The Arbor Company Senior Living Blog

Tax-Free Investing: It's Not What You Make, It's What You Keep!

Oct 26, 2020 11:44:04 AM / Chris Harper Chris Harper

Sometimes when choosing investments, we can become misguided by focusing on how much we can make without taking into account the taxes on these investments. By choosing tax-free investments, investors can put more money towards their bottom line. In our upcoming Senior Living LIVE webinar, Edward Jones Financial Advisor John Dove will explain about how to compare investments and keep more money in the long run. 
 
Our host, Melissa Lee, sat down with John to find out what participants can expect from the full webinar, and he shares some advice on how to protect your investment portfolio. Click below to watch the recording, and make sure to visit ArborCompany.com/Investing to register for the full webinar. 

 

Video Transcript

- Hello everyone. And welcome into Senior Living Live. My name is Melissa and we've got another quick hitter with our favorite money man John Dove. John, how are you today?

- I'm doing great, Melissa, how are you doing? Doing wonderful, thank you. And thank you for joining us not only today for this quick hitter, but also for your upcoming webinar. You are a financial analyst with Edward Jones. You gave us a great webinar a couple of months ago about how to avoid scams. That webinar is currently live if anyone wants to watch it at www.seniorlivinglife.com. You will join us again for another useful webinar October 28th, at 4:00 PM Eastern time. And this one is entitled Tax-free investing, It's not what you make, it's what you keep.

- That's right. John, what does that mean?

- Oh exactly. So what that means is sometimes we get misguided by interest rates or things like that. And ultimately we want to look at what that investment is going to put the money in your pocket with. So there are vessels that provide for tax-free income or tax free investments. And those are the ones that we want to go for because we all know the tax man wants to get as many taxes as they can. And what this creates is an opportunity to not necessarily have as much risk as well as you get more money in your pocket ultimately, so tax reinvesting is not what you make, it's what you keep. We're gonna do some comparisons, some education. It's going to be a lot of fun. I'm really looking forward to.

- Yeah. And you know, the more money we can keep in our pockets, the certainly the happier we will all be. Right. So excellent. Now you will also in this webinar, discuss ways to protect your portfolio. Can you give maybe one piece of advice from your webinar that will help people ride out uncertain times like a pandemic?

- Yeah. You know, that's one of my the most important jobs that I have is making sure that people are properly allocated to ride out these fluctuations that happen in the market. You know, when March happened and a lot of people's portfolios fell that is the worst time for an emergency to happen, but you can't plan those emergencies. You know, a car breaks down, a mechanic issues, whatever it may be. So the biggest advice is make sure that you have the appropriate emergency cash on the sidelines. So you'll want to be able to have stuff accessible so that if something bad were to happen you're not dependent on pulling money from your portfolio when it is down. You want to be able to ride out those waves. So we get back up top and that's when you can take out your withdrawals. So really the number one lesson is, have the appropriate emergency cash available as well.

- Great. So what are some common misconceptions our seniors have when it comes to tax-free investing or just investing in general?

- I think, you know, there's gonna be a couple of things that we're going to discuss. One thing in particular that we're going to talk about is bonds and not everyone understands 'em. Not everyone understands how they work, what the purpose of them are. And that's really what we're gonna go into. I'm gonna share some good insight about that. And it might actually offer up some opportunity that people might be interested in looking into it and seeing what it's all about. A lot of people may already earn them in their portfolios, but they just didn't really quite understand. So that's what my job is gonna be coming up, is help educating them on these. What a bond is, how it works and that that'll be the plan.

- So is it more common people that you see who maybe are in that senior bracket, are they more savvy you think or needing a little bit more help?

- I think it really depends. I think, you know, when it comes to these types of things, a lot of times, you know, you're retired and so you no longer have that salary, that income. And so you may be more dependent on income-based investments. And so because of that, we want to make sure that we are savvy and I want to educate anyone I can so that you become a more savvy investor. So, you know, what's available, what's out there and you can make the best decisions for yourself and your family.

- Excellent. And that's why you're here, so sign up for that webinar. You'll you'll definitely want to hear what John has to say. So John, it is common in a lot of households. It's either the husband or the wife that handles the finances. If investing is new to someone who may have recently lost that spouse that handles the finances, what is a comfortable or simple way to make investing easy for someone who maybe hasn't done it before?

- It's, you know, what's that, it's all about relationships and finding somebody that you can trust and talk to about and someone that's not gonna make you feel make you feel a way that you don't want to feel uncomfortable to talk about something. You don't want someone using a lot of jargon and a lot of words that you just don't quite understand because no one wants to feel uncomfortable with to ask, well, what does that mean? So I think biggest thing is find someone that you can talk to that make you feel comfortable that you don't feel, feel bad about asking questions. And I think it's important to try to educate yourself as best you can. Then again, I have a lot of people who this is the last thing they even want to talk about. And, you know, there's a purchase there for the people who are, hey, you know what? I just want to delegate this. I don't want to learn every single thing there is about investing. I just want to delegate it to the professionals and there's opportunities there as well.

- Yeah. And how do you think or should I say what makes you special on that end? What are some ways that you make people comfortable in that process?

- Absolutely. I, you know, I stand by, I'm gonna have a conversation with you and definitely want to talk to people and just be, we don't need that. No one needs to over-complicate things. In fact, we need to simplify things. We always need to simplify things. And I think that's very important. You know, I'm, my background is actually, I'm a farmer and I want to keep things short sweet, and simple, and I can get into a very convoluted, jargon, oriented conversation if I had to. But no one wants that. No one wants to hear that. No one wants to understand that that way. So that's exactly how I approach things is keep things comfortable, make people feel comfortable and you know what, it's all about our relationship. We want to work with people that we like and that we trust. And we know that we're doing the right thing.

- Awesome. Well, John Dove, as always we appreciate you taking the time to give us this a preview of your upcoming webinar. Now you will not only help us understand our finances a little bit better, but during this webinar you'll also be available to answer questions about all of this as well, right?

- Yeah, absolutely. I'll be available to answer questions. I'll share a couple of nice stories and I encourage you all you know, when you come on to please share some stories too. You know, you got the good, the bad horror stories but also maybe the good stories that we can talk about and I'm happy to share some also and as well I just want it to be a very kind of conversational. Obviously I want to do the presentation, but once we open it up, I hope to really be able to have some conversations and be able to answer some great questions too.

- Yeah, and in your last webinar, that's exactly what we did, had great conversation with everybody who tuned in and we hope for more of the same this time around. Now the webinar is called tax-free investing. It's not what you make. It's what you keep. It will be October 28th at 4:00 PM Eastern time. John and I will see you then. Thank you so much for stopping by and as always, have a great day everybody
 
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Topics: Senior Living LIVE

Chris Harper

Chris Harper

As the vice president of communications for The Arbor Company, Chris is responsible for digital marketing, public relations, technology and design.

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