Today your host Josh and co-host Michelle discuss the recent bank failures of Silicon Valley Bank, otherwise known as it's initials SVB, and another unrelated bank called Signature Bank.

Takeaways

• Bonds have an inverse relationship with interest rates
• SVB locked in $80 billion into long term bonds, particularly 10 plus year mortgage securities, then got hit by rising interest rates
• Banks with $15.2 million to $110.2 million in transaction accounts must hold 3% in reserve

Josh and cohost Michelle finish discussing ways to use both your investment assets and possibly your real estate holdings to generate passive income.

Takeaways

• An investor purchases multiple bonds or CDs with different maturities. As each bond or CD matures, you can reinvest the principal in new bonds with the longest term you originally chose for your ladder
• If interest rates move higher, you can reinvest at higher rates. If rates fall, you'll still have some bonds locked in for the longer term at higher yields
• Since many bonds pay interest twice a year on dates that generally coincide with their maturity date, investors can structure predictable monthly bond income based on coupon payments with different maturity months as well as years

Josh and cohost Michelle discuss ways to use both your investment assets and possibly your real estate holdings to generate passive income.

Takeaways

• Total Return is basically a fancy way of describing a diversified portfolio of stock and bond index funds
• Deferred income annuities are the most "pension" like of annuity options. In fact many pension payouts are facilitated thru an insurance company
• REITs can be attractive to investors because they offer the opportunity to earn this dividend-based income from real estate without having to actually own and maintain any of the properties

Josh and cohost Michelle finish discussing financial intentions. Also discuss the most recent headlines on retirement.

Takeaways

• Schedule a meeting with an advisor that doesn't collect commissions, because they are looking out for your best interest
• A vast majority of Americans do not have a will which can lead to arrears open to probate and to strangers determining the fate of your arrears inheritance
• Modifying your financial plan for longevity risk and healthcare events can prepare you for situations like know if your money will last as long as you or long term care

Josh and cohost Michelle discuss financial intentions. Also discuss the most recent headlines on retirement.

Takeaways

• Sequence of return risk can create compound growth by having a plan and other assets classes to dip into. Minimize principal withdrawals during a market downturn in retirement
• Benefits get higher every year you delay taking Social Security
• Higher interest rate environment can help with income in retirement
• Owning equity can help combat inflation

Josh and cohost Michelle discuss Annuities collapse and some recent headlines on retirement.

Takeaways

• Different types of annuities, Deferred Income Annuity, Immediate Income Annuity, Fixed Annuity,
• Multi-year Garanteed Income Annuity, Fixed Index Annuity, Variable Annuity
• Deferred Income Annuities depend on when you started it & how much you put in,
• Fixed Index Annuities have longer surrender periods and higher fees

Josh and cohost Michelle discuss the cypto FTX collapse and some recent headlines on retirement.

Takeaways

• Bud Hebeler's bad investments like Lifestock, comdities, collectibles, and idividual stocks
• Unconventional assets could have pitfalls extend beyond risk
• Investing in gold can be good for your portfolio, but does not hold high returns

Josh and cohost Michelle discusses a variety of investment topics all related to inflation.

Takeaways

• Inflation affects retirement plans by reducing spending or withdrawing more money
• Inflation forces over half of Americans to consider second jobs
• Social security benefits will increase in 2023