In the final How to Win of 2023, Rick takes the interviewer chair and asks Kyrk all about his journey into advising and his best end-of-year financial tips. And because it's How to Win, be ready to hear about golf and hunting, a trip to urgent care, and why Rick's Apple Watch recently got a bit concerned about him.
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.
In the final How to Win of 2023, Rick takes the interviewer chair and asks Kyrk all about his journey into advising and his best end-of-year financial tips. And because it's How to Win, be ready to hear about golf and hunting, a trip to urgent care, and why Rick's Apple Watch recently got a bit concerned about him.
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.
Alright everyone, here we are, the end of the year podcast with Kyrk and Rick, and this is going to be a little different podcast, we're going to wing it today. Usually we have something specifically we want to talk about, but today we're going to do the end of the year podcast, and Kyrk, I'm going to interview Kyrk basically the whole time, but I'll probably interject some stuff of my own. Alright, so lots of people love end of the year. Others, not so much for the most part, it's pretty good. So today we're going to get Kyrk's take on the end of the year financial stuff that's important, other things that are not financial, so that's where we're going with this. So I'm going to start out, and Kyrk, just for those new to the podcast, and I know some people probably listen a couple times give us a little bio on yourself. Okay, I grew up in in Northern Kentucky up in Florence then I went to University of the Cumberland, so which is all the way on the southern end of the state, after being there I got my accounting degree, I had joined the National Guard and did ROTC, so when I finished school I became an officer in the National Guard, did that for about 13 years or so, just got out of the National Guard earlier this year actually. But out of school I met my wife she was from Corbin. We lived in that area for a little while. I worked in banking for a bit got frustrated with that and then decided to actually use my accounting degree at a real estate company and learned that I just hated looking at spreadsheets all day long with no human interaction. So I don't understand it. So you love doing all of the data on your golf stuff. But you don't like looking at spreadsheets on the bank stuff? It's not that I didn't like looking at the spreadsheets. It's more so I didn't like the zero human interaction that I had there. So I got frustrated with that. But along the way I developed this really big passion for personal finance. I was a big Dave Ramsey nerd back in the day and that's really what kind of You know, spark the interest for me and my wife, Hannah, she had suggested why don't you be a financial advisor? And I thought about it for a second. I'm like, why is she always right about these things? So that's how I how I found my way to Family Financial Partners. That was back in 2016 or so. So I've been here for seven years and some change now. I started off just in the back office doing paperwork that sort of thing. Then I started studying to get all of my required licenses and moved into what we call a paraplanner role and I did that for a little while then once I became confident and competent in my work, I was able to go off and start finding clients of my own and ultimately be a full fledged financial advisor, which is where I'm at today. Now, let's talk about the end of the year financially, okay? Starting with the most important things that you think we should do for the end of the year. Yeah, so this one's not going to apply to everybody, but the thing that absolutely without fail has to happen by 1231 is you have to take an RMD from your from your retirement account if you're someone that's required to. So this is going to be somebody that is they've changed the ages over the last over the last couple years. But essentially if you're 73 or older right now and have money in an IRA or 401k, that sort of thing you're probably going to have to take some money out. Now, for all of our clients we track that, we make sure we're going to continue pestering you until you actually have taken that RMD. If you're at another firm or just doing things on your own I can't speak I can't speak to that. So an RMD is a required minimal distribution and the reason the government wants to make you take that out is so they can get their tax money. Is that pretty close? Yeah, they're going to put it in different words, but but that's definitely the, that's definitely the gist of it. And it doesn't just apply to somebody in their 70s if maybe if you had inherited an IRA from like a parent or a grandparent or that sort of thing you're probably going to be required to take an RMD as well. If you're somebody that needs one, definitely make sure you've taken one. If you're not sure and you have questions about that give us a call. We'll we'll unpack everything for you and let you know if you need to take one. But the deadline for that is going to be 12 31. And that's very important to not miss that deadline because you'll get basically penalized a certain percentage of whatever your RMD amount was supposed to be if you don't take one. No, no point in giving the government more money than you have to. I agree with that. Okay what about taking time to review your financial goals, like savings, just regular savings, retirement savings, maybe life insurance and maybe even setting new goals. Is this the time to do that? Yeah we continue to review a lot of that just throughout the year as part of our normal financial planning process but now as we get into the end of the year and the start of the next year I look at it as more of a time to reflect back over the last year, see what things we did that worked, What things we did that maybe didn't work and and how do we adjust that that going forward. Part of that will be reestablishing goals and making sure we're on track for that. One, one technique that I personally do, not everybody does this, not everybody has to, but the nerd in me