As we kick off 2025, a lot of people consider what they want the year to look like and how to put their best foot forward, especially financially. Think: “new year, new me!” To figure out what the new “you” is all about, sometimes it helps to reflect first on what you’ve done in the past and what you want to change moving forward. Today, we’ll talk about the financial decisions and habits you’ve maybe had in the past and what changes you can make this year to embrace the new you.
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As we kick off 2025, a lot of people consider what they want the year to look like and how to put their best foot forward, especially financially. Think: “new year, new me!” To figure out what the new “you” is all about, sometimes it helps to reflect first on what you’ve done in the past and what you want to change moving forward. Today, we’ll talk about the financial decisions and habits you’ve maybe had in the past and what changes you can make this year to embrace the new you.
Helpful Information:
PFG Website: https://www.pfgprivatewealth.com/
Contact: 813-286-7776
Email: info@pfgprivatewealth.com
Disclaimer: PFG Private Wealth Management, LLC is an SEC Registered Investment Advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. The topics and information discussed during this podcast are not intended to provide tax or legal advice. Investments involve risk, and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed on this podcast. Past performance is not indicative of future performance. Insurance products and services are offered and sold through individually licensed and appointed insurance agents.
Speaker 1:
It's time once again for another edition of the podcast, Retirement Planning Redefined with John and Nick, financial advisors at PFG Private Wealth. And you can find them online @pfgprivatewealth.com. That's pfgprivatewealth.com. And we are into the new year. It is 2025, which still sounds weird to say. And we're going to do that new catchphrase in the last couple of years has been that new year, new me thing. So we're going to do that with our money. Now, I know it's the middle of the month already and you think, well, you should be doing this like the first week. But I was thinking about this, guys, I think January 16th I think which is the day we're dropping this podcast, I think that's actually officially quitters day if I'm not mistaken. But they have a term for it, people who set a resolution and then quit within two weeks. So I thought, well, let's wait till now and then we'll do our money attitude changing hopefully.
And that way hopefully people will stick with it when it comes to following their resolutions through. So let's get into it this week. John, how are you doing, my friend?
Speaker 2:
I'm doing all right. How are you?
Speaker 1:
Doing pretty good. Are you a resolution kind of guy? Do you set those?
Speaker 2:
I don't think I've ever set a New Year's resolution.
Speaker 1:
Really? Okay. All right. What about you, Nick? You doing all right?
Speaker 3:
Doing pretty good. I can't say that I am a much of a resolution person either.
Speaker 1:
Okay. Nothing wrong with that.
Speaker 3:
Yeah, but trying to do a little bit better, set some goals not necessarily New Year's resolution.
Speaker 1:
Well, I will say this, I'm not a resolution person either, but I did set last year as like I wrote four things down I wanted to accomplish in 2024. And I actually wrote it down, which I never do, and it actually kind of worked. So I kind of did stick with it and I got all four things accomplished. So I tried it again this year. So we'll see how it pans out.
Speaker 3:
Yeah, there's definitely science behind it, write it down and everything.
Speaker 1:
Yeah. So with that said, guys, what we're going to do is we're going to do that kind of attitude and we're going to do that kind of conversation piece here with finance. So if you're in that kind of new year, new me camp, this might be right up your alley. So guys, I'm going to give you the old you, like what maybe the old version of yourself might be saying. And then you give us the new you spin. Okay, so how to take it in that direction we want to improve on. So John, we'll start with you. So the old you might be like, man, I live beyond my means. I know I'm overspending. I got to get that under control. And A, first step is if you can accept that and admit that that's already a great thing, but what else should you be doing if you're trying to get into the new me?
Speaker 2:
Yeah, I think a first step for that is really take a look at where you're spending your money and prioritize what do you want to be spending on? So you kind of look at last year and say, "Hey, a lot of this stuff was unnecessary. I really didn't need it. Could have done without it." And maybe there was a little bit of guilt when you purchased it or did whatever you did. So I think prioritizing is step one. Setting a little bit of a budget. It doesn't have to be strict, but something that you could at least track as you just mentioned there, you wrote down some goals and it kind of helped you out. Same thing with this, write down where's your money going. And as I said, if something gets tracked you can definitely take a look at it and see where you can adjust it. And the hardest thing for most people and I've fell into this category at times, is kind of impulse buying.
So definitely figure out how to stop that, whether it's you see something you want, put it down for a second, take it out of the car and give yourself a day or two. And if you really like it, maybe go back and get it. But definitely stop yourself from that impulse buying.
Speaker 1:
Yeah, it can certainly get us.
