As you approach retirement, take time to reconnect with your authentic self. We continue with the ‘who are you in retirement’ series by learning how to connect with your authentic self using the Enneagram. Today we welcome Teresa McCloy from the Enneagram in Your Real Life podcast. Teresa is here to show you how the Enneagram can help you rediscover your authentic self. Teresa is an Enneagram expert that teaches people how to apply the Enneagram intentionally to create a better life. Listen to this episode to learn how to use the Enneagram to rediscover your authentic self.

Do you have many low stakes casual friendships?

Low stakes casual friendships are those relationships with people that we see in passing. Consider the barista from the coffee shop, your hairdresser or the waitress at your favorite restaurant. They are the people you know a little bit about but you wouldn’t call at 3 a.m. with a problem. A recent study was done on the importance of low stakes relationships in our lives. We need social attachments. We feel comfortable when we go places where we are known and recognized. As you create your deeper social network don’t forget the community around you. You never know where these casual friendships may lead

How can the Enneagram help you discover your authentic self?

The first step in rediscovering your authentic self is to do some self-examination. This will help you to create your identity in retirement You need to identify what drives you and gives you pleasure. There are plenty of personality assessments you can take like the DISC assessment or Meyers Briggs, but the Enneagram can be an even more powerful tool for self-discovery. The enneagram is different from the rest because it speaks more to the heart. It gives us insight into becoming our best selves by connecting the head, heart, and gut. 

How can the Enneagram help you in retirement?

When you retire you may be at the top of your game in whatever it is you do to earn money. But that area may not be where your authentic self lies. Retirement gives you another opportunity to reconnect with your true self. The Enneagram gives us insight into becoming our best self through these three centers: the head, the heart, and the gut. With this tool, you can reconnect with all three. The Enneagram gives you the language you can use to connect with others as well. It can also help give you grace and empathy to understand how to communicate with those around you. 

How can the Enneagram help you connect with your spouse?

The divorce rate for couples over 50 is at an all-time high. Once you and your spouse are home all day, every day you may have trouble connecting. Many people find that when they retire they no longer feel a connection to their significant other. The Enneagram can help you discover your authentic self but it can also give you an understanding of how you relate to others and understand that others communicate differently. It can give you the language to use with your spouse and help you have grace and empathy. After you listen to this episode check out Teresa’s podcast and give the Enneagram a try. 

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:49] The importance of the low stakes relationship

PRACTICAL PLANNING SEGMENT

• [7:46] Teresa McCloy discusses how to use the enneagram intentionally to create a better life in retirement
• [20:14] How can the Enneagram help you find your authentic self?
• [28:16] How does the Enneagram help couples?

THE HAPPY LAB SEGMENT

• [31:49] Who are your low stakes friends?

TODAY’S SMART SPRINT SEGMENT

• [33:33] Check out the Enneagram in Your Real Life podcast

Resources Mentioned In This Episode

PODCAST - Enneagram in Your Real Life with Teresa McCloy

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

How are you going to redefine yourself in retirement? Retirement means making the life transition from a full-time career to full-time living on your own terms. Although this is exciting, it can also be scary. During this series, you’ll learn how to create a framework to do this successfully. Learn how to figure out your identity and who you want to become. Are you ready to redefine yourself in retirement? Listen to this episode of Retirement Answer Man to begin to make this huge transition in your life. 

Who are you? 

We get so wrapped up in our professional titles that now in retirement you have a void to fill. Not only do you have to figure out the logistics of money, healthcare, where you’re going to live, now you’ll have to figure out your identity. Some people can lose direction when they retire. They think about who they were rather than who they want to become. Creating an identity from a completely blank slate can be a challenge. People don’t do well with blank slates. We prefer multiple-choice questions and don’t have the skills required to choose from such a broad palette. Do you know who you are? Do you know who you want to become?

Why did I shift the focus of this series from finding your purpose?

I had originally planned for this month to be all about finding your purpose in retirement, but then Mike the listener had an objection. Mike feels that there is too much pressure in finding your purpose of retirement. You probably won’t solve the problem of world hunger. Retirement is like the start of college, it’s the beginning of another round of self-exploration. Unfortunately, the analogy ends there since college has a structure and pressure. A well-funded retirement is free of pressure and structure. How will you grow and change in the absence of pressure?

How can you hack longevity?

It used to be that you might get 10 years of retirement in to simply sit on the park bench. Nowadays ⅓ of your adult life consists of retirement. The pattern written by previous generations doesn’t hold up for this new generation of retirees. This new stage of life has to be reinvented. Just because you stopped working doesn’t mean that you stop everything. People are beginning to hack their longevity by identifying their interests early on in retirement. These interests will carry them for the years of their retirement. 

Are you ready to redefine yourself in retirement?

When you retire, you can’t just run away from work, you need something to run to. It's not the absence of work that people desire in retirement, it’s the flexibility. Before beginning your retirement it’s time to start thinking about who you really are. What’s your reason to get up in the morning? What will be your storyline? How can you use the skills you have accumulated over a lifetime and translate them into the new game of retirement?

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:45] We get so wrapped up in our professional titles
• [8:14] Blank slates can be a challenge
• [9:00] Why we aren’t searching for a purpose this month
• [17:55] What is going on in the Rock Retirement Club this month?

PRACTICAL PLANNING SEGMENT

• [19:08] Dr. Joseph Coughlin is the director of the MIT Age Lab
• [25:22] People are hacking their retirement
• [31:55] How can we build support networks in retirement?

THE HAPPY LAB SEGMENT

• [34:44] Axe throwing is really hard to do

TODAY’S SMART SPRINT SEGMENT

• [36:56] Identify your identity right now

Resources Mentioned In This Episode

BOOK - The Longevity Economy by Dr. Joseph Coughlin

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

You may still have some questions about annuities so in this episode I answer your annuity questions. We have had several listeners ask some great questions which will help clarify how annuities work. After diving deep into annuities during this 5-week long month, we can all look forward to the next series where you will learn how to figure out who you will be in retirement. But before that, listen to this episode to get all of your annuity questions answered. 

Why can’t people just self-annuitize?

Ryan asks: why don’t individuals self-annuitize by using the IRS required minimum distribution (RMD) tables. This way they can keep control of their assets with the additional benefit of being able to leave the assets as an inheritance. 

This is actually a great idea and the idea that the IRS has behind the RMD. The primary difference between this example and an annuity is the risk factor. In an annuity, the risk has been removed in exchange for your loss of control of assets. So in this example, you would still maintain control of the assets but you would still need to factor in market risk and execution risk. Would you prefer to use your IRA in this way or get an annuity?

Do RMD’s play a factor in annuities?

Another listener is curious about the role that RMD’s play in annuities. Her husband recently bought an annuity and was told that he would have to begin the annuitization phase at age 70 ½ due to the RMD. 

The reason that he has this stipulation is that he must have bought the annuity using tax-deferred assets. If you have other tax-deferred assets you could postpone the annuitization period as long as you are still taking the RMD from other sources. If you have bought an annuity, did you use pre-tax or post-tax assets?

Why do insurance companies handle annuities, and how do they make money?

Insurance companies handle annuities instead of banks or investment firms because they are pooling risk from a large group of individuals to spread the risk in a similar way as that of an insurance policy. But the insurance company makes money much like a bank. They collect money from thousands of individuals and then they are able to invest it and earn a larger percentage than that of their policy payout. It’s like you going and buying a cd. It is important to remember that an annuity shouldn’t be seen as an investment but rather as a pre-purchased pension. 

What if you don’t want to know all the details surrounding annuities?

One listener thinks that annuities sound like an excellent option for her retirement but she doesn’t want to know about the fees and charges. With an annuity, it is important not just to read but also understand the contract which is no easy task. The way the contracts are written could cause you to accidentally break the contract if you aren’t careful. If you aren’t looking to be swamped by details, a fixed annuity is much more straight forward than a variable annuity. 

If you are considering an annuity you need to first think about your overall retirement strategy. Let the process drive decision making. Consider why you are interested in annuities. Are you looking to insure longevity risk, simplify your financial life, or buy a pension? Remember that you are not buying an investment. So what do you think of annuities? Do they seem like a good option for you?

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:18] Who are you going to be in retirement? 

PRACTICAL PLANNING SEGMENT

• [6:50] Why wouldn’t people just self-annuitize?
• [8:55] Do RMD’s play a factor in annuities?
• [10:54] Why do insurance companies handle annuities?
• [13:40] What if you don’t want to know all the details surrounding annuities?
• [16:06] Are insurance companies selling off their annuity lines because they feel they can’t be profitable?

THE HAPPY LAB SEGMENT

• [20:24] I am excited about next month’s series that focuses on who you will be in retirement

TODAY’S SMART SPRINT SEGMENT

• [21:14] Eat the frog - do the thing you don’t want to do first thing in the morning

Resources Mentioned In This Episode

BOOK - Eat that Frog by Brian Tracy

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

 

In this episode of the annuity series, we’ll discuss the pros and cons of variable annuities so that you can learn whether a variable annuity should be a part of your retirement plan. During the Hot Topic segment, we’ll discuss the Rock Retirement Club since enrollment just opened back up. Then in the Practical Planning segment, we jump back into our discussion on annuities. You’ll learn all about variable annuities to help you become more informed. Listen to this episode to learn the pros and cons of variable annuities. 

Is the Rock Retirement Club right for you?

The Rock Retirement Club has opened its doors once again! Now with over 200 people, the RRC was created last fall as a safe space to help others in various points along their retirement journey. The motto of the Rock Retirement Club is, “Walk with the wise and become wise.” Check out the RRC if you are interested in these 3 things:

1. Get a world-class education on how to ‘do’ retirement. We do this by creating educational courses, workshops run by experts, and meetups on how to do specific things. 
2. Take action. We have a monthly action plan to help you take baby steps towards your retirement goals and we give you the tools to take action.
3. It is a safe place to walk with others along this retirement journey. 

What is the difference between a variable annuity and a fixed annuity?

There was $200B in annuity sales in 2018. Of that, $100B was in variable annuities. Since variable annuities are such a big part of the market, we should learn more about them. How is a variable annuity different than a fixed annuity? There are still the 2 phases of annuities: the accumulation period and the annuitization or distribution phase. In a fixed annuity you are paid based on a fixed rate specified in the contract. In a variable annuity, you are able to choose from a menu of mutual fund clones then when you go to annuitization you are paid based on what the portfolio was able to grow to. Basically, the case for variable annuities is that you’ll be able to potentially build a bigger pot to annuitize from. 

Pros and cons of variable annuities

Variable annuities have many riders to choose from

Another thing variable annuities have are riders. There are a lot of riders that are designed to provide you with income at some level without having to annuitize first. But the devil is in the details with these riders. You can often get a death benefit rider or a long-term care rider. There could be a guaranteed withdrawal benefit which may give you some guarantee about how much you’ll be able to withdraw. A lifetime income benefit rider can provide you with a guaranteed lifetime income. There could be a guaranteed minimum accumulation rider and so many others to choose from. Check out the Good Financial Cents website to learn more about the different types of riders you may come across with variable annuities.

What are some disadvantages to variable annuities?

Since you are investing in markets you could end up with a lower payout. If you do well and the assets grow they will be taxed as ordinary income rather than capital gains. Then there are the fees. There is a mortality expense, an investment expense, a manager expense, a surrender fee, and then, of course, the riders. There could be anywhere from 2.5% - 4% in annual fees, but if you get any riders attached then those fees could bump up to 6%. These types of products are usually sold rather than being sought out. The people that are selling annuities aren’t fiduciaries so they don’t have your best interest at heart. 

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:31] The Rock Retirement Club has opened its doors once again

PRACTICAL PLANNING SEGMENT

• [10:01] How is a variable annuity different than a fixed annuity?
• [14:20] Variable annuities have many riders to choose from
• [16:35] What are some disadvantages to annuities?

THE HAPPY LAB SEGMENT

• [22:45] To be happy we need to minimize confusion

TODAY’S SMART SPRINT SEGMENT

• [24:35] What can you simplify in your life?

Resources Mentioned In This Episode

GoodFinancialCents.com/annuity-riders

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

On today’s episode of Retirement Answer Man, we’ll consider the pros and cons of fixed annuities. During this series on annuities, we are discussing whether annuities are right for your retirement. Many people choose pretirement as an income floor for their first few years of retirement to help them ease into the lifestyle and decrease financial risk. An annuity can be considered a backend floor to cover your retirement spending in your 80’s, 90’s and even 100’s. We all know that longevity is a big factor in retirement planning and a fixed annuity could help supplement your social security income in old age. Listen to this episode to help you consider the pros and cons of fixed annuities so that you can judge whether an annuity is a good choice for your #retirement.

What are the pros and cons of fixed annuities? 

What are the pros for a fixed annuity? Since an annuity is like a pension that you pay for in advance, you get a guaranteed income for the rest of your life. Once you buy it and put it in place you can‘t really mess it up. It also offers protection for your future self. You may not be as astute in your later years and an annuity can help protect you against fraud, poor judgment, etc. An annuity also gives you a kind of longevity insurance since you get payments for your entire life whether you live until 80 or 110.

Although an annuity can simplify things, you must give up some things in return. First of all, you give up your lump sum. In doing so, you lose the opportunity to use the money in a different way. You don’t really know how much you will get in return since it is gone if you die the next day. Another potential downside is inflation. By the time you actually begin annuity payments, the inflation can lower your purchasing power by 20% or more. You also give up the opportunity to leave a legacy with the money.

Why did B.W. choose to purchase an annuity?

B.W. is a member of the Rock Retirement Club and has recently retired at age 55. He has decided to dive headfirst into retirement financial planning. Since he chose a bucket strategy for retirement expense planning. He has 10 years of spending set aside until he reaches the age of 65. At age 65 he’ll receive Social Security and a pension which will cover 75% of his costs. He decided to find an annuity to cover the other 25%. B.W. chose a deferred annuity since he doesn’t need the money until the age of 65. He looks at purchasing an annuity as an insurance policy rather than an investment. Listen to this episode to hear why B.W. chose to purchase an annuity to cover his retirement expenses.

How did B.W. determine which annuity to buy?

B.W. started searching for annuities by considering the amount of money that he wanted to cover. He also knew how much he was willing to spend. This led him to explore the options that he could afford. He narrowed his selection down to one consideration: What would be the guaranteed joint life income stream from the annuity? He looked at just about every annuity there was and considered various sources. B.W. ended up choosing a deferred fixed annuity called SPDA (single premium deferred annuity). He chose an annuity that would cover both the lives of he and his wife. Are you considering an annuity as a way to provide income in retirement? Listen now to hear how B.W. figured out which annuity would work best for his goals. 

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [4:10] Have you considered a backend floor to cover your retirement spending?
• [8:25] What do you give up with an annuity?

PRACTICAL PLANNING SEGMENT

• [21:28] Why did B.W. choose to purchase an annuity?
• [24:22] How did he determine what to buy?
• [27:37] What class of annuity did he end up with?
• [30:10] What were the options that he considered?

THE HAPPY LAB SEGMENT

• [39:26] I’m happy that my friend Vinny started the Total Life Freedom podcast

TODAY’S SMART SPRINT SEGMENT

• [41:40] Go to RockRetirementClub.com and check us out

Resources Mentioned In This Episode

PODCAST - Total Life Freedom

Episode 280

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

This week on Retirement Answer Man, we define what role an annuity could play in your portfolio. Annuities can be a polarizing topic in the financial world but we need to think critically with a curious and open mind rather than vilify or glorify these investment tools. I’m checking my own biases at the door to bring you the most reliable information I can. Annuities may not be the most exciting topic, but we want you to rock retirement with intentionality so let’s dive in and learn as much as we can. 

Rock Retirement Club enrollment is back

Last year we opened the Rock Retirement Club as an online space where you can get your retirement questions answered and engage with people like yourself. Everyone in the club is learning as much as they can so that they can rock their retirement. You’ll also find resources to take action so that you have all the tools you need to rock your retirement. Our little club has grown over the past year and we only open enrollment during certain periods. This subscription-based club will be open for enrollment soon. Check out RockRetirementClub.com and put yourself on the waitlist so that you will be notified as soon as enrollment is open. 

In retirement, you have true freedom

Retirement is a special time because you finally have the ability to organize your life however you want maybe. You can do what you want, live where you want, and hang out with whoever you want without a job or social constraint tying you down. I recently read an article which proposed that college towns make a great place to retire. The author had 6 reasons to justify her theory: 

1. Cost of living is generally less expensive, so your retirement fund may stretch farther.
2. There are exciting events, museums, and culture.
3. College towns are diverse both ethnically and politically. 
4. There is usually great access to healthcare.
5. You can be surrounded by youthful energy.
6. There are plenty of opportunities to get involved in the community. 

What do you think of this idea? Would you consider retiring to a college town?

How can you make your retirement funds last as long as you?

The biggest question in retirement is how to make your money as long as you do. The problem is; no one knows how long they may live. In addition to unknown longevity, market risk, cognitive and physical decline, inflation are other unknown issues that we may experience in retirement. That is why we are exploring the topic of annuities. With the unknown of the future, it can be nice to have a certainty to help you through as you age. Let’s explore how an annuity can help you to maintain your lifestyle as you get older no matter what life throws at you.

What roles annuities can play in your portfolio?

1. Longevity insurance. In this changing world where most people don’t have pensions, an annuity can act as a substitute for the typical employee pension. The difference is that you have to buy it yourself rather than getting it from the company you work for.
2. Guaranteed income. We underestimate the importance of social security. An annuity can be a second source of social capital. It can replace your pretirement income and help support your lifestyle later in life. It has the added benefit that you can’t overspend or mismanage it
3. Help to supplement your no-go years. You could plan your annuity to turn on at age 80 or so. This in addition to social security can support your needs as your life slows down. 
4. Simplify things for your future self. You don’t know where you will be in 30 years. By buying an annuity you are securing another source of income that you won’t have to worry about or even think about. This can help protect you from fraud, cognitive decline or even greedy kids. 

Have you thought about the roles an annuity can play in your portfolio? What do you think? Do these benefits outweigh the costs? Listen in to hear the positives and negatives involved in getting an annuity in retirement

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [4:40] You have the ability to organize your life however you want

PRACTICAL PLANNING SEGMENT

• [13:16] How can you make your retirement funds last as long as you?
• [16:43] What roles annuities can play?
• [36:33] What are the costs of an annuity?

