, yet she found out… So the college kids home. She found out her boyfriend’s roommate came back from Scottsdale, got tested positive for COVID. So he had to notify everybody in the neighborhood, even though nobody was really close to this person over the weekend, but he still felt like he had to notify.
Chad Burton: Now this girl, instead of being able to go back to where she’s from is having to stay at her parents house quarantined for the next two weeks or until next, I think Thursday, when they’re going to give a test that’s going to be a little bit more telling, I guess, whether or not she has it. So we’re going to continue to hear some of these stories. But getting back to the point, the timing the whole market deal is such a disaster. And then what I always hear about too when, after you have a big market event, it’ll play on some people’s fears that did do that. And you start hearing commercials for investments that really haven’t done that great in the past, they probably won’t in the future. But they play on fear and greed, so be very, very careful with that. So if you’re a person that cashed in and didn’t get back in, and you were born in 1960, you might have an issue with social security and a little tougher time on retirement.
Chad Burton: And I’m going to tell you why after we get back from the break. If you want to get your calls on the air, it’s (800) 516-1220. We’ll be right back. (singing).
Announcer: Now back to New Focus on Wealth, on AM 1220 KDOW.
Chad Burton: Welcome back into the show. I’m your host, Chad Burton, certified financial planner. You need some help with your financial planning, your retirement plan, especially these days, investment management, just go to my website, ChadBurton.com or NewFocusFinancial.com, got a team of six other certified financial planner practitioners besides myself that puts together plans, manages portfolios. I’ve been doing this for 25 years, and it’s definitely a more concerning time now than ever for retirees. And it’s not because of stocks. I fully believe that we continue to see over long periods of time, full and multiple market cycles. 10, 20 years stocks average 10 to 11%.
Chad Burton: In my mind, that’s not even a question because that’s what full market cycles are 10, 20 years. And retirement is much longer than that. It’s the fixed income side, it’s the bond side, interest rates are lower than ever before. Even prior to the credit crisis rates on the 10 year treasury were, what, around four, 4.5% or so. Maybe even higher. You got to go back and look at the chart that I’ve talked about on the air before. And now you’re looking at the 10 year treasury floating between 0.6 of 1% to 0.9% or so. Now there are bargains in fixed income we’ve talked about before. I’ve had several guests talk about in the BB, BBB rated higher yield bonds that got sold off to far convertible bonds.
Chad Burton: I think that story’s already a little bit played out. Structured credit, private credit, and things like… There’s things that are going on. And I’m not too scared of bonds because there’s so much demand out there, in terms of bonds falling I mean, I’m not too scared. But what it all plays into is your retirement, and your fixed income, or your bond side of your retirement, or even your CDs, which are so much lower than before. Now on one hand we’ve had a very long period of time with very, very low inflation. So that’s helped, because it’s all relative to inflation, right? If inflation is running at 3% and bonds are paying six, then your real returns 3%. that’s pretty low. But now we have an issue when it comes to this pandemic, how it’s affecting interest rates, and even social security.
Chad Burton: So the pandemic caused everybody to have to stay at home, and not go out to eat. Now there’s a whole bunch of people, basically people that were making under, what, 20, 25 bucks an hour are making more by staying at home with the increase of 600 bucks a week from unemployment. So some people are making more money. But there’s a lot of people, the ones that were actually doing a lot of economic stimulation, people that were making a lot of money but are not working at all. Those are some of the people that are actually pulling money out of their retirement accounts to survive under this situation, damaging their retirement a bit even more. And then because of all this stimulus, somebody is going to have to pay for that at some point, right? Now we’ve increased our debt load, we’ve increase the balance sheet of the Federal Reserve.
Chad Burton: And we’re still not anywhere near where Japan is, and we have much better demographics. So there’s ways to get out of it, but at some point our politicians are going to have to tackle the issue. Instead of running their campaigns on Twitter, and news stories, and things like that, they’re going to have to try to explain to people like, “Look guys, social security, the way it works is that future benefits are going to be cut by 21%.” When the funds are in a situation, where once social security hits a point where it’s paying out more benefits to retirees than it’s collecting in taxes. And if you want to see what the taxes are, look at your pay stub and look for FICA, F-I-C-A. You pay half, your employer pays half. If you’re self employed, you pay both halves. And as soon as FICA, the income from FICA, is less than what’s being paid to retirees there is an automatic cut of 21% in benefits to people that are on social security and for future retirees.
