Most of us are already investing in our retirement accounts. On this episode of How to Win, Kyrk and Rick go beyond the 401k to discuss what investment might look like in the rest of our lives. Hint: Investment doesn't always have to be financial.
Kyrk Davis is a Registered Representative offering Securities through The O.N. Equity Sales Company, Member FINRA/SIPC, One Financial Way Cincinnati, Ohio 45242 (513) 794-6794. Kyrk Davis is an Investment Advisor Representative offering Investment Advisory services through O.N. Investment Management Company. Estate planning services provided in conjunction with your licensed legal professional.
Most of us are already investing in our retirement accounts. On this episode of How to Win, Kyrk and Rick go beyond the 401k to discuss what investment might look like in the rest of our lives. Hint: Investment doesn't always have to be financial.
Kyrk Davis is a Registered Representative offering Securities through The O.N. Equity Sales Company, Member FINRA/SIPC, One Financial Way Cincinnati, Ohio 45242 (513) 794-6794. Kyrk Davis is an Investment Advisor Representative offering Investment Advisory services through O.N. Investment Management Company. Estate planning services provided in conjunction with your licensed legal professional.
Good morning everyone and welcome to the How to Win Podcast with Kyrk and Rick. We are recording this episode in the morning, so don't think we're off on the time. If you're listening at midnight. So Kyrk, we're going to talk about investing. Everyone listening is gonna say, well, you are Family Financial Partners. That is what you should be talking about. Yes, Rick, that is what we do, but really that's only part of what we do. We take a comprehensive look at your overall financial life situation. And help you create a plan to effectively use all the resources you have to accomplish your life goals in the most efficient way possible. Okay. So when the word investing is mentioned, I think, and I may be wrong, but I think most people think about buying stocks, bonds, starting a 401k, saving money, buying a house, things along those lines are those things part of investing and is there more? I'm sure that's what most people think about when they think of investing. But to me, investing means making a commitment of your finite resources, mostly your time, focus, and money to something that we hope to get some type of return from in the future. So of course, we can make traditional investments into stocks and bonds within our 401k and other retirement accounts with our money. But we can also make investments into ourselves, our family, our community just to name a few. Alright, so I think I see where we're going with this. So let's start with investments in yourself. Well, there's a lot of ways that we can invest in ourselves. But I'm gonna talk about the two that I'm most passionate about. I'm a big believer in education and personal development, so things like going to school to earn a higher degree or some sort of certification or even attending a professional conference. Our investments we make in ourselves intellectually. I'm also a big proponent of taking care of ourself physically, so investing our time in going to the gym and maintaining our bodies is a big investment in yourself. That will provide returns throughout your entire life. Okay. So I can see where those can be considered investments, but those things are things that cost money. Going back to school getting a gym membership, things of that nature cost money. So how are those things actually investments? Yeah. Well, let's look at each one by itself. When we look at the tools available to grow our wealth the two biggest ones that we have are gonna be our time and our income. Investing in yourself through education can certainly help us grow our income which provides us with the opportunity to have more margin within our budget to make more traditional investments in 401k and the likes. It also opens a door for us to have a job in which we enjoy better., and that's gonna pay off in a couple different ways. Improved mental health as well as it also increases the, the likelihood that we're gonna continue working longer while still enjoying it. Both of those things go a long way to improve our retirement outlook. On the topic of, you know, taking care of yourself physically, I would refer you back to one of our previous episodes with Mary Plowman when we talked about the importance of diet and exercise. In short, one of the, the biggest expenses that a lot of people have in retirement, I. It's gonna be healthcare. So investing time in maintaining ourselves now can go a long way to reducing those expenses in retirement and ultimately having more money and better health to enjoy ourselves in those later stages of life. If you guys didn't hear the, the episode we have with Mary Plowman, it is well worth going back and listening to Mary did a great job, and that was one of our better podcasts. She was awesome. And that makes perfect sense. Kyrk said, you know investments in things. So let's talk about investments in our families. Like, starting your children a Roth ira, a 401k 5 2 9. You know, can we equate that to doing the sports team things? Not exactly, but there's definitely some similarities there. Let's look at investing in our family in two broad categories with our money and with our time. You