THE HAPPY LAB SEGMENT

• [40:56] I’m reading a book I really love

TODAY’S SMART SPRINT SEGMENT

• [42:56] Check out Atomic Habits by James Clear to prepare for our series in August

Resources Mentioned In This Episode

Market Watch article - 6 Reasons a College Town is the Perfect Place to Retire

BOOK - Atomic Habits by James Clear

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

 

Do you know the annuity basics? Over the next 4 episodes, we will explore annuities to see if they have a place in your retirement journey. We’ll discover how they work and if they can help you rock retirement all the way into your 80’s, 90’s, and beyond. On this episode, we’ll start from the beginning and explore our own biases and then cover the annuity basics. By the end of this series, you can decide whether annuities are the right choice for you. Are you ready to get your financial geek on? Strap on your headphones and get ready to explore annuity basics so you can rock retirement.

Annuities: love them or hate them?

Just like in politics, finance has its own polarized camps of thinking. There is an active management camp and a passive management camp. The passive camp says that lower cost is always better and the active camp says the opposite is true. Annuities also have their own love them or hate them camps. Before we begin to have a discussion on annuities it’s important to acknowledge your own biases. I want you to come to this discussion with an open mind. Many of us use positional thinking and believe there are only 2 sides of the coin. But the downside to positional thinking there is that no curiosity remains to explore other ideas. Over the next 4 episodes try to remain open to critical discussion so that we can start a dialogue about annuities. 

Understanding annuity basics

An annuity is a contract that you make with an insurance company. When considering an annuity it is important to read and understand the prospectus. The details are extremely complicated, not just for the layman but for financial advisors as well. Every insurance company is different and so are the features and the contracts they offer. When it comes to taxes, annuities can be tricky. You’ll want to consult your tax advisor before locking yourself into an annuity. The most important consideration is that the contract controls everything. 

Annuities have 2 phases

The 2 phases to an annuity are the accumulation phase and the annuititzation phase. The accumulation period is the period in which the money that you put in is being put to work. The annuitization period is when you start to receive payments which typically occur monthly until the time of death. There is often a death benefit in the case of unexpected death if you are to pass away before the annuitization period begins. 

What are the 3 types of annuities?

1. A Fixed Annuity earns a fixed interest rate that is predetermined. The payments will be fixed when you annuitize. These can include 2 types: an immediate annuity which starts right away or a deferred annuity. The deferred annuity starts at a later date at which time you can decide to take it all back or get an income stream from the money invested.
2. A Variable Annuity is less secure and has a menu of investment options similar to mutual funds. These go up and down with the performance of the investment. These have higher fees and your annuity payments can vary based on performance. 
3. An Equity-Indexed Annuity has money invested in a fixed account. You could earn additional interest based on the contract. 

The potential benefits of annuities are tax deferral, guaranteed income stream, and creditor protection. They guarantee against loss and income. Over the next few episodes, we will explore whether they are worth the cost of the extra fees, the time costs, and the lack of flexibility. Be sure to listen as we dive into the question of annuities with an engineering approach to see if annuities would be a good tool for you to use to rock your retirement.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:55] Annuities: love them or hate them?
• [8:10] My feelings on annuities

PRACTICAL PLANNING SEGMENT

• [12:33] What is an annuity?
• [22:00] What types of annuities are there?

THE HAPPY LAB SEGMENT

• [28:47] How are you doing with your chosen word of the year?

TODAY’S SMART SPRINT SEGMENT

• [31:13] Identify a bias you have

Resources Mentioned In This Episode

Episode 252

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

 

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

 

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

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

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

Do you feel like you can harness technology in this brave new world? All month we have been discussing how technology can help you in retirement and on this episode of Retirement Answer Man we’ll discuss how you can harness technology without it harnessing you. This can be a tricky task in this age of the attention economy. There are so many forces that vie for our attention. Learn how to use technology to its fullest without it taking advantage of you on this episode of Retirement Answer Man.

How can you harness technology without becoming a slave to it?

I recently read a book called Digital Minimalism that really helped open my eyes to the distractions in my life. There are so many forces that are vying for our attention in today’s society. There has even been an increase in anxiety and depression. This book gave me some great ideas on how I can continue to harness technology without letting it take advantage of me. Here are a few:

1. Dumb down your smartphone. Take all the social media apps out. You can engage in the apps when it serves you rather than becoming distracted by all of the notifications.
2. Keep your phone on the do not disturb mode. This removes the temptation for distraction.
3. Turn your devices into single-use machines. Multitasking and multi-purposing are a myth. When you switch between tasks constantly you can never give anything your full attention.
4. Try the Freedom App on your computer in your Chrome browser. This app can block access to time-sucking sites like Amazon, Twitter, etc.
5. Use social media like a pro. Social media pros are those that use it from time to time to check in on family, friends, and news. The goal is not to use social media as entertainment, instead be intentional about it.

How can you use technology to help you in retirement?

When choosing which technology to use to help you in your retirement think about what it can do for you. What technology will you use to be more social? What technology will you use to be healthier? What will help you with transportation? Having intentionality about how you use technology will help you a lot. I recently permanently deleted my Facebook page, I even deleted the Retirement Answer Man Facebook page. This is shocking to some, but it wasn’t that hard for me. I have more time to focus on what I want and I’m happier because of it. How will you choose technology wisely in your retirement?

How will AI help people as they age?

Richard Caro from Tech Enhanced Life joins me to discuss how we can harness technology as we age. Tech-Enhanced Life evaluates technology to help people decide what they can use to best help them in their life. He has found that the myth that older people are slower to adopt technology is not true. He thinks that people are happy to learn something that will help them out if someone can teach them. AI is an example of that. Alexa is the most recent mainstream form of AI technology. Alexa has become very popular in the past couple of years now that people understand its capabilities.

How can Alexa and other technology help combat loneliness?

The Echo Show has Alexa as well as a screen which can be used for video chatting with friends. Alexa is easy to use and many people enjoy using it to turn on the lights, listen to the weather, or play music. Wearable gadgets are beginning to replace medical alert technology. Many people hesitate to wear medical alert necklaces since they seem bulky or unattractive. Devices like the Apple Watch are cool and trendy. They have evolved to be able to help in an emergency.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [5:46] How to harness technology without becoming a slave to it

PRACTICAL PLANNING SEGMENT

• [18:10] Meet Richard Caro creator of Tech Enhanced Life
• [21:43] What is the power of Alexa and AI as people age
• [25:32] How can AI help to combat loneliness?
• [35:40] How do you choose what is worth the time and money to learn?

THE HAPPY LAB SEGMENT

• [39:20] I permanently deleted my Facebook page

TODAY’S SMART SPRINT SEGMENT

• [42:05] Try putting your smartphone on do not disturb for a while

Resources Mentioned In This Episode

BOOK - Free to Focus by Michael Hyatt

Tech-Enhanced Life

Freedom App

BOOK - Digital Minimalism by Cal Newport

BOOK - Deep Work by Cal Newport

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

 

What will the future of retirement look like? Like it or not we will live longer than any other generation that has ever lived. If you aren’t investing in your health now you may still live a long time, but it probably won’t be very fun. If you want to have a greater quality of life in retirement you have to take your health seriously now. The good news is, there is loads of technology that can help you stay healthy. Listen to this episode to hear about the latest in health technology and how you can use it to live a healthier life as you age.

What technology do I use to stay healthy?

I use technology every day to help me stay healthy and keep fit. Here is a list of my favorite healthy tech items:

1. Bicycle - You may know that I’m an avid cyclist. My bike provides me with mobility, socialization, physical health, and mental health. But you may be thinking that a bike is not very technologically advanced. Bikes today are quite advanced. I just bought a new bike that was fitted for me that sits me more upright and allows me to ride more comfortably while still being fast and efficient.
2. Massage chair - My massage chair is a bit of a luxury but it allows me to work out the knots after a long day and to loosen my muscles. If you don’t want to spend as much, try using rollers. There are a lot of great exercises you can do with them to keep your muscles loose.
3. Yoga studio app - This is a great app for those of us that want convenience and don’t want to go all the way to yoga classes or feel a bit self-conscious about going to classes. The app has different focuses and levels and can be customized to meet your needs.
4. Standing desk - The standing desk is a game changer. It allows me so much mobility throughout my day. I’m constantly adjusting it as I change positions. Mine is adjustable,it goes up and down from standing to sitting, I can even use a stool. Since switching to the standing desk I have experienced fewer problems with my hip flexors and back
5. Online networks - The Rock Retirement Club is an example of how connecting with people in the same season of life can provide you with an encouraging attitude. Technology can connect us through distance.
6. Dog leash - Ok, this may be low tech, but walking the dog each day keeps me active, connected with my wife, and provides me an opportunity to be social.
7. Apple Watch - There are numerous ways the Apple Watch can help you stay healthy. There is a pedometer and there are even settings to remind you to stand up or breathe. It encourages you to work out and can even track your heart rate.

What are the different kinds of advances in the future of health technology?

Technology is advancing at an astounding rate everywhere including in different areas of health technology. Obviously, we have advanced a great deal in medicine from genome sequencing to knee replacements. The 6 million dollar man is here. But there are also advances in telehealth and telemedicine. You can now call a doctor or health professional and get advice over the phone without having to leave your house. Many people use pacemakers and defibrillators. Remote monitoring allows healthcare professionals to be alerted if there is a sudden change. Electronic health records allow doctors to share information with each other and you can keep the records to have on hand for yourself. Health technology will have a huge impact on our lives as we age.

Brain health is just as important as physical health

To age well in the future, it is important to pay attention to cognitive health as well as physical health. We can use different exercise, movement, and nutrition apps to help us stay fit and build healthy habits. But its also important to do what we can to exercise our minds. We can use technology to improve our cognitive skills and keep dementia or Alzheimers at bay. We can learn new languages through apps and personalized online classes. You can even take online music lessons. There are games that get progressively harder to keep your mind engaged. What kind of mental exercise are you using to grow your mind?

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:45] What technology do I use to keep myself healthier?

PRACTICAL PLANNING SEGMENT

• [21:18] What is some technology for investing in your health?
• [25:30] Genome sequencing will allow for more personalized healthcare
• [28:25] There will be cognitive advances as well

THE HAPPY LAB SEGMENT

• [33:51] Nichole and I both have recent graduates at home

TODAY’S SMART SPRINT SEGMENT

• [36:15] Do 1 thing to invest in your health

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

 

The decisions you make now can affect how you age. Most people would prefer to age in their own home. There’s something about living in our own homes that provides comfort and peace and we want to hold on to that for as long as we can. On this episode, we will explore how technology can help keep you independent longer. We will check out the different technologies that exist already as well as what is in store for us in the future. Join me to discover the exciting world of technology and learn how it can help you rock retirement.

What is it about owning a home that makes us feel independent?

Do you remember when you finally bought your own home? You could finally paint it however you wanted (with your wife’s permission, of course!). Having our own home creates a sense of privacy, self-determination, and control over our environment. Living alone ensures that we are not a burden to anybody else. Nobody wants to be institutionalized. We don’t want other people to control our routine and invading our space. Listen to this episode to discover how technology can help keep you in your own home longer.

What are some benefits of aging in place?

Living out your golden years in your own home is not only preferable to you but there are added benefits that you may not have considered.

1. Aging in place can cost less than assisted living, nursing home or a retirement community.
2. It’s more comfortable. You are surrounded by all of your favorite stuff and you know where things are.
3. It helps slow the advancement of memory loss. Since you know where everything is already you are less apt to forget things.
4. Living at home strengthens your social network. There is a comfort in seeing those you know around you. Not just your friends, but neighbors and others in your community as well.
5. You have a higher sense of self-determination. 40% of baby boomers expect to remodel their homes in the future or near the time of their retirement.

If you are considering remodeling your home or updating it, listen to this episode to hear how to harness technology to set yourself up for aging in place.

How can you harness technology now to set yourself up in the future?

We are living in exciting times. There has been an explosive growth in technology since the revolutionary “I’ve fallen and I can’t get up” commercial. Grocery delivery or curbside pickup allows you to skip the trip to the grocery store if you aren’t feeling up to it. If you feel insecure about living alone you can get a camera security system around your house complete with a video doorbell system. The Nest or programmable thermostat can understand your habits and keep your home comfortable. The Roomba vacuum can help you tidy up. When you are considering updating or remodeling your house consider the upgrading to the latest technology, whether you get an easy loading washer and dryer, a smart refrigerator, smart lights and activity sensors. You may not need it now but this technology can help you age in place.

What does technology have in store for us in the future?

Robotic lawn care will be like a Roomba but for your lawn. Can you imagine that they are creating mirrors that assess your health? They will look for warning signs of illness. If that’s not crazy enough, they are creating toilets that analyze the contents! Pill management can be confusing especially if you have more than one prescription. They are creating pill bottles that can help you keep track of when they have been used. In Japan, there is a large aging population already and they have developed carebots. Carebots are robots designed to help older people. They can do many things from carrying you, to turning from a bed to a wheelchair, to fetching things for you. Listen to this episode to hear what the future may bring to help you age in place.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:20] Most people would prefer to age in their homes
• [6:12] What are some benefits of aging in place?
• [12:06] The decisions you make now will affect your future

PRACTICAL PLANNING SEGMENT

• [14:56] How can you harness technology now to set you up in the future?
• [23:54] What technology is coming in the future?

THE HAPPY LAB SEGMENT

• [30:05] Prioritize your happiness

TODAY’S SMART SPRINT SEGMENT

• [32:25] What can you do to prepare your home to age in place?

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

On this episode in the Retirement of the Future series, you will learn how technology will help keep you connected and strengthen your social networks in your retirement. We also discuss why it is important to stay socially connected, how to stay connected, and how to use technology to help you find your tribe. Listen to this episode of Retirement Answer Man to learn how to stave off loneliness and stay connected to your social circle in person and by harnessing the power of technology.

Why is it so important to stay connected?

We all know that loneliness sucks. But did you know loneliness can actually cause health problems? A vibrant social network can reduce the odds of addiction, Alzheimer's, and even early death. Studies have found that loneliness is actually a predictor of poor health. As you age it can become more challenging to stay connected to your social network. Many elderly become more isolated due to physical restraints or even because they have become the last person standing.

How can you continually renew your social circle?

Maintaining a vibrant social network takes work. But it is important to continually renew your social circle to include people younger than yourself. Having younger people in your group of friends helps you to stay fresh and allows you to bestow your wisdom on another generation. When you focus your friendships on common interests those connections transcend chronological age.

There are many ways to stay active and connected. You can take classes, join a club, volunteer, and attend church or music practice. These activities help you to broaden your circle of friends and often include people from many different age brackets.

How can technology help you maintain your social networks?

Technology allows people to stay connected in ways that we had never imagined. Who would have thought years ago that your phone would become such a powerful tool that you carry in your pocket? Today we can use Facetime, Zoom, or Skype to connect face to face with people from around the world.

Social media sites like Facebook, Twitter, and LinkedIn allow us to connect with people we know or have known years ago. Through these sites, we can have conversations with friends in a digital way even if we aren’t able to connect with them directly. Those digital conversations can spill over to create offline conversations as well. With social media, you can feel like you are a part of someone’s life even over great distances. Even texting is a powerful tool that helps you stay connected. Group texts are a fun way to keep us connected when everyone is too busy for real conversation.

How do you find your tribe?

Years ago it used to be that you were only able to create friendships with those who lived nearby. Long distance phone calls cost a fortune and conversations with those far away had to be kept short and sweet. Nowadays you aren’t relegated to friendships with only those who live in your neighborhood.

Through apps like MeetUp, Our Time, and Connected Living you can find people that share similar interests with you. Meeting people online makes it easy to spark up friendships with people who love what you love. You can build deep connections with people regardless of distance. We have more power than ever before to connect with people in meaningful ways. And technology is just becoming more advanced. Who knows how technology will advance in the future. Listen to this episode to hear how technology is advancing and sign up for 6-Shot Saturday to get a list of online resources to help you find your tribe and stay connected.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:28] Loneliness should be targeted in ad campaigns
• [5:58] Focus on renewing your social circle

PRACTICAL PLANNING SEGMENT

• [8:07] How can technology help you maintain your social networks?
• [12:28] How do you find your people?
• [16:54] What will the future bring?

THE HAPPY LAB SEGMENT

• [22:15] Seek out your crowd

TODAY’S SMART SPRINT SEGMENT

• [25:31] Reconnect with someone and create a budding friendship

Resources Mentioned In This Episode

Connected Living App

Our Time App

MeetUp App

BOOK - 48 Days to the Work You Love by Dan Miller

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

 

We are surrounded by technology, but do you really think technology will benefit you in retirement? During this month-long series, we will look into the future to see how technology will change the picture of your retirement. Will it add years to your life? Will technology help you live a richer life in your golden years? How will technology serve you in your retirement? Find out by listening to this episode and this entire series as we explore the retirement of the future.

There is freedom in mobility

Driving gives you a sense of freedom. Remember when you first learned how to drive? It was a milestone in life that gave you access to the whole country. The first big step you took toward independence as a young adult was learning how to drive. But as you get older your vision, hearing, and reaction times worsen. Medications can also inhibit your reflexes. Older drivers are more fragile and much more likely to be killed in crashes. Everyone wants the ability to move where they want to go when they want to go. And losing your ability to drive can greatly diminish your sense of freedom.

Automotive technology is changing the way we drive

Self-driving cars are no longer a pipe dream. We are well on our way to seeing self-driving cars on the road. As a matter of fact, we will probably live through that transformation. Technology in the past 10 years has greatly enhanced the driving experience to make driving much safer. Think about it. Your car may not be driving itself yet, but many cars have blind spot sensors, automatic emergency braking, adaptive cruise control, and even self-parking. These incredible advances can help people stay more mobile longer. Because of this current technology and technology we haven’t even thought of yet, you will probably be able to stay on the road longer.

What are other ways that technology will help you stay independent longer?

