SEVEN BIGGEST MISTAKES PEOPLE MAKE

Transcription

1 Attention Millenials, Baby Boomers & GenXers... HOW TO OVERCOME THE SEVEN BIGGEST MISTAKES PEOPLE MAKE WHEN APPROACHING RETIREMENT By DAN CUPRILL

2 MISTAKE ONE THEY IGNORE THE BIGGEST PROBLEM THEY FACE. YOUR BIGGEST PROBLEM PROBABLY IS NOT THE STOCK MARKET, INFLATION OR THE INSURANCE COMPANIES. IT S THE IRS. Let me ask you a few questions: Have you developed a strategy to lower or eliminate taxes on your future 401k/ IRA/403b benefits? Do you have a strategy to protect your social security benefit from taxes? Has your advisor explained how to write off nearly $10,000 by renting your house up to 14 days a year -- to yourself? Does your advisor call you with tax reduction ideas Has your advisor shown you how to use your business for BIG tax savings (up to $200,000 in one case that was missed by a client s CPA)? Do you know how to save $8,000 by shifting medical expenses from one part of the tax code to another? Does your advisor give you secrets for avoiding the Alternative Minimum Tax? There is a major difference between tax filing and tax planning. A good accountant is great at telling you what you owe the IRS after the year ends. But the real work should be done throughout the year, taking full advantage of the many tax reduction opportunities created for small business owners. THE SOLUTION: Mistake 1: Overpaying Taxes The Solution: Tax Planning and tax filing are two very different things. Get a Tax Blueprint that reduces your taxes before the year even begins. Matson & Cuprill is designed to be different. We develop for our clients like you a Tax Blueprint that will study in detail your current situation and detail specific strategies that will cut your taxes for years to come. We ll discover those lost opportunities, and in some cases, even fix mistakes made by your current advisor. More importantly, we look for opportunities to rescue your 401k s and IRA s from the tax time bomb that awaits you in retirement.

3 MISTAKE TWO NO SERVICE OUTRAGEOUSLY GOOD CUSTOMER SERVICE ISN T A LAW, ALTHOUGH IT SHOULD BE. WHAT DOES NO SERVICE MEAN? NO REGULAR COMMUNICATION with you, regardless of market conditions. NO REGULARLY SCHEDULED review meetings. NO WEALTH- COACHING PLAN NO DETAILED PLAN of action that includes a schedule of what you should expect from your advisor, and what he/she should expect from you. NO ongoing client EDUCATION CLASSES. THE SOLUTION: At Matson & Cuprill, we take outrageously good customer service very, very seriously. We communicate to all our clients, every single month. Sometimes even more than that, depending on current market conditions or their needs. Face-to-face meetings, phone calls, podcasts, personal handwritten notes (like the kind your grandmother used to write), birthday cards, you name it. Constant contact and never ending improvement. In addition, we provide continuous education through our Investor Academy. Mistake 2: no service The Solution: WE communicate to all our clients, every single month. Sometimes even more than that, depending on current market conditions.

4 MISTAKE THREE NOT HAVING A STRATEGIC PLAN FOR INVESTING We re not talking about a retirement plan that says if you max out your 401K for twenty years and get 8% a year on your money, you can retire. We re talking about knowing what you own, and why you own it. We re talking about not investing in anything until you know how it is going to fit into your plan for financial independence. We re talking about NOT RELYING ON SOME GURU OR CRYSTAL BALL READER who thinks he knows what the markets will do next week or next month. WHAT IS IT? THE SOLUTION: THE MATSON & CUPRILL DOCTRINE It s an investment process based on the strategies of the world s best investors. We take the best of the best and incorporate them into the MATSON & CUPRILL DOCTINE. Sources of Inspiration: Eugene Fama: the father of modern finance and winner of the Nobel Prize. Harry Markowitz, Merton Miller, and William Sharpe: Pioneered the study of risk & return. Winners of the 1990 Nobel Prize. John Bogel: Founder of Vanguard Mutual Funds, the world s largest mutual fund family. Burton Malkeil: Princeton University professor and author of A Random Walk Down Wall Street. Mistake 3: Not having a strategic plan of investing The Solution: THE MATSON & CUPRILL DOCTRINE An investment strategy that avoids selective stock picking, market timing, and other crystal ball strategies

