The Scoop with Tanya Flanagan

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This is a k u NBC Studios original program.

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The content of this program does not reflect the views or opinions of 91.5 Jazz and more the University of Nevada, Las Vegas, or the Board of Regents of the Nevada System of Higher Education.

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Good morning, and thank you for joining me for the scoop with Tanya Flanagan. I'm so happy you decided to wake up and start your day with me. Here on the scoop, where we talk about life, joy, funny moments, trending topics, and so much more. We promise to keep you in the know and find out what you know. So let's get started.

Unknown Speaker 0:47
Good Sunday morning, Las Vegas, I am truly delighted to be here. Today, it's actually the day after my birthday. So living to see another year is truly a blessing. So this Sunday morning, it's like the day after in the beginning of a new year and a new chapter. Thank you for waking up to join me once again here on the scoop on K u and v 91.5. As always, I have a very special guest guest in the studio with me, and I think you will enjoy it as well should be a informative conversation. Today we're talking about money. And money is something that in its many forms and ways that it's utilized is very important to each one of us. Whether we have a lot or a little we want to have more. So with that, I'd like to welcome our good friend, Jason Baucom, who is a financial adviser to the show. Good morning.

Unknown Speaker 1:36
Well, thank you, Tanya, thanks for having me.

Unknown Speaker 1:38
Well, thank you for being here. How are you calling this wonderful Sunday morning,

Unknown Speaker 1:42
oh, it's bright and early. But I'm glad to be here. Well, you could be other places.

Unknown Speaker 1:46
So I appreciate you taking the time to come spend the morning with me and to talk to listeners with that I wanted to invite you on because I think a lot of times we don't have enough conversations about finances, about money, what we're doing and how we look at it. And I think a lot of times we are afraid of the space, because we're just uneducated, some of us are more others of us are not. So I thought it would be really helpful, especially in the economy that we are in now with things costing so much and feeling that people feeling that their money isn't going as far as it normally does. And so we hear different terms like inflation and interest rates, and just it makes you think all I feel is it's more expensive, or it costs this much to buy a house or this much to buy a car or food or gas or whatever. But there's really a lot of relative things that go on when interest rates change with the Federal Reserve. So how should we be thinking about these changes? And what does that in layman's term really mean to the average person? Well,

Unknown Speaker 2:47
changes are inevitable, and you've got to prepare for them and be prepared for them when they come along. You know, investing is definitely going to seem challenging in an economic environment if you're not prepared for it as they come along. But there's just several reasons you should still invest, you know, staying ahead of inflation, because inflation makes things cost more, for example, the inflation was all the way up to double digits at one point. And now they have it in two to two and a half to 3% range for inflation. But the cost of things still hasn't come down. So by investing, it allows you to outpace inflation. So if something costs 5% More, and you can get a 7% return, you're netting 2% positive, and that's one of the reasons you want to invest over the long terms in the market. Also, long term growth has struggled out, it definitely shows that markets tend to recover and grow over long term, despite the short term volatility, as well as the inflation. Inflation investing can help build wealth over time. Inflation can be temporary, but as we've seen over the last four or five years, inflation is here to stay. And you're asking why? Because the government printed a lot of money to get us through COVID and gave us a lot of handouts, and one by putting more money out. And one of the results of that is that you're going to have inflation. And now you mentioned the Fed earlier, the Fed raises the interest rate to combat inflation is hopefully slow down the economy. But we're in an unintended consequences of that you do make things more expensive. And unfortunately, corporations have taken advantage of that. And they've had record profits and record revenue over the past five years. And they haven't brought down costs or what they were pre COVID.

Unknown Speaker 4:30
Wow, okay, so that that's a lot for the average person to chew on. And the person would say, What makes you so interested in being in this space like, because not everyone's wired to want to watch numbers and how they grow. So I'm gonna we're gonna peel the onion back as much as we can on the information that you're sharing this morning. But how did you end up in this space to have such a broad understanding of investing of money of changes in market like why Well,

Unknown Speaker 5:00
it started from an early age, you know, as a, as a child of a teacher, and my father was a aeronautical manufacturing engineer. They both, you know, math was stressed, as well as understanding different things, and breaking them down. As a kid, I enjoyed playing monopoly in life. So those two board games help point me in the direction of wanting to go in banking when I graduated college, as well as to what I do now. So I had a heavy influence of trying to understand the why behind the numbers, and helping people and better inform them, they're helping them make better choices and informed decisions as they go along their life.