Lyft and Uber ride services allow people to get a ride for a fairly reasonable price. The ride will come to pick you up quickly and you can choose the level of ride service you want. You can even choose whether you want to share a car with someone else. The benefit of these services is that you can get a reliable ride in minutes without having to bother someone you care about. So when you start feeling unsafe or uncomfortable driving you can still stay independent. Another benefit of affordable ride services is that you can give up the cost of owning a car. You’ll no longer have to pay for insurance or upkeep.We associate the freedom with driving but technology can provide us with freedom without the burden of driving.

What will the future bring?

Self-driving cars are coming. We’ll probably see them in the commercial realm first. They could be here in the next 10 years. Other exciting transportation technologies include flying cars, floating trains, and hyper loops. We may see a road system that talks to cars. All of this innovative technology is being tested in some way or another. The most exciting part is that people will be able to maintain a sense of control over where they go and when they go. The pace of change is happening so quickly that we don’t even really notice it. How do you think technology will change your retirement?

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:38] How technology is changing so rapidly

PRACTICAL PLANNING SEGMENT

• [12:10] How will technology transform your mobility?
• [18:22] How ride-sharing apps can keep you independent longer
• [22:50] Meals on Wheels story
• [25:54] What will the future bring?

THE HAPPY LAB SEGMENT

• [31:35] Technology is a tool, but don’t let it become a distraction

TODAY’S SMART SPRINT SEGMENT

• [34:55] Put your phone away and say hello to someone

Resources Mentioned In This Episode

BOOK - Digital Minimalism by Cal Newport

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

 

IRA, Roth and 401K management can be confusing, that’s why I answer listener questions in the Practical Planning segment of this episode. This is the last episode of the How to Use Your Accounts series. You’ll definitely want to go back and listen to the entire series to help you familiarize yourself with the different types of retirement accounts and how to finally use them in retirement. Next month we’ll dive into how technology improves retirement. But for now, listen to these listener questions about account management in retirement.

How to make money simple for someone in your life

Peter Lazaroff joins me on the Hot Topic Segment. He recently wrote a fantastic book called Making Money Simple. Since graduation season is coming up, I highly recommend this book for any graduate. Many financial advisors and Wall Street bigwigs want you to think that saving money and building wealth is complicated, but that’s not true. It’s easy to make good choices with money if you can just get out of your own way. Peter teaches how to build a system that works around our human nature to complicate money choices. He shows that finding small sustainable habits that you can automate will lead to financial success.

What do you do if you miss taking the RMD?

One listener asks what would happen if you forget to take your required minimum distribution (RMD) one year. You really don’t want this to happen! The IRS imposes a 50% penalty on the amount you didn’t take. For instance, if you have an RMD of $20,000 but you only took $10,000 the penalty would be $5,000. The first thing you need to do if you miss your RMD is talk to a tax advisor. Then take the distribution as soon as you figure out your mistake. Do it alone and maintain records. You will need to file the form 5329 for the year in which there was a shortfall either with your tax return or separately. If you missed it multiple years then you need to file a form for each year. The IRS has grated redemptions from this so it is important to keep records and let them know why it happened and how it was remedied.

Are there any options for tax-free growth investments if your income is a bit higher than the Roth income eligibility?

One listener is looking for options on tax-free growth investments. Since he lives in Minnesota he feels that the 403B isn’t his best option because the state loves to tax retirement accounts.

One option is a back door Roth IRA. The way to do this is to make a nondeductible contribution to an IRA and then immediately convert it to a Roth. Saving money in an HSA is a good option as well. When you save in an HSA this money is pretax. You can allow it to accumulate and even invest it. It comes out tax-free as well but it can only be used for medical expenses. However, if you keep a record of your expenses you can submit an expense for reimbursement several years later. One last option to ease the tax burden is to move to a different state in retirement.

Basic retirement tax tips

1. Start diversifying your balance sheet between taxable, tax-free, and tax-deferred accounts as early as you can.
2. Dial in what it costs for you to live comfortably. You can better control your taxable income when you understand your costs.
3. Consider delaying taking your pension (if you have one) to do Roth conversions.
4. Consider taking distributions from tax-deferred accounts.
5. Move to a lower tax state.
6. Be charitable.
7. Build your balance sheet in a way to give you options. Maximize how you withdraw money.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:56] Peter Lazaroff discusses his new book Making Money Simple

PRACTICAL PLANNING SEGMENT

• [21:17] What do you do if you miss taking the RMD?
• [26:05] Mike wants to know how to hide his money from RMD’s
• [27:56] Are there any options for tax-free growth investments if you are a bit higher than the Roth income eligibility?
• [31:41] When does it make sense to roll over a traditional IRA to a Roth while still working?
• [34:15] Basic retirement tax tips

THE HAPPY LAB SEGMENT

• [36:55] Play your own game and set your own rules, don’t be worried about what others are doing

TODAY’S SMART SPRINT SEGMENT

• [38:32] Have an awesome week!

Resources Mentioned In This Episode

Morningstar article about the missed RMD

BOOK - The Elements of Investing by Burton Malkiel

BOOK - 30 Minute Money Solutions by Christine Benz

BOOK - The Richest Man in Babylon by George Clason

BOOK - Making Money Simple by Peter Lazaroff

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

You may be wondering, should I convert my IRA to a Roth? It’s hard to know when the time is right for a Roth conversion. So today we continue the discussion on how best to use your retirement accounts and plan your tax strategy. But first, in the Hot Topic session, you’ll learn how important vision is to planning your retirement. So many people are stuck in the prison of their mindset. Listen to this episode to hear more about how important tax strategy is, whether you should convert your IRA to a Roth, and how to break free from your institutionalized mindset and really rock your retirement.

Do you have a lack of vision about your retirement?

When many people make their retirement plans they are still institutionalized. We have been working our whole lives. That every day 9-5 stunts our creativity and many can’t really visualize what to do with all the time freedom that retirement entails. To simply stop working takes much more forethought than you think. This is why so many people change their retirement plans drastically after they retire. You are only limited by your creativity and your resources. Do you have the vision to dream big?

A Roth conversion can help you balance your tax equilibrium

At this point in your life, you have probably accumulated plenty of assets in tax-deferred IRA’s and 401K’s. You have set yourself up well for retirement, but you know there is a big tax liability looming ahead of you. At the age of 70 ½, you’ll have to take the required minimum distribution (RMD). If you have a lot saved in tax-deferred assets your tax liability could be significant. This is why proper tax planning could lessen your burden significantly. One possible solution to balance your tax load could be to do a Roth conversion.

Should I convert my IRA to a Roth?

If you have money in an IRA that you haven’t paid taxes on you can take all or part of that and convert it into a Roth IRA. The catch is, you have to pay taxes on the income the year that you do the conversion. Then the money can grow tax-free for the rest of your life and you won’t have to worry about the RMD. In effect, you are pre-paying your taxes. That is what a conversion is.

Taxes are at an all-time low and many believe they will only increase in the future. Some people choose to do a Roth conversion all at once but others choose to do a partial Roth conversion. By studying your modified adjusted gross income with an online income calculator you can choose the amount of money in your IRA that you want to convert that will not push you into the next highest tax bracket.

Careful tax strategy can be even more effective than an investment strategy

When deciding how to convert your savings into a Roth you need to consider your tax strategy. Do you want to be aggressive about converting the money into tax-free assets? Or do you want to do rolling Roth conversions and think about your tax burden year by year? Here are some things to consider when planning your tax strategy:

• How will your income change impact your ACA premiums?
• Use an online calculator to realize your effective federal income tax.
• How might your savings impact your social security?
• How will it affect your tax rate
• What is the time frame for your money, is it multi-generational wealth?

If you plan well you can save a significant amount in taxes. If you can convert and save 10% of a million dollars that’s $100,000! Talk about your tax strategy with your financial advisor to decide what the best choice is for you to start planning how you will begin filling your retirement income buckets

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:10] Do you have a lack of vision about your retirement?

PRACTICAL PLANNING SEGMENT

• [9:15] A Roth conversion can help you balance your tax equilibrium
• [13:19] What are some strategies you can use?

THE HAPPY LAB SEGMENT

• [19:10] Treat yourself even if it is spontaneous

TODAY’S SMART SPRINT SEGMENT

• [20:45] Start looking at potential Roth conversions the year after you retire

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

The Retirement Answer Man Facebook Page

You have been diligently saving in tax-deferred accounts for years and you finally have enough squirreled away to fund your retirement. But we need to discuss the elephant in the room. You have a looming tax burden that if not handled correctly can really mess up your retirement plans. On this episode, I’m going to teach you how to come up with a withdrawal strategy to help you fund your retirement. Are you ready to learn how to withdraw from your retirement accounts without Uncle Sam getting more than his fair share? Then listen to this episode of Retirement Answer Man to help you plan your retirement withdrawal strategy.

The looming tax burden

Your money has been growing tax-deferred year after year. This is a great way to get you to save for retirement, but now it’s time to pay the piper. Do you know what your tax liability is? If you have $1 million in tax-deferred accounts and you take it all out in one year then you’ll have to pay 30% in taxes. Your million dollars just shrank to less than $700k. The good news is that you can minimize your tax liability in how you withdraw from your accounts. The great thing about retirement is that you have more control than ever in deciding which tax bracket you will fall under. You can manage how much you take out and where that money comes from.

You need to be more tax aware than ever before

How do we take advantage of the tax system to maximize the amount of money that we put in our pockets? Early on in retirement is when you start to think of spending in big ways. You may want to buy an RV or a vacation home or remodel your current home. Many people spend on these extraordinary expenses with little thought as to how they should withdraw the money for these projects. You want to be aware of the tax brackets when you decide how you withdraw your income. Thinking about tax strategy is not nearly as exciting as when you think about investment strategy. It’s not glossy and sleek, but having the right tax strategy is even more important at this point in your life and having the right strategy to fund your retirement can save you thousands of dollars down the line.

What are your income sources in retirement?

There are usually 3 sources of income to fund your retirement. There is social capital like pensions and Social Security. Next, you have human capital, which is the income that you may earn in pretirement. Lastly is financial capital or the money you have saved in various accounts. Your financial capital is then broken up into 3 categories. The money you have already paid taxes on, money from tax-deferred assets (401K’s and IRA’s), and tax-free assets (Roth IRA’s). You have to have a strategy on how to manage all of these buckets of differently taxed assets. Having the 3 buckets gives you some flexibility on how to pull money out of these accounts.

What can you do to frame your withdrawal strategy to fund your retirement?

Retirement tax strategy can get really complicated. That’s why it is so important to have a plan. Follow these steps to help you minimize your tax burden.

1. Know your income sources. Figure out what your social capital, human capital, and financial capital are and identify where you have control.
2. Know your planned spending. This sounds simple but you should understand the sequence of your spending and plan for the lump sum expenses. Decide how you will pay for them.
3. Model how to find tax equilibrium. You need to look at your tax bracket and plan year by year.
4. Think about where to put your investment assets.
5. Think dynamically to stay agile and flexible each year.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:20] That looming tax burden
• [6:33] Be aware of your tax bracket as you withdraw your income

PRACTICAL PLANNING SEGMENT

• [9:25] A correction from a previous episode
• [10:53] Have a withdrawal plan
• [16:45] RMD is waiting for you
• [19:02] The ACA adds another element of complexity to your withdrawal strategy
• [23:12] What can you do to frame your withdrawal strategy

THE HAPPY LAB SEGMENT

• [26:02] Human connection is awesome to see

TODAY’S SMART SPRINT SEGMENT

• [28:05] Outline how you will withdraw money in your first 2-3 years of retirement

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

The Retirement Answer Man Facebook Page

You have been saving into your IRA’s, Roth IRA’s and 401K’s for years. But once you retire how should you get money out of them? Over the next few episodes, we are going to dive into your different retirement accounts so that you can fully understand them. It’s important to understand the difference between these accounts so that you can create a withdrawal strategy to minimize the tax implications. Are you ready to learn about the different types of retirement accounts so that you can rock retirement? Listen in to this episode of Retirement Answer Man, to hear the basics of IRA’s, Roth IRA’s, and 401K’s so that you can understand how to create a sound withdrawal strategy.

To click, or not to click?

The secret your financial advisor doesn’t want you to know. . . With all the uncertainty in the current markets. . . Massive returns with no risk at all. . . Do these sound like headlines you’ve seen on the internet? We are all looking for the secrets to investing. Although we are all looking for the best return on our investment and we understand that there is no such thing as no risk, it can be hard not to click just to see what they are talking about. There must be some secret to what the rich are doing, right? But once you click on these ads you are put into a hard push sales cycle. If you see these catchphrases, run in the other direction.

What are the basics of IRA’s?

You’ve been contributing to an IRA for years, but what is it exactly? When you make a contribution to an IRA you can deduct it from your taxes. This money is tax-free when you put it in the account. It grows in the tax-deferred account for decades. At age 59 ½ you can take the money out, either a little bit at a time or all at once. This is when you will pay the taxes on the money. This type of account works well because you are usually in a much lower tax bracket once you retire. But the taxes can be tricky if you have been a great saver. The IRS wants you to take the money out eventually so that they can tax it. This is why they have a Required Minimum Distribution at age 70 ½. The Required Minimum Distribution is a certain percentage that you are required to take out of the IRA each year. And each year the percentage goes up. So if you are overfunded the RMD can be a tricky tax issue.

What is the difference between Roth IRA’s and IRA’s?

With an IRA you get the tax benefit when you put money into the account, with a Roth IRA you have already paid taxes on the money. The beauty of the Roth is that all the growth that the money earns in the account over time does not get taxed. It’s a great deal.

Before you take money out of the Roth IRA it’s important to understand the 5-year rule. The 5-year rule states that 5 years must have passed since the tax year that you have made your first contribution before you can withdraw any earnings from the account tax-free. If you don’t follow the rule and you are under 59 ½ then not only is the growth taxable, but you have a 10% penalty as well. Another important difference to understand about the Roth IRA vs. the IRA is that there is no Required Minimum Distribution.

What is a 401K?

A 401K is an employer savings plan. Again you must be 59 ½ to withdraw from your 401K without a penalty. You can roll it over or transfer it into an IRA. You may want to look into starting a post-tax Roth 401K. These are bound by the same 5-year rule as the Roth IRA. Listen to this episode to learn more about the rules surrounding 401K’s, Roth IRA’s and traditional IRA’s.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:46] Should you click on that ad?

PRACTICAL PLANNING SEGMENT

• [12:08] What are the basics of IRA’s?
• [17:46] What’s so great about Roth IRA’s?
• [21:15] Understanding the 401K

THE HAPPY LAB SEGMENT

• [25:35] What are your spring vacation plans?

TODAY’S SMART SPRINT SEGMENT

• [27:40] Get your tax papers to your CPA now

Resources Mentioned In This Episode

Retirement Starts Today with Benjamin Brandt

Mark Lehman 228Main.com

Wealth Care for Women

Money for the Rest of Us

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

After this month’s RV virus series, I’m sure you are all ready for a road trip! Ty and Larry join me on this episode to share their wisdom from more than 7 years on the road. This couple is truly inspirational and will have you rethinking your purpose and what it means to retire. Listen to Larry and Ty discuss what it means to retire with purpose and how their life looks after 7 years on the road.

Are you planning a retirement with purpose?

Retirement is a dream that comes after years of hard work and planning. You wait so long for that magical day to come. But what if all of a sudden the day comes and you discover that you don’t have a reason to get up in the morning? So then what are you going to do? You can only golf or fish or ride your bike for so many days. Ty and Larry realized that a lack of purpose in retirement leads to a lack of meaning in their lives. They found purpose in getting out of the house and helping others. Have you thought about what your purpose will be in retirement?

Modern retirement isn’t about spending your golden years resting on a park bench

The modern retiree has so much time, capital, and wisdom to share with the world. Retirement isn’t about finally reaching the day where you have nothing to do with your life. It is a major life change where you get to redefine what life is all about. This is the opportunity for you to redesign your life around what you are passionate about. What will be your purpose in retirement? Will you volunteer? Devote time to the grandkids? Write your memoirs? It doesn’t matter what it is, it just matters that you have a purpose. Think about what your purpose will be and who you will spend your time with.

An RV road trip with a purpose

Larry and Ty quickly realized after they retired that they needed a purpose. It was important for them to serve others. 7 years ago they discovered Habitat for Humanity and have been active Habitat RV Care-a-vanners ever since. With the Care-a-vanners they have a mobile community where they can be of service to others. Their purposeful road trip takes them all over the country building homes and serving different communities. They love the work they do and find that it helps to keep them young.

What is the cost of living their RV lifestyle?

Ty and Larry drive a 38 foot Class A Winnebago diesel. These rigs can run anywhere from $250,000-$2 million when purchased new. They found a good deal on a lightly used model. Their rig is self-contained and has a washer and dryer and even a satellite dish for watching tv. They spend about 250 nights a year on the road and maintain a home base in Illinois. They find places to stay through their work with Habitat for Humanity and often stay 2 months at a time in a single location. Often these sites are discounted or even sponsored by generous donors. They also utilize a senior pass that allows them discounted rates at national parks and Army Corps of Engineer sites

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:46] Some comments about purpose in retirement

PRACTICAL PLANNING SEGMENT

• [11:08] How Larry and Tai have lived the RV lifestyle and coupled it with purpose
• [21:01] What is the cost of living?
• [26:07] Working keeps them young

THE HAPPY LAB SEGMENT

• [28:43] What can you do next to improve your health?

TODAY’S SMART SPRINT SEGMENT

• [33:44] What sense of purpose will you have in retirement?

Resources Mentioned In This Episode

Habitat for Humanity

Winnebago Group WIT club

Habitat RV Care-a-vanners

National Parks Senior Pass

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

So are you still curious about how to see America but maybe a bit worried about jumping into an RV? All month long we have been discussing the RV lifestyle. In the first episode of the series (263) we discussed how to diagnose the virus. The next covered how to afford it, and on this episode, we discuss the alternatives to RV’s that are out there. If you have the RV virus you might be overly focused on the romanticized dream of owning an RV and you may not have considered any alternatives. We’ll also chat with Fritz who comes with experience in RV ownership and he shares his expertise with the RV lifestyle. Listen to this episode to discover if there may be an antidote to the RV virus lurking inside of you.

Do you have tunnel vision?

