Excel in Retirement

Where financial planning becomes understandable. David brings interesting stories each week to listeners of his Excel in Retirement show along with actionable ideas that may help listeners avoid pitfalls that many people face in their retirement. David C. Treece began his career in the financial services industry in 2011. He is an independent financial adviser. He has passed the Series 65 securities exam, and he is health and life insurance licensed in several states. David’s financial advisory firm focuses on retirement income planning.David worked for two other financial advisors before founding his firm in 2018. David launched Clients Excel because he has a desire for his clients to have a second to none experience when it comes to their financial planning for retirement. David relentlessly strives to be the best at helping people prepare for retirement.The bedrock of David’s ethos is treating others as he would want to be treated.David works tirelessly to continually bring pertinent content to our clients and friends through our weekly newsletter and podcast. Through these, David brings informative content that may aid you in preparing for retirement. Through his financial planning work, David’s hope is that his clients are empowered to have a confident financial future.David and his wife, Mallory, have a daughter named Amelia and rescue dog named Oscar. They also have a backyard flock of chickens that Amelia loves to tend. David and his family are active in their church in Spartanburg. He is also a volunteer mentor with JumpStart, which is a ministry for people who have been recently released from prison.

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Excel in Retirement

What Is a Recession? Ep. 110

August 03, 2022 • David C. Treece • Episode 110

The media and the government have gotten creative with answering whether we are in a recession or not in order to make our economic situation better than reality. The traditional definition of a recession is being redefined. Historically, the definition of a recession has been two negative quarters of growth in the gross domestic production. In the first quarter of this year the GDP declined -1.16% and at the end of June the second quarter reading was -0.90%. We are by definition in a recession.

According to Tom Siomades , the chief investment officer of AE Wealth Management, the average recession has lasted on average six to twelve months since World War II. He states in recent commentary that we should be mindful of the possibility of another six months of negative economic growth.

Remember, we want three types of funds: Liquid, protected, and growth. Check out last week’s newsletter for a description of the three types of money.

We have become increasingly spoiled by the market popping back up after recent downturns like it did in 2020. This pop effect is due in large part to the government intervening in the markets to stabilize them. Now the government is on the other side of the table from investors.

Simodaes stated, “We are not seeming impetus for the market to come back up.” Why? Because if the government lowers interest rates or uses quantitative easing to create more new money, inflation runs away.

If you’ve lost money in the first half the year, brace yourself for the possibility of more losses. This may not be a bad thing if you’re properly allocated and have a plan in place. If you’re winging it right now though, you have reason to be concerned.

The government’s hands are tied with how much they can help the economy bounce back this time. This is a problem for folks who have gotten used to the market bouncing back and taking off for more growth. This may not happen this go around. It may take longer for the economy to right itself.

Adding lighter fluid to the issue is the Federal Reserve has not stated what it’ll do at its September meeting. They could give forward guidance as to where rates may go but they are not, which is driving market sentiment down.

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Clients Excel, LLC are not affiliated companies. Investing involves risk, including potential loss of principal. Any references to protection, safety, or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the insuring carrier. This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet particular needs of an individual’s situation. Clients Excel is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Clients Excel. The use of logos and/or trademarks of podcast hosting sites are the property of their respective owners and are not an endorsement by those owners of our firm or our program.

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Welcome to the Excel in Retirement Show, where financial planning becomes understandable. Your host, David C. Treese, is a licensed financial advisor who specializes in retirement income planning. David's desire for each of his clients is to have financial confidence, protection, and growth. We believe this is achievable with the right plan in place. Together, we'll build a plan specific to your financial goals. We work with clients all over, and we'd love to connect with you. Go to clientsexcel.com to connect with us. If you'd like to speak with us, call our office at 864-641-7955. Thanks for listening. Now to the show.