Speaker 3:
Yeah. I would say too, one of the things that a conversation with some clients recently is those that maybe have a little bit of trouble from the spending standpoint, a lot of times they don't really have too good of a system for how they do spend. Meaning not necessarily setting a budget, but sometimes people will whipsaw from any sort of budget. I know that's kind of how I react. But having a plan of attacks. So for example, if we see people that use their debit card for a quarter of things, one credit card for gas, one credit card for publics, one credit card... And try to get all spread out, they oftentimes end up spending way more money than you realize.
Speaker 1:
Yeah, that sounds like a recipe for disaster for me at least.
Speaker 3:
Yeah. And so especially with clients that are one to two years out from retirement, more and more we encourage them to have the household use a single credit card that the website has a system where we can do an export or a data dump at the end of the year. It'll categorize the expenses for us, and we can kind of look from year to year and use those same categories that are a part of their card, to help them really see what's going on from year to year standpoint [inaudible 00:04:52] clients.
Speaker 1:
Yeah. And certainly you could do that with one card, you could do some points. I think if you can manage that stuff and then you can use that for flights and trips and things that... You can certainly kind of couple that credit card idea in there. But multiples for individual things, that definitely sounds like a recipe for disaster. So, all right, good job guys. I like that. So prioritize what you need if you're overspending or living beyond your means, maybe that wants versus needs list kind of thing. And to John's point, to curb those impulse buys, they can certainly get you. All right, so let's go to the next one here. The old you, now this might be a little bit more for our folks that are getting closer to retirement or maybe even into it guys, they are great savers. The old you has saved maybe even to a fault.
And I think a lot of retirees struggle with this, and you guys can talk to this point. But they don't now feel comfortable using it and enjoying it. They've gotten so grooved into saving for 40 years, they don't want to touch it. So how do you get that mindset to change to go, hey, this is what I worked for, let's enjoy this money in the new year, the new me, right?
Speaker 3:
Yeah. Fortunately from an advisor standpoint, we do run into this because it's a little bit easier of a conversation to have with clients versus the overspending one. But this is really kind of where we can focus on the planning, where the software that we use with us being kind of a planning focused firm, we really kind of go through stress test the plan, show them, hey, we've kind of planned for multiple different scenarios, try to have them zoom out a little bit. And again, just like a lot of things it ends up kind of being little psychological things that need to be done to make adjustments where they feel better, where maybe it's increasing their monthly distribution from their investment accounts so that when it's in the bank, they feel a little bit more comfortable spending it. Sometimes too, just playing games. We talked about using the credit cards as a consolidate and obviously pay off every single month.
But we've had a conversation with a client that liked to travel a lot. Her daughter had been pushing her to, instead of going on flights that... So from the outside you would look and see, okay, they travel a lot, they go do fun things but maybe it was all day of flying because they had two layovers or three layovers because they wanted the cheapest plane ticket. And so, hey, what are things that you can do to give yourself the permission to make that process a little bit easier for you? And sometimes that's points things. Sometimes it's just saying, "Okay, it's all right to spend a little bit more to make this process easier for you, so it's more enjoyable for you."
Speaker 1:
Okay. Yeah, and John, do you run into that sometimes where it's just convincing them, or maybe it's just showing them in black and white, "Hey, it's okay to spend this money. I get it, you've saved and you hate to see it go down and you're worried you're going to run out." But sometimes it's really just more of that just kind of coaching, I guess, just to show them it's okay to do this.
Speaker 2:
Yeah, that comes up a lot more than you would think because most people head into retirement. It's like, oh, now it's time to enjoy it and do the things I want. But that fear of running out money really sets in. So reviewing the plan, as Nick mentioned, really gives the most peace of mind. So I'll tell you, when we do our reviews and it's like, "Hey, this is kind of what you're set to have at the end of your plan.' It's like, "Okay, I feel comfortable spending then." And then it's always a good reminder to say, "Hey, if you're not going to spend it, I'll tell you your beneficiaries are going to spend it." So I think it's important that you enjoy yourself while you can. And most people, once we see the plan and we have that conversation, it's a kind of push to do it.
And unfortunately, next year it's another push to do it but it's always a good conversation. I'll tell you the ones that where it clicks, they're very appreciative of that conversation. It's kind of like, "Hey, appreciate you letting us know we're in good shape and we can kind of splurge a little bit more and do the things we want."
Speaker 1:
Yeah, and that's the point of coming back in for the updates and the consultations and the reviews. So you can keep track of that and make sure that you're feeling a little bit better about it. And yeah, to your point, what's the old saying, if you don't fly first class your kids will whenever they inherit the money.
Speaker 3:
I haven't heard that, but I'll start using that.