likes to do this and likes to track things from time to time. But at the very end of the year, I always do it on 12 31. I just run a balance sheet for myself just to track the, track my net worth over the years and it's really interesting just to, to see how that grows over time and how it shifts into different areas over time there and how that aligns. Do you have seven or eight zeroes in your net worth or is that, am I overestimating that? I can type in whatever I want into that, but, if we look at, if we look at the all the zeros on every account individually there's probably enough zeros for that but when we add it all together, probably not. Okay, so stock market's been doing really good this year. I think that everybody talks about hey the stock market's doing good, the stock market's doing bad. This year it's done really good, and it's doing really good right now. Is this the Santa Claus rally thing that they always talk about every year, or is that just, is it just because The Fed did a few, made some good announcements for once for us. I think that's probably what it was more than anything. Yeah, I mean we're coming so So, 2022 was just a, as a whole, just a bad year for the market. So 23 here has been a welcomed recovery. It's taken a lot of stress off of everybody's plates. That's for sure. We finally got some economic data that's moving in the right direction and suggesting that 2024 will will probably continue that way. There, there's nothing guaranteed obviously, but that's the way it's indicating. I got all my fingers and toes crossed, so hopefully it'll work out that way. Yeah, but it's definitely been a good year, But at the end of the day, it doesn't necessarily change anything not in the ways that we're managing money here. We're still continuing to watch the markets every single day and make constant tweaks to the client portfolios just to try to be ahead of different factors and when things work differently than what we anticipated we need to react to those and just make sure that we're Constantly being diligent with our client's money and with our personal money as, as well. Yeah Probably then a lot of people say, hey, it's okay, the stock market's been doing great, I'm not going to worry about my 401k, IRA whatever, I'm just going to let it ride. Is that a good plan, or it's been doing okay, so why change what's been doing okay? Yeah there's a couple different different ways to look at that. If you're in a portfolio that's strictly like a buy and hold portfolio, then, yeah, probably don't need to necessarily do anything with that other than just rebalance periodically. Hopefully you have been. If you're in a portfolio that's a little bit more actively managed or that's the way you like to manage your money Then yeah, you definitely need to like I was saying earlier, continue doing the same diligence that you've been practicing throughout the last year and the last decade, whatever just because we have a, we're having a good rally in the market now and things seem to be doing well, doesn't mean that we need to just completely take our foot off the gas and lean back and and ride it out. So it just depends on what your overall investment strategy is. Our clients are a mix of both. We've got clients that are buy and hold. We've got clients that are very much actively managed. Just depends on who you are and what your strategies are. Yeah, so the economy seems to be going in the right direction. Gas prices are going down. The Fed announced there might be some rate cuts next year. It looks like inflation is going down. All things that affect the market. But those are all things that affect the amount of money in your wallet or your purse. As things get better should you take a little of that extra money that you're going to have instead of spending it on something else? Maybe adjust your percentage that you're putting in your 401k or IRA? Is this a good time to do that? I don't think it's ever really a bad time to save more money. I've Only met one or two people in my life that have saved too much money, so Those people are few and far between so yeah anytime that maybe you're getting a raise this year Just due to cost of living, but the way you've managed your lifestyle You might not have seen you know the your cost of your personal cost of living go up as much and now you're seeing some Extra dollars in your pocket. Yeah Absolutely, you know bump the 401k, percentage, One or two points that's never going to, that's never going to hurt you. But also if you've been doing everything else responsibly and you're in a good financial position you don't need to be a miser. Enjoy some of that extra money that's in your pocket now. Just don't enjoy it too much. Yeah, yeah. Alright, so we went over, gone over the things that are financially responsible and things that we do here at Family Financial. The Help people that are our clients. So let's talk about not financial things, alright? Christmas and New Year just days away now. And everybody has plans and stuff for Christmas and New Year. What are your plans for Christmas and New Year? Anything special? Nothing overly special. Just going to a couple families houses for different celebrations. We just had a really big celebration with With our friend group. Last weekend actually, if you've been listening to the podcast for a while, I never didn't tell you this, Rick. But you remember Mary that was the dietician? Yeah. Mary er. Yeah. So she just got engaged at our Oh, good for her. Yeah. She, we had a big friend's Christmas party last weekend, and we did a like a secret Santa gift exchange. And it was all planned out that she was gonna be the last person to open up a gift and. That her gift was getting engaged. So that was it was great to witness. So I'm happy for them Mary and Roberto if you're listening congratulations again to you all But yeah, that's you know, we have those kind of parties. We got our office Christmas party coming up here in the next couple days So that's always a good time. And yeah, nothing special just the usual l every time you go to CrossFit gym you come in, oh my neck's hurting, I'm stiff. Are you