Chad Burton: So obviously with a lot less people working there’s a lot less FICA going into the system. And then there’s this other issue, and Wade Pfau, which he’s an advisor. The last name is P-F-A-U. He does a lot of commentary in white papers and things like that. And he was talking about in this article, pre-retirees born in 1960, so in the year 1960, may suffer a blow to benefits. That’s because social security administration employs a complicated formula to calculate benefits, which includes using the top 35 years of retirees earnings adjusted by an indexing factor. And that factor is based on the average wage index for the year an individual turns 60. So this is why when I talk about social security, especially for spouses that had varying work history, one spouse stays at home for a while to raise the kids, the other spouse continues to work. And you can start playing off one another’s benefits in certain cases.
Chad Burton: You have to use software to maximize social security because what I tend to explain it as, is the way that social security calculates your benefits is kind of like these lumpy calculations, they’re weird. We’ve had the software spit out situations where one spouse retires and starts social security benefits at age 66.5, or 62.5. And the other spouse doesn’t. And then they switch over to their other benefit at age 70, and it’s all over the place. But the point to this article is that the pandemic has caused a lot of governments help. Somebody’s going to have to pay for that in higher taxes. It’s caused interest rates to decline because the feds do that to stimulate the economy. And then people pile into bonds, bond prices go up, and the rates go down, that again affects retirees that are trying to move more into bonds as they go into retirement.
Chad Burton: And then eventually taxes will be higher. That’s why yesterday on Rob’s show, like yesterdays show, if you want to find the podcast, it was at like 7:50 or so. I was saying really make sure you get a good chunk of money in your Roth 401(k), and Roth IRAs, especially if you’re younger, and after… There’s been a big, big increase in the standard deduction. So even if you don’t own a home and you’re taking the standard deduction, you’ve got a pretty high amount of income before you exceed the 12% federal bracket. And it’s just silly to me, if you’re only at a 12% federal bracket, why would you be funding anything else besides your Roth 401(k)? Why? The only time that I would say, “Okay, yeah, you need the regular side.” Is if you’re older, you’re not making a lot of money, you’re older and you’re way behind on retirement.
Chad Burton: You need all the tax deductions you can get. And you’re probably never going to be above a 12% bracket. Then fine. But if you’re 20, 34 years old, 12% federal bracket or below, you don’t need an immediate tax deduction, you need to get all the money socked away in a Roth IRA that you can so that it comes out tax free for the rest of your life. If you invest in the stock market in the long run, in a Roth IRA that grows tax free, nobody ever pays a dime of taxes on it, there’s nothing that can really beat that investment. Some people say real estate. No way, not even close. To get those types of returns in real estate, you have to use the leverage, you have to pay property taxes, you have to have renters that pay off that loan for you. And sometimes those renters steal all the fixtures in your home and put holes in the wall.
Chad Burton: So there’s no way at the same level of risk that you can beat anything besides stocks in a Roth account. And you can do a Roth in your 401(k), you can do a Roth IRA. There’s ways to do it even if you make a lot of money called a backdoor Roth, just go to the New Folks Financial Group, or ChadBurton.com, go to insights and look for backdoor Roth IRA. And now there’s the mega Roth 401(k), where you can put after tax money into your 401(k) and convert it to the Roth without paying a bunch of taxes. We have clients at Cisco, Microsoft, Apple putting 20, $30,000 away into their Roth 401(k) right now. And when you have a ton of money in a Roth, and it’s going to come out tax free, it’s so much easier to calculate your retirement plan. Because when I have somebody, when our advisors are putting together a financial plan for somebody that’s about to retire, and they may have some ESPP shares, they may have some stock option shares that they exercised at a low price, and when they sell them, it’s going to be capital gains.