Speaker 1:
Oh, okay. Well, there you go. Yeah, start using that. If you don't fly first class in your retirement, your kids are going to whenever you leave them the money. So all right guys, so good job on that. Let's do another one here. So old you, I don't really know what I have or where it's at if I'm being honest. So a lot of people are in this camp where I got stuff, but I don't really know why I have it, where it's at and truly how much it is or how it works. So if the new you is trying to get better financially, whether you're still working, a pre-retiree or a retiree, what's some things to think about? John, you take off with this one first.
Speaker 2:
Yeah, so again, going back to the reviews, this happens quite a bit. As much as you show someone their plan, their net worth, this is what we do for a living so it's constantly on our minds, but the average person probably isn't thinking about their balance sheet or their net worth. But again, back to importance of doing your annual reviews or semi-annual reviews, it's a reminder of, "Hey, this is what I have and here's where all my stuff is." Because it can get confusing where you're talking about, hey, I have an account for this and then I have an account for income and I have a pension coming in. It does get, I would say, overwhelming. But when you have that plan, it's easy just to see it when you're with your advisor or if they have the tools and technology where you can just kind of log into a website or an app and you can just see it immediately. Typically, helps set people at ease.
Nick and I just got an email this week, similar thing. And we do our annual reviews and semi-annual reviews and check-ins quite a bit, but it's always nice for them. It's kind of a conversation of, "Hey, I don't know where anything is." We sit down, it's like, "Okay, great. I appreciate you guys. Thank you so much for sharing this and kind of walking me through it again." Because this is what we do and the average person it's not what they're thinking about day to day.
Speaker 1:
Yeah, for sure. Right. Good ahead, Nick.
Speaker 3:
I think the client's really trying to become more familiar with technology and using those tools that... because we do set those things up for clients so that they're able to check in on those things. And some like to see it, some don't like to see it, just kind of want the affirmation that things are okay. So it all just depends. But technology luckily has made it a lot easier for those that want to be more involved to be involved.
Speaker 1:
Yeah. And think about just not knowing where things are at and stuff like that. Especially if the loved one who is handling all that, which is typically the way it works, passes away. The one person it seems like that does this particular thing or whatever goes first, and then the other person's left holding the bag a little bit more. So having a good 30,000-foot view of things and knowing what you have, why you have it, where it's at. Important. Good stuff. All right. All good.
Speaker 2:
Yeah, Mark. And just to kind of touch on what you just said there, that happens quite a bit where a lot of people come to us and whether it's one spouse or the other. And it's, "Hey guys, I want to work with you. Very important we develop this relationship because if something happens to me, I want to make sure that my spouse has someone they can call on where they know everything that's happening."
Speaker 1:
Yeah, know where to turn, get some help because you're already dealing with a lot obviously. But being completely behind the eight-ball and not even knowing what's going on with your money makes it even worse. All right, let's do this, let's see if we can do one or two more guys here and then we'll wrap it up for the new year, new me conversation. Old you, until things settle down, I'm going to pause on my investments. We've seen this a lot last year, so I'm going to pause putting money in my 401k if I'm still working because it's so crazy out there. There's the election, there's the volatility, there's the wars, there's the whatever. That's just nuts to me because when is life ever... If anything we've learned since 2020, nothing seems to settle down in the last five years. So Nick, if you're trying to do the new, what's your recommendations for the pause until things settle down kind of person?
Speaker 3:
Yeah, you kind of referenced it from the standpoint of 2020, COVID, pre-COVID, post-COVID. We're almost four or five years post the beginning. And so the conversation that I'll oftentimes have with people is, yes, certain things may seem a little chaotic, but let's kind of rewind and let's talk about what we've been through over the last four or five years. And so in retrospect, does now really seem super chaotic and-
Speaker 1:
And more so than it was.
Speaker 3:
Yeah. And the important part of realizing that China time things rarely works, just kind of having the overarching plan, continuing to average into the market. And that the market tends to be resilient, especially with how money was printed during that phase of time. And so a market continues to be resilient. And for those that did decide to maybe sit on the sidelines, what is oftentimes even more stressful for them is kind of the re-entry and chasing, chasing returns, chasing timing. And then all of a sudden you look back and you have half the money that you could have had. So it's tricky.
Speaker 1:
Well, think about just people who, John might've even said this for the election, leading up to the recent election here this past November. Well, look at what the market's in the last two years, the S&P of the last two years was 20 plus percent. And if you were sitting on the sidelines because you were worried of what the election might do to it, you're kind of kicking yourself in the butt.
Speaker 3:
Yeah, and that happens a lot. And again, because sometimes people will make that initial decision, hey, I'm going to wait. Hey, I'm going to sideline some of this money. And it's one thing to do a certain percentage, that's fine. But maybe make a broad, really big decision and trying to then readjust that decision is even harder than the initial one.