Unknown Speaker 5:41
Okay, so as a kid, you were drawn to this space, I get that I think, most of us if we're truly honest with ourselves, discover what our passion is, when we're growing up. I mean, always really liked stories. So no wonder that I ended up down the journalism path.

Unknown Speaker 5:57
As a kid, when I was playing Monopoly, I always wanted to be the banker. And of course, I did like racing as well. So I was always the car. And those go hand in hand with counting money, and trying to understand why things work and how you can buy things as you go around. So you know, on monopolies, teaches you about economic setbacks, and how they can help or hurt you along the way. So

Unknown Speaker 6:21
if you have the so people out there, so let's let's talk about economic setbacks, and economic setups. So for the average person who's out there, moving through life and trying to deal with the things that they're facing, and they want to come to learn more, what do you what type of advice do you give to people to become more savvy and smarter about money so that they're not as intimidated by the market? I mean, because you have stocks or bonds, you have IRAs, you have 401, K's for people, you have all these different investment strategies. And I would like at some point for you to talk about those, but what advice do you give to people who want to try to figure out how to gain some understanding? Because a lot of times people take a job, they have a 401 K option at some point in most companies. Everyone tells them that it's a good way to go. So they begin to, you know, put money into this 401k. And do they really understand what they're doing? Maybe maybe not? Probably not, most of the time, they know they're investing, but how do they become smarter about it? Well,

Unknown Speaker 7:21
taking the first step to investing and contributing that 401k is a great step, the hardest step is the first. But I would tell you in terms of education, education sets the foundation of what you're going to do going forward. There's three books out there that are definitely pretty good, Rich Dad, Poor Dad by Robert Kiyosaki, the Intelligent Investor by Benjamin Graham, and your money or your life by Vicki Robin, and Joe Dominguez, those are three different books with three different perspectives. One teaches you about how how to look at people with money and look at their habits, the other teaches you more about the market, and the other teaches you how to take advantage of having consistent habits. So those are foundational books for that. Now, your 401 K, if you're at your employer, and they offer that people like, you know, people don't understand it till they're in it. And then once they're in it, then they still don't, they still have more questions for okay, if they're if a company offers one, it's a great way to take advantage of putting money away and deferring taxes till later till retirement. So you can have a tax deferred account, or you can you can Tao a taxable account like a Roth, it's still you pay the taxes now and you grow, it grows tax deferred and can be withdrawn tax free. So with the 401k out whoever the administrator is, and the financial advisor on that, you should be able to email them and ask them questions, and you shouldn't be apprehensive about it. Because if you're apprehensive about it, you're not going to get answers that you want. It's very important that you seek the advice you need to get to build a stronger foundation for that 401k and other investment strategies that are out there.

Unknown Speaker 8:53
Well, how do you know which investment strategies for you? Does that matter based on how old you are, what your profession is, when you plan to retire? You know, people talk about all these things, and then the type of lifestyle that you're currently living, versus the kind of and the kind of lifestyle if, if what you're currently living is what you want to be doing, if you're not where you want to be, and you're trying to get to a certain point. And then if the point that you're trying to get to is where you hope to retire, then there's this roadmap, right for how you set your money up, get to this point, and have what you need when you retire. Yeah,

Unknown Speaker 9:29
it's a great point, the roadmap to retirement it you know, it starts when you're 18 and it ends when you retire.

Unknown Speaker 9:37
That 60 was started at 18.

Unknown Speaker 9:40
That's where the road starts. You're on the road but you don't even know you're on the road.

