The path to financial freedom can be challenging. Along the way, what catastrophes and disasters should you expect and avoid to protect your retirement? Do you have the right financial advisor?In this episode of the No Payne, No Gain Podcast, my father Bob Payne and I are going to discuss retirement catastrophes. We’ll be talking about some of the biggest financial disasters you need to watch out for and the important characteristics you ought to consider when choosing an advisor.As usual, we also have this week’s financial propaganda, as well as our Spotlight segment with our trusted financial advisor, Emily de Valente. We’ve got a great show ahead, so don’t miss out. Tune in to the No Payne, No Gain Podcast, and be well-equipped and well-informed about your financial decisions! Retirement CatastrophesRetirement catastrophes⁠⁠—we’ve seen it before, and you probably know of a story, whether from a family, friend, or acquaintance. These problems occur because of poor assumptions, overall bad planning, and even worse, no planning at all. What possible problems should you look out for, and how can you possibly avoid them? [02:22] - People are motivated by two strong emotions: fear and greed. Pessimism runs rampant at the beginning of every bull market, which brings about fear.[03:33] - Bob had a client back in the 90s who had a magnificent portfolio. However, it ended poorly because they were greedy.[04:44] - When building your portfolio, ask yourself if you’re protected in case the market crashes.[05:26] - The importance of tax planning: A client should have been taking distributions for seven years and only recently found out that he wasn’t. This resulted in a massive tax penalty.[06:22] - It’s important that you are getting sound tax advice. You can also save a lot by tweaking your portfolio the right way and being proactive.[07:07] - Another retirement catastrophe is not having a realistic idea of how much you need to live without a regular paycheck.[07:15] - Account for inflation and emergency costs. Moreover, despite having to help with some of your children’s finances, don’t abandon your retirement planning. Finding the Right AdvisorYour road to financial freedom can be grueling without the right tools and help. When you evaluate working with a financial advisor for the first time, you need a guide to help you determine if you’re choosing the right person. That said, we’re here to share important characteristics you would want in an advisor. [12:34] - Everything in this business is about trust.[13:32] - Accountability is a great litmus test.[14:03] - Check the track record of the firm or advisor you wish to evaluate through the FINRA BrokerCheck.[14:40] - It’s vital to work with somebody you like. First impressions are important.[15:28] - You will have a personal relationship with your advisor. If you like them, it will be easier to develop a rapport and have honest conversations.[16:00] - Find someone who is not condescending and can explain things simply.[16:51] - Do not work with an advisor who does not listen well.[17:28] - You want an advisor who’s a problem solver. If you sit down with them and they start discussing products and investments instead of planning, then you’re talking to the wrong person. Financial PropagandaThis segment is where Bob and I scour the financial news to call out the biggest offenders of offering obscene and profane financial guidance. The media may portray issues in a skewed manner. That’s why we want to help you protect yourself from making any ill-advised decisions. [23:40] - Only 12% of the almost 2,000 actively managed mutual funds were able to beat their benchmark in 2019.[24:24] - Only 29% were able to beat their benchmark over the last 15 years, which is a long time to underperform.[25:16] - Owning a portfolio of actively managed bonds is the best and safest way to own bonds.[26:32] - Stay away from actively traded mutual funds and embrace actively managed individual municipal bonds.