Saving with Steve, August 1, 2023
Saving With Steve with Steve Sexton
Guest, Mitchell Morrison
Episode 141: From Debt to Prosperity
The Save With Steve Show, hosted by Steve Sexton will help you with ins and outs of money. We talk about financial issues that that could be costing you thousands of dollars and keeping you up at night.
We talk about “money”… tax reduction, saving more, how to spending less and get more, 401k’s, risk management, retirement, and everything under the sun that relates to you having a healthier happier relationship with money.
everyone has their own unique views and needs when it comes to financial success if you'd like to leave your financial woes behind and live a life of Financial Freedom you've come to the right place Welcome To Die saving with Steve show hosted by Steve Sexton the show will help you with the ins and outs of money we talked about financial issues that could be costing you thousands of dollars and keeping you up at night we talked about money tax reduction saving more spending less 401K risk management retirement and everything under the sun that relates to you having a healthier happy relationship with money now here is your host of saving with Steve Steve Sexton a little welcome to the show we talk about the ins-and-outs of money pretty much everything the central assume you have a healthy relationship with money I want to thank you for joining us today I want to thank everybody for joining us around the United States were over 600,000 listeners we're expanding overseas so thanks again for sharing this with your friends and family<br> today it's a very interesting topic according to the Federal Reserve American household debt has hit 16.9 trillion dollars at the end of 2022 that's up almost 3 trillion dollars from 2019 being financially illiterate can lead to never pitfalls which is being more likely to accumulate unsustainable debt burdens either through poor decision-making lack of long-term preparation this in turn can lead to poor credit bankruptcy house were closer and other negative consequences the big question here is a we all heard a I can it help when we have visual Morrison he's the founder of eyeball Financial LLC which is a fintech application now Mitchell has more than 40 years worth of experience in the financial world so he's an expert he work for companies such as EF Hutton Travelers Smith Barney and he's been part of the charitable Alliance Foundation he's the current executive director and founder of the financial literacy project<br> Morrison has appeared on numerous national television stations for his role with the World Trade Center Miracles foundation and Americas ride to Mitchell you got a great background I want to welcome you to the show thanks for being here on saving with Steve I'm very happy to be here Steve thanks for having me on so let's just get started you know what debt is a gigantic thing whether it's doing Dad whether it's just training can a credit card that you know what could you just talk a little bit about the challenges faced by people with Dad and then let's start talking about you know some of the consequences and went a itools could actually do for helping getting people organized while I not withstanding I would say budgeting and staying on track or the real time-tested formulas or not only accumulating wealth but being able to accumulate enough wealth to where you can<br> live comfortably you're not always paycheck-to-paycheck and you're not always struggling in the van emergency comes up and you can't afford to pay for that amount that's where people getting real trouble and we're beginning to see that more and more with the increase is inflation cost of credit and so on so forth specially with interest rates Rising so it's very very important that people get organized with the so let's start talking about how a i tools can help people get organized<br> will AI tools can be helpful but one of the tools that they're talking about and relying on his financial advice and let me address that right off the bat say I can't predict the future so if you can't predict the future how do you know what's going to go up what's going to go down what kind of circumstances I'll just give you an example let's say say I says essexshire a section that's very flipping what are the five best investments in the world and three of the five come up as oil and gas companies will all of a sudden a earthquake hits Saudi Arabia<br> and or a comment or whatever and wipes out all their production well you would think oh I should get out of those stocks know the answer is oils going to go to $200 a barrel but today I know that that was coming so not predicting the future we've got to look at AI as where we're at and what it can do to help us with discipline so yes it can tell you where you're at they can hopefully keep you on track of course a financial advisor is really pretty much doing that one of the things that we built into our platform we have a full financial literacy platform so another words if you are confused about what a 1031 exchanges or 10:35 it's all on the eyeballs phone app<br> and then of course you can talk to the app and get all your answers regarding your brokerage statement so that's been very helpful because customer statements haven't really improved in 8 years you get them either quarterly or monthly or your financial advisor or your account give you access to a screenshot but sometimes people don't understand that so we try to make it very simple we said you talked to this phone it will answer all your questions about your Investments and it'll do it automatically so we thought that was a big help for most people and I would like to add for the smaller investor or what I called the regular<br> family you know right now lot of the firms that have advisory advice they won't even take you on with less than 500,000<br> under