Unknown Speaker 9:44
I was about to say there are no signs that this is where you get on the road and this is when you get on the road and 18 at 18 Jason I was in college I had just I turned 18 The summer after I graduated from high school. I I never once was thinking about. I mean, I was thinking about career and education and what I would do with this space. But I wasn't thinking about it. I mean, I guess indirectly, maybe I was like realizing that here's the beginning of the road to wherever you're going to end up, right? But you're not thinking about it from the standpoint of, Am I doing something with money, per se? That sets me up for some long term benefit?

Unknown Speaker 10:25
No, absolutely. Your focus is not at the end goal. Because you're you're just beginning. And you don't even realize that like what the goal is. And so you really don't put it into focus, Paul, do turn about 3540. And you're like, oh, man, I'm gonna retire in about 20 years, I need to get serious about this. And so as you go along, and your startup that roadmap, you don't know a lot, you know, that's important. Some of the books I named can point you in that in the right direction. Some other places to go for some information, some news outlets that are reliable sources, like Bloomberg or CNBC or The Wall Street Journal, you're going to turn it on, you're not going to understand anything they're saying. But if you sit there and watch for half an hour at a time, on a consistent basis, you start understand the jargon, you understanding the terms, you start understanding why they're talking about the topics they are and how they affect you. Now, I would tell you, you know, as a when you're looking at your long term perspective, meaning that five to 40 years for investing, typically, you got to look at your risk tolerance, you're going to take more risk, as you have more years to prepare for retirement. And as you get closer to retirement, the number of years shrink, as well as your risk tolerance should also be more conservative, because you work hard for that nest egg, and you don't want any market volatility, to really knock knock it down. And then within five to 10 years of retirement, so you can certainly look at how your risk tolerance is going to change. It's important that you seek professional advice as well. It's much like going to your doctor, you know, people ask me a lot of questions. And it's important that you have the right financial adviser that lines up with your own goals and has the vision similar to yours in terms of what needs to happen in in when. So it's interview your financial advisors, much like you would interview doctors for a second or third opinion before you settle on one that you feel comfortable with. You know, one thing that people overlook at every aspect of, of planning for retirement is budgeting. Okay? It's critically important that you form habits that you continue to contribute. We talked about a 401k earlier, if you consistently contribute that you're going to end up at your goal before you know it, not only having that you want to have other things like IRAs individual retirement account, you mentioned that earlier, there's two different types that are out there. We have a Roth and you have a traditional, your traditional is a pre tax contribution. A lot of people use the traditional because they want to tax the deduction now in a Roth is a tax, it's taxed. It's tax now, and it's grows tax deferred and can be withdrawn tax free upon after 15 and a half. Now, the biggest difference is do you want the tax break now? Or do you want the tax break in retirement? Now, in my opinion, I prefer the Roth because you don't know what the tax rates are going to be in your retirement, you don't know exactly what the costs are going to be in retirement because there's no cost certainty, if melt costs $1.50 Now in 15 years, and it's not gonna be dollar 50. So you don't have to pay taxes on that money again. So that's why you want to utilize the Roth. So it doesn't count against your, what we call your adjusted gross income in retirement. So if you're making $50,000 a year in your adjusted gross income in retirement, and you have you're taking a $10,000 withdrawal from your Roth on an annual basis to make it 60,000, you're only paying taxes on that 50 Not that 10 You took from the Roth, because you've already paid taxes during your lifetime. So that's why the Roth is critically important in retirement. And, you know, taking advantage of the taxable the tax situation

Unknown Speaker 13:54
like that. I mean, and thank you for making it so simple. For me and really for everyone, because I remember going through the years and traveling to different conferences and conferences, and I encourage people to take advantage of these moments as well. When you're at conferences, whether it's usually it's a professional development, sort of a an all encompassing conference experience, and they always have a wealth component, right? They have someone new, you're talking about investing, we're talking about live talking about planning. And it's like you say you sit through this and you hear these terms over and over but when you're young they don't always make sense to you. And no one has talked about so if you're in a family where yes, maybe your family is okay and money doesn't seem to be tight and you're you know you grew up your parents did well, it didn't mean your parents were having a conversation that explained financial instruments to you how to use them so your first introduction becomes when you're starting to get into your your mid to late 20s headed into your 30s and you become a you're you find yourself in a career space where there's a job and there's a consistent salary and you want to begin to understand what to do with this money. And so I think those are some of the settings where you first begin to hear about Roth traditional IRAs and Roth IRAs. There's also been moments when I've had people who talked about insurance. And the difference between insurance, I don't know if it's a safe space to talk about insurance as an investment tool, or if it should even be looked at that way. But people often kind of toss it around, and we're throwing out questions. So here's one of those questions. Does it make sense to look at insurance as an investment tool? Or is that taboo, in your view?

