Time, Mark Zuckerberg has done a good job of 1 billion plus people actively engaged. At one point in time, they were a desktop company, quickly moved into mobile, meaning looking at your phone. Thats where the dominance of the revenue comes from. They almost died the 1. 0 death of being a cat logionline with your desktop and now its more mobile angle and is giving that effective screen experience. They can fail a lot. They have a lot of cash and a lot of eyeballs so i think a nice future in the foreseeable future. A company that relied on facebook, zynga you will chew me with this. It doubled its money as of late. Youre not too high on zynga. They make onehit wonder games and its tough to be a winner so with zynga, an app run with farmville, virtual goods and use the facebook relationship tmobile phone. They went after a lot of acquisitions. The mobility they bought that, the user ship went down so they were a Young Company that took a shot and struck out. A lot of people bought it at 14, 8 a share. Youre very lucky in your time but youre one of the smartest people i know so with that said, sell. Sell. Sell. Thank you, rob. Twitter seems to have some of those firstyear issues of a Publiclytraded Company that we saw with facebook, ups and downs. What do you think about twitter . Twitter is cute. Instant messaging and snapchat does what twitter does, sending messages back and forth. Theyre missing a little component. Theyre great at gathering news, unbelievable. They broke the so is a ma bin will orb o so ma bin laden and probably just the u. N. Bieber stories. Its too scaffolding with hashtags. They will get there, i think. I think it will develop and work out over time, but right now, they have to sell to the masses that, yeah, if you want breaking bad information, its there, and theres a lot of it. Some is very cool. If you want the walking dead, its there. Bieber, any news source you want thousands of eyeballs that have main stories in twitter. Web 2. 0 of companies linkedin is good as far as stock concerns. Its a facebook for professional user but also a job search so when they report numbers, what were able to get is timing is not so hot. It gives a lot of components. I like them because my dad had one job his whole life. I will probably have six to Ten Television stations i worked, plus my past career as a financial advisor. Knowing people, networking through linkedin, is terribly useful, but outside of that job component angle theyre a nice company, wellpositioned. You cant talk about web 2. 0 without groupon in the mix. I dont get it. I got tired of getting those e mails that said heres a special deal. But you can only use it on monday and tuesday. People 35 and younger use groupon for every single meal or every single vacation. Because its on the phone, theres a connective issue. I would it can on dips. And yelp has had a deal with yahoo. What do you think of it prospects with the ipo . I sat in the apartment with the founder and didnt like the idea 12 years ago. Now when i travel, i use yelp for great restaurants. Im not so much on users review because i assume the first five are the owner and friends and then the next five are the competitor and friends, but to know the best things are, i think it will be acquired by someone bigger than themselves maybe apple, amazon, or google. Theyre what were using on their phones with apps. Thank you very much. Up next, chad birkin, plus your emails. You can email me. Well be right back. Welcome back in. Rob black and your money. Were asking cpp chad burton about the ten pillars of Retirement Income planning. Retirement income is intimidating. Lets start with a couple of these pillars, things you need to know before you retire. First and foremost, mr. Burton, knowing your expenses. Is that a budget . What is that . Well, its a little more than that. You know, we have 10 now, people a month turning 65 and i would say a problem is people dont understand the cost of retirement. They think health care is paid for and forget to budget the travel they want to do, the charities, other types of insurance they may need in retirement. Its really, you know, a lot th career, save in their 401 k , and spend everything that comes in, and then retirement if you want to me if youre ready, you have to go through your expenses. What do i want my retirement to be like . What are my dreams . And you want to budget and save appropriately. Sit down with your spouse and have paper . Come up with a bucket list . Or is it something you just slowly evolve and get into, per se . Yeah. So people even that have a lot of money dont necessarily live by a budget each and every day but quarterly, at a minimum, track our expenses and say, where did we save our money . Did we eat out too much . What did we do . We have to think, what will we do in retirement . People assume they will spend less and in the first five to ten years ago, they spend more with travels, chairs, things they werent able to do when theyre working. Health issues that arent covered well diabetes, heart disease, as well as dental issues. I brush my teeth two to three times a day, floss once or twice a day. Im trained to prevent expensive loss of teeth. 6,000 for an implant, typically not covered by insurance, and diabetes going for a walk, get blood sugars longer, keeping my limbs on my body. Paying attention to your health will help and when youre ten years from retirement make sure youre going into retirement healthy and saved enough. I see situations where people are young and appear to save a lot of money and look healthy. For example, one lady had Breast Cancer and the husband had type 2 diabetes so their Health Care Costs are higher than other people because theyre trying to take the natural route to keep those things at bay. They spend more money than most people in retirement and something that factor in over a long period of time and Health Care Costs, you have to assume a 5 inflation. Not the average 2 , 3 with your other expenses. 