5 The Matson & Cuprill Doctrine in its most basic form boils down to several levels: You have probably been told that in order to increase your returns, you have to take more risk. That is simply not true in every case. Often with proper diversification, volatility can be reduced without sacrificing long term rates of return. The future is not predictable. No one knows the direction the market is headed over the next week, month, or next year. Anyone who makes investment recommendations based on predictions is not investing, but rather speculating, with your money. WE do not believe or practice selective stock picking or market timing. Nor will we rely upon last year s results to predict this year s results. Markets respond to news, and news is unpredictable. Hence, markets are unpredictable. Costs are a major impediment to your investment success. If we can reduce them, we increase your chances of success without exposing you to additional risk. IT S ALWAYS ABOUT THE PLAN. We create for all of our clients a holistic plan that does not require they implement it through our firm. Taxes must be lowered. It s been our experience that most people pay far more in taxes than they should. Often by utilizing some wellestablished strategies, taxes can be reduced, often saving clients thousands of dollars. Proper tax planning can reduce the amount the government is able to tax. You control your tax liability, not the government! When was the last time your current advisor told you he knew ways to lower your taxes by thousands of dollars?

6 MISTAKE FOUR WORKING WITH A GENERALIST, NOT A SPECIALISTS NOBODY CAN BE ALL THINGS TO ALL PEOPLE. EVEN THE LARGEST FINANCIAL SERVICES COMPANIES IN THE WORLD REALIZE THAT. Like every good doctor, we know there are times when it is in the patient s best interest to see a specialist. She may refer them to a dermatologist, a cardiologist, or rheumatologist. Mistake 4: WORKING WITH A GENERALIST, NOT A SPECIALISTS.TThe Solution: We evaluate the best service providers for you, and then we hire them to work for us. We can t be experts in everything, and you have my word we won t bother trying. THE SOLUTION: You get the point. We re not generalists. Jack-of-all-trades equals master of none. We re specialists. The things we don t specialize in? We evaluate the best service providers for you and then refer them your way. We can t be experts in everything, and you have my word we won t bother trying. MISTAKE FIVE PICKING AN ADVISOR THAT IS NOT REALLY FULL SERVICE. IF YOU RE NOT USING A FULL-SERVICE PROVIDER, YOU RE COSTING YOURSELF TIME AND MONEY. Your life insurance agent says he is full service, and may be able to handle your life insurance, your annuities, and your mutual funds. However, he can t take care of your estate plan, and he may not know what a stock option is. Your investment advisor says he is full service, but he can only sell you mutual funds, stocks, and annuities. He thinks tax-advantaged investing is done only in your IRA or 401k. Your banker says he is a full service relationship manager, and he can handle your mortgage,your checking account, a certificate of deposit, and mutual funds but you have to tell him what mutual fund you want to buy (and he doesn t have a clue when you should sell it).

7 MISTAKE FIVE...continued THE SOLUTION: WHAT SHOULD FULL SERVICE REALLY STAND FOR? IT MEANS NEVER HAVING TO HEAR THE WORD NO. You will never hear us say that we can t do something for you. If it is not a service we offer, we will find you someone who can. But you better believe that we will research that service provider first, in order to make sure they are worthy of our recommendation. My favorite example of outrageous customer service comes from my current dentist. WHEN I WALK INTO HIS OFFICE, I am greeted with such enthusiasm you would think I m his most important patient. His receptionist knows who I am and greets me by name. She s not hiding behind a sliding glass window. After offering me something to drink, she tells me how long I ll be waiting. There is no need for me to fill out any forms because she took the time to them to me in advance. Every magazine is current and there are three ipads available for my use. The office is decorated beautifully, creating a very warm and relaxing environment. how I ve been since my last examination. She even knows my child s name and inquires about his wellbeing. I know my dentist is extremely busy, but when he appears, he treats me like his closest friend. He explains the procedure in detail and goes over the costs in advance because he knows I pay cash. The next day, he personally calls me to see how I m feeling and encourages me to stop in if I m having any discomfort at all. Then, he sends me an to summarize the procedures and gives me tips for good dental care until my next visit. Thanks to him, I love going to the dentist. I actually think of him more as a coach for healthy living. When I meet with the hygienist, it is obvious she has read my file and asks about THAT S HOW WE TREAT OUR CLIENTS. Try getting that type of outrageous customer service at a typical financial firm. You won t find it. They ll just say, Sorry, we don t do that. If there is a service you are looking for that we haven t thought to provide, just let us know. We ll try to add it to our suite of services right away (for a sneak peak at just some of the things you can expect from us, turn to page 10). Seems like common sense to me. Try finding that anywhere else. It is my personal opinion that common sense is what everybody SHOULD have, but they don t. We help people build streams of income that, in addition to funding their lifestyle, can help fund their favorite charities or leave money to their heirs. This is what the Matson & Cuprill Community is all about. We even have a unique Awesome & Engaging Event multiple times a year to give our clients the opportunity to network with other like-minded people.