Unknown Speaker 15:37
Well, I preached diversification and wealth strategies, and insurance is definitely part of it. Now, when you're looking at somebody to help you with that, you don't want to just go to somebody who just sells insurance. And that's it, because that's what you're gonna get, you know, if you go to a car dealership, you're gonna get a car, okay? If you go to, you need to look at somebody who's well rounded, to provide that advice. So that's, it's a component of your retirement plan. For example, if you want pension like income in retirement, it's an insurance product annuity. Now, annuities shouldn't be 100% your portfolio, maybe it's going to supplement your current income in retirement to a factor of 20% of your income in retirement. But also, there's other types of insurance that you could possibly utilize, you're looking at term insurance occur anywhere from five to 40 year increment, it could go along reason, you'd want that to protect the young family in case something were to happen to you, or you want to pay off that mortgage, if something were to happen to you live that to your husband or wife or spouse, you could go ahead and have that paid off and not have to worry about that, as well as permanent life insurance. Now, if you're gonna get permanent life insurance, you can take out there's many people, many companies out there, you can take out a very small policy and increase the premium as you get older. And you're like, why would I want to take that out when I'm very young? Well, the younger you are more likely, the healthier you are, things get more expensive when your health deteriorate. So if we had the same policy for two people, one was 30 years old, and one was 60 years old, the person at the 60 year old is most likely going to have a pay more for the same policy because their health is deteriorating, as opposed to the young person. So yes, insurance can help supplement what you're doing. But it shouldn't be the end all be all and only investment that you go to. And we talked earlier about tax diversification and withdrawal strategies, you can certainly look at your 401k as one aspect, you can certainly look at permanent life insurance is another, you can look at Roth as another win. cash withdrawals from a life insurance policy or Roth IRA are both withdrawn tax free. Recently, there was an addition to the 401k space, they just used to be pre tax contributions in the 401k. Now there's an after tax contribution as well. So there are Roth 401, K's out there as well, you have to check with your employer to see if it's offered, because you can diversify your money and pre tax and post tax contributions. And so you're adding to tax diversification, as well as investment diversification along the way.

Unknown Speaker 18:05
I like this, you talked about three books, and I want to break come back to those and have you mentioned them again, just because they are really good tools. I've actually read Rich Dad, Poor Dad. And what I loved about that book so much was one of the things I will say it left me with, at a young age when I was younger, when I read it, it was work to learn don't work to make money. And I thought that was a really powerful principle as a younger person. And I've often shared it with young people that I encountered. Because it was to me a message that said, Work to learn the business work to learn strategies work to learn so that at some point, if this is in fact what you like to do, you can learn how to cultivate a business of your own and become self employed. And hopefully from that wealthy, like you begin to see wealth building, and the thing, the basis for your wealth development through a different lens. And that was one of the things that I liked about that particular book. But I just want to make sure that you don't have to touch on it. But I want to make sure before we close the show out, we do touch on it again so that anyone who was listening who didn't catch the name of these really good reads that you share has an opportunity to jot it down and then find these these tools that they can look at. I'll also say you mentioned talk mentioned spending time and the space when you don't understand and the more time you spend you will understand so for me it was always picking up the Wall Street Journal and beginning to read the Wall Street Journal, which made reading about business and industry economy and change really fascinating. And just thoroughly enjoy reading that newspaper and the way they cover what's going on in our country with the different corporations and businesses and how it affects our day to day lives. You been doing this for how long? Exactly? Wow.

