Retirement Answer Man

How to make your money last as long as you do is the biggest question in retirement planning. And now that people are living longer lives your money has to stretch farther than ever before. Today’s retirement is a brave new world and the problems you will encounter haven’t been experienced by any previous generation. Are you ready to learn what you can do to make your money last as long as you? Check out this episode of Retirement Answer Man as we dive into this important question. 

Is there a right way to retire? 

Do you think there is a right way to retire? Do you think that there is a secret formula waiting for you? The truth is that nobody has the recipe for the secret retirement sauce. That’s because no one has done it before. You’ll live longer than ever, you’ll live more years in retirement, you’ll be more active, you’ll spend more, and you probably don’t have a pension. This is all still so new to all of us. So don’t be fooled by someone who thinks they have all the answers, because they don’t. This should challenge you to make small smart decisions since there is no big “right decision.”

How to make your money last

As you now know, there is no perfect model for making your money last. The most important thing to consider is to be agile in your decision making to keep many options open. Since there is no clear path ahead, you just have to stay agile. It's better to acknowledge that and to build a framework that allows you to make lots of little decisions correctly. That way you can react to opportunities and risks quickly as life unfolds. 

Key areas to be intentional about in retirement planning 

When you are thinking about how to make your money last in retirement there are some key factors that you can consider.

  1. Your lifestyle choices. These have a huge impact on the longevity of your money. You can examine what is a need vs. want? Think about your discretionary and non-discretionary expenses. How you define these terms is important. Lifestyle choices are critical to making money last. 
  2. Social capital. Social capital includes social security and annuities. Annuities can guarantee payment to you for the rest of your life. We’ll dive more into annuities in July so be sure to listen to episodes 280-283 when they come out.
  3. Human capital. Your human capital is you. I call this pretirement. Most people who retire really want more time freedom to pursue things they enjoy rather than simply not working. Every year that you continue to work it not only gives you some money, it also gives you socialization, purpose, and fulfillment. The longer you work the longer it takes for you to tap into your financial assets
  4. Turn your use assets into productive assets. Use assets are assets that don’t produce anything for us. They give us enjoyment instead. Your home, car, boat, and collectibles are examples of use assets. You reversible mortgage.

Agile retirement planning helps you keep your options open

Agile retirement planning is all about keeping your options open. You want to have the ability to reevaluate everything as life unfolds. Create a stress test and make small changes along the way. Find risks and opportunities to improve your plan. A bit of intentional action will take you a long way. Check out my book to learn more about agile retirement planning. If you read it and leave an honest review on Amazon I’ll even send you a signed copy!

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

  • [2:40] Nobody knows the right way to retire

PRACTICAL PLANNING SEGMENT

  • [13:36] How to make your money last?
  • [15:30] There are key areas to keep in mind 

THE HAPPY LAB SEGMENT

  • [29:02] Nichole learned how to ride a bike!

TODAY’S SMART SPRINT SEGMENT

  • [31:00] Do something that you have been wanting to learn

Resources Mentioned In This Episode

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

 

Direct download: RAM279.mp3
Category:general -- posted at: 6:00am CDT

Do you think that extended lifespans will have a positive impact or a negative impact on your life? We all know that people are living longer than ever before, many people see this as a negative, but have you considered the positive impact that this could be on society? Andrew Scott, coauthor of The 100-Year Life joins me to discuss longevity and adding purpose to life. He has some fascinating ideas about longevity and the role of older people in society, so grab your favorite headphones and join me on this episode of Retirement Answer Man.

The House of Representatives just passed the Secure Act

Exciting news for everyone that likes to see work getting done in Congress. The House of Representatives recently passed the Secure Act and it is now going to the Senate. If passed, The Secure Act is likely the most significant change to retirement planning since 2006. Here are a few of the details in the bill.

  1. The bill suggests repealing the maximum age of retirement contributions which is now 70 ½. Since people are working longer they would be able to save longer.
  2. It plans on increasing age of required minimum distribution (RMD) from 70 ½ to 72.
  3. It will lett long-term, part-time workers participate in 401K’s
  4. Parents will be able to withdraw up to $5000 from retirement accounts penalty-free within a year of the birth or adoption of a child.
  5. The bill will allow the withdrawal of up to $10,000 from a 529 plan to help repay student loans.

How can we discover the positive impact of longevity?