Once we get this RV virus it can be hard to think of much else. It starts with an innocent RV show. It’s just a fun weekend activity, you think. But that innocent day out plants a bug inside of you. You start getting the magazines, reading the blogs, watching the YouTube videos and pretty soon you are eating and drinking RV’s. When you have this kind of tunnel vision it can be hard to picture a future that doesn’t involve an RV. But before you jump in with both feet (and all your money!) consider some alternatives.

How to see America without an RV

You may think that there is no cure other than getting an RV but that’s not the case. There are other alternatives that you need to consider before going all in. I offer you these 4 antidotes to see if they can cure the RV virus:

1. Rent an RV for a month. There are plenty of RV rental sites that you can check out so that you can rent the dream RV that you have romanticized. This way you can really see if the romanticized version you have in your head matches the actual experience.
2. Rent or borrow a friend’s RV. We all know people that have RV’s sitting in storage that they never use. Do both of you a favor and borrow theirs. This is a great way to test the waters.
3. Start small. Try buying a used smaller RV, maybe even a pop-up to see if the lifestyle really suits your vision. This way if it doesn’t work out you won’t be out an arm and a leg. Frequently you can sell these for what you paid for them.
4. Rent a home instead. Sometimes it’s not really the RV virus you have, but maybe it’s just an itch to travel more. Think about how to see America without an RV. Try renting a home somewhere you have been wanting to visit for a month. With VRBO and AirBnB finding a vacation rental has never been easier.

I’m not saying that you shouldn’t get an RV, but that it’s important to make the right decision. It’s ok to go all in but be intentional about your choices. You need to be honest with yourself about the cost of ownership and the way you will use the RV.

Why did Fritz choose a 5th wheel?

Fritz and his wife have had a love of camping since childhood. They also enjoyed camping with their daughter and have enjoyed backpacking, car camping, and they had a small trailer for years. The decision to buy a 5th wheel was not one they took lightly. They visited RV shows for years to really understand the features of all the different types of RV’s that are out there. They ultimately chose a 5th wheel based on comfort and the realities of having an engine in your house. Fritz also knew that he wanted to have a truck in retirement, so a 5th wheel was the obvious choice for them.

What are their RV plans?

Fritz has been retired 8 months now. They took some short trips over the past summer and really got comfortable in their 5th wheel. This summer they are taking a Great American Road Trip with their 4 dogs. They are planning to head from Georgia up to Seattle and back. They are in the planning stages right now securing campsites and mapping out how to see America. They understand the logistics of this epic journey and are planning to take it nice and slow traveling no more than 300 miles a day. Listen to Fritz discuss the excitement of how they are creating their plans on this episode of Retirement Answer Man.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [4:25] What are some antidotes to the RV virus?

PRACTICAL PLANNING SEGMENT

• [14:16] Fritz’s journey with the RV virus
• [17:38] How did they get to the 5th wheel?
• [22:14] Why did he get a 5th wheel?
• [28:20] What are there plans?
• [33:22] Do they have any concerns?

THE HAPPY LAB SEGMENT

• [36:22] Are you happy about getting checkups?

TODAY’S SMART SPRINT SEGMENT

• [38:23] Get a health screening or take an antidote for the RV virus

Resources Mentioned In This Episode

RV Share

RV America

Outdoorsy

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Now that the thought of the RV life has fully got you hooked. It’s time to figure out how much this life will cost you. This episode is the second in the RV virus series. On episode 263 we diagnosed the symptoms of the RV life, and over the next 3 episodes, we will delve in deeper to this potentially costly yet fun virus. If you are ready to jump into the RV life with both feet, you’ll want to listen to this series first to arm yourself with as much knowledge as possible before you ‘brake’ the bank.

Do you know all of the different types of RV’s?

Before you rush off to buy the first RV you come across you’ll want to learn a bit more about the different types of RV’s that are out there.

• Class A - This is the big daddy of RV’s both in size and in cost. They can run from $100,000-$1 million. The class A can be around 45 feet long and can come full of all the amenities you didn’t know existed. These are the ones you see with the flat front ends often towing a car behind.
• Class B - This one is more of a camper van. It has a van-like chassis with a sleeping space above the cab. Although the living space is much smaller, this one is much easier to drive than the larger class A. And in general, it is easier to set up than the class A.
• Class C - The class C is more of a combination between the class B and A. Like the class B, it has a van-like chassis. But there is lots of room for extra sleeping. This is a good option for families since it usually has several sleeping spaces. It is easier to drive than class A and is not as small as the class B.
• Travel trailer - Travel trailers are the ones you hitch up to truck or an SUV. This is a nice option because you still have a vehicle to drive around town. Travel trailers are much easier on the budget maintenance-wise. Since the vehicle is separate from the camper part the maintenance is easier and not as costly
• 5th wheeler - This option is similar to the travel trailer in that it is towable. But unlike the travel trailer, it has a gooseneck connector. You need a pickup truck with a 5th wheel connection. The 5th wheeler has more space than a travel trailer and is more expensive.
• Pop-up - The pop-up trailer is often referred to as the gateway drug of RV’s. This is often the first step people take to get into the RV life.

How much does the RV life cost?

The costs of RV’s vary greatly both between the classes and within the different classes themselves. The class A can average $280,000, a class C can be around $65,000, and a class B can be $100,000 and. A travel trailer can be as little as $13,000 and a 5th wheeler can be around $50,000. It is important to remember that smaller doesn’t necessarily mean cheaper in the RV world.

Another important thing to consider is the additional costs. If you go with a trailer, then you will need a vehicle to pull it. While you aren’t using your RV the storage can cost between $50-$500 a month. Gas mileage can be between 5-8 mpg, so you need to consider extra fuel costs. It is important to think about maintenance costs as well. The quality of build in an RV is not like that of a house and with all the movement things get jostled around. And don’t forget those campground fees while you can find free places to camp, you may pay as much as $50 per night for some campgrounds.

Where to begin?

Start your RV life journey by checking out RV shows. These are great places to begin to dream. Although dreaming is a lot of fun, it is extremely important to do your research. You need to know what you are getting into so that you don’t make costly mistakes. Don’t jump right in and buy the first RV you see. You may want to consider renting for a month or so first. There are sharing platforms for RV’s similar to VRBO. These are a good place to start. It may seem costly to rent an RV since this can cost between $5000-$8000 for a month, but when you consider the fact that you will be spending $100,000-$200,000 this could be a good investment to ensure you are doing the right thing.

Learn from Josh’s full-time RV experience

Josh and his wife have been full-time RVers for more than 2 years. He was initially not excited about the thought of RVing, but a weeklong trip in an RV for his wife’s birthday was all it took to catch the virus. He and his wife like to boondock. This is self-contained camping where the RV isn’t hooked up to anything. Boondocking is also referred to as dry camping. Before transitioning to a full-time RV life he and his wife downsized considerably and unburdened themselves from a lot of stuff. He attributes their ease at transitioning to the RV lifestyle to downsizing first. Learn more from Josh’s experience as a full-time RVer by listening to his story in the Practical Planning segment of this episode of Retirement Answer Man.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:42] A review of the different classes of RV’s
• [9:38] What are the costs of these RV’s?
• [13:35] Where to begin?
• [17:18] How do you buy one?

PRACTICAL PLANNING SEGMENT

• [19:51] How long has Scott been RVing?
• [26:21] What kind of gear does he have?
• [31:58] How did he plan it out?
• [34:44] What has brought the most joy?
• [38:04] When do they think they will settle down?
• [39:07] How do they stay connected with friends?
• [41:38] How did he start researching?

THE HAPPY LAB SEGMENT

• [44:18] Do something silly

TODAY’S SMART SPRINT SEGMENT

• [45:20] Be a bit more intentional about counting the costs

Resources Mentioned In This Episode

BOOK - Spark Joy by Marie Kondo

BOOK - The Life-Changing Magic of Tidying Up by Marie Kondo

Campendium.com

FreeCampsites.net (to learn about boondocking)

RV-Dreams.com

CamperReport.com

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Has the retirement RV virus infected you? This virus is very dangerous; it could cost you tens of thousands of dollars, but it could be a lot of fun too. Are you a baby boomer contemplating retirement? Are you excited by the thought of freedom and travel? If so, then this series is important for you. Over the next 4 weeks, we will cover how to diagnose the virus, what to do if you succumb to the virus, and what are some alternative treatments other than buying an RV. You’ll also learn from the experience of others living with this virus. Are you ready to learn more about this potentially fun and exciting virus? Then listen now to this episode of Retirement Answer Man.

Why do so many baby boomers have the retirement RV virus?

The retirement RV virus is spreading like wildfire among baby boomers. 75 million households across the country are active campers. And the fastest growing group of RV owners are baby boomers. If you read any article on retirement, you’ll discover that freedom and travel are the top priorities among new retirees. This is what makes the retirement RV virus so contagious. Do you have the itch to set out on the open road? Find out all that you can about the RV life before jumping in with both feet by listening to the retirement RV series here on Retirement Answer Man.

How do you diagnose yourself with the retirement RV virus?

So how do you diagnose yourself with this potentially expensive virus? First, you need to understand what is driving you. Is it the lifestyle that you are looking for, or do you just want to travel more? It is easy to romanticize the RV lifestyle. If you go to any RV show you can start dreaming big. Next, you need to understand that there are different strains to this RV virus. People have different ideas when they think of RV life.

• There are the weekend warriors, those looking for short weekend getaways
• Others would like to travel a week or so a few times a year
• There are the long-term travelers that would like to travel for an extended period, perhaps a few months at a time.
• Then there are the full-timers. These are the ones that give up their home and hit the road permanently.

So which prognosis best describes you? Learn how you can live with this virus especially if you have the right treatment plan in place, by listening to this episode of Retirement Answer Man.

Michael and Mona explain firsthand what RV life is all about

Michael and Mona have always been the outdoorsy type, they even camped on their honeymoon. They loved taking their grandkids for weeklong trips in their pop-up trailer, but they soon discovered that 2 weeks a year wasn’t enough for them. They recently set out on a long-term trip to test the waters to see if the full-time life might be in store for them. He loves the idea of full-time living, but she prefers having a home base. Learn what Michael and Mona wish they had known before they bought their RV as well as what they love about the RV life on this episode of Retirement Answer Man.

What is the true cost of RV living?

Costs between RV’s vary greatly. You can jump into a new RV for as little as $60,000 or you can go all out and spend upwards of $200k. Campground costs are another factor that can quickly add up. Some can cost $30-40 a night or more, but there are less expensive options if you stay in a place long-term or become a part of a membership program. Even with today’s low gas prices, at 6-8 MPG fuel costs can quickly add up. Other costs to consider are maintenance issues, they tend to pop up when you least expect them and they can be expensive.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:19] The RV virus is particularly acute among baby boomers
• [6:03] There are different kinds of RVers
• [7:05] How do you diagnose yourself with the RV virus?

PRACTICAL PLANNING SEGMENT

• [10:24] Learn from Michael and Mona firsthand what the RV life is all about
• [18:39] What is the true cost of their RV?
• [23:25] What have they enjoyed the most so far?
• [28:00] What would they have done differently if they had known more?

THE HAPPY LAB SEGMENT

• [31:02] The RV virus is a vehicle for you to create happiness

TODAY’S SMART SPRINT SEGMENT

• [31:54] Take a self-exam. Do you have a bit of the RV virus?

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

The Retirement Answer Man Facebook Page

 

How can building an income floor ease your worries about life without a paycheck? If you are worried that having a 2-year cash reserve won’t give you enough security then you may want to build an income floor to help ease your concern. Over the past few episodes, we have been discussing how to live life without a paycheck and you have learned how to build a bucket system. But some of you may feel that this isn’t quite enough to help you weather the times of market uncertainty. Listen to this episode to hear how building an income floor can give you more peace of mind.

8 ways to make retirement too complicated

Do you like to make easy things difficult? We often make retirement more difficult than it needs to be. Here are 8 ways people often complicate retirement.

1. We make decisions in isolation. We don’t think of the broader perspective of our financial lives when making a financial decision. We focus on tactics rather than the big picture. It’s important to have a process that follows a system that creates a strategy that leads to tactics rather than the other way around.
2. You have too many accounts. People collect things over time and that includes 401K’s, and IRA’s and various other retirement accounts. Make life easier by consolidating your accounts.
3. You may have too many investments even in one account. Having too many investments makes managing the risk/return allocation too difficult. Think, does this extra investment add value? Does it serve a purpose in the overall scheme of things?
4. You may have too many advisors.
5. You chase the markets. Are you chasing investments as the market fluctuates? It creates a lot of unnecessary activity. It may feel like you are more in control, but it actually makes things more complicated.
6. You change your process too much. The key to having a solid process is to only have one. You can’t hop around. Stick with one process. It can evolve but don’t change gears completely.
7. You think more information will give you more clarity. But more information can actually be very distracting.
8. Overplanning and analyzing are not giving you more clarity.

How do you refill your bucket in bad years?

After listening to this month-long series on how to live life without a paycheck you know how to fill your bucket with 2 years of cash reserves. But is 2 years really enough? What do you do in the bad years? What happens if the markets take a turn for the worse? Here are 3 ways that you can adjust your approach.

1. You could batten down the hatches. Slow down in your wants and wishes categories to reduce discretionary spending. Fund your base lifestyle only.
2. Ramp up pretirement. Focus on your human capital until the markets bounce back.
3. Readjust your long term goals. Agile retirement planning is all about making adjustments along the way.

What is an income floor?

What if you want more clarity? If you still feel that 2 years of cash reserves won’t be enough to give you the peace of mind you need then you can create an income floor for the following 3 years. An income floor overlays on top of your cash reserves. The income floor is built by bonds that mature like a ladder or it can be created by ETF’s or other funds. An income floor can give you more room for success by reducing your risk of overspending and reducing your behavioral risk.

How do you determine whether you should add this income floor on top of regular cash reserves?

Do you feel like you need an income floor? You can think about the level of your base needs that are funded by social capital. Social capital is guaranteed income sources like social security and pensions, income sources that don’t depend on the markets. The higher amount you have here the more confident you may be with only 2 years of cash reserves. You can also consider what level of human capital do you have like income from consulting or royalties. It is also important to consider how well funded you are. If you are underfunded then you will definitely need human capital. Learn how to create your system and keep your rhythm on this episode of Retirement Answer Man.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:55] Do you like to make easy things difficult?

PRACTICAL PLANNING SEGMENT

• [14:52] Is 2 years enough cash?
• [19:10] How do you refill your bucket in bad years?
• [20:44] What is an income floor?
• [23:24] How do you determine whether you should add this income floor on top of regular cash reserves?

THE HAPPY LAB SEGMENT

• [28:01] How do you maintain sanity in the chaos?

TODAY’S SMART SPRINT SEGMENT

• [29:15] Identify 1 thing that you are overcomplicating

Resources Mentioned In This Episode

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

 

You may have heard me talk about the bucket system on previous episodes. People often wonder how they will tap into their funds when they retire. They wonder if they should just sell assets when they need some money. Well today, I teach you how to live life after your paychecks stop coming. You’ll learn the process on how you create your own bucket system so that you can create your own steady paycheck. Are you ready to learn how to set up your retirement paycheck so that you can be intentional about creating a great life? Listen to this episode to learn how to build your own bucket system so you can rock retirement.

5 retirement tidbits that I have picked up along the way

Working with retirees causes me to do a lot of research about retirement. Here are 5 tidbits I have learned over time.

1. Our perception does not always line up with reality.
2. Loneliness will shorten your life as much as smoking and drinking. Loneliness is scary because it creeps up on you. It is so important to continue to generate new friendships and connections. Friendships increase the quality of your life.
3. Transitioning from the accumulation phase of life to the decumulation phase can be a challenge. You can look at the decumulation period like a vegetable garden. You have watered your garden over the years and now it is time to harvest.
4. Spreadsheets can’t give you the whole picture. Many of you are orderly people that like to research and plan. Just remember that the art of all of this planning gets lost in spreadsheets. Retirement is so much more than just numbers on a page.
5. Extensive social media use can lead to depression. Remember that what people post on social media is a fictionalized version of their life. Its like looking at the cover of a fashion magazine, all glossy and perfect. This is not the reality of people’s lives.

What is a bucket system?

In the past people just sold assets as they needed when they retired. But there is a better way to organize your finances. A bucket system creates cash reserves to fund consumption over and above what you keep in your normal emergency fund. It is the process by which you create your own paycheck in retirement. You create a payroll ‘bucket’ funded with 2 years of spending needs. You set up a way to pay yourself on a regular basis into your checking account. Creating a bucket system gives you clarity when you wonder where the money will come from in retirement. It can help you navigate this major change in your life. Listen to this episode of Retirement Answer Man to learn more about creating a bucket system to fund your retirement.

What are the advantages and disadvantages of the bucket system?

The bucket system has both advantages and disadvantages. Having this system in place can help you control your spending. Oftentimes when people retire they have a lot of liquid assets on hand, maybe even more money than they have ever had access to. Couple that with newly acquired free time and you could run into a big problem. The bucket system helps control a natural flow of money into your checking acount. It helps you work in an automatic fashion. The bucket system also provides visibility in a volatile world. It can give you some leeway to make adjustments as you need them.

If you have a growth mentality the bucket system may seem inefficient. When the markets are hot you can feel like you are missing out. This cash flow system can force you to be more conservative that you may want to be. On the other hand, 2 years of cash reserves can feel a bit tight in a major financial crisis like that of 2008.

How do you set up a bucket system?

How do you put this bucket system together? First of all, you need 2 years of your base needs that you have already counted the cost for. You also need 1-2 years of your wants and wishes. When setting up your bucket, remember your social payment and your income from other sources. You can subtract these from how much you need in your account.

Step 1 - to identify the deficit after adding up your various income.

Step 2 - fund your cash reserves by creating a payroll account. Pro tip- don’t have it in the same place as your checking account.

Step 3 - set up a payment system from your cash reserve payroll account to your checking account.

By creating a bucket system you recreate that rhythm you get from having a paycheck. You want to have that rhythm in place so that you don’t have any missteps.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:02] 5 Retirement tidbits that I have picked up

PRACTICAL PLANNING SEGMENT

• [14:37] What is the bucket system?
• [16:55] How does a bucket system help you control spending?
• [18:34] What are the disadvantages to the bucket system?
• [20:44] How do you set up a bucket system?

