On The Money with Jerry and Nick Royer Podcast Podcast Artwork Image
On The Money with Jerry and Nick Royer Podcast
Episode #24: The Grow and Defend Strategy to Build Your Wealth Smartly!
August 31, 2018 On The Money with Jerry and Nick Royer Show

On This Episode You'll Discover:
 - A simple strategy that Jerry and Nick have used for their clients that focus's on growing your wealth in calm markets and becoming defensive during extreme market conditions.
 - The benefits to indexing and diversifying in more than just stocks from the USA.
 - How the Risk Band-Aid can be the difference between getting crushed during the next market crash or helping prevent it from crushing you.
 Resources In Today's Episode:
 - Schedule Your Complimentary On The Money 5-Step Retirement Review by calling 1.800.245.0546
 - Check out our website: Group 10 Financial/
- Follow us on Facebook
- Follow us on Twitter

Episode Transcript

Speaker 1:0:01This is the on the money podcast with Jerry Nick Royer, broadcasting nationwide. Jerry and nick are consumer advocates, authors and TV news contributors to NBC and ABC Stations. Their nationally syndicated radio show reaches coast to coast every week. Jerry and nick will show you how to make sure you live a confident retirement lifestyle with more simplicity at less worry. You are listening to the on the money podcast with Jerry and Nick Royer. This is the on the money podcast. I'm mark Elliot with you once again joined. As always,

Speaker 2:0:38he's in the studio here with Jerry and Nick Royer and in case you are new to the podcast. Let me tell you a little bit about Jerry and nick. They are registered financial consultant TV personalities, authors, their radio show airs coast to coast, and they were the founders of I financial and retirement planning firm that has hundreds of clients across the country called group 10 financial. They're the creators of the on the money retirement blueprint, a five step process to help you live a confident retirement lifestyle. So if your goal is to help ensure you don't run out of income during retirement or you want to make sure you survive in both good and sour markets, or you want to make sure you don't pay any unnecessary taxes, well then this is what their system is designed to do and that's what this podcast is all about.

Speaker 2:1:20We cover a lot of ground on this show every single week and this is, I think, an interesting topic we're going to touch on in this because over the past 52 years, Jerry, nick have created multiple strategies to help people navigate the uncertain economy because let's face it, 2008 was a wakeup call that the strategies of old like buy and hold was one that did not work that well during that time period. Now, here we are a decade later and instead of using old antiquated strategies that worked in the past decade, Jerry, nick have come up with some smart strategies to help not only grow your money, but to defend your money when necessary. Guys, why is this important? Well, the market crashed back in 2008. Mark took until 2013 to get back to even that's five years, and then there was the 2000 to 2010 debacle, which was called the lost decade because you had like you had the beginning of the decade that had the.com and then the uh, oh, eight crash, right into disliked everything about if you were trying to retire, you lost money in the market, lost money causing a ton of people to run out of money during retirement.

Speaker 2:2:29So if you go back to the DOTCOM bubble, bursting in, in, in the early two, thousands and new throw in nine slash 11, the complicated things even more than you've got to 2008 where you have the banking and housing, financial crisis and you know, letterman and Leno. We're having fun on their monologues saying, I hope you're enjoying your two. Oh, okay. I know you thought it was a 401k, but it's a two o one k now. Certainly during that decade they'd, you know, Jerry, you just said called the lost decade. The old buy and hold type of strategy really wasn't efficient back then. It was called buy and hope because over it should go up. The market

Speaker 3:3:00should go up. The question is, how long do you have to wait for that to happen? I mean, granted, I will give that the market goes up in the longterm, but what if you will, we have another last decade. What if you don't have longterm the weight? Okay. Um, there's a, a market forecast sheet that I have here from several of the world's most renowned people. So John Bogle, founder of vanguard, this was in October 2017. He expects the stock market the only have four percent returns over the next seven to 10 years. Three percent return for bonds over the next decade. And that was last October. That was last October. So four percent. He's thinking four percent for stocks, three percent for bonds. Morningstar investment management thinks that one point eight percent is the 10 year nominal return for the US stock market. One point eight percent, two and a half percent for us bonds. And that was September of 2017.

Speaker 4:3:53Yeah. And Charles Schwab investment advisory says at a six point seven percent expected nominal return for us, large cap stocks from 2017 to 2026 that are the most bullish. At six point seven, you have to take that 2017 to 2026. I mean that's, that's a long period of time. And if you're going to put all your money at risk for a six point seven percent return, there's programs out there, it'll do better vanette with no risk. You just have to be made aware of it.

Speaker 3:4:25How about vanguard? Vanguard, you have nominal us equity markets returns, okay. A vanguard nominal US equity market returns into three to five percent range during the next decade. That's a problem when vanguard is saying just three to five percent is what it's going to do over the next decade and a two to three percent in fixed income markets. And that was in December of 2017 from vanguard. And then you guys saw it. Look at facebook. You know, I have lots of people who have come in over the years and said, Hey, I've got all my money saved than facebook. What do you think about that? And I'm telling them that's not very. That's not all your eggs in one basket, $100,000,000,000 in one day. Now you know what? They are not the only ones. If we look going back in time now, facebook did lose $119 billion in July. Intel in September of 2000, lost $90 million. Microsoft in 2000 lost $80 million.