As we have seen over the past few weeks, people are living longer than ever before. There are many implications to longevity but some people only look at the downsides. However, there are many positive aspects to living longer. How do we embrace the positive aspects of longevity? Even though not all the long years are healthy ones we are, on average, living longer, healthier lives than the previous generations. When people are more forward-thinking they can have an active, healthy life. Late middle-age has become longer. A longer life also means that you need to invest more in your future. Not just financialilly, invest more in your skills, in your health, and in your relationships.

The 100-year life is a multi-stage life

When we look at having a long life we look at that life in stages. The first part is focused on learning, the next is more career-centered, and in the past the third stage was focused on resting. Today’s modern retiree isn’t necessary looking to rest, they just want more time freedom. Finding purpose in retirement is important to living a happier, healthier life. The more purposeful your life is the longer it tends to be. We now need to find fulfillment in somewhere other than the workplace. So look around you to see how you can invest in yourself and find your purpose in retirement.

What habits is Andrew working on to create a long, healthy life?

Andrew Scott is in his 50’s so he knows that it is important for him to invest in physical and mental health as well as in relationships. He approaches life with curiosity and is focused on growth and exploration. He knows that since age is more malleable than ever before that he needs to be forward thinking. He sees retirement as a time to create a vision to see what all the possibilities are. He thinks that the future is exciting and that once again the baby boomers are here to blaze the trail ahead. What do you think? Are you excited about the prospect of an extended life?

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

  • [6:25] The House of Representatives just passed the Secure Act

PRACTICAL PLANNING SEGMENT

  • [10:06] Dr. Andrew Scott is the co-author of the book the 100-year life
  • [14:53] Longevity is not just about how long you live but about how well you live.
  • [23:11] What kind of habits is Andrew working on to create a long, healthy life?
  • [26:04] What is different about the newest generation?

THE HAPPY LAB SEGMENT

  • [32:14] My biking accident caused me to be thankful

TODAY’S SMART SPRINT SEGMENT

  • [37:44] See if you can react positively to a negative situation

Resources Mentioned In This Episode

BOOK - The 100-Year Life by Lynda Gratton and Andrew Scott

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

Direct download: RAM278.mp3
Category:general -- posted at: 6:00am CDT

Are you creating healthy habits so that you can age well? Since we are going to live longer lives we want to make sure that we live well not just live long. On this episode of the Longevity and Retirement series on Retirement Answer Man we dive into how to create great habits so that we can age well. What kind of healthy habits have you created to ensure that you age well? Find out which 8 habits can help you improve your life as you age by listening to this episode of Retirement Answer Man.

Are subscription services helpful or a waste of money?

What kind of subscription services do you have? Subscription services are a great way to pay money for things that you truly value. But they can add up if you aren’t careful. Many of us have several different kinds of subscription services ranging from Netflix to gym memberships to the Rock Retirement Club. If you aren’t careful subscribing to multiple services can get out of control and you can even forget that you signed up for something. It's a good idea to periodically review your credit card and bank statements for these recurring charges. Learn 3 steps you can take to ensure that you aren’t paying for services that you don’t use by listening to the Hot Topic segment.

Habits make us who we are

What habits are important to you? The idea of creating good habits becomes much more important as we age. Habits make us who we are but they can also prolong your life. As we age we can experience a cognitive and physical decline. But if you create healthy physical, mental, emotional, and relational habits now they can serve you in later years and help you age well. Some habits can even help you lengthen your lifespan. These 5 habits have been proven to help you live longer.

  1. Not smoking
  2. Moderate alcohol intake
  3. Regular exercise of 30 minutes or more per day
  4. A healthy diet
  5. Maintaining a healthy normal weight

These 8 habits can help you live better and help you age well

Most people don’t have a goal of living to be 100. The thought of living 20 years or more in old age can be frightening. You don’t have control over how long you will live but you do have control of how well you can live. Consider these 8 habits to help you age well.