THE HAPPY LAB SEGMENT

• [25:43] Understand how to communicate with those you love

TODAY’S SMART SPRINT SEGMENT

• [28:02] Go tell your loved ones that you love and appreciate them
• [28:41] Fund your emergency fund

Resources Mentioned In This Episode

BOOK - The Noticer by Andy Andrews

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Now that you have your buckets full do you think the retirement planning is over? Sorry, but no, it’s not. 6 months later you have to do it all over again. The problem is life keeps changing. Expenses keep changing. So how do you overcome this? How do you constantly adjust? Constantly adjusting to new conditions is what retirement is. Agile retirement management means you can’t put financial management on autopilot. Learn how to set yourself up for success so that you can make the best of the only life you have on this episode of Retirement Answer Man.

How to set yourself up for success in managing change

Working with an advisor is like working with a doctor who is trying to diagnose an ailment. The doctor is really smart and well trained to try and figure out what is wrong and what the best course of action may be. But only you know your body. The same is true with your finances. A financial advisor is very well trained and can help you plan your future, but only you know what is truly right for you. When you abdicate everything to an advisor it can lead to poor solutions that aren’t in your best interests. Financial advisors have never dealt with the baby boomer generation before, so they are working with a blank slate.

Delegation vs. collaboration

One way to take more control of your finances is to collaborate with a financial advisor rather than delegate all the financial decisions. Collaboration means that you aren’t handing over all the control. It means that your retirement planning is an ongoing project. The client works alongside the advisor in a collaborative role. You are the expert in you. You know what your needs, wants, and fears are. And only you understand your changing priorities. An advisor has gained wisdom over time. They are the expert in the journey, you are the expert in you. Don’t delegate your retirement planning, collaborate.

What happens once you begin to drain the cash reserves that you have set up?

It is important to make sure the wind is at your back. Your cash reserves don’t have to be just sitting there doing nothing. They could be in a high-yield money market account, CDs or high-quality short-term bonds. You should also think about the different tax types of accounts from which you will fill your bucket. You have much more control now over which tax bracket you will be in. Filling your buckets from the right sources is important in controlling how much you will pay in taxes, not just now, but in the years to come as well.

How do you refill your buckets?

It is important to refill your buckets twice a year. Its good to revisit your finances in retirement every 6 months since this is all new to you. After a while, you might find your sea legs and fine tune your spending. But life has a way of throwing us curve balls just when we think we have things all figured out.

How do you refill your buckets if the markets are performing poorly? If the markets take a nosedive it is important to mitigate the damage. There is a reason that you count the costs as needs, wants, and wishes. If the markets aren’t doing so hot you can slow down your discretionary spending. You can also decrease how often you refill the buckets in order to let the markets bounce back. Learn how to manage your money in retirement so that you don’t just survive retirement, but rock retirement on this episode of Retirement Answer Man.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [5:23] How to set yourself up for success in managing change with an advisor
• [9:50] Delegation vs. collaboration

PRACTICAL PLANNING SEGMENT

• [12:40] What happens once you begin to drain the cash reserves that you have set up?
• [17:32] You have much more control now over which tax bracket you will be in
• [21:14] When should you refill your buckets?
• [23:00] How do you refill your buckets if the markets are performing poorly?

THE HAPPY LAB SEGMENT

• [25:56] Add some time in your calendar

TODAY’S SMART SPRINT SEGMENT

• [28:17] Schedule sometime next week to work on you

Resources Mentioned In This Episode

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Everyone’s biggest worry is if they will have enough money in retirement. Are you prepared to live life without a paycheck? Over the next month, we will explore how to get you ready to live your life without a paycheck. A paycheck can be like a security blanket and learning to live life without it can be scary. That’s why it’s important to prepare for life without a paycheck now. Learn how to make sure you have enough money in retirement by listening to this episode of Retirement Answer Man.

Is your paycheck your superpower?

Do you remember your first paycheck? Do you remember the power you felt when you had that money in your hands? Your paycheck equals power, so what happens when it disappears? With a paycheck you earn money, you can save money, and watch your wealth grow. Once your paycheck disappears it can be like stripping away a superpower. Your wealth begins to dissipate as you withdraw from your savings each month. This can scare anyone. Learn how to gain your powers back by planning for life without a paycheck.

Don’t fall for the scarcity mindset

Many people enter a mindset of scarcity even if they have plenty of money tucked away for retirement. A scarcity mindset can zap away all your fun retirement plans. There is a tipping point at which you realize that you won’t run out of money. Unfortunately, by the time this usually happens, most are too old to really enjoy their money. Learn how to manage your money in retirement so that you can partake in all the retirement fun on this episode of Retirement Answer Man.

Is your systematic withdrawal strategy your behind the times?

The first step in learning how to live without a paycheck is to plan how you will pay for your lifestyle. In the past calculating your retirement was a simple math equation. Figure out how much you have and divide equally to plan your yearly withdrawal amount. This system of retirement planning is one-dimensional and antiquated. It may not serve your ideal retirement lifestyle very well. A one-dimensional withdrawal strategy could lead to underspending in the go-go years. Is your withdrawal strategy set up to ensure that you can make the most of your retirement?

Why you need an agile retirement plan to manage money in retirement

With an agile retirement plan, you don’t have a set withdrawal ratio each year. Some years you may have a 10% withdrawal ratio and then there will be others in which you have a 2% withdrawal ratio. Gone are the days when you simply sell stocks when you need the money. You can now create clarity on how you will pay for your retirement lifestyle. With an agile retirement plan, you can plan each year differently. Do you want to take all the grandkids to Disney World, or plan an epic trip around the country? Will you have a low key year after a year of spending big? With an agile retirement plan, you can take advantage of the go-go years to spend big when you have the opportunity.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:02] Your paycheck equals power

PRACTICAL PLANNING SEGMENT

• [10:05] A systematic withdrawal strategy can be dangerous
• [15:19] We need a withdrawal system that gives us more clarity
• [20:13] Over the next few episodes we’ll be talking about creating these systems

THE HAPPY LAB SEGMENT

• [21:28] Find people that you resonate with

TODAY’S SMART SPRINT SEGMENT

• [22:25] How will you pay for retirement?

Resources Mentioned In This Episode

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

On this last episode in the counting the costs series of the Retirement Answer Man Show, the Rock Retirement Club steps in to provide some tips on how to make the best of all this work. Counting the costs of retirement can be intimidating. It can cause stress and worry. In this episode, those that have counted the costs of retirement and thrived step up to provide tips on how to handle this stressful part of retirement planning. Listening to the experience of others who have not only walked the walk but done so successfully can ease some of the worries that come with crunching the numbers while planning for retirement. Listen to this episode to hear tips from members of the Rock Retirement Club.

Don’t let the stress of retirement planning overwhelm you

There are so many unknowns to retirement, it is easy to become overwhelmed by the enormity of it all. But worry, stress, and fear can become debilitating. Allowing yourself to become overwhelmed by the enormity of the financial side of retirement planning can lead to poor decision-making. Stress can further impact your financial planning by influencing how you make decisions. You may think that it is easier to stick your head in a hole and ignore the counting the costs step. Or you may try and patch together an easy financial solution together rather than implement a well-thought-out retirement plan. Don’t let worry overwhelm you. Planning your retirement costs will pay off in the end.

What can you do to combat the stress of retirement planning?

1. Regain perspective - Change the conversation in your head. It’s easy to dwell on the enormity of planning for retirement. It’s easy to lose your mental game. Coach yourself to make it to the next step rather than concentrate on the big picture. This helps you feel as though you have made progress.
2. Realize there are many adjustments to make in retirement, but you don’t have to make them all today.
3. Everything you worry about you create yourself. Your big worry might not be a big deal if you are intentional.
4. Surround yourself with the right people. Having a supportive crowd surrounding you can help you celebrate the small wins along the way. It helps to talk with people that are on the retirement journey. There is something to learn from those ahead of you in the process as well as those that are behind you.

Some tips from the Rock Retirement Club

Rock Retirement Club members have an Intentional spirit and are community-oriented. The club motto is “Walk with the wise and become wise.” We have had many productive and active conversations. Here are some tips from others that are on the same journey as you:

• Estimate your expenses in Excel. Look for variances year to year.
• One RRC member helps the elderly plan their budgets. This volunteer has created a win-win situation. Budgeting with the elderly helps her learn from others while teaching them. Not only does it help her get a handle on her own financial situation. She can also learn what the costs are from others that are further down the road.
• One member has realized that spending can increase from before retirement. More free time equals more opportunities to spend on entertainment, shopping, gas, and eating out. How will you spend your time once you retire?
• Another member is trying to live on his proposed retirement budget before he retires to get a feel for what that would be like.
• Jon created multiple spending scenarios through a flexible retirement planner

Listen to this episode to hear all the tips from our Rock Retirement Club members and discover which ones can help you on your own journey in counting the costs of retirement.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:53] Don’t let the stress of retirement planning overwhelm you
• [8:35] What can you do to combat the stress of retirement planning?

PRACTICAL PLANNING SEGMENT

• [16:20] Advice from Rock Retirement club members

THE HAPPY LAB SEGMENT

• [27:15] Thanks to Nichole

TODAY’S SMART SPRINT SEGMENT

• [28:30] Listen to the tips and figure out which one fits your life

Resources Mentioned In This Episode

Flexible Retirement Planner

Good Budget App

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Over the past few episodes we have been counting the costs of your wants and wishes in retirement and on this episode, we get down to basics. What are your needs? You may think that defining your needs is the easy part: food, water, shelter, clothing, and healthcare, right? Well, it’s actually a bit more complicated than that. As a matter of fact, defining your needs can be much more complicated than coming up with your wants and wishes. Everyone has different needs in their life. What one may consider a need, someone else may scoff at. Listen to this episode of Retirement Answer Man to help you count the costs of your true needs in retirement.

How do you decide what your needs are?

Defining your needs is not as easy as it seems. To define your needs you have to consider what the deal breakers are. What can you really not live without? Everyone has different needs. For example, consider a golf club. Many would consider a golf club membership a want or wish, but for others, this is their primary social outlet. For these people, a golf club membership is a need. On one hand you need to be practical and consider what you truly need, but on the other hand, you don’t want to build a cage around yourself. Complicating your needs can actually lead to a very sad life so think carefully about what is important for you to live a happy life.

Why do we break things down this way?

You may be thinking, why do I need to define my needs, wants, and wishes? You may think that moving through these exercises is a waste of time. But defining these categories is a way to help when you come to a crossroads. When it is time to dial things down as you take away income sources, or maybe when the markets are performing well and you have a bit extra you can examine these categories and decide how to negotiate with yourself. Having everything broken down into categories allows you to consider more choices. Defining your needs, wants, and wishes is an important first step to rock retirement.

What is your baseline?

To consider what your needs are you have to think about your baseline. There are 2 ways to determine your baseline. You can look at it from a top-down perspective. To do this, take your income and subtract your savings. This equals your consumption. You can also come at it from a bottom-up point of view. With the bottom-up way determine what your costs will be for healthcare, housing, taxes, utilities, food, transportation, and basic fun. You can either jot these costs down on paper or make a spreadsheet. Having an idea of what your baseline costs will be can really help you gain perspective on how you will rock retirement.

What are the average costs of basic needs in retirement?

The costs of basic needs change quite a bit from state to state and from lifestyle to lifestyle. The costs of taxes also vary greatly between the states. Some states are trying to become more baby-boomer friendly to attract retirees. These states have low taxes on things like pensions and property. Here’s the breakdown of average costs in other categories:

Housing: $1322/month

Transportation: $550/month

Healthcare: $500/month

Food: $500/month

Entertainment $200/month

Whether you use a top-down approach or a bottom-up method, begin to calculate the costs of what your basic needs will be in retirement. Don’t worry about getting it perfect, costs will change over time. Counting the costs is an important step in learning how to rock retirement.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [4:28] How do you decide what your needs are?

PRACTICAL PLANNING SEGMENT

• [12:25] Never take a risk that will jeopardize your baseline
• [14:24] What are the basic needs?
• [22:34] What are the average costs of needs in retirement?

THE HAPPY LAB SEGMENT

• [25:20] Get your body moving to make you happy

TODAY’S SMART SPRINT SEGMENT

• [27:09] Go dance!

Resources Mentioned In This Episode

Healthcare Before Medicare Series: Episode 211, Episode 212, Episode 213, Episode 214

BOOK - Good to Great by Jim Collins

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

How are we supposed to dream big when we are so unsure of how to provide for ourselves in the future? The future seems so unsure after the terrible month of December. Some may be tempted to give up and just put all their money into a safe money market account or cd. You know for certain that you will get 2.5%-4% returns and life wouldn’t seem so scary. On today’s episode, you’ll learn why you want to have an agile retirement plan in place to help you through the rough patches so that you can rock retirement and get back to dreaming of those retirement wants and wishes.

Finally, we get to the wishes

On the previous episodes this month we discussed how to budget for your needs and wants in retirement and on this episode we finally tackle the wishes. Wishes can seem extravagant whether you are overfunded or underfunded in your retirement. Those that are overfunded may find it hard to dream big after years of being good stewards of their money. Those that are underfunded may balk at the idea of having so much leftover that they should shoot for the stars. Whichever category you fall into you should still go through this exercise as an expression of your values and to really shoot for the stars. Whether it's leaving an inheritance, gifting your grandkids with a college education, planning an epic trip, buying a home for your whole family to enjoy, or setting up a charitable foundation, dreaming big can be a wonderful way to start rocking your retirement.

Inheritance planning

There are many ways that you can leave money at the end for family members that you care about. A trust can be formed that will help protect the money after you pass. For instance, if you leave someone $500,000 it could be misspent, lost in a divorce, or lost by a spouse that overspends. By setting up a trust the money is protected in these cases. Another way to leave a legacy to those you love is by gifting it now. You can gift $15,000 each year without any tax consequences and your spouse can gift the same amount. You can even gift your child’s spouse an additional $15,000 without tax consequences as well which brings the total to $60,000 per year of tax-free gifting. Another way to give to those you love is by setting up a 529 savings plan for your grandchildren. These plans are highly flexible and you can even switch the beneficiaries or split it between multiple grandchildren. Have you thought of the legacy that you want to leave your loved ones?

3 Protips on dreaming big

1. There is a fine line between helping someone that is doing well continue on their path and enabling someone that is not heading in the right direction. They need to learn to own their own problems. Think about whether you are supporting or enabling before you give. Make sure you are giving your loved one fuel to go the right direction.
2. It doesn’t have to be fair. You don’t have to be consistent with your giving. One child may be heading in the right direction and the other one may be making poor choices. Trust planning could help make your giving more equitable or it can be a smart choice to have an intermediary. You don’t have to give 15 k a year. Don’t lead them to expect. These things could gain momentum as you age.
3. Giving unexpected gifts can be fun. Don’t lead your heirs to believe they will be getting yearly gifts if that is something that you can’t provide.

Gifting to charity

Just like there are many ways to give to your heirs, there are several ways that you can give to charity. One way is to create a donor-advised fund. This is a fund that you can create where you can help manage the investments and annually you can decide what you want to give and to which organizations. You can even use it as a foundation and plan the distributions as a family. With the new tax rules consider lumping your gifts into specific years to get the maximum tax write-offs. There are so many ways that you can leave a legacy behind. It all depends on your values and the kind of legacy you want to leave. So how will you dream big?

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:23] How can we dream big when we are so unsure of how to provide for ourselves in the future?
• [9:52] How do you count the costs of the things you want and need?
• [11:19] Evaluating performance can be tricky if you don’t have the right perspective

PRACTICAL PLANNING SEGMENT

• [20:56] Finally we get to dream big and focus on wishes
• [22:34] Inheritance planning
• [28:55] How can you help grandkids plan their college education?
• [31:23] How can you create experiences with those you love?
• [33:05] 3 Pro tips
• [37:02] Gifting to charity
• [39:42] Other considerations

THE HAPPY LAB SEGMENT

• [42:25] What are some things that can make you happy that don’t cost any money?

TODAY’S SMART SPRINT SEGMENT

• [45:15] Start to brainstorm what the spice of your life would be

Resources Mentioned In This Episode

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

 

What are your wants and wishes in retirement? This generation is redefining retirement. In the past retirement meant sitting on the park bench of life and taking it easy in the golden years. Today’s retirees are active and involved. They are living longer than ever and usually doing so without the safety net of the pension plans that were common in past generations. Since today’s retirees enjoy a longer period of health, retirement is an excellent time to live it up. How will you rock retirement? Discover ideas on how to pursue and fund your retirement dreams on this episode of Retirement Answer Man.

Think big when planning your wants and wishes

Whether your retirement fund is tight or grandiose, don’t be afraid to dream big. Living big shouldn’t be confused with spending big. Think about what you do for enjoyment now. How would you like to spend your time when you have more of it? Do you want to travel, learn to play an instrument, take cooking classes, or go back to school? The options are limitless and they don’t have to be costly, there are usually many different price points to having fun with your hobbies. How will you dream big to rock retirement?

You don’t have to be trapped in your current life

Our lives are arranged a certain way due to the limiting factors of our lives. But now those limitations may no longer be there. Upon retirement, you can rearrange your life the way you want. Think about what you want to be doing on a daily basis in retirement. Who will you be spending time with? Perhaps you want to be near grandkids, family, or maybe you want to move to a place with a certain type of people. What is your ideal climate? What is the size of your ideal town? Is it rural, urban, or suburban? You don’t have to be trapped by what is. Do you dream of a change of scenery with your retirement?

How do you define what is important to you?

You have been toiling in the fields of the workplace during your entire life, but retirement is your harvesting time. This is your time to define what is really important to you. To really rock retirement you need to give some thought on how to make the most of it. Travel is a goal for many retirees, but travel itself is too broad. You need to define it further, how exactly will you travel? Internationally, throughout the U.S., or locally? Once you start narrowing down what is really important to you-you can plan to rock retirement. So what do you envision for yourself in your retirement?