5 on any healthcare costs. Thats basically a lot of people when i was younger, i thought healthcare and retirement would be free. Medical b, supplemental, prescriptions, it adds up. What do you see a retiree spend on healthcare expenses . Over the course of retirement not counting Long Term Care insurance, which is different but the average cost of medical insurance you have, Medicare Part a, free. Part b, you pay 105 a month and going up with inflation. It was going up double digits and then a supplemental plan and then Prescription Drug costs like part d. Then you have copays throughout your lifetime and theres two way to look at it. You set aside 250,000 for those ancillary costs or assume 250 for those a month for those costs. It adds up for Medicare Part b and Everything Else. Youre talking about 600 a month. Then you add longterm Care Insurance those do not cover Nursing Homes or Home Health Care 700 a month, easily in retirement. Lets go to number two of your pillars of retirement saving what do we need to know . A person that retires say 2 million in and draw 80,000 a year if you have in it a 401 k that has not been taxed, its very different than a person who has some cash taxed, some account that hasnt, a roth that is tax free and some stock that when you sell at 15 Capital Gains projecting those forward for the long term, its very important to know what your truex pences are in retirement. You have to really say, okay, how much can i draw out of my i. R. A. S and stay at the 15 bracket or convert your i. R. A. S to roths when youre 65 to 70 to really maximize your existing tax bracket and have taxfree growth in the future . If people want a list or copy of your list of the top ten pillars of retirement planning, they can go to newfocusfinancial. Com. They can call you, talk about the list. Pillars of Retirement Income planning. You really want to be on top of this before you retire. Lets take break here. You can find me on facebook. Kron 4 rob black. Well talk about more issues when we return. [ male announcer ] fact the 100 electric nissan leaf. Is more fun than ever. Sees better than ever. Charges faster. And will charge. Cool. And heat. From your phone. Fact leaf never needs gas. Ever. Good for the world. Built in america. Now, leafs an easier choice than ever. Shop at choosenissan. Com. Joining me now, cfp chad burton. Ask the expert. Were talking about the pillars of Retirement Income planning. You have to have a good Knowledge Base before you hit retirement and even in retirement, its important to brush up on some of the stuff. Lets talk about maximizing Social Security as a form of income. Mr. Burton . Yeah, you know, if youre a single person, the easiest way to do it is say, tell me how long you will live and ill tell you about how to take Social Security. Many people think the government will run out of money. I think if youre older, you can depend on Social Security but if youre under 4, i assume you can plan plan without Social Security. Make sure you can retire without it. You have to maximize it and people are take it too early. If youre still working between 62 and full retirement age for most 66 now if you take it and youre still working, you will get nailed on penalties and taxes. So the other issue is that our bond rates are extremely low, cd rates are low, so maximizing every income piece in your portfolio is very important. If you can hold off from 66 to 70 on your Social Security, its like having an 8 rate of return on that benefit so its much better than bonds. For single people, a question of longevity. Married people, if both people were working, theres a strategy or if theres one person that stayed at home and another person worked, theres a strategy. File and suspend. It would allow many if my spouse worked, for example, if i file and suspend at age 66 my full retirement age but i hold off and let my benefit grow at 8 she can take a spousal benefit and then at 70, i can turn my tap on for Social Security and if she worked, she can flip to her own at her age 70. Theres a lot of ways to maximize Social Security people are not thinking about. Theres Software Programs to do it that advisors can use and some are online that people can find. If people want a copy of your income retirement planning, they can find you at newfocusretirement. Com. Number 4, plan for surviving spouse. Right. This is kind of an open you know, some people marry young. Some people marry the same age. My grandparents died two years apart so that worked out well lets talk about Social Security for a minute because sometimes the people that may have worked a lot longer maybe their health is poor so they say, i want to take Social Security early and get as much as i can out. But guess what . If youre married, when one person dies, the small check goes away and the survivor keeps the larger check so even if that person is not very healthy, if youre trying to plan for your surviving spouse, maybe holding off until 70 so if you pass away, she has a better check, or vice versa its important. With the defense of marriage act being, you know, thrown out, samesex couples need to think about this as well if theyre married in california. So its very important to say, okay, if one of us passes away, what happens . And expenses are not cut in half in retirement. When somebody passes away in retirement, you dont