Chad Burton: They might’ve invested in an index fund or a stock in a regular brokerage account. They have 401(k)s, IRAs, Roth IRAs. Everything is taxed differently. Capital gains and dividends from US qualifying companies are taxed at the capital gains bracket. And there’s a huge amount of money you can take before you even pay that 15% bracket. You go too high, it’s 23.8%. But then all of your income from your IRAs, your pensions, usually about up to 85% of your social security is taxed as ordinary income. So there’s these dueling tax brackets. And you have to be careful because one affects the other. So sometimes you blend it. Sometimes one year you’ll take capital gains another year to take an IRA distribution, or do an IRA to Roth conversion. It gets very, very complicated in order to keep your taxes really low in retirement.
Chad Burton: And you could do that. The webinar that we have coming up, it’ll be announced probably later today on the website, ChadBurton.com, NewFocusFinancial.com, in mid to late July. Basically it’s going to be, how do you figure out your taxes in retirement, along with, how do you invest in light of what’s happened with this pandemic? But you’ll see that it can get, in order to keep your taxes low and get six figure income at a very, very low tax bracket in retirement, you can do it. But man, if you had all Roth IRA, Roth 401(k), it’s super easy because you don’t have a tax bill, your Roth IRA distributions don’t affect your social security and cause you to pay social security taxes. And it does not affect how much you pay in Medicare. If you have too much income in retirement, your Medicare premiums can go from like 108 to 400 and something, if you have a lot of income.
Chad Burton: So focus, people, on the Roth because taxes are going to be higher. Taxes have to be higher in order to shore up social security. Do you think in 2034, that’s about the timeframe that FICA income for social security is going to be less than what’s being paid out. Do you think that the government or the economy is going to let all of these people on social security have a 21% decrease in their benefits? That means grandma and grandpa are homeless because way too many people count on 100% of their income in retirement on social security. That means taxes are going to go up. So get ready for it and get ready for that in a retirement. Fund those Roth’s now. We’ll take a quick break. We will be right back. (singing).
Announcer: This is New Focus on Wealth on AM 1220 KDOW.
Chad Burton: Welcome back into the show. I’m your host, Chad Burton, certified financial planner. If you want to find more about me and my team of certified financial planner practitioners, just go to ChadBurton.com, NewFocusFinancial.com. While you’re there do me a favor, click on the link at the bottom of the first page of the website, go to the New Focus Financial Group Facebook page, click like, let us know that you’re there listening. We’ll also start… We’ve got the webinar coming up in July, that’ll be announced there. We might even do it live, a Zoom event, plus a Facebook Live event shortly. We’re kind of playing around with that, with this whole new world of less Rob, and Chad in front of you potentially for the rest of the year, maybe into next year. Because we love to do our live events about every six weeks in the bay area to teach you about retirement, what you need to do between your safe money, your portfolio, how you rebalance, tax issues, all that kind of stuff.
Chad Burton: But it looks like we’re going to have to go more virtual these days, which is fine. But while you’re there click like on the Facebook page. I just posted a video of me and my four kids all wakesurfing at the same time. So if you don’t know what wakesurfing is, you go behind these boats that create a huge wave, about waist high wave. And you can start with a rope and then drop it and surf like an ocean wave. So I’ve got my four year old on my shoulders and my other three kids on three different ropes. And it was a blast, great way to spend Father’s Day. Hope you had a good one. So enjoy the video, click like, let me know that you’re listening. And going back to what we were talking about, we got issues facing retirement that you have to make… You have to be more careful.
Chad Burton: You have to really run tests. I’ll be updating, I’ve got the six tests, but like I’ve said before, there’s seven tests for retirement planning that you have to do. One of them is a plan for your health. Social security is in trouble, so that means taxes will go up. And then we have all this funding. Somebody’s going to have to pay for it. So taxes are going to go up. That’s why I’m talking about Roth IRAs. And interest rates are low. Now luckily we have low inflation, so that helps. But another way that you need to make sure that you can enjoy your retirement and keep your expenses down besides good financial moves is being healthy. So if you’ve gone through some issues, maybe you cashed out in February, and you missed out on the big run up, and you know you’re going to have to work four or five more years because of that.