4 pro-tips on planning your wants and wishes

1. Figure out how to make your hobbies more social. You can increase your social activities and make friends of all ages with similar interests. Think about joining a cycling club, a knitting group, or a book club.
2. Plan for the seasons of retirement. Many of the activities you may have in mind are best-suited for the go-go years while you are still healthy and active. When financially planning your retirement think about how long you will want to be involved in your hobbies. How long can you realistically travel internationally? Will you need a country club membership for your entire life?
3. Be creative in how you want to go about attaining your wants and wishes. Instead of buying a second home think about renting for a season instead. If you are considering RV travel rent one for a month and see if you still have the itch afterward. There are many creative ways that you can fulfill your dreams without breaking the bank.
4. Think about how you can set yourself up to enjoy your wants and wishes before you retire. If you do buy a second home, a motorcycle, RV, or boat do so while you still have the income from your job.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:35] This generation is redefining retirement
• [4:25] When planning your wants and wishes think big

PRACTICAL PLANNING SEGMENT

• [10:30] Retirement is your harvesting time
• [15:34] How to define what is important to you
• [20:00] Pro tips on planning your wants and wishes

THE HAPPY LAB SEGMENT

• [24:24] Retirement planning can be scary, take a cue from Nichole and laugh more!

TODAY’S SMART SPRINT SEGMENT

• [26:23] Start to define your costs for retirement

Resources Mentioned In This Episode

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

As the markets worsen and the talk of recession begins are you wondering if you will have enough money in retirement? Are you wondering what you should start doing now to ensure that you can live the life you want? On this episode of Retirement Answer Man, I encourage you to take intentional action so that you can rock retirement. Today you will learn to count the costs so that you can know how much it will cost to live the life you want after you leave full-time work. Listen to this episode to hear how you can start planning now to rock your retirement.

Are you experiencing the not-so thrifty 50’s?

I read a study recently where a group of people in their 80’s and 90’s were surveyed. The age most said they would like to return to is their 50’s. Your 50s can be a time of great abundance. Many of us are earning the highest income we’ve ever had. In addition to that many in their 50’s are left with empty nests as our children transition into adulthood. Is all this extra money going to fuel your retirement fund or are you buying all the toys of adulthood? Have you stopped budgeting now that you know that you’ll have enough money to cover it all? Be wary of creating a financial cage for yourself.

What can you do now to ensure you have enough money in retirement?

I have a few tips for you to act on now to ensure that you’ll have enough money to rock your retirement.

1. If you’re married make sure both voices are heard. Usually, one spouse takes over the financial management of the household and this is the spouse that leads the retirement planning as well. Oftentimes we think we know what our spouse wants, but what they really want is much different. Ensure that both of you get some of what you want by having open discussions. Give each other space to express yourselves.
2. Don’t confuse wants with needs
3. Budget. Many of us have fallen out of the habit of budgeting. It’s time to flex your budgeting muscle.
4. Look backward first, then forward. Look back at your last 3 months of spending and analyze it. Now you can look forward. After analyzing your prior 3 months of spending make a budget for the year. Understand which payments are fixed, which are, variable, and which are discretionary. Label these accordingly.
5. Map out your spending with spreadsheets until age 92. Having a guide to help you will ensure that you are more focused and in control of your spending.

Act now!

If you are ready to rock your retirement then now is the time to start. Start out by analyzing your spending so that you can create your budget. Count your costs now and identify your wants and needs. This way you can know how much it will cost to rock your retirement. Your most valuable asset, human capital, is starting to diminish. So it is important to know exactly how much you need to live the life you want. One more thing you can do to help you on your retirement journey is to join the Rock Retirement Club. Enrollment is open until January 3, 2019, so make sure you get in before it closes!

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:08] Are you experiencing the not-so thrifty 50s?

PRACTICAL PLANNING SEGMENT

• [11:35] Make both of your voices heard
• [14:40] Flex your budgeting muscle
• [15:35] Map out your spending
• [18:54] What will we be talking about over the next few episodes?

THE HAPPY LAB SEGMENT

• [20:23] Join the Rock Retirement Club!

TODAY’S SMART SPRINT SEGMENT

• [22:30] Do a 3-month study on your spending

Resources Mentioned In This Episode

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

What age are you using to plan retirement? When we think of age we usually think of the number of years that we have lived and not the physical state of our bodies. But maybe we should rethink the way we use age to plan retirement. I recently attended a fascinating seminar about the science of aging that has me rethinking age and retirement. During the Practical Planning segment, I discuss the merits of telomere testing while in the Hot Topic segment we talk about the Baader-Meinhof phenomenon. Listen to this episode to discover whether you are using the right age to plan retirement.

Is your glass half full or half empty?

The Baader Meinhof phenomenon is what we call our tendency to see things with uncommon frequency after we start thinking about something. Internet advertising has begun to take advantage of this and now repeatedly shows us all the things we have been thinking of buying. I liken this to our tendency to see the glass half full or half empty. You will find what you look for. People that are always looking for negative things to happen end up finding negativity. How are you viewing your retirement plans? Are you hoping to just scrape by and survive retirement or are you preparing to rock retirement?

Are you ready to rock retirement?

What are you doing to prepare yourself for retirement? Are you setting yourself up to simply survive retirement or are you ready to rock retirement? The Rock Retirement Club is now open for enrollment for a short time only. Head over to the website to take a peek. We have events and tours of the clubhouse that you can take before the enrollment period ends on January 3. The 60 founding members are all ready to welcome you and spread their knowledge. Joining the Rock Retirement Club is a fantastic way to gain insight and really connect with others on the same journey. Check out the Rock Retirement Club now before the enrollment period ends.

What is biological age?

The entire system of retirement is based on thinking about chronological age. We use chronological age to tell us when to take social security and our chronological age decides when we can withdraw from our Roth IRA without penalties. But what if you are physically much younger than the years that you have lived? Would that affect your decision on when to collect social security? If you knew that your body was that of a 55-year-old when you are 65 would you delay in taking social security? Your biological age may be different than your chronological age. Listen to this episode to hear more about the difference between the two.

How can knowing your biological age help you plan retirement?

There may be a better way to measure age. Scientists have developed a new test that measures the length of your telomeres which can help determine the biological age of your body. This could be very useful in your retirement planning. Living a long life would be a blessing, but it is one that you need to be prepared for. The older you become the more money you will need. If there is a probability of living a long life then you may want to use your human capital for a longer period than you thought. Are you curious about your biological age? Do you think knowing your biological age would change your views on pretirement?

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:58] What is the Baader-Meinhof phenomenon?
• [5:53] Are you preparing to survive retirement or rock retirement?

PRACTICAL PLANNING SEGMENT

• [10:15] What is biological age?
• [11:45] Is chronological age the best way to make retirement decisions?
• [13:22] A better way to test longevity
• [17:54] How long should you use your human capital for?

THE HAPPY LAB SEGMENT

• [20:25] Finding out my biological age will make me happy

TODAY’S SMART SPRINT SEGMENT

• [21:28] Find the word that will be the guiding light for you for the next year

Resources Mentioned In This Episode

Teloyears.com

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Each year I choose one word to be my guiding light throughout the year. On this episode of Retirement Answer Man, I will help you understand why choosing one word can help you rock your retirement plan in the upcoming year. Many people choose the New Year as a time to make resolutions for the year ahead. But narrowing your resolution to concentrate on one word can help you improve your focus so that you can stay on track to reach your goals. Listen to this episode of Retirement Answer Man to hear how choosing one word can help you narrow your focus and achieve your retirement goals. So what’s your word going to be?

Why choose one word?

Many people make resolutions at the start of each year. I have found that the problem with New Year's resolutions is that no one seems to keep them. We often set the bar so high or focus on goals that are too far ahead that the resolutions become impossible to keep. They seem to always result in failure. Instead of making a resolution this year try shifting your focus to choosing one word to serve as your guide over the next year. This word can really help better yourself or help you plan to rock your retirement. What’s your word for the new year?

How do I choose my word for the year?

I say I choose a word each year, but really it chooses me. A few years ago I quit the practice of making a New Year’s resolution each year. My whole life was really changing. I wanted to become more intentional and focus my skills in a new way. I began to focus on agile retirement management and I started this podcast. I realized that God was never going to come down and hold my hand through my life changes. I knew that I had to simply trust that I was doing the right thing. That is how trust became the word of the year that first year. Are you shifting your focus toward retirement? How will you choose your word? How will it impact your retirement plans?

What’s your word?

Think about your own life. Has your focus begun to shift? What do you want to work on over the next year? If you think about these things your word will naturally find you. Use your word as your guiding light throughout the year. I try to ensure that it naturally comes into my consciousness each day. One year I had my word stitched into my sports coats. Another year I used it in the signature line of my emails. Think about what your word will be and how you will remind yourself of your focus. Let your word become a filter for all the opportunities and situations that come up throughout the year.

What’s my word for the upcoming year?

Last year, Nichole’s word was simplify. She wanted to simplify her life a bit more and not get bogged down with so many commitments. She didn’t feel that she did the best job with her word this year. Maybe next year she will do better, she chose flow as her focus for next year. Hopefully, she can learn how to go with the flow. This past year my word was celebrate. I often don’t pause to celebrate my accomplishments, especially when it comes to working. I am always driven to focus on the next thing. I did celebrate my life more by taking some big trips and doing more things with my wife. Listen to this episode to hear the word I chose for the upcoming year.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:11] The importance of one word to narrow your focus
• [4:09] How I began my one-word focus
• [9:37] Tips for keeping your word relevant in your life

PRACTICAL PLANNING SEGMENT

• [11:50] How did I do this year with my word?
• [14:15] How did Nichole do this year?
• [18:06] What are their words for 2019?

THE HAPPY LAB SEGMENT

• [21:32] Reflect on what made you happy in 2018

TODAY’S SMART SPRINT SEGMENT

• [23:10] What will your word be in 2019?

Resources Mentioned In This Episode

Parenthood Movie

The Trashmen Surfin’ Bird

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Welcome to the Retirement Answer Man show. On episode 251 we discuss what you can do to battle Alzheimer’s in the Hot Topic segment and Dan Crosby joins me to discuss behavioral investing in the Practical Planning segment. This is the podcast dedicated to helping not just survive retirement, but rock retirement! One way to really rock retirement is to surround yourself with people that are in the same boat. If you are surrounded by people that are motivated and intentional and working toward the same goal then that is a great way to ensure that you will rock your retirement. Join the Rock Retirement Club waitlist to arm yourself with the best retirement resources and community.

What can you do to keep Alzheimer’s at bay?

Increasing longevity is a scientific marvel. While it is exciting that people are living longer and longer, longevity can be a source of worry as well. Alzheimer’s disease is now battling heart disease for the rank of the top killer of the elderly. One way that you can combat this scary disease is to keep learning. People that are continually learning are exercising their mental muscles. Work is another fantastic way to keep the mind active. Work actually creates a type of cross-training for your brain. Find out why work could be just what the doctor ordered to combat Alzheimer’s disease on the Hot Topic segment.

Why don’t we talk about the behavioral aspects of investing?

People are always discussing active vs. passive investment strategies, but no one ever brings up the behavioral side of investing. Making better financial decisions depends on much more than just whether one is passively or actively investing. Behavioral investing actually requires something more from people. You have to stop and consider how your behaviors really affect your choices. Debating passive vs. active is a much easier debate. Considering investor behavior requires sacrifice and introspection. Listen to Dan Crosby describe why it is not easy for us as humans to change our behaviors even when it’s for the best.

What are the 4 tendencies that impact investor behavior?

There are 4 tendencies that impact investor behavior. They are conservatism, attention, emotion bias, and ego. Conservatism is an overreliance on the status quo. We as humans love to stick with the way things already are. Attention means that we tend to confuse sensationalism and the lure of the improbable with the probable. Emotion bias means we think that things that we like must be safe. Ego means that we have a tendency to be overconfident. We think that we are smarter than we are, and we think that we are luckier than we are and we also think that we can be more precise than we actually can. Find out why intelligence is not a factor in good investing.

The decumulation phase of investing is the least understood

Pending retirement means you are going from the accumulation phase of investing into the decumulation phase. This can be a scary and disempowering feeling to go from saving to withdrawing assets. Not only that, but retirees entire life purposes are changing and they are no longer generating income. This shift in mindset can cause people to feel out of control. Dan feels that you have to be just as diligent as putting your psychological realities in order as your finances. Discover how the PERMA model for happiness can help you prepare for the psychological realities of retiring by listening to Dan Crosby on the Retirement Answer Man show.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:21] Alzheimers and longevity can be scary thoughts
• [4:45] What can you do to lessen your chances of Alzheimer's

PRACTICAL PLANNING SEGMENT

• [8:17] Dr. Dan Crosby is here to discuss the behavioral aspects of investing
• [10:05] Why don’t we talk about behavioral aspects of investing enough?
• [14:14] The 4 tendencies that impact investor behavior
• [21:55] The decumulation phase is the least understood
• [24:46] The PERMA model for happiness

THE HAPPY LAB SEGMENT

• [29:24] Acknowledge that stress can cause a temporary decrease in intelligence

TODAY’S SMART SPRINT SEGMENT

• [31:08] Go check out Dan Crosby’s book, The Behavioral Investor

Resources Mentioned In This Episode

BOOK - The Behavioral Investor by Dan Crosby

BOOK - The Laws of Wealth by Dan Crosby

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

On episode 250 of Retirement Answer Man we investigate the investment strategy of global diversification. With the U.S. stock market on a tear, is global diversification really worth it? In 2018 international investing has been a drag on our portfolios. As with everything, there are positives and negatives to investing internationally, but it is important to diversify your portfolio. David Stein, from the podcast Money for the Rest of Us, and I discussed the pros and cons of holding international stocks at FinCon recently and I share a bit of our conversation with you all. Listen to our discussion and hear some interesting facts about longevity on this episode of Retirement Answer Man.

Longevity is here to stay

Longevity is a big issue if you are approaching retirement since you will probably live longer than you think. This increase in longevity is important to consider when planning your retirement. Longevity has grown so much that the fastest growing population is that of centenarians. Between 2001 and 2015 deaths due to heart disease decreased while Alzheimer's deaths increased. As of now, the natural life expectancy seems to peak at 120 years old, but scientists are constantly looking for ways to increase it. The truth is we are getting healthier and staying productive for a longer time. Listen to the Hot Topic segment to find out what increasing longevity means for your retirement.

Pretirement is a great way to redefine retirement

Gone are the days when you can just stop working and do nothing. If you may live another 40 or so years after your retirement then pretirement is a great way to gain time freedom and it combats your feeling of having little or no control over your income and your time. If you simply stop working it can be much harder to jump back into the workforce if you ever need or want to. Pretirement helps to keep the mind active which is an important way to combat Alzheimer’s disease. Learn how to redefine retirement by listening to this episode of Retirement Answer Man.

Why do we need global diversification in our portfolios?

The S&P 500 has been on a roll over the past ten years while developed international markets have performed quite poorly. So if global markets are doing so badly, why should we even have them in our portfolio? There are positives and negatives to global diversification. There are quite a few quality companies that are traded overseas, like BMW, Shell and Volvo which you may want to invest in. Limiting your portfolio to companies that are only traded in the U.S. limits the reach of your portfolio. While holding international equities can be more complicated and take more research they can be a great way to bring balance to your portfolio. Discover the pros and cons of global diversification on this episode of Retirement Answer Man.

A conversation with David Stein on the pros and cons of global diversification

I recently chatted with David Stein from the Money for the Rest of Us podcast. We discussed whether global diversification is really worth it. The question of holding international investments is important to consider since the U.S. market has been outperforming global markets for over 10 years. David pointed out that if we want to hold a truly diverse portfolio then it should reflect the fact that over 40% of companies are held abroad. With a diverse portfolio it can always feel like you are missing out on something and that you have holdings which are dragging you down. How do you feel about your portfolio? Is it globally diverse?

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:42] Longevity is a reality
• [8:33] Why is pretirement so important?

PRACTICAL PLANNING SEGMENT

• [12:10] What are the positives and negatives of holding international equities?
• [16:07] Some data from the MSCI-EAFE index
• [22:26] Why you still should hold international investments
• [24:08] What does David Stein think of international diversification?

THE HAPPY LAB SEGMENT

• [27:55] Longevity can lead to loneliness--so make some younger friends

TODAY’S SMART SPRINT SEGMENT

• [29:10] Review your asset allocation and identify your exposure to global markets

Resources Mentioned In This Episode

David Stein Money for the Rest of Us

BOOK - The 100 Year Life by Andrew Scott

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

The end of days is coming! Well, at least the end of days in 2018. This can be a time of year of frantic holiday spending, but you shouldn’t let holiday shopping blow the budget. On this episode of Retirement Answer Man, you’ll learn how not just to rock retirement, but to rock the holidays as well. In the Hot Topic segment, I’ll give you some strategies on how to control your holiday spending. And in the Practical Planning segment, we’ll go over an end of year checklist to help you plan for the end of the year. If you’re ready to rock the holiday season listen to this episode for tips on how to prepare for the end of days in 2018.

You can’t let Christmas shopping blow the budget

Not surprisingly, Americans will be spending more on Christmas gifts than they did last year. The average holiday spending amount is between $800-900 per family. We seem to spend more and more on the holidays every year. There always seems to be the next new thing that you just have to buy. People (especially kids) have gift expectations that can really blow the budget. Do you have a Christmas budget? How do you plan your holiday spending? Listen to this episode to hear 5 ways you can prepare your budget and rock the holidays.

5 things you can do to prepare for the holidays and save your budget

1. Avoid temptation. When you are out shopping a lot you tend to see things you want to buy. Shopping online and staying out of stores can help ease the temptation to buy more.
2. Think personally. just buy to give, a random gift. Try and think of a gift that is meaningful for the recipient.
3. Avoid the fallacy of the deal. Black Friday, Cyber Monday, the day after Christmas sale--these are all just ways to get you to spend more money. You’re not saving any money if you weren’t planning on buying that thing to begin with.
4. Pick one splurge. The splurge will depend on your specific financial situation. Choose where to spend your money. You can splurge, but do it in a meaningful way specific to your financial situation.
5. Make a list of people you want to buy gifts for. Once you know who you’re buying for then set a dollar amount that you want to spend this year. Deposit that money in a separate account for Christmas. And be intentional on how you spend the money.