management so you don't even get a live advisor you get an assistant and that's why we built the phone app to answer all the questions for anyone no matter how much money they got one of my questions I have in this is called the eyeball app I know that you've also featured in tailoring it to meet the needs of seniors so could you help us understand how that's done well what are the reasons why we called it eyeballs was to make sure you could keep your eye on the financial ball so actually here you're not requiring your eyes hear you're talking to it so if you can listen you can get all your answers and when the answers come through they also come through and attacks so for older people they get both worlds they get a text then they get a voice<br> and they can ask the same question over and over again of course now you can stare at a statement but what typically happens with a customer statement a lot of times is they still don't understand everything on those customers statement they have been basically categorized or described as they're confusing and people don't like them too much so we were take a look at that eyeball out can you Taylor investment strategy is their ability to streamline a portfolio especially for people who don't necessarily know how to do that how can that help somebody<br> so eyeballs very directly does not give Financial advice eyeballs also says if you're asking a buying or selling question should I get rid of this stock should I buy the stock what should I do it'll always default to I most does not give Financial advice your financial advisor has just been sent this message so all those questions we capture and we call them our IQs cuz we will remote in Korea questions and so we all right Q goes right to the advisor and the advisor knows what you thinking without even having a live conversation and again they can follow up immediately by just pushing a button a message we'll go back through to the app and say when's a good time for us to talk about this so in in terms of financial advice<br> our app is not it it just tells you exactly where you're at 24/7 and the transparency is very helpful for both sides the advisor side and the client site so what you're saying is somebody could be walking down the road and see if a news report and decide hey that doesn't look good for my stocks I should probably ask a question it and after apps not going to answer it's going to forward it on to the adviser correct and that happens a lot so and the advisors please to take that question you know in some instances where you fill out of an investment questionnaire form at a at a brokerage firm you might put down your category which is conservative income only growth and income speculative well now all of a sudden someone's using the phone and asking about stocks and their investment profile that they sell<br> child says they're conservative that advisor calls them up and says hey you can't buy stocks for me your category is conservative oh I buy stocks from another person so that way they say I will did you know you could buy them for me so you know it it brings everything back around but you know to your your question about a I I think that AI does not have the gut feeling component to it so if you're relying on it for financial advice you're only going to be able to produce the data that's available to a i<br> and I don't know if that is enough<br> to be accurate all too<br> my personal opinion I believe a I could make mistakes<br> more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show we're going to be talking about the in an ounce of money does Financial issues it could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton with Steve show where we talked about the ins-and-outs of money they I want to thank you all for tuning in preciate you sharing this with your friends and family all the replays are available at saving with Steve. Us if you're joining the stories of helpful information inside on saving this seat then I encourage you to go to our YouTube channel or apple play iTunes I encourage you to subscribe to that channel but also check out a few of our feelings that you can't help radio BBS radio talk radio in New York City Las Vegas TV network all these networks are dedicated to empower you to solve problems uplift your spirit and live a life of personal and Financial Freedom hey if you'd like to go see the replay she can go to saving with Steve. Us check out the Insiders Club cuz you can get guest gifts behind-the-scenes information the whole shots to it<br> I want to welcome you to Mars and back to her show Mitchell thanks again for being here with us today pleasure is all mine Steve we've been talking about how a I can help people keep on track when it comes to getting out of gas. We've been talking about how a I can help somebody become more educated not really make financial decisions cuz that's why you have a broker at financial advisor for but help you when you have that question you could put it in the ABS in for seniors you know what if you're in one of those situations you can talk into the app that'll give you a response but also send you a text is that right Mitch yes absolutely the app that we have is interactive between advisor and client for a nest door and its ongoing it's 24/7 so you can use it at any time during the day or night and you can ask it any question the interesting thing about our dashboard that goes back<br> the adviser is there's no real filter so you can say should I go to a movie tonight or you know who is Batman is Elvis still in the building you know what ever happened to the adviser so it's been kind of funny from time to time there is a shut off valve you can disengage from what we call those are IQs and say okay I don't want to talk to my advisor anymore I just want to get answers on the phone or vice versa if someone's being a little abusive and