just say, heres my budget. I will it can in half. Its maybe 25 , 30 less outflow. Its important to model. Or what if your spouse goes into a nursing home . How much will you have left over . Or a pension. A lot of older people retire with a pension from Lockheed Martin or military. Maybe they took a benefit where if they pass their spouse gets nothing or 50 or 75 . Have you modeled that out . Do you know if your spouse will have enough if you pass away early . Lets talk about how long we will live. Typically the guy dies at 93 and the woman dying at 95. It takes into account longterm care. Cash flow start with a big asset at 60, 65, but its down to almost 0 by the time youre ready to pass. Yeah, thats the thing. The way i want to do it is bounce the last check i write the day i die and feel like i won. Ill give Everything Else and spend Everything Else that i can. You have to live until youre longer. When my grandfather passed, he was taking 17 pills a day and lasted until almost age 87 and i had three clients make it to age 100. I plan on being bionic by age 80 with the knee and hip problems from playing hard. People are going to live longer, and that old idea of saying, i only need my money to last until 85 or 86. Odds are in a married couple situation, one will live past Life Expectancy now, so you have to have until age 100. You may model one person dieing between 90 to 95, but the survivor need enough assets to make it to age 100 and then a plan b, if they make it longer, tap the house or move out of state, Something Like that. You have to model these things out and make sure your cash flow projections show your taxes, your Health Insurance costs, you mold longterm stay at a Health Care Facility and really say, what are the what if situations we havent thought about in retirement that we need to plan for . Thanks very much. You can get a copy of the ten pillars of Retirement Income planning, something you should read over and get to know intimately. This is too important to run out of money because you didnt have the education. You can find it at newfocusfinancial. Com. You can see the phone. You can follow me on facebook. Kron 4 rob black. When we return, well talk about financial issues. Probably an email or two. Well be right back. Welcome back in. You can always tweet me, robblackshow or facebook me, kron 4 rob black. You can let me know your thoughts or questions. Whats the most important Economic Indicator . You know, ive asked the economists this because there is productivity, inflation, deflation, wages unemployment. Most economists, its jobs, because if you have a job, were a paycheckbypaycheck nation. If youre spending it, youre supporting the economy. If youre supporting the economy, wall street is a reflection of that. Paychecks equal consumers. Thats one of the reasons why i like asia as my favorite area over the next 20 years. They are creating a lot more consumers faster than we in the United States are. With that said, the jobs numbers if theyre trending in the right direction and for 2014, theyre expected to march lower in unemployment that should help our economy and if that helps our economy, we should have a nice year in the stock market. Question two target fund or risk funds . You take your age say youre 40 so you will retire in 20 years. You look at the calendar and you round it up to 2015, take that, add 20 years so you will retire in 20 year. Thats 2035. It takes fidelity, vanguard has these, t. Rowe price has these. It does the work for you, and you put your money in monthly and over time, it will accumulate wealth and get some international exes composure, some value, some bounds. As you get closer to your target, its more conservative. I like them. The other is risk funds. Theres a new fund that its cute. Theres, like, good economy bad economy. You want to be aggressive, you want to be conservative. A similar idea to the target funs, just in simpler terms, aggressive, passive, neutral. Most investmented vie, so we have in our minds thing along the minds of a healthy economy. This is weak economy. Its a neutral economy. This is a healthy stock market. This is an unhealthy stock market. This is a neutral stock market. It does make sense to have what are callds these risk funds. With that said, its a little oversimplification, and i maybe prefer diversified or target fund portfolio. The reality is you need to be more aggressive in your exposure to the markets of the world. I dont want you to decide oh, im scared, im going conservative or, im really greedy. Its not the best thing. Number three, the ageold company. A company like cysco that selds the internet road or a content company like netflix it ebbs and flows. I like the verizons and at ts and comcast because of the content Delivery System in the holmes but i like yelp and netflix and amazon where were consume content they send to us so ultimately, i will say both. If i have to choose one or the other, ill go with verizon over comcast with verizon be the conservative play. Etfs or mutual funds . Etf is Exchange Trade fund. Both are complexion of stocks. I like the etfs because theyre more tax efficient but if i want to invest in, say, china, i would go with a mathews china fund where i have an active manager who has boots on the ground and knows chinese stocks, chinese culture, chinese currencies. Again, theres no wrong answer there. Theyre pretty good. I prefer etfss. You can find me on twitter or facebook. Kron 4 rob black. Well talk to you on a fure episode. Announcer the following is paid presentation for focus t25, brought to you by beachbody. [ echoing ] its about time. 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