Dead Money, Rising Taxes, and Retirement Risks You Can't Ignore

There's a term called dead money, which is assets that are not performing or they could honestly be working harder.

But now with inflation running around three and a half percent, the conversation starts to change.

So if higher rates continue, will they trigger some money moves? And if so, what could those moves be?

Well, there are always opportunities to fix dead money.

It feels like a new Netflix show, you know, the dead money.

If it is sitting there not accomplishing anything and inflation is increasing, then you would want your money to do something.

You know, people get up and go to work and sometimes, like Mike Rowe would in his show Dirty Jobs, people work really hard.

Why doesn't your money work as hard as you? And if it does, you could look at all kinds of things.

Maybe if interest rates creep back up, CDs or short-term, say, high-yield savings account might be a good idea.

Tips, treasury, inflation-protected securities.

That's why we say tips, because that's a really long word to say.

Those can certainly be helpful.

In fact, there are some big companies that aren't necessarily... growing their stock price as much as they're growing their dividends.

So if you're working with somebody that's thinking about this concept that we talk about all the time of predictable and reliable and sustainable income, maybe some of your dead money can also take on that job of creating a little bit of income for you, or at least creating more of some of the lift of what you're going to need to grow your portfolio.

You know, we talk about risks all the time.

Market risk is a major factor.

And some people say, well, if I take my money out of it, I keep it exaggeration right if i keep it under the mattress or in a coffee can uh i'm not affected by market downturns and that is true but inflation being what it is and it's always been a factor not even just when

you know

former fed chair jerome powell called inflation transitory a couple years ago and here we are things cost more money i think we all know that that's not a secret uh and if your money is not keeping up with that then the buying power of your dollar uh no longer works and that in and of itself is a loss so finding that right blend between protection and growth because you're going to need both when it comes to retirement is really what it's all about and and it's not quite the same as when you're in the working world or you're just saving money save save save and hope to use it one day well that day is coming how are you going to do that how are you going to create that reliable income that is something that john can sit down with you start developing that plan customized plan uh for yourself and your spouse and making sure that you know you don't have to see a reduction in lifestyle down the line because i don't think that's something that that anybody really says that they want when they come in is it john

No, nobody says I want to feel less comfortable in retirement.

Everybody wants to feel as comfortable, even maybe more comfortable.

And the challenge is right now, your rhythm of cashflow is almost always tied to the paycheck you're getting from your own business or somebody else's business.

You kind of need to think about making your money become a business where it can start paying you something predictably and reliably.

Most people don't live their lives based on how much money they have.

They live their lives based on how much money is in their checking account every couple of weeks.