saying like using a cuss word that we we don't really articulate through Rai but we want that extra stuff. So how does one go out and get the app but more importantly how do they get it connected their financial adviser or their broker<br> so on the website there's a QR code could you tell us the name of that website yes eyeballs financial.com and the first thing you can do if your little hesitant is you can ask for a demo I recommend everybody watch there's three videos on there they're very helpful then there's a tutorial but it's very easy you can go to the App Store and download or the Google play and download eyeballs financial.com and if the QR code isn't up there it was supposed to be up by the time we had this broadcast but sent us a message and the QR code is the fastest way to do it because it literally takes seconds the other thing though is you got to check with your advisory firm<br> to see if they are on board with us so not all advisory firms are and that would be the second step and if you're an advisor and you want to know more about it there's the advisor website and that's eyeballs advisors.com eyeballs I source.com advisors.com okay perfect is there a cost to the app<br> the cost is determined by the broker-dealer and not invite us it's averaging around $9 a month per household I can't quote an exact price cuz it could bury a little bit but that's been the average of the usage of the eyeballs at so it's I balls financial.com okay perfect I just want to make sure everybody heard it a Mitchell I want to thank you for being here and sharing this with us an amp like that can help people who are you can help seniors better understand what's going on without having to have their glasses on cuz it will interact with him but more importantly in label somebody to when they have a thought and they're thinking about their finances they want to talk to their adviser or have a question over their visor they can just type it in there speaking in there and their advisers will get that question be able to respond it's better than<br> they can hang out I got to remember what I was thinking about it and talk to my financial advisor and and then you forget about and it's important so I think it's wonderful thank you yeah cuts down on phone tag to quite a bit nobody likes phone tag today I wish you well we'd like to possibly have you been down the road if there's any updates to the eyeball app you got it yeah we're always improving it so thank you thank you Mitchell with Steve<br> more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where to be talking about the in an ounce of money does Financial issues that could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve sex and out of saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton welcome back to the saving wished to show when we talked about the ins-and-outs of money I would truly want to thank you for tuning in appreciate you letting your friends & Family Associates know about the show all the replays are available on saving with Steve. Us if you're enjoying the stories of helpful information and insight on saving with Steven encourage you to subscribe to your YouTube channel Spotify by Apple play you'll never miss the show check out a few of our fuel is it UK help radio bvs radio talk radio in New York City e360 TV all these networks are dedicated to him how are you to solve problems uplift your spirit live alive or personal financial Freedom also follow us on Facebook join the saving with Steve sex and insiders Club at saving with Steve.<br> As you can get all the replays exclusive access to our shows videos guest gifts the holeshot I do want to thank Mitchell Morrison for being on the show but now I want to talk about a topic that is becoming very very very significant in this day and age where we been seeing over the last three years inflation<br> what's a flat Market has created some issues for a lot of people that are retired<br> there never people been reaching out to her so and and they're in their 62 63 64 they started Social Security and now they found out because inflation is up almost 20% the cost of living's up almost 20% in the last 3 years<br> credit card debt payments bills are up to all those things are going up on I'm going to go in heat I'm going to have to go back to work and they're trying to figure out how does it affect me if I'm taking social security well let's talk about that first of all if you're past the full retirement age which is either 66 in a number of months or 67 depend on when you're born<br> you don't have anything to worry about okay keep your Social Security and keep making as much money as you like go to town okay but if you're 62 63 64 65 66 in your eye more than a year away from your full retirement age you can have some issues so if you're more than a full year wave your full retirement age and you make more than $21,240 on a side job self-employed job side gig W-4 for every $2 you got it for every $2 you go over that Social Security threats all the $21,240 you're going to lose $1 and Social Security<br> next if you're within one year<br> I'm taking your Social Security 360 days okay<br> and you make more than $56,250<br> for every $3 you make over you're going to lose $1 and Social Security<br> hey that's $1 in Social Security for every $3 or over so think about that<br> if you're getting $20,000 a year in Social Security and you make $20,000 over that threshold you're given half of your Social Security back to the government okay so it's very important you understand that impact now there's a there's a caveat<br> if you started taking social security and it's only been 12 months or less you have the ability to withdraw your social security or your withdraw your request for benefits for the Social Security K and if you do that<br> you'll have to pay back whatever you receive so far but then you can start