Speaker 1:
Yeah. And I said, John, I meant to say Nick, apologize about that. But John, what's your thoughts on it?
Speaker 2:
Yeah, I've been saying things are going to settle down for me for the last five years.
Speaker 1:
Have they?
Speaker 2:
No, they haven't.
Speaker 1:
Right.
Speaker 3:
That's what he keeps telling me and I keep waiting.
Speaker 2:
Right. Yeah, no, I think there's always something happening. So I think the best time to start doing stuff is the present. There's always going to be something coming up. There's always going to be something why you shouldn't invest or why you should do whatever you got to do. So I think then the best action is save what you can and just continue to save. You'll be in a much better position and happier at the end.
Speaker 1:
Well, isn't that the point of your risk analysis anyway? Because something's always going to be going on. So if it's riskier right now and you want to pare back some risk, cool. But just wholesale jumping out, especially when you're thinking about just the dollar cost averaging, just the fact that you're losing over time by not putting in... If you're still working, you're not putting in your 401k because you're worried about what the market's going to do, that's just goofy. Especially if you're missing out on the free money from business and matching money from the company you might work for. So just lots of reasons to have a conversation. Again, to sit down with a professional if you're worried, if you are stressing over when's the right time to do this or that. Sit down with somebody so that you can kind of build a plan based on your comfort and tolerance level.
That's part of that, which really leads me to my last one, guys. If you're one of those folks that are in that, I have no financial plan. My parents didn't have one and it worked out for them I guess, so I'll just hope for the best. Many of us do this in the old you camp. So whoever wants to start with this one, I guess, John, I'll let you start with this one. If you're trying to do the new you, make a new resolution to get better financially and you're hoping for the best, that's not the way to go. So we've talked about it multiple times, but what should we do?
Speaker 2:
Yeah, definitely like I just said something's always going to be coming up and the present's the best time to start doing stuff. So we definitely recommend starting a financial plan. If you're just getting into it, maybe it doesn't to be a full comprehensive one, but something where it's just some type of outline, some type of goals you can start setting for yourself using... I'll say times have changed. My parents both had pensions and they were very blue collar old school, so they didn't have a plan. They just kind of went to work, got their pension and retired which most people could have done back then.
Speaker 1:
Sure. It was great.
Speaker 2:
Yeah. Now with pensions, pretty much for the most part, I don't want to say gone, but very limited to a select few, the responsibilities on the individual to be saving. And there's a lot more stuff going on now than there was 30, 40 years ago. So planning is very important and making sure you're on track, and hitting your goals and saving money is more important now than ever.
Speaker 1:
Yeah, for sure. And Nick, I'll let you have the final word here. You've got to take some kind of action. Hoping for the best, hope is not a strategy.
Speaker 3:
Yeah, we were talking about sayings earlier and I think there's some sayings out there about hoping without any action too. But from the standpoint of how things were versus how they are now, and John kind of covered the pension versus no pension. One of the other things are even if you decide, hey, from an investment standpoint you want to pick your own investments, that to kind of do it yourself, there are more tools than ever before to be able to do that. Whether it's targeted funds, index funds, the financial world has made it easier for people to engage. So that's a positive. But I'll say that I think the most alpha or the biggest benefit that people have is taking control of a strategy.
And that's really the biggest difference. You could take two people side by side, and if you were to break them down in 10 different variables and one of the variables that's different is kind of having a plan and not, they could have same income, they could have a lot of the same sort of setup. The person with the plan is going to outperform substantially. And that's just kind of how it is. So can't emphasize that enough.
Speaker 1:
All right, so before we wrap this up, guys, since we're talking about New Year, new me, Nick, tell us a little bit about the upcoming course you guys got going on at the end of the month. Folks want to attend. This would be a great way to kick the new year off, right?
Speaker 3:
Yeah, so we do the course and have been doing it for years. It's called Retirement Planning Today. It'll be up in Wesley Chapel at the Porter campus. It'll be starting on Thursday evening, January 30th from 6:30 to 9:00 PM. That'll be the session one. And then session two is the following Thursday, same time, same place. And if Thursday nights don't work, we also run it on Tuesday nights. It'll be February 4th, 6:30 to nine, and February 11th, 6:30 to nine. If anybody's interested, wants to go, just reach out to us directly. You can call our office at 813-286-7776 or email either John and myself. It's just our first name, nick@pfgprivatewealth.com or john@pfgprivatewealth.com.
Speaker 1:
All right, there you go. So if you guys want to attend that upcoming retirement planning workshop, that class, then definitely reach out to them. Let them know. Good stuff there. And that's going to do it this week for the podcast. So again, find them online @pfgprivatewealth.com or call the number as the guys mentioned, 813-286-7776. We'll catch you next time.