Unknown Speaker 19:53
It started in finance in 2003. I started as a banker and worked my way up through managing it. And in 2005, I got my first insurance license. And at that point, I was a dual employee, meaning that I worked on the bank side as well as the investments insurance side. So I was able to relate to, you know, every day working individual, because you see them all day, every day on the bank side on the investment side, you can certainly see who needs help in that area. Then, I became a financial a full fledged financial advisor and left the banking side behind about 11 years ago. So that's, that's where the transition happened officially. So being a fully licensed, meaning that 6766 registered with sec, also for long term care, you know, that things in life have driven me to want to learn more about them. Unfortunately, my parents have both passed away. And I suffered from Alzheimer's and dementia and later in life, that's that I wanted to learn more about long term care, and that that post retirement planning aspect as well as the pre retirement planning, because dealing with them, it added a different perspective for me, that I can relate to some of my clients that are going through it as the child as well as the parent and understanding both sides of the coin and how to help them prepare for that really has changed my perspective on investments and in retirement where money should be allocated. So those life events have have really had an effect on me positively and negatively.

Unknown Speaker 21:31
Well, I can absolutely relate to that I had a conversation with a family member, through my journey, my health journey, and one of the things she asked me was because I don't have children. And she asked me if I had long term care plans. And at the time, I said, No, I really probably still should look deeper into it than I than I have. But she asked me about that. And it is really something to think about. And I think one of the harder conversations that we have when it is centered around money, long term planning, retirement, I lost my mother many, many years ago. And it took me to a place of needing to manage my father in terms of family finances. And it took years in some cases to get him to do certain things to ensure that we wouldn't be in probate. And I think part of it's a grieving process. And so I say to people, and I don't know if you ecall this, deal with it when people are well, don't find yourself dealing with it when you're facing the family tragedy, because it is much harder, but it is easier. It's difficult as it may be. It is easier to have the conversations, talk to estate planning attorneys or whoever, by your financial advisor in the space where that makes sense. To set things in order with regard to your finances and, and your retirement spaces, your money and your family circumstances when people are well, I

Unknown Speaker 22:57
echo that definitely do. It's easier to have a conversation when everybody's on board, to everybody understand why they're having the conversation, and everyone's in the right frame of mind. You know, unfortunately, the sins are made when people aren't, it's too late. And it can really hurt the family vibe going forward after that when it should have been done by that person who's passing away in real time and not after the fact when they already have a problem. So it's about you know, it's about preparing for the situation and being proactive, proactive engagement and investing. As well, as, you know, practice planning really makes a difference. You know, I do financial planning every day. And you know, whether it's numbers based or you know, how holistically when it's comprehensive, with somebody looking at how they're doing now, but what are they going to be doing in 20 years? What do they want their life to look like? How they put beneficiaries and all their assets? How they put things in a trust? Are they in charge of their life? Or is their life in control of them? That's what they have to make the determination while they're in good health. So that if anything does happen, you know, accidents do happen. So everything's prepared so that the people that are left aren't, aren't trying to grieve and fix things simultaneously.

Unknown Speaker 24:12
Yeah, that's very Yes, that is a very valid and true point. We're getting into the homestretch of this morning show. So I want to make sure anyone who wants to find you knows how to find you. So for now, I just want to make sure if you have social handles or phone number or anything or website, as I don't want you to rush through them in the last few seconds on the show. Well,

Unknown Speaker 24:32
I appreciate that. If anyone wants to continue this conversation that we're having now and personalize it for yourself. You can find me at JB wealth.org. That's J B wealth.org. Or you can give me a call at 702-812-6454. That's 702-812-6454 That is the office phone number. You can also text that number as well, and we will respond to you within 24 hours.

Unknown Speaker 24:57
Sounds good. I like that I I had a question that I also wanted to ask. And it's about and you touch on it a little bit, or at least the variety of ways that people can get into the space. But it has to do with, when a person starts out investing, how much money do they need? Do they need a little? Because some people will only take certain clients to certain levels. So there are certain firms that deal with certain level investors. And then how does the small investor get started?