8 MISTAKE SIX DISCOUNTING EMOTION As coaches, we utilize tools and systems for assisting our clients in dealing with their emotions. We employ a number of tools to help understand their values, their fears, and their conflicts as they relate to money. THE SOLUTION Our Personal Wealth Index will compare your attitudes and concerns to national averages in the areas of money, health, family, and personal fulfillment. Developed by a team of clinical psychologists, it s an incredibly useful insight into how improving your financial outlook can improve the other aspects of your life. Our Investor Academy is a series of online courses that educate on both the financial and psychological matters that affect our peace of mind. In short, we coach our clients. At times we will show what you can t see for yourself, just like a good golf coach. And we ll always tell you what we feel is best for you, even if you don t want to hear it. Mistake 7: DISCOUNTING EMOTION- The Solution: We utilize a number of tools to help you understand how your psychological MAKEUP can stand in the way of your long term success.

9 MISTAKE SEVEN NO GUARANTEES IF YOU ASK OTHER ADVISORS, THEY LL RUN FOR COVER. THEY WILL HIDE BEHIND THE PHRASE NOTHING IS GUARANTEED. OR PAST PERFORMANCE IS NO INDICATION OF FUTURE SUCCESS. 100% SATISFACTION We guarantee our planning work. If our Wealth Coaching Program does not meet your expectations, you can keep the plan and pay us NOTHING. Mistake 7: NO GUARANTEES! The Solution: IF YOUR WEALTH COACHING PROGRAM DOES NOT MEET YOUR EXPECTATIONS, YOU CAN KEEP THE PLAN AND PAY US NOTHING. IT S THAT SIMPLE. 100% GUARANTEED. THAT S HOW CONFIDENT WE ARE.

10 So after reading this far, you have probably come to one of several conclusions. 1. YOU ARE AFRAID TO ASK... what all of this will cost you. Our actual fee depends on your current situation, and depending on your circumstances, there may be no fee at all for our Wealth Coaching Program. 2. YOU DON T NEED A WEALTH COACH.. That s fine. We know that not everybody needs the high level of outrageous customer service that we provide. We wish you the best of luck. 3. SOUNDS LIKE EXACTLY WHAT YOU VE BEEN LOOKING FOR... In that case, congratulations. Welcome home. Turn the page to find out how to take the next step. Congratulations!!! By getting this far, you ve shown you truly have the desire to take control of your financial future. You have a desire for a better quality of life, and are looking for someone to provide it for you. You ve either thought about working with a financial planner or you have one who isn t cutting the mustard. Maybe they are doing fine, but now you realize that fine isn t good enough. You want to be wowed. Who would you use for that? You can t exactly look up wow in the yellow pages. Incidentally, if you look in the phone book, you won t find much. Just lists of company names and phone numbers. Even the display ads under investment advice won t tell you anything specific. They might tell you how long the firm has been in business, they might list some of their services (like retirement planning who doesn t do that?), and they might have a picture of the people who work there. Why do they pay good advertising money to show you a picture? Have you ever bought a stock because you liked the way the CEO looked in the annual report? I don t think so. Of course, then, there is my grandmother, who didn t vote for Bush II because she thought his eyes were too close together. I thought she was being ridiculous, until I saw a political cartoon weeks later, making fun of him for exactly the same thing. It s not like you want to trust your future to someone you pick out of the phone book. You don t need just anybody. You need a specialist, someone who can reduce your taxes, and make your investments grow at the same time, without taking too much risk. Someone you can trust to take care of your family. Someone you can really count on to help you make major financial decisions. Someone who works for you. Not for a firm that has proprietary products to push and quotas to hit. You want someone who works for you. You are the CEO of your life. What you need is a Chief Financial Officer for your personal financial life: A Wealth Coach, someone you consult with on a regular basis about all matters relating to money (and some that aren t). You need someone with a team of specialists at their disposal. You don t want to drive all over town, interviewing law firms for your estate plan and accountants for your taxes, mortgage brokers for a loan, and real estate agents for a new house. We can refer you to reputable experts in almost all fields of personal finance. Our Wealth Coaching Program is now offered to you on an exclusive basis. We have limited capacity for new clients, so I hope you take this offer seriously.