earning again you can keep running and it won't impact your Social Security in fact your Social Security go up because you're putting more money into Social Security and all that kind of good stuff too if you're at full retirement age or pass full retirement age but not at the age of 70 yet<br> you have the ability<br> just suspend your social security benefit you don't have to pay anything back<br> but you won't receive your social security benefits the other thing if your wife is receiving spousal benefits she won't receive the spousal benefits if your kids are receiving benefits based out of yours they're not going to receive the benefits if you suspend those benefits but you'll get delayed retirement credits which means for every month you delay those benefits your Social Security will increase all the way up until the age of 70<br> so it's really very important that you understand what's going on there now one of the biggest failures our retirement is not knowing or taking on too much risk in retirement especially from portfolios that are designed to create interest or income you know what you're told to return should be comprised of interest and dividends as well as growth options okay<br> maintain your lifestyle with the ones that are designing trade income for you but you also want to be able to get a measure broke cuz you got to remember that growth is going to go leg could be a lobster give me a game so if you're maintaining your income so for example<br> we just spoke with somebody and she needs an extra let's say for example she need an extra $10,000 a year okay and she has $400,000 for the income and she's worried about the market cuz most people expect me to go down in the next 6 months okay because the rising interest rates at all those bubbles that are going on and get on mclee<br> so what we've done is we've created a guaranteed income on a portion of her assets to support that income<br> and it's Percy principally protected as significant downside protection so if something happens there going to be okay but on the other side we just got it you got it setup for grown so portion of it set up to create lifestyle and a portion of it set up to create growth down sometimes it grows go download it sometimes it goes up but they're always going to a lifestyle too many people nowadays only focus on that growth and Ronnie said Total return equals income which is interest in dividends plus growth are there Capital Growth are lost its two components big issue his most of you were listening to me today you know what for the last 30 years you've been totally focused on growth and here's why you had a job to support your lifestyle so things could just grow and when you put money in that 401k if the market was down you bought more of the market was up you by Les<br> okay and you focus on growth because that's what you should be but when you get 5 years from retirement or get into retirement you've now got to make that transition to make sure you don't put your income at risk but it's still getting that growth component so that way you could support your income and the gross component more importantly you can maintain your lifestyle and maintain the acid that you have<br> so think about that if you were just invested in the S&P 500 between 2000 and 2022 you would and had $1000000 and took out $40,000 a year while that 4% rule<br> you would lose you would have less than you would only have about a third of it unless it's just a little over 20 years later and that's because the sequence of returns when you you got a million-dollar cars that just lost 20% $840,000 out of it now it's 760 in the market doesn't go anywhere the next year so you're now at 7:20 and it goes and go near the next year and now you're at 680 now the market goes up but you have to earn a lot more and think he's almost double what you lost to get back where your team especially even more if you're taking out income so for them think of this everybody on this call the Market's been basically gone sideways since November of 2021 to be withdrawn money anytime in the last two-and-a-half years<br> your value is likely to be the same but then reduced by the amount you had to withdraw whether their required minimum distribution or I just read her with everything is very very important you understand how Social Security bits in there because you want to make sure you get the most out of your Social Security there's there's some people we talked about that made significant social security decision that impacted their lives time over their lifetime 2000 $200,000<br> you know what<br> just by understanding how to do spousal benefit divorce benefits Widow benefits<br> just how understanding helmet and how those work and how they impact you could be the difference of 20 30 40 50 a hundred thousand dollars over your lifetime so you really want to pay attention a folk I want to thank you for joining us today we had Mitchell Morris and talking about the eyeballs at you really want to check that out for your education transparency the whole shot in Ellis also if you're free of your firm you work with eyes as he can communicate better with your adviser secondly if you're considering looking at Social Security and you're already taking social security look at it going back to work I think about that as well I want to thank you for joining us this evening with Steve look forward to seeing you at next week's stay safe Dave helping will see you then bye bye thank you for joining us for the saving with Steve show hosted by Steve Sexton to learn more about the show and how to become a guest or sponsor visit saving with Steve. Us that's saving with<br> Steve. Us join us again next time as we continue to talk about everything under the sun that relates to you having a healthier happier relationship with money this has been the saving with Steve show hosted by Steve Sexton<br>