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Listen to Johnson Brunetti's Money Wisdom with Joel Johnson CFP®, host of Better Money Television program and Forbes Contributor. Gain true financial wisdom and advice aimed at educating you about all of your financial options when it comes to retirement so you can make the best decisions for you and your family. Get information and education that can bring you peace of mind with your savings and retirement. Whether it’s your 401k account, IRA, or an underperforming asset, Joel Johnson can answer your questions and make you more aware of issues that may affect you.

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Nov 28, 2017

Learn how “it’s different this time” are the four most dangerous words in the stock market world and how to get ready for the next market correction.

Main Questions Asked:

  • Are we on the verge of the biggest market correction?
  • How to get ready for the next market correction?

Key Lessons Learned:

The Seven Surprising Lessons from the 2008 Financial Crisis That Can Help You No Matter What Is Next for the Stock Market:

  • Asset allocation and diversification remains as one of the pillars of retirement planning. A properly diversified portfolio that mirrors your appetite for risk can get you through any market changes.
  • You have to manage your risks. Risk has many different faces like longevity, taxes, inflation, health care, long-term care, interest rate risk, and sequence of withdrawal risk. When saving money, gains are amplified and losses are diminished. Assets need to be positioned about 5 years before retirement.
  • Expect the unexpected. Job loss, early retirement, health issues, caring for parents of kids. There are all kinds of unexpected things that happen to us when preparing for retirement. Have 6 to 12 months of living expenses in reserve.
  • You have to have a strategy to withdraw money from retirement accounts. The sequence of your returns and forced distributions could force you to withdraw when the market is down. A strategy needs to be created early before you retire.
  • A future crisis is a buying opportunity and time for tax law harvesting. If you have a balanced portfolio and stocks drop it might be time to rebalance and buy more. It’s also a good time to take advantage of tax laws and sell losers.
  • Government officials and financial experts don’t know everything. Older strategies may not work. It takes a creative and smart strategy to send you monthly checks while the market is down.
  • It’s important to hire a financial advisor to create a comprehensive overall financial plan. Insurance, debt, emergencies and all of this are included in a plan. The plan is about many things working together including social security, long-term care, taxes, and more.

Links To Resources Mentioned

Money Map Retirement Review


Thank you for listening!