going to, are you going to give that up and work on your golf game, or are you just going to combine both of them? Golf's the tricky one this time this time of year with the weather, especially with it getting dark so early. The only way to play golf Monday through Friday is to not work, and this is also a busy time of the year in the office playing doesn't happen much, but I've definitely been leaning into the gym a little bit more anytime we get into these holiday seasons. We just had Thanksgiving not too long ago. We've had a couple Christmas parties so far this year that. Every bit of food is just So you feel guilty then, so you have to go to the gym. It's not that I feel guilty, but I just know that there's this there's this fat kid inside of me that's trying to get out. Me too, but I'm not letting him out. If I don't stay diligent at the gym, especially this time of year that he's gonna come out. Okay, so one thing that I'm gonna make fun of you about, and this will be funny, so you'll have to tell this story. Are you gonna try to keep from cutting Hannah's finger off? That wasn't me. That was No. That's a Oh yeah, tell the story. That's a that's a different story for a different time, but essentially we had some, Had some boxwoods in front of our house that needed to be trimmed and Hannah wanted to take the lead on that and it resulted in a trip to urgent care a couple of weeks ago, but she's all good now. So everything's healed up and she's back at the gym gripping the barbell and lifting more weight than I am. That's good. All right. So I've got a couple of things that I'm going to do. Of course Kyrk knows I've already been to Kansas one time this year hunting. And I'm gonna go again Friday night, Saturday morning, like the 16th, I'm taking off again to go to Kansas with some good friends. And we go out there pheasant and quail and duck and goose hunting. Of course, I got German Shorthaired Pointers, so I have bird dogs, that's one thing I love to do. But I wanted to bring up a little thing that I've been doing. I've been going out there for 12 or 13 years. And so you go up 64. And then when you get to St. Louis, you take 70 and just drive west. It's pretty boring. Lots of people have driven there. It's pretty boring. But, from Louisville to St. Louis, you have to go through Illinois. And this is just a weird thing that I have noticed. Before you get to Illinois, and this is the case two weeks ago when I went, gas was like 2. 89. Okay? So as soon as you cross the line and get into Illinois going across 64, gas goes to 335, 339. Should have turned around. So here's the thing. Luckily, you can make it all the way through Illinois and get to Missouri where gas was 282. So I don't stop at Illinois. Now I know their taxes are really high or whatever I'm not going to stop. I'm not going to pay 40 or 50 cents more a gallon of gas obviously I wouldn't run out of gas and walk, but do you think, what kind of impact does that have on their community all those places you pull off the side of the road and get do you think more people think like I do or is that something weird? Because I'm not going to stop and pay that 40 or 50 cents more a gallon. I'm going to drive all the way until I get to Missouri and pay cheap, and when I got to, When I got to Kansas, it was like 2. 69. I'm not stopping in Illinois. No, I don't blame you. I wouldn't either if possible. I don't think it has too big of an impact on them though. I think the bulk of their business is probably local people that aren't going to go drive out of state just to fill up and ultimately spend more money on that, on the trip than what it would cost them just to fill up next to their house. But it is interesting. I don't know if it's a, if it's a tax thing that they have going on that's different there or what, but. So I went last time a couple of weeks ago and of course, obviously. I got out there and some friends that were supposed to hunt with me, all of them seemed to have problems and didn't get to come, so I hunted by myself. The first day that I hunted, it started snowing. And, which is no big deal it's wintertime, it's supposed to snow, whatever. So when I got up the next day, there was 10 inches of snow on the ground. I'm getting a little older and may be a couple pounds heavy. So here I am with my dogs trying to slosh through 10 inches of snow, and if any of y'all walked out and been hunting and tried to walk through 10 inches of snow, it's difficult. But the dogs thought it was great. They were like come on, you're not keeping up. And I'm like, no kidding, I'm not keeping up. But I had a problem with my Apple Watch. It tracks how far you walk, how many steps. It's got those little rings on there where you exercise or whatever. It does not know you're walking in snow. That thing I had to have burnt 10 million calories and it did not track that. It didn't, it said you're not exercising. I'm like I was, I did, I was waiting for it to ask me like, why is your heart rate 185? But it never did. But anyway, I had a great time hunting. It's good. But my plans for Christmas are like yours. We're not doing a lot. All of our family's going to come to our house. We got a our office Christmas party, which is always fun. Everybody we have some fun gift exchange things and it's a blast, but that's how my year's going to go. Have a good New Year's, probably not going anywhere, stay at home, spend time with friends and family, and hopefully start the New Year's off financially and physically and mentally good. I think we've done good for today I liked interviewing Kyrk. Of course, I told you I'd have to inject some of my own stuff in there, but. If y'all have any questions about anything financial, obviously you can call us at any time. We look forward to hearing from you, and if we don't, Merry Christmas and Happy New Year's. Thank you guys. It's been a been a great year. Thanks for for listening in. If you've enjoyed this or found any value out of this, please be sure to share this with your friends, and if you have any topics that you want us to discuss in 2024 Definitely send them our way and we'll try to work those into the calendar.