An end of year checklist to take advantage of time-sensitive opportunities

The end of the year is a wonderful time to take advantage of time-sensitive opportunities that can save you money and leave you more financially prepared for retirement and the coming year. This is the perfect time of year to revisit y our retirement contributions to your Roth IRA, 401K, and HSA. Analyze whether you can add a bit more. If you have a student in college now is the time to reimburse yourself for those approved college expenses from your 529 plan. You’ll also want to take advantage of your flexible savings account dollars. You need to listen to this episode to hear the entire checklist and learn more about donor-advised funds, tax harvesting, and tricks for the self-employed.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [1:56] Gift giving expectations can really blow the budget
• [3:03] What can you do to control your budget and still rock the holidays

PRACTICAL PLANNING SEGMENT

• [7:43] Time sensitive opportunities for the end of year checklist

THE HAPPY LAB SEGMENT

• [14:56] What can we do to make interactions with people more enjoyable

TODAY’S SMART SPRINT SEGMENT

• [17:32] Create a list of those to buy for and preplan what you want to buy

Resources Mentioned In This Episode

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Is thankfulness the key to a happy life and retirement? It seems like everything I read about happiness contains the common theme of gratitude. Being a thankful person can greatly increase your happiness and the Thanksgiving holiday is a wonderful opportunity to give thankfulness a try. So this Thanksgiving edition of Retirement Answer Man focuses on being thankful to help you create your best life and retirement. If you are trying to maintain a thankful perspective in this harsh world, this is the episode to listen to because I’ll give tips on how to be more thankful. So listen in while you prepare that holiday dinner or get ready for the onslaught of holiday guests.

3 forces that pull us away from the spirit of thankfulness

You have to maintain constant vigilance on your spirit of gratitude. Society always seems to be pulling us away from thankfulness by encouraging us to want the next best thing. Marketing messaging constantly tells us that we are inadequate in some way. The news media exposes us to the horrors of modern society which can lead us to be less appreciative of our own good fortune. Social media compels us to compare ourselves with others in a way we can never measure up to since people only post the best version of themselves. Although it can be challenging there are ways to become more thankful.

Tips on how to become more thankful

Surrounding yourself with positive people makes it easier to maintain a thankful attitude. I know it can be hard to be thankful if you are truly depressed, but sometimes if you fake it until you make it, this can lead to an attitude of gratitude. Volunteering or attending a group activity where people share information about themselves is a wonderful way to gain perspective of what others go through and can really increase your level of gratitude. Journaling is a powerful way to channel your thankful thoughts. As a matter of fact, you can go to RogerWhitney.com/thankful and tell us what you're grateful to enter to win a free journal.

What are Nichole and I thankful for?

Nichole joins me to discuss thankfulness and share what she is thankful for. We both have God at the top of our lists. I have so much to be grateful for including family, health, and an amazing work life that I don’t have to separate from my home life. My work gives me a way to connect with wonderful people and gives me a creative outlet. Plus I get to work with Nichole! Nichole is also grateful for family and work, but she has a female spin on her gratitude list. If you’re curious to hear her gratitude list listen in to this Thanksgiving edition of Retirement Answer Man.

What are you grateful for in your life and retirement?

As you prepare for the holiday madness try and maintain a spirit of gratitude. Really give a thought about what you have to be thankful for not just on this Thanksgiving, but throughout the year as well. One important key to happiness is maintaining a spirit of gratitude. Let us know what you are thankful for at RogerWhitney.com/thankful and you’ll have an opportunity to win a free gratitude journal.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [1:55] Thankfulness seems to be the key to happiness
• [3:43] 3 forces of anti-thankfulness
• [6:55] 5 Tips on how to be more thankful

PRACTICAL PLANNING SEGMENT

• [12:10] Some things Nichole and I are thankful for

TODAY’S SMART SPRINT SEGMENT

• [19:58] Don’t beat yourself up about what you eat today

Resources Mentioned In This Episode

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

November is that time of year when we gear up for the holiday season. Although the season seems to start earlier and earlier each year. Now that we’re in full consumerism mode, it’s great to have some gift ideas to help ease the stress of the holidays. So this year, we’ve come up with 10 gift ideas for gifts that keep on giving. They are not too expensive and have a personal touch that you can apply. I have found that the best gifts aren’t the ones with a high dollar value but that are personal or have experiences attached to them. Listen to the Hot Topic segment to hear our 10 gift ideas for gifts that keep on giving then stick around to hear the answers to listener questions in the Practical Planning segment.

10 personalized gift ideas that keep on giving

1. Fracture Me is a company that mounts pictures on glass. It is a beautiful way to display photos, you could send photos of a race or event, or maybe a vacation memory. Just send them your high-resolution photos and they will mount it directly on the glass.
2. The Yootech wireless charger can wirelessly charge your phones. It works with both Android and iPhones. Your loved one will never have to look for their charger again.
3. Cutco knives are a lovely gift for anyone that appreciates a quality knife set. You can add a personal touch by having them engraved.
4. Do you know someone that is approaching retirement? My book, Rock Retirement, is a great gift to help guide their transition.
5. Tom Podnar from Tennessee makes gorgeous barn wood signs. A handmade personal gift is always something special.
6. Do you have a meat lover in the family? Perini Ranch has an amazing mesquite-smoked peppered tenderloin that you can have delivered to your door. Try it out, you won’t be disappointed.
7. Booking an experience like tickets to a show, a weekend getaway, or a golf outing is always meaningful for the recipient as long as you consider their tastes and you actually book the experience. (Don’t simply give them a note that you plan to do it!)
8. Board games are fun for the whole family. Board games are ta great way to spend time with those you love. Stick with simple ones that everyone can enjoy like Sequence, King Domino, or Stockpile. Even a deck of cards with a book of card games is a fun gift idea.
9. Do you always mean to go on a date night with your partner but never find the time? One idea is to buy a gift card to a favorite restaurant and plan regular weekly date nights. If you have already spent the money on the experience then you’ll be less likely to skip it.
10. Are you curious about the last one? It’s really a good one and a gift that keeps on giving. Nichole joins me to share this fantastic idea to share with your family. Listen in to hear the best one on the list and let us know what you think. Which one is your favorite?

On the Practical Planning segment, I answer listener questions on social security, how to withdraw your money, and leveraged ETF’s. You’ll want to listen in as I describe how retiring early can affect your social security benefit and how to plan the best way to withdraw your yearly expenses during retirement.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:22] 10 personalized gift ideas to help you through the season
• [15:56] Nichole joins me for the last awesome gift idea

PRACTICAL PLANNING SEGMENT

• [19:42] A social security question
• [22:10] A question on withdrawal rules
• [26:15] An aggressive investor wants to know more about leveraged ETF’s

THE HAPPY LAB SEGMENT

• [32:23] Less materialistic gifts are more fun to give and more fun to get

TODAY’S SMART SPRINT SEGMENT

• [33:17] Share your gift ideas

Resources Mentioned In This Episode

BOOK - When Genius Failed by Roger Lowenstein

Social Security Administration detailed calculator

Story Worth

Perini Ranch - the mesquite smoked tenderloin is the best!

Tom Podnar The Furniture Guy - he makes beautiful barn wood signs

Cutco knives

Yootech wireless charger

Fracture Me

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

With the holidays coming up shortly it can be a troubling time of year for many as they gather together with family that they may not see often. One way to make family time less stressful is by trying to understand differences in personalities. Everyone approaches life differently and it can be a challenge to understand why some people make the choices they do. Gretchen Rubin is the author of the book The Four Tendencies and joins me on episode 246 to discuss the four personality types that she outlines in her book. Understanding these can help you understand family around the holidays and even help prepare you for your retirement planning.

What are the 4 tendencies?

There are many personality tests that people and organizations use to help understand personal behavior. These can be great tools to help inform us of our own behavior and that of others. Gretchen Rubin has laid out 4 tendencies that help explain why people behave the way they do. The 4 tendencies are the upholder, the obliger, the rebel, and the questioner. Upholders meet outer expectations and inner expectations they set for themselves. Obligers meet outer expectations but struggle to meet inner expectations. Rebels resist both inner and outer expectations, and questioners question all expectations, even their own! Listen to this episode to help you understand which tendency you are.

How do the 4 tendencies differ from other personality tests?

Each personality test is different and can teach you something about yourself and others. They all have their own vocabulary and pinpoint different aspects of people’s nature. Each one can tell you something about yourself. They will all tell you something but none of them will tell you everything. Understanding your tendency can help you understand how to achieve a goal or decide what type of accountability you need to get things done. When creating your retirement plan you can use your tendency to help you harness your strengths and understand your weaknesses.

How can understanding the 4 tendencies help your retirement planning?

Planning your retirement is really planning a change in your lifestyle. Attaining more time freedom leaves you time to pursue your dreams. But having more time freedom doesn’t necessarily mean that you will achieve all of your hopes and dreams. Understanding your tendency can help you meet your retirement goals. For example, obligers often feel that they will be able to tackle everything once they have more time. But then they find that they disappoint themselves because without external accountability they often have a hard time attaining their goals. Have you ever set a goal for yourself that you didn’t achieve?

Should you moderate your tendency or own it?

Each tendency comes with its strengths and weaknesses. Understanding your strengths and weaknesses as well as those of your family members can help you relate to others. Learning how to harness your strengths can help you achieve your goals. Once you understand more about yourself then you can find tools that help you move forward to achieve your goals. You will still have weaknesses but knowing how to navigate them and create solutions will help you do all the things you want to do. Listen to this episode to hear how to apply the 4 tendencies to your life and relationships and rock retirement.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:24] People approach life and their problems differently
• [5:45] Nichole and Roger took the personality test

PRACTICAL PLANNING SEGMENT

• [9:49] How do the 4 tendencies differ from other personality tests?
• [13:37] What are the 4 tendencies?
• [15:47] Understanding these can help you better yourself
• [17:43] How can understanding the tendencies help someone navigate change?
• [22:08] Should you moderate your tendency or own it?
• [24:53] Know yourself and your partner

THE HAPPY LAB SEGMENT

• [27:48] What are you going to do to be happy over the holidays?

TODAY’S SMART SPRINT SEGMENT

• [29:56] Learn more about yourself and your spouse

Resources Mentioned In This Episode

The Four Tendency Quiz

BOOK - The Four Tendencies by Gretchen Rubin

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Welcome to the Halloween edition of Retirement Answer Man. On this spooky episode, I regale you with 4 scary retirement stories that will haunt you. You’ll want to make sure that you don’t end up living one of these retirement nightmares. You can begin by listening to the Hot Topic segment to discover what solutions you can begin implementing if you are behind in your retirement savings. Listen to this episode now to hear 4 scary retirement stories to use as a cautionary tale for you to avoid a similar fate.

Are you one of the many that are behind in saving for retirement?

1 in 3 people has less than $5,000 saved for retirement! The ‘experts’ recommend that you have 1 million in savings by the time you reach retirement age. If you are in your 40s and 50s and you are behind in saving for retirement, then you know its too late now to really take advantage of compound interest. You may feel doomed, but there are ways that you can begin to turn your nightmare into an amazing retirement. If you are feeling a bit behind the retirement 8-ball then make sure to listen to this episode of Retirement Answer Man to hear 3 things you can begin doing right now to prepare for an awesome retirement.

What is the best investment that you can make?

Many couples get divorced in the empty nest cycle of life and even more wait until the retirement phase. Once they realize that they have 20-30 long years ahead with their spouse they head for the hills. As bad as a divorce is, it is even worse later in life. Not only is there the huge emotional toll but the older you are the bigger the financial ramifications are as well. Your earning power is quite limited and having to split your savings can bring about financial ruin. Invest in your relationship now to ensure a happy retirement is in your future.

Have you built yourself a financial cage?

Our economy is scientifically designed to suck money out of your wallet. Advertisers manipulate your emotions to get you to spend money. With the ease of Amazon Prime and Apple Pay, there’s no more distance between the thought of buying something and actually doing it. Many buy the toys to create all the fun right before retirement. You then have to end up working longer because you become a slave to your stuff. Vacation homes, outdoor kitchens, and RV’s bring about dreams of good times, but make sure you can actually afford them before you end up trapped in a scary retirement story of your own.

Natural savers are used to delaying gratification, but for how long do you delay?

Automatic savers sometimes have trouble easing themselves into retirement. When you are used to constantly saving and delaying gratification, making the transition to spending your savings can be scary. Many natural savers end up working longer because they can’t bear the thought of dipping into their hard earned savings. But then they wake up one day and realize they won’t be able to spend all of their money. It can be a challenge to find the right balance between saving and spending, but in order to rock retirement, you’ve got to learn how. Listen to all the spooky retirement stories on this special Halloween edition of Retirement Answer Man.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:38] Do you have the ‘recommended’ amount saved for retirement?
• [5:51] How to turn your nightmare into an amazing retirement

PRACTICAL PLANNING SEGMENT

• [9:24] Many get divorced in the empty nest cycle of life
• [14:56] Have you built yourself a financial cage?
• [19:07] Baby boomers have student loans 
• [21:54] Vacation homes are something people buy right before retirement
• [23:59] Natural savers are used to delaying gratification

THE HAPPY LAB SEGMENT

• [26:08] Eat some Halloween candy to cheer up from those scary stories!

TODAY’S SMART SPRINT SEGMENT

• [27:07] Spread your candy eating out over the next 7 days

Resources Mentioned In This Episode

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

As exciting as it is, the thought of retirement can be a scary one. By the time you reach retirement age, it seems like you have life all figured out. Now you’ll have to start all over again in the big, scary unknown. Why should you leave the comfort, income, and respect that you have in your career for a life of instability and the unknown? Listeners share their worries as well as their hopes for retirement in the practical planning segment and I discuss the sunk cost fallacy and how it pertains to retirement on the hot topic segment. Listen to this episode of the Retirement Answer Man to ensure that you don’t fall for the sunk cost fallacy.

What is the sunk cost fallacy?

Have you ever held onto a stock that was tanking? Even though you knew you should sell, you just couldn’t let it go for pennies on the dollar. Sometimes we feel that because we put money, time, or effort into something that we value more than it is really worth. The truth is we only have what we have today. What something was worth yesterday, last week, or last year doesn’t matter anymore. Listen to this episode to hear what the sunk cost fallacy has to do with you and your retirement.

How sunk cost bias can color your decisions to retire

We all have a sunk cost in where we live, where we work and in our status quo. It can be hard to let these things go and embrace the unknown of retirement. It's easier to just keep working, it’s the known thing, people respect and like you, and you have a steady paycheck. When you retire you give up a great income, friendships, and the respect of your colleagues. Don’t let the sunk cost bias influence your decision on retirement. Position your life so that it is where you want to be. Even though you’ll never feel 100% ready, retirement awaits.

Are you worried about increasing life expectancy?

Increasing longevity brings about an interesting paradox in retirement planning. On the one hand, living longer would be great, but on the other hand, how are you going to pay for it? Increasing life expectancy is actually one of the main concerns for many that are about to retire. People are worried that their money will run out before they do. Another concern for future retirees is health care, if you are interested in retiring before 65 then figuring out how to pay for health insurance is a big consideration. Many have even opted to just wait to retire until they are eligible for Medicare. What is your biggest retirement worry?

Pretirement can be a solution to many retirement worries

Increasingly people are looking to find a pretirement solution to ease their worries of too much freedom, not enough money, or health care woes. Pretirement appeals to those looking for more flexibility yet who are not ready for full-on retirement. One listener mentions that he’s not looking to retire by sitting on a beach in Florida. Retirement in this day and age is a whole different ball game. That’s why it’s comforting to have a tribe of people that are walking the same walk. Be sure to hop over to the Rock Retirement Club and get on the waiting list to join the club to help you ease your retirement worries.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:12] The sunk cost bias
• [8:14] You’ll never feel 100% ready to retire

PRACTICAL PLANNING SEGMENT

• [10:56] Wendy is in the pretirement phase of life
• [13:36] Pretirement is a great way to ease retirement worries
• [17:01] What do people miss about working?

THE HAPPY LAB SEGMENT

• [22:27] The Rock Retirement Clubhouse construction is going well

TODAY’S SMART SPRINT SEGMENT

• [24:31] Who is in your fab 5? Give them a call!

Resources Mentioned In This Episode

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Have you ever wondered what recent retirees wish they had known before they retired? Recently I asked a group of listeners what kind of resources they would get the most value from to help them prepare for retirement. I am creating an online club that will help you Rock Retirement. On this episode, I share with you conversations that I had with listeners about retirement hopes and fears. These listeners are close to retirement or recently retired. They discuss what they are most excited about and what their retirement worries are. Listen in to hear about retirement hopes and fears from real listeners as well as the exciting news about the Rock Retirement Club.

What is the Rock Retirement Club?

Coming in January 2019 is the Rock Retirement Club. This club is created for people just like you, people that like to do things for themselves, but don’t want to go it alone. This will be a premier platform where people can talk freely about retirement. Rock Retirement Club will be a community of like-minded people that share their dreams, aspirations, and fears about retirement. The Rock Retirement Club is meant to be an inspirational community where you don’t have to worry about a sales pitch at the end of the deal. Check out the website and entire your email to get on the waiting list for the open enrollment period to join the club.

What are people looking forward to in retirement?

In my discussions with newly retired folks and those that aren’t quite there yet I always wonder what they are looking forward to the most in their new phase of life. Ray is excited about the freedom it will bring. Stephanie is looking forward to following her passions. Paulette can’t wait to spend more time with family. Lee is simply looking forward to not having to manage people all the time. Listening to others’ excitement is so contagious. What are you looking forward to in your retirement?

What are people anxious about as they approach retirement?

Retirement is a time to live it up, enjoy freedom, and fulfill lifelong dreams, but it can cause a lot of anxiety too. Many people worry about how to make their money last. A huge worry for those that would like to retire early is healthcare. It’s such a big worry that some simply continue working. Lee worries that he will have too much idle time on his hands and be bored. Do you have any worries about retirement? Listen to this episode to hear if you can learn from others as they share their hopes and fears about retirement.

How do you know when enough is enough?

One question I ask those that I meet is: how do you know when you have enough? One of the biggest worries among retirees and future retirees is if their money will last them their lifespan. So how do they figure out when the right time to retire is? Some people are very calculated and have their savings and spending all mapped out. Others simply hope for the best. Figuring out how much you need to retire is a huge aspect of retirement. What about you? How will you know when enough is enough?

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:22] What is the Rock Retirement Club?