Chad Burton: And you’re going to have to save more. You got to do a financial plan. It doesn’t mean you get depressed and go into hermit mode. Look to the positive. Instead of dwelling on what happened say, “Okay, I got to get my money back to work, but I also have to get a life plan. And a life plan in order to enjoy retirement and be able to continue to work a little longer than I thought, because I either cashed in and tried to time the market, or social security scares me, or low interest rates are concerning me because I’m a pretty conservative investor.” Well, get your plan for your health on track. And a lot of people will start first by exercising. But if you’re exercising, you’re eating like crap, well, it’s not going to get you anywhere. It’s not going to get you anywhere at all. You have to eat better first.
Chad Burton: In terms of overall health, and this is something that I’ve been into for years. I was an athlete high school, wrestled a couple of years in college before a nice car wreck kind of ended that. Plus I got really busy as a certified financial planner. I got my CFP designation before I got out of college. So been in the business for a long time. But as I’ve aged, I’ve had to really focus more and more on my food and tone down my exercise. I can’t lift weights, and run, and do sprints, and wrestle like I did as a 45 year old when I was 18 and 22. And for a while, I was still working out like I was in my twenties and I was starting to deal with a whole bunch of injuries. And having to eat different is a big issue too, because I noticed as you age, you might have more food intolerances and that’s something that you have to think about.
Chad Burton: So there’s a difference between a food allergy, which causes an immune system reaction that can affect numerous organs and create a really bad response in your body. So you might know what your food allergies are, but there’s a lot of people that really struggle with diet and trying to get healthy because they try to go towards a certain diet and they feel horrible. They have these really bad digestive problems and it’s because they might need to do food intolerance testing. And so I haven’t done that personally yet, because I already know what affects me or not. For example, I can’t eat really a lot of carbs. I don’t think I have a gluten issue. I just don’t feel good when I eat a lot of carbs. I do a pretty high protein, even a higher fat diet, not necessarily full keto, but close.
Chad Burton: And so right now I’m more concerned with cortisol testing. So I’ve got this whole new kit. I haven’t done it yet, but I’m going to be testing cortisol levels throughout the day. Next step will be food intolerance testing so that I know what food might not make me feel horrible, but might not be great for my body. What food is potentially causing some inflammation? And if you look at inflammation it leads to so many issues, whether it’s cancer issues, arthritis issues, being more susceptible for how COVID affects you, for example. So there’s so many things to think about. And if you can say, “Okay, I’m going to get my money back to work. I’m going to let the stock market work for me over time. What I can control is my health.” So start with the eating. And it’s easier now to eat healthier than ever before. If you don’t have time and you’re still working 50, 60 hours a week, one meal delivery service that I eat about twice a week is Sun Basket’s.
Chad Burton: Even my kids can make those meals. It’s very healthy, good quality food. And it comes in a bag, all the ingredients with instructions, most meals are like 20 to 30 minutes. And so a lot of times I’ll ask my kids, “Hey, make dinner. It’s in the fridge. Take out the two bags and make us all dinner.” And it’s a way to eat healthy. Now it’s not the cheapest way, but if you’re busy, sometimes you got to do what you got to do. And if you have a plan to get healthy, and you sit there and you start working out 20, 30, 40, 50 minutes a day in the morning but your diet sucks throughout the day, you’re not going to get anywhere. You’re going to get frustrated. So it’s almost better to fix your diet first.
Chad Burton: So if you’ve been a person that’s been dealing with digestive issues or whatever, do some food intolerance testing, and maybe even look at things like books like eating for your blood type. Get your blood test to figure out what type of blood you have. And then look at diets that tend to work well for that blood type. Because again, if you want to… You can make good financial money moves and you can cut expenses. Make sure you don’t make emotional mistakes when it comes to investing. But if you save enough to retirement, and you get to retirement, you’re extremely unhealthy and you have five good years of retirement and then all of a sudden you feel awful, you’re going to the doctors all the time, you can’t enjoy retirement. What’s the point of saving all that money? So get your health on track when it comes to your financial plan as well. If you want to reach me, just find me a ChadBurton.com, Facebook, LinkedIn, Twitter, iTunes for the podcast, it’s all there. Have a great day, everyone.