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Welcome back to the Excel in Retirement show. My name is David Treese and I appreciate you listening here today. We'll see you next time. How annuities work, different types of life insurance. We recorded an episode early on on Social Security and Medicare and so forth and just the different ways that we help folks. and a successful retirement. Well, did your parents ever leave you a list of chores to do when they left for the day? Imagine being a teenager. Think back to those days, and it was summer break, and your parents would leave you a list of things to do, maybe. That's how my parents did it. They would leave me and my sister, she was about four and a half, four, almost five years older than me, and she would leave, my mom would leave us a list of things to do, and we had better have them done by the time they got back home, my parents got back home. We'd get up And we'd look at that list and then we'd procrastinate. We might go back to sleep or we might watch our favorite TV show. Then the phone would ring a few hours later. We knew it would. It was mom asking how our day was going. And of course, she wanted to know how the chore list was going. Now, it was really easy in the moment to get creative in how we answered her questions about our progress, right? It's always tempting to fudge the truth a little bit to make the situation better than reality when you're a kid like that. The idea that we can redefine things is on the table right now when it comes to what a recession is. The media and the government have gotten really creative with answering whether or not we are in a recession or not. it is like they're trying to make the economic situation we're in today a little bit better than it is in reality. The traditional definition of a recession is defined as– gross domestic production, or GDP. In the first quarter of this year, 2022, GDP declined negative 1.16, and at the end of June, the second quarter, the reading was negative 0.90. So we are, by definition, in a recession at this point. According to Tom Siamatis, the chief investment officer of AE Wealth Management, and we'll link to this commentary in the show notes, the average recession has lasted, on average, 6 to 12 months since World War II. And so Tom states that the average recession is 6 to 12 months since World War II. So we might be six months into it, and we might not be. We don't know. He states that in his recent commentary that we should be mindful of the possibility of another six months of negative economic growth at minimum. If you've lost money in the first half of the year, Brace yourself for the possibility of more losses. That's how I interpret that. This may not be a bad thing, though, if you're properly allocated or the impact of it could be diminished if you're properly allocated, we believe. If you're winging it right now and you don't really have a written plan in place, then you have reason to be concerned, my friend. Remember, we want three types of funds in our retirement portfolio. We want liquid money, we want protected money, and we want growth money. If you go back to episode 109 last week, we talked about these three types of money. So I would encourage you to go back and listen to that if you're curious about the three different types of money that you need in retirement. We have become increasingly spoiled by the market popping back up after recent downturns like it did in 2020. This pop effect is due in large part to the government intervening in the markets to stabilize them. Now the government is on the other side of the table from investors, and this is unique to this situation. Sayamata stated, we are not seeing the impetus for the market to come back up. We're not seeing the impetus for it to come back up. Why? Because if the government lowers interest rates or uses quantitative easing to create more money, then inflation is going to get away from us again, and it doesn't appear to be coming down anytime soon. The government's hands are tied, I would say, in how much they can help the economy bounce back this time. This is a problem for folks who have gotten used to relying on the market bouncing back and taking off for more growth. This may not happen this go-around, I have to warn you. It may take longer for the economy to right itself. Adding lighter fluid to the issue is the Federal Reserve has not stated what it'll do at its September meeting yet. They could give forward guidance, as they often do, of where rates may go, but they are not, which is driving down market sentiment, and it makes it hard for investors investors to have faith in the markets and so it keeps people on the sidelines oftentimes. The value of a written financial plan for how to navigate these times can't be understated in times like these. There may be proactive steps that you can take now to help yourself have the best outcome in retirement that you possibly could. If you'd like to explore this more, please call our office and schedule a complimentary 15-minute call to discuss your situation. There's no cost or obligation to that, and we would be happy to provide insights there if we do nothing else. And we would be happy to help you create a written financial retirement plan. Our telephone number is 864-641 Investing

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involves risk, including potential loss of principal. Transcription by CastingWords Clients Excel is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Clients Excel. The use of logos and or trademarks of podcast hosting sites are the property of their respective owners and are not an endorsement by those owners of our firm or our program.