Unknown Speaker 25:23
Well, a small investor can get started by forming quality habits, meaning that there are you know, they call them robo advisors out there, because robot advising you can do online, you can do it yourself. But do you understand when you do that you're not getting the personalized advice, it's more general. But it's one way to start. You know, if you really want to get going and you look at an IRA, you want to max out that IRA, individual retirement account, either Roth or traditional. Right now, the the limit for people under 50 Is 7000 a year. So you know, breaks out to about $542 a month, I believe, if you wanted maximum contribution on an annual basis mean that doing it every month for 12 months, that's one way to do it. If you want to do less than that, if you say, Hey, I just want to start I want to do $100 a month, it's a good way to start and form a habit. $100 a month is not a huge commitment. But it's a way to start forming a habit. So when you do make more money, and you do, if you do change employment opportunities, and you have to roll up 401k over you already have a place for it to go. So that's an opportunity there, I would say the hardest thing to do is get started. But once you start it, you can go forward from there,

Unknown Speaker 26:28
there's one rule of thumb where people say when you're on a job, and you get a pay raise, if you were already living off of what you were making, instead of tracking the new money into your cost of living. If you're doing an investment program, put the additional pay towards the investment program, because you're already surviving off of what you were making. If you're able to do that, then you're adding to your 401 K, or you're adding to whatever your investment instrument is, whether you're saving towards an IRA, or what have you. Is that a piece of advice that you would give to people,

Unknown Speaker 27:02
yes, if your lifestyle can stay the same way, and you're earning more money. Do remember though, if you're already contributing 401k, let's say you're contributing 5% to 401k. A, you're still gonna be contributing 5%. But it's going to be a higher dollar amount, because the 5% went up based on the income that you have, it's important that you contribute the 401k, especially when your employer is matching. So if your employer is going to match you at 5%, that's a free 5%. So no matter what happens in the market, if the market goes down, you're still getting making money because they're giving you 5%. So yes, I would say make that contribution continue to do so. And it will pay off in the long term, because it allows that money to compound meaning that you're earning interest on your interest on your investment. So you're able to compound your money.

Unknown Speaker 27:46
Okay, well, I know that we are coming down to the wire, I want to say thank you for having you on the chat for having you on the show for coming to spend some time with me this morning. And I don't want to leave you in any uncomfortable spaces. I know there's something you need to share with us.

Unknown Speaker 28:03
Well, first of all, thank you for having me. It's a unique experience. I appreciate it. And thanks for being here. As a legal disclosure, we have to say this, there is no insurance assurance that techniques and strategies discussed are suitable for all investors or will yield positive outcomes. The purchase of certain securities may be required to affect some of the strategies. investing involves risks, including possible loss of principal, this information is not intended to be to substitute for specific individualized tax, or legal advice. Individual Tax or legal matters should be discussed with your tax or legal professional.

Unknown Speaker 28:33
Thank you. That was a mouthful. To my listening audience, I want to say thank you for tuning in. I know this is a very serious conversation, but it's also a very necessary conversation. And I think it's important to take time to learn more about what we're doing with our money, what we're doing with our future and how we're planning for that. And it's conversations that we don't have often enough about things we just don't understand and we should know more about. So I hope that you have enjoyed this conversation and found it informative and useful. Jason, thank you for joining me.

Unknown Speaker 29:02
Thank you Tanya, thanks for asking me to come on. I appreciate it. And thank you JB wealth.org happy to say that if you want to find me absolutely.

Unknown Speaker 29:10
Thank you perfect. To everyone in Las Vegas. Have a wonderful Sunday. I'm going to continue to enjoy getting another year older and it is my birthday month so happy birthday to all the cancers. Have a great week I want to thank you for tuning into the scoop with me Tony Flanagan and I want to invite you to get social with me I'm on Facebook and Twitter. My name is my handle TA and YAFL a na GA N You can also find me on Instagram at Tanya almond eyes Flanagan and if you have a thought and opinion or a suggestion, don't hesitate to shoot me an email to tonya.flanagan@unlv.edu Thanks again for joining in. Stay safe and have a great week.

Transcribed by https://otter.ai