  1. Exercise. Your exercise habit should include stretching, strength training, and endurance training.
  2. Have a purpose in life. Do something that is meaningful to you whether it is volunteering or even being a fantastic grandparent. Make sure you have a reason to get out of bed in the morning. What is your purpose? Cultivate a purpose
  3. Train your mind. Training your mind is just as important as training your body as you age. Challenge yourself to learn something new.
  4. Maintain a healthy weight. Eat well.
  5. Cultivate a positive mental attitude. Seniors that think of a time of wisdom and satisfaction are 40% more likely to recover from a disability than those who see aging as synonymous with helplessness.
  6. Improve your mood. This can affect so much more than you realize.
  7. Stay social. Create positive social networks that go down the age spectrum. You can keep the friends your age of course, but try to befriend those younger than you as well.
  8. Be a participant in life, not a spectator. Stay out and about, don’t just watch other people do things.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

  • [2:53] Subscription services are a way to pay money for things you care about

PRACTICAL PLANNING SEGMENT

  • [14:41] Habits make you who you are
  • [17:50] 5 habits that could help you lengthen your lifespan
  • [20:11] 8 habits to live and age well

THE HAPPY LAB SEGMENT

  • [35:04] Create an environment that brings people to you

TODAY’S SMART SPRINT SEGMENT

  • [36:38] Pick one of the 8 habits to help you age well

Resources Mentioned In This Episode

Wall Street Journal Article about subscriptions

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

Direct download: RAM277.mp3
Category:general -- posted at: 6:00am CDT

How long will you live is one of the trickiest questions in retirement planning. During the Longevity in Retirement series, we will take a look at this question and try and figure out if we can come up with an answer. Chances are it’s longer than you think! Learn how you can try and calculate your longevity, what other wild cards might factor into longevity, and discover some money misconceptions on this episode of Retirement Answer Man.

What are some common misconceptions about money in retirement?

There are plenty of misconceptions about money in retirement. Let’s jump in and find out what some of them are.

  • The average return on the S&P 500 has been about 10%. Sure this is true, but if you look at the past 93 years you will only find 6 instances where the returns were actually within 2% of that 10%. So although 10% is the average return that is a bit misleading. The S&P 500 is actually up and down and all over the place.
  • We spend consistently in retirement. The problem with retirement planning is we don’t spend consistently. Our spending is lumpy. You need to plan out your cash flow management in retirement. We overestimate inflation. Front load
  • Using average returns in planning. We often base our projections at 6% or 7%. But it’s dangerous to make decisions based solely on that. There are better ways to plan for retirement.
  • Depleting your portfolio is the worst thing that can happen. It’s surprising, but there are worse things than running out of money
  • You're going to be fulfilled by not working. You need to be retiring toward something not away from work.
  • You won’t be tempted to by an RV. Just listen to the RV Virus series to understand that’s not true!
  • Taxes will be lower. Sorry, but that’s not typically the case
  • Retirement is purely a financial decision. There is so much more to consider
  • Your portfolio needs to be more conservative.
  • Medicare is free. Sorry, that’s only true for part A. You’ll still have part B and copays.

How long will you live?

This question is one of the oldest questions we have. But it becomes more important in retirement planning. You want to plan so that you won’t just survive retirement, but rock retirement. A person that has already reached the age of 65 is expected to live until 84. Surprisingly, the older you get your life expectancy actually increases. There are many factors that influence longevity. Of course, there are genetic factors, and everyone knows that women live longer. But did you know that prenatal and childhood conditions also have an impact on your longevity? Married people live longer. Socioeconomic status, education, ethnicity, and lifestyle choices are all considerations for calculating longevity.

What are some wild cards that may affect your longevity?

You may have heard that the human lifespan is getting longer. Right now the maximum human lifespan is 125 years, but where do the wild cards fit in? Science is continually coming up with new ways to extend our lives. How quickly will scientists extend the human lifespan and how long will humans live in the future?

Gene therapy can knock out 2 genes that are affected by aging which can cause you to live longer. There are now rejuvenation technologies and artificial reconstruction. Scientists are trying to grow our own body parts so that we don’t have to get transplants. But until then there are already robotic replacement parts like artificial knees and hearts. Improvements in diagnostics help doctors detect diseases early. How long do you think you’ll live?

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

  • [3:01] What are some common misconceptions about money in retirement?

PRACTICAL PLANNING SEGMENT

  • [15:25] How long will you live?
  • [21:09] What are some wild cards that affect longevity?

THE HAPPY LAB SEGMENT

  • [28:04] How will Nichole adjust to becoming old?

TODAY’S SMART SPRINT SEGMENT

  • [31:30] How will you handle the natural progression of getting older?

Resources Mentioned In This Episode

Livingto100.com

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

Direct download: RAM276.mp3
Category:general -- posted at: 6:00am CDT

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