Speaker 4:5:20But like you were saying, nick, with apple in 2013, it went down. What was it? Fifty $9, billion, $50 billion. Then it just crossed over recently $1,000,000,000,000. So I mean it can happen. It can

Speaker 3:5:34turnaround, but like we talk about a lot on the show. If you don't have a retirement roadmap that can account for both good and sour markets, then your retirement is completely dependent on if the stock market goes up or not. It's tough to live that way and I'm going to give out our number here in a second and offer you an opportunity right now to have us help you create a customized, simple to follow step by step financial blueprint of your money and there's no obligation. There's no cost for this initial review. If you have at least $200,000 saved for retirement, that number is 869. One, three, three, seven two. That's 800, six, nine, 1:33 72, and you can also text easy. That's like e z as in Zebra, e the is easy. Retire to 30 1:30 1:31, so that's easy. Retire to 30 1:30 1:31.

Speaker 3:6:23Jerry royer. Is the founder and CEO of group 10 financial or is the president of group 10 financial. I'm mark Elliott. Glad you're with us today. For the money that buy and hold is an outdated strategy. What would be a better strategy in today's financial world? So if you're wanting to get some growth but not get devastated when the next market has a big drop and have we have another bear market like we did in 2008, which usually happens every really for eight years, you can kind of count on it at some point, but we're in the longest bull run we've ever had on Wall Street, so maybe it's never going to go down. It's just going to go up and I'll let it rest of my life. I know and that's when we want to defend. When it does go down, we call this grow and the bend because that's what we want to do, grow our money and defended, protected when the markets are in a turmoil and there's a bunch of fear out there in the markets.

Speaker 3:7:18The first thing that we do, the first step is indexing. We like to use indexing like the SMP $500. There's no dividends at nexus. There's foreign stock indexes, there's emerging market, fixed income indexes. So we like indexing. Take the smp for $500. For example. You can buy a fund that tracks the s and p 500 index and when you do that, indexing is usually very, very low cost because you're indexing directly and there's usually no money manager managing that. So the indexing is is usually a lower cost way to go. That's the first thing we like is indexing. The second thing we want to do is diversify. We want to use several of these indexes, so we are diversified between the SNP 500, perhaps foreign stocks, international stocks, emerging markets, fixed income. That is the grow part of the grow and defend strategy. Basically index and diversify.

Speaker 3:8:13So we have a lot of different things going on, but all working, we're all working together. Then we want to monitor it and defend when necessary. Think about a Thermostat, you know, uh, when it's hot, what do you do? You turn it down so it cools off your house. If it's cool, you turn it up and you will alter that thermostat. And we kind of do that. The same thing by watching what we call the fear index. So get this, there is actually an index that is out there that measures fear. Now I'm going to ask you guys a couple of questions. When fear is high, this index goes up. When fear is low, this index goes down. Now I'm going to ask you a couple of questions. When fear is down, what do you think is going to happen in the stock market? Fears down.

Speaker 3:8:55What do you think happens to this stocks? People buy stock. Yeah, because there was no fear, right? So if fear is low, the market goes up. How? Let's reverse that. When fear is up, what do you think is going to happen in the stock market? People are going to go out and sell freight. You're going to look, yeah, they're afraid. So they're gonna. They're going to get out, right? So a smart technology. Now we can actually measure each day. If fear is up, we're a fear is down and if fear is up and the market has taken a nosedive, we can put on a risk bandaid the defendant from writing that nose dive down. For instance, in February to market was down big. In fact, we started out the year incorrection down over 10 percent, but because of this risk bandaid, this strategy was actually up doing it this way, and that's what we want to do.

Speaker 3:9:41We want to index, we want to diversify, we want to grow, and then we want to defend and put on that risk band aid when it's time to do so, and strategies like these can help give you more peace of mind in retirement. The markets haven't taken that big dive that we've been expecting, but history shows us that it will happen at some point when that happens. We want to defend what we've grown, so if you call right now, we will help you create your own custom retirement blueprint, completely customize using strategies like this grow and defense strategy. This is not some cookie cutter approach. It's designed to help you take the mystery out of financial planning by giving you a roadmap that you can follow. So keep in mind there's no obligation or cost for this initial review. If you call and you have at least $200,000 saved for retirement,

Speaker 4:10:26here's what we'll do for you. We'll run a stress test on your money to see how prepared you are for both good and sour markets. We'll also be able to tell you if you run the risk of running out of money during retirement will help also create a customized time income plan where we will use proven techniques which could not only help increase your retirement income, but make sure it lasts throughout retirement. We'll also check out the taxes that you're paying to see if you're paying unnecessary taxes. A lot of retirees are out there, are paying way too much in taxes, will help you take the confusion out of financial planning and replace it with a detailed roadmap to help get you to and through retirement. Just call us right now for this no obligation, no cost retirement review,

Speaker 2:11:18and of course that number is 869 one slash 33 slash 72. If you're wanting the team to create your retirement blueprint for you using their proven strategies and techniques, you will want to call right now. There's no cost, there's no obligation, there's no pressure. It's just a chat, if you will, a fireside chat. Think of it that way. Eight hundred 69 one slash 33 slash 72 869 1:33 72 and of course you can text as well. The word easy retire. So it's the letter z, the letter z. So easy retire and texts at 2:30. One 30 1:31. Easy retire 30 1:30 1:31 or you can obviously call 869 1:33 72.

Speaker 1:12:03So for Jerry and Nick Royer, I'm mark Elliott. Thanks for joining us again and we'll talk to you next time on the money podcasts with Jerry and Nick Roy. You've been listening to the on the money podcast with Jerry and nick royer every week. Catch new episodes to discover the latest retirement strategies and tips for retiring well from Jerry and nick. To learn more about how to create a retirement blueprint to help you have total confidence in your retirement flatten. Visit them online@grouptenfinancial.com. That's group one. Zero financial [inaudible]

Speaker 2:12:36dot com.

See All Episodes