11 MENU OF SERVICES PLANNING ANALYSIS The Tax Blueprint Retirement Income Planning Portfolio MRI Social Security Timing Report Risk Management Assessment Long Term Care Planning COMMUNICATION & REPORTING E-money: Allows you to see all of your financial information on a single screen Calls answered by a human and returned same day s returned within 24 hours Weekly Podcast Monthly Newsletter Cell phone access to your Coach FACE TO FACE Annual review Unlimited meetings on demand Generations Workshop with your adult children EDUCATION Awesome & Engaging Events New client dinner Investor Academy Baby Boomer Retirement Workshop

12 What must I do to qualify to be a Matson & Cuprill client? First, we will ask you to attend an introductory consultation, which we call a Wealth Coaching Interview. This is a meeting that details our unique approach to financial planning, tax planning, and wealth coaching. At this interview you will complete an application for service. Why do I have to apply? We can t represent everyone. We take a limited number of clients every year because we can deliver this level of service to only a small group. Therefore, there is a screening process that includes net worth, business structure, risk tolerance, and financial fluency in wealth building concepts (or willingness to develop it). Before we invest our time in working with you, we have to see if you are the type of person that we are best able to help (we want to make sure you get our best). What information goes in my application? You will basically be putting together a financial resume. Of course, we will want to know numbers (assets, liabilities, cash flow, etc.), but we also want to go beyond the numbers and learn about you as a person. If you don t need our service, we will candidly tell you. How long does it take? The Wealth Coaching Interview is different for everybody. If you are very well organized, the meeting should take less than an hour, depending on how many questions you have for us. How much does it cost? The Wealth Coaching Interview is complimentary. We don t believe we should charge you unless three things happen: 1) you qualify to be a client of Matson & Cuprill; 2) we believe we can help you; and 3) you are sure you want to become a client of our firm. If you qualify to become a client of Matson & Cuprill, then at the end of the Wealth Coaching Interview we will determine your fee and let you to make a decision as to whether or not you wish to move forward.

13 Your cost for the Wealth Coaching Program is backed by our NO RISK 100% SATISFACTION GUARANTEE. If at any point you are not satisfied with the Wealth Coaching Program, we will waive your fee and even let you keep the plan if it has been completed. What happens if you don t select me for membership? Matson & Cuprill is not right for everybody. On average, we offer our services to less than half the people with whom we meet. We do care, however, about your financial success and will make every effort to find you appropriate representation at another financial advisory firm (should you be interested in having us help you do that at no extra charge). We look forward to hearing from you. But, you must call to RSVP within 30 days of downloading this report. Why do I have only 30 days to respond? Given our commitment to our current clients, we have very limited opportunities each year for new clients to enter our practice. This means that you need to RSVP by the attached deadline to reserve a Wealth Coaching Interview. Yours in financial independence, Dan Cuprill, President Matson & Cuprill PLAN (7526) Make sure you CALL 563-PLAN to RSVP.