know, I've never met a parent that didn't want the best for their children. I. And a, a quick Google search about the percentage of millennials that are receiving some sort of financial help from their parents. We have a mix of results but they all come to the same conclusion. A large percentage, you know, upwards of 60% of millennials are receiving some sort of financial help from their parents. That's funny because I can go into depth with that, with my three girls. Yeah. So you know, if you want the best for your children, setting them up so that they don't require your help. Long term is gonna go a long way. A great way to monetarily invest into your, your family is to start a 5 29 for your children. I. This is gonna give them the opportunity to extend their education and ultimately their future earning potential without being strapped down by a mountain of student loan debt. It's also a great way to help ensure that the kids are not gonna have to move back into the house. Oh, no, no, let's don't go there. But then let's talk about kind of investing in our family with our time. So you mentioned things like sports and those are a great way for your children to develop both physically and socially. But they do tend to take a lot of our time. Now I personally don't have kids. But Rick, I know you raised three girls. Can you talk about maybe how you poured your time and invested your time into, into them and your family, and how has that paid off? Or maybe how hasn't it paid off? Well, so if you want to test out the kids thing, I can loan you a couple. You know, if that's thing. But the investment that you have in your kids always comes with a huge payback. so I have three girls, 1 30, 1 28, and 1 23. And they all did all the sports teams, golf, horses, swimming, you know, lots of those things. And all of those things I spent a lot of time doing. But it is definitely an investment that paid off you know, Now, you know, you hear parents and they go, well, I don't have time to do anything because of my kids' activities. Well, I don't look at it that way. I think that I don't have time because I'm investing in my kids and that that's the way I look at like things like homework. Chores, you know, movie night, sitting at home, open a bank account. All of those things are things that the kids are gonna remember. And maybe when they have children, they'll pass that along to their kids. And, and so that investment is always, always gonna pay off. Yeah. Rick, I've never never met somebody that has really invested in their family and has regretted it down the, down the road. Well, I agree with all that. So let's go back and talk about some traditional investment things like 401k i r a and, 'cause, you know, you spend a ton of time at work and if you're thinking about the future, you know, you may be, you know, trying to fill your 401k up so you can retire. So can you be over invested in something like that? Overdo too much. Rick, that's a really good question. But the answer's gonna be different for, for everybody. Those are the kind of the kind of things that we take into consideration. When you choose us as your financial advisor we're gonna look at where you are and help you make the, the best decisions that serve your overall goals. However, to give you some sort of answer remember that our income and our time are finite resources, and they must be used wisely. If we are committing so much of our money to retirement that it causes us to suffer in other areas of life, then yeah, we can potentially be over-investing into retirement accounts. Maybe if our, if our goal is to retire early, so anything pre 59 and a half. Then we need to save and invest some amount of money into non-qualified accounts to provide a bridge between retirement and when we can actually access the 401ks and the IRAs. Well, you could do like me and just make your wife keep working after you retire. That's, that's also a strategy. But in, in cases like that it is possible to overinvest or overcommit into retirement accounts. So remember, every decision in life is gonna be a trade-off against something else, and we have to make sure that we keep those trade-offs in balance. So yeah, give us a call and we can have a discussion with you about how to best balance all those decisions that we make, whether it's our finances or with our time to support those overall goals. So I think Kyrk, you've done a great job explaining how investing can mean different things, and I think, and this is just me again, that investing in investments means a lot more in things. You know, other than stocks, bonds 401ks. So it should be a conversation I think that you have every day. Yeah. Investing and investments are just a, a part of, of everyday life. It's what people, it's what people do all the time, either consciously or subconsciously. Yeah. You make, make investments with your, with your money, with your time and, and with your focus. They all just pay off in a little bit different ways sometimes. Well, Kyrk, this has been fun getting a different view on investments. We hope that all of y'all enjoyed the podcast. We have a good time doing 'em, and hopefully it helps a little bit. Yeah. So if you've enjoyed this podcast make sure you give us a like, and if you have any topics that you'd like to hear us talk about please send us a message and we'll try to add that into the list.