PRACTICAL PLANNING SEGMENT

• [4:21] Gary shares what he wishes he knew before he retired
• [6:47] George discusses what surprised him about retirement
• [10:07] Ray is excited about the freedom
• [12:05] Stephanie can’t wait to follow her passions
• [13:49] Paulette is looking forward to spending more time with family
• [16:50] Susan is looking forward to more flexibility
• [18:25] Lee is excited about not having to manage people anymore

THE HAPPY LAB SEGMENT

• [21:12] Nichole has a fun fall tradition

TODAY’S SMART SPRINT SEGMENT

• [23:25] Spend a bit of time acknowledging what you might be anxious about or excited about in retirement

Resources Mentioned In This Episode

Rock Retirement Club

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Debt is not a new invention, it has been around for thousands of years. But the modern idea of debt really came into being during the baby boomer generation. The availability of credit has made it so easy for anyone and everyone to get into debt. It comes as no surprise then, that debt among the 65 and over crowd is on the rise. The age-old question of whether you should pay off your house before retirement remains. On this episode, I attempt to answer this question to the best of my ability. If you have been wondering whether you should pay off your house, then you will definitely need to listen to this episode of Retirement Answer Man.

Debt has become the new norm

The availability of credit skyrocketed during the baby boomer generation. Suddenly everyone could buy anything they wanted on credit. People began to finance houses, cars, electronics, and education. Once you reach your 60’s your timeline of earning potential decreases and it is important to become intentional on how you use debt. Managing debt wisely can have a huge impact on your life. You don’t want to become one of the rising population of 60+ that has filed for bankruptcy. Listen to this episode to hear how to become intentional about debt.

Should I pay off my house?

Paying off the mortgage is a dream for many, but why? Many people have finally paid off all of their debts when they reach retirement age, so this leaves them with the question: should I pay off my house? On the one hand, there is one less payment to make each month. On the other hand, paying off the house takes away your savings. If there is a catastrophic event, then you may have to go back into debt to pay for it. Why do you want to pay off your house? Can you really afford it? Where will the money come from? Listen to this episode to hear what you should consider if you are thinking of paying off your house.

Should you pay down your mortgage and refinance?

Craig has come up with a strategy to pay down his mortgage and then refinance his home in the next 4 years. He is 62 years old and knows that there is no way he can pay off his house in the next 4 years, so he thinks that this could be a good plan. Some things he should consider are: what kind of house is it? Could he resize his house and maybe relocate? Does he have a decent amount in a tax-deferred account? He also needs to consider that he needs to refinance before he retires to make sure he has an income. Listen to this episode to help you develop your strategy for paying down your mortgage.

If an asset is tapped for providing an income stream, is it removed from your net worth statement?

Once an asset is tapped to provide an income stream it still has the potential to provide wealth. It should not be removed from your net worth statement. Part of agile retirement planning means that you should be tapping different assets to help you manage your pretax and post-tax assets. Another listener asked a great question about whether you should reinvest dividends, capital gains, and interest or leave them as cash in retirement. Listen to the answer to this question and more listener questions on this episode of Retirement Answer Man.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:22] The availability of credit skyrocketed during the baby boomer generation

PRACTICAL PLANNING SEGMENT

• [6:56] Paying off the mortgage is a dream for many, but why?
• [9:40] Should Craig pay down his mortgage?
• [14:17] If an asset is tapped for providing an income stream, is it removed from your net worth statement?
• [16:03] Texas teachers plan question
• [18:02] Should you reinvest dividends, capital gains, and interest?

THE HAPPY LAB SEGMENT

• [20:00] The 2018 annual pumpkin carving contest announcement

TODAY’S SMART SPRINT SEGMENT

• [21:05] What is your mortgage pay down strategy?

Resources Mentioned In This Episode

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

 

You Asked is back! On this episode of Retirement Answer Man, a listener asks an excellent question about ageism and whether it is possible to find meaningful work after 50. You may not have experienced ageism directly, but that doesn’t mean that it isn’t a problem. With the United States experiencing an increasingly aging population, there is a large percentage of the population over the age of 50 and that percentage will continue to increase. Listen to this episode to learn about ageism and what you can do to protect yourself against this form of discrimination.

With the American population increasing in age, ageism is a problem

Discrimination comes in all shapes and sizes and age is one of them. Ageism is discrimination that is specifically based on age, whether old or young. Finding a job after 50 can be a challenge. On average it takes someone over 55 3 months longer to find a job than a younger person. There can be all kinds of difficulties involved in trying to find work as an older person. An older person can be less likely to highlight all of the positives that they bring to the workplace. Listen to this episode to find out what you can do to be proactive about ageism and find or continue meaningful work after 50.

How can you be proactive in protecting yourself against ageism?

Some older individuals are less likely to highlight the amazing qualities they bring to the workplace. One way to ensure that you continue to stay employed is to make sure that you are appreciated in your work. Ensure that from an outward perspective people see all the good you do in your workplace. Another way to protect yourself is to expand your network to include those that appreciate you. Make sure that your resume and LinkedIn profile are always up to date. You will also want to continue your career development. This makes you more valuable to the company you work for. Listen to this episode to hear all the tips on how you can be proactive in protecting your future employment opportunities.

What are the differences between a SEP IRA and a solo 401K?

A SEP IRA stands for a Simplified Employee Pension plan. With a SEP IRA, you can contribute 25% of your total compensation up to $25,000. A SEP IRA is managed just like a traditional IRA. A solo 401k is a little bit different and you can’t have any employees with this 401k. It is like a regular 401k you in that you can make the typical contribution, but you can contribute up to $60,000. So you can defer a lot more with the 401k. If you are looking to shelter as much as you can then the 401k is a good idea. If you are a bit behind in planning then you may want to choose the SEP IRA. Listen to this episode to find out why.

How can one learn about asset-based long-term care insurance?

One listener asks about long-term care insurance. He would like to find an impartial website to learn more about it. There are two ways to buy long-term care insurance, you can either buy it as a rider to a life insurance policy or as its own separate entity. Unfortunately, everyone seems to have skin in the game so it can be hard to find an impartial source to learn more about long-term care insurance. If you sign up for 6 Shot Saturday, I’ll be sure to send you a link to what I have found. Listen to this episode to find out what I know about asset-based long-term care insurance.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [1:22] With the American population increasing in age, ageism is a problem
• [8:25] How do you fight potential agism?

PRACTICAL PLANNING SEGMENT

• [15:57] What are the differences between a SEP IRA and a solo 401K?
• [20:33] Is meaningful work too hard to find after age 50?
• [24:55] Where can one find an impartial website to learn about asset-based long-term care insurance?

THE HAPPY LAB SEGMENT

• [28:31] Never stop learning

TODAY’S SMART SPRINT SEGMENT

• [30:02] What can you do to make yourself more marketable?

Resources Mentioned In This Episode

BOOK - Lynchpin by Seth Godin

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Do you have too much stuff? Are you like me? Have you lived in your home for several years and have a lifetime supply of clutter? If you are planning on moving in retirement then you must purge some of this stuff. On the Hot Topic segment, I provide tips on purging. In the Practical Planning segment, I help you discover how to make the most of your new locale. Listen to this episode for valuable tips on decluttering your life, exploring whether relocating is right for you and learning how to make the most of your new locale.

How can you purge your stuff to set yourself up for a successful transition?

Purging is a must. Not only will you help with staging your house, but you will also have less to pack, you might earn a few bucks, and it will bring less stress in your move. It’s important to start decluttering early, it is too stressful to wait until the last minute. I’m trying to tackle purging a room a month, I don’t want to try to do too much all at once. Here are some questions to ask yourself when sorting through a lifetime of memories. When is the last time you used it? If you haven’t used it in the last year you probably don’t need it. Can you digitize it? Do you really need it? Has that season passed in your life? Listen to how I set up my 3 box system so you can learn to organize your purge on this episode of Retirement Answer Man.

How can you make a successful transition?

Combining two of the most stressful transitions in life together could be a bad idea. You may want to take them one at a time. Retiring will bring about a big change in lifestyle and it could be overwhelming to throw in a move on top of the new life dynamic. You could consider slowing down first and adjusting to retirement then relocate at a later time. This way you pace yourself as you tackle these transitions. Listen to this episode to hear how to make your transition to retirement and a new locale as seamless as possible.

How will you pay for it?

If you are looking to get a mortgage on your new home you need to be able to qualify for it. Mortgage companies use incomes as the primary factor in deciding who qualifies for a mortgage and many people get denied for mortgages even when they have a hefty net worth. Find out if a manual underwriter is what you need by listening to this episode. If you decide to pay cash how will you fund it? Should you draw from a retirement account? Do you sell your current home and use the funds from the sale to purchase the new home? Should you buy another home while you still own the home you're in? Listen to this episode of Retirement Answer Man to find out what the best way for you to pay for your next house

Are you sure you have chosen the right area?

Sometimes people buy the land to build a house or a retirement home early and then realize that they don’t really want to be in that area. Think to yourself if you really want to retire to that chosen locale. Have you spent enough time in the area to know the about community, the taxes, and the facilities? There is a lot to consider when choosing a new locale. You also need to think hard if your current house and neighborhood are that bad. Listen to this episode of Retirement Answer Man to help you choose your new locale, or even if relocating is the right choice for you.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:19] Do you have too much stuff?
• [4:58] How can you purge to set yourself up for a successful transition?
• [11:02] Should you sell or donate?

PRACTICAL PLANNING SEGMENT

• [12:45] How can you make a successful transition?
• [14:26] How will you pay for it?
• [19:55] Are you sure this is the right area?

THE HAPPY LAB SEGMENT

• [26:01] Think about your needs vs. wants are your wants distractions?

TODAY’S SMART SPRINT SEGMENT

• [28:00] Take the purge challenge

Resources Mentioned In This Episode

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Where you live in retirement does not depend on the school district, your job, or having a bigger house for the kids. For the first time in your life you can live anywhere you want with no restrictions. If you are thinking of relocating in retirement then you’ll definitely want to listen to the Relocation in Retirement series of this show. On this episode, we’ll be discussing what the considerations are to finding the perfect place to retire. If you have been thinking that you may want to relocate when you retire then you will definitely want to listen to this episode and discover how to find the perfect place to retire.

Retirement and moving are among the top ten stressors, so why do both?

Most people decide to age in place, but there are many people that do wish to relocate as part of their retirement plan. Both retirement and moving among the top ten stressors that you can have in your life. So when you are talking about doing both and at the same time it can be a rough ride. This is why it is so important to go about retirement and moving with the right attitude. If you let the stress get to you it can be overwhelming, but if you bring the right perspective then relocation in retirement can be a wonderful choice. Listen to this episode to help you learn how to find your happy place to retire.

What are the motivators for moving in retirement?

People choose to move in retirement for a number of reasons. The home equity accrued can make up a large portion of your net worth. Your mortgage is probably pretty well paid down and in addition, right now, most home markets are doing quite well. This can be a big motivator to sell the house. Some people feel the need to ‘right-size’ their house. After the kids are grown many people end up with too much house, and along with that come big taxes and upkeep. By downsizing, you can save a substantial amount of money. What are your motivators for moving in retirement?

What should you look for in a forever home?

Once you make the decision to sell your house, what should you look for in a house where you plan to live for the rest of your life? You shouldn’t think about what suits your life just now, but how it will suit you on down the road when you become less mobile. Does it have attributes for you to age in place? You don’t want to have to deal with stairs as you age, so a multi-story home could be a challenge. You should also consider if the doorways are wide enough to accommodate a walker or wheelchair. Listen to this episode to hear all the considerations you may not have thought of when moving to a forever home.

What type of community are you looking for?

When choosing a different community to live in there are many things to consider. How close is it to the family? Kids and grandkids can be a big draw, but what happens if they decide to move? Cost of living is also a huge consideration. You probably don’t want to live somewhere that will break the bank. Living somewhere with a lower cost of living can completely change the way you live your retirement. You could stop working sooner, travel more, or spend money on extras. Another consideration is, what kind of community services are there? Look at hospitals, doctors, assisted living centers, or churches. Listen to this episode of Retirement Answer Man to find out all the things you need to consider when looking for the right place to retire.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:45] Retirement and moving are among the top ten stressors
• [3:26] What are the motivators of moving in retirement?

PRACTICAL PLANNING SEGMENT

• [8:21] Does it have attributes for you to age in place?
• [9:55] Where are the kids?
• [11:35] What is the cost of living?
• [13:57] What type of environment are you looking for?
• [17:13] What is the tax situation like?

THE HAPPY LAB SEGMENT

• [18:38] What is the happiest thing about a relocation?

TODAY’S SMART SPRINT SEGMENT

• [20:18] Think about where you would live if there were no constraints

Resources Mentioned In This Episode

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Although most retirees choose to retire in place, I have seen a significant number of my clients choose to move as they retire. Over the next three episodes, we will be discussing relocation in retirement. Retirement and moving are both on the list of top 5 most stressful life event so I want to arm you with as much information as possible to help you get through the challenge of moving in retirement. On this episode, we’ll discuss how to make the most out of the sale of your home. Listen to this episode to hear my special guests, Joe from the Stacking Benjamins podcast, and Mindy Jensen, from the Bigger Pockets podcast, they both give great advice on your home sale.

What are the motivations of wanting to move?

Why do some people choose to move at an already stressful time in their life? There are many possible reasons. Often the house they were living in was the one that they raised their children in and is now too big for the next stage in life. Now with retirement ahead, proximity to work or being in the right school district doesn’t matter. Some move to be closer to adult children and grandkids. And some people just want to be in a more desirable location. Listen to this episode to hear why many retirees choose to pack up and relocate

Tips for moving

Mindy Jensen, the author of How to Sell Your Home, joins me on the Practical Planning segment of the show to give tips on how to get the most out of your home sale. There are a lot of little things you can do to maximize the price and make a quick sale. A great way to start preparing your home for sale is to clean and declutter. No one wants to look at a dirty, cluttered house. If you can’t bear to part with your treasures, renting a storage unit is a great way to hang on to your memorabilia and keep a tidy, depersonalized home. Mindy has some great money saving tips on how to spruce up your house to get the most out of your home sale.

Why are you selling?

To maximize everything about your home sale you first need to understand why you are selling. If you want to sell your home quickly you should use a real estate agent. If you have plenty of time and want to do things your way you could try to sell your home on your own. Once you understand your reasons you can decide how to choose an agent if you choose to use one. Before listing your house you also need to do your own homework. Learn which agents are the best in your area to help you decide whether you want to go with a big name or whether you should choose someone that can devote more time to you. Listen to this episode of Retirement Answer Man to hear how to go about choosing a real estate agent.

To rent or not to rent

One of the trickiest parts of moving is the timing. How do you know when to look for a new house? Should you wait until after you’ve already sold your home? What if you have found the perfect house and your house isn’t even on the market yet? Should you rent a house while you look for the right one? There are so many questions involved when trying to figure out how to relocate. Unfortunately, there is no one size fits all answer, but there are some tricks to making the timing of the sale of your home as painless as possible. Listen to this episode of Retirement Answer Man to discover how to get the timing right on your home sale.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:30] What are the motivations of wanting to move?
• [8:50] Joel Saul Sehy makes an appearance
• [15:33] The Stacking Benjamins world tour
• [20:33] Most people want to stay in place, but why would someone want to move
• [25:30] Tips for moving

PRACTICAL PLANNING SEGMENT

• [29:38] Mindy Jensen cohosts the Bigger Pockets Money podcast
• [31:23] Should you use a realtor?
• [38:01] What do you do to improve to sell your house?
• [44:55] Take honest photos
• [47:33] Pricing the house correctly is important
• [50:45] Should you sell then rent?

THE HAPPY LAB SEGMENT

• [54:52] I try my hand at some jokes

TODAY’S SMART SPRINT SEGMENT

• [56:10] Share some funny jokes with us on Facebook or Twitter

Resources Mentioned In This Episode

Stacking Benjamins Tour

Bigger Pockets Money Podcast

BOOK - How to Sell Your Home by Mindy Jensen

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

For many retirees, retiring is more about time freedom rather than not working. This is why so many people decide to become entrepreneurs and enjoy a pretirement phase of life. My guest on episode 237 is author Mike Michalowicz who helps entrepreneurs learn how to step away from their business. He is the author of three fantastic entrepreneurial books and he has a new book that just released called Clockwork. Clockwork is a book that helps entrepreneurs design a business that runs itself. If you are thinking of starting your own business or are already in your pretirement phase, you’ll want to hear this interview. Listen now to hear Michael explain why you should be able to step away from your company by designing a business that runs itself.

How to automate your business

To run a business on automatic you first need to train your mindset. Without the proper mindset, you won’t be able to spark the idea of automating your business. To get the business to move forward to where you really want it to be you have to get other people to do work in the business. Running a business on automatic doesn’t necessarily mean that there are robots involved, although there are many automated systems that can help achieve this. An automated business means that there is a consistent, predictable outcome without effort from the owner. Listen to this episode to hear why the entrepreneur’s job should be to achieve the predictable outcome achieved by automating the business

Why do entrepreneurs end up working harder than if they just had a job?

Many entrepreneurs start a business with everything they’ve got. They work so hard to get their business off the ground that they think they must continue to do everything on their own. This isn’t true. Oftentimes, the owner’s way of doing things isn’t even the best way. As your business grows it is important to be able to hire people to specialize in certain areas so that you don’t have to be the one doing everything all the time. Being able to remove yourself from your business for a period of time is a great way to determine just how successful the business really is. Listen to this episode to hear Michael Michalowicz describe why it is important to learn how to step away and create a business that runs itself.

The 4-week vacation

Just about every element of most businesses happens during a 4-week period of time. This is why Mike suggests that preparing your business for a 4-week break from you is a great way to judge if you really have freedom from the business. This means there are several aspects to your company that must become automated. If an owner can remove him or herself for this amount of time then it is a business that can run itself. While you are taking this vacation, the time off can give you a completely different perspective on your business. Listen to this episode to hear how Michael Michalowicz describes why a 4-week vacation is exactly what an entrepreneur needs.

Your business is only worth what someone is willing to pay for it

Many entrepreneurs are so involved in their business that there is no way to extract the owner from the business itself. This makes the company worthless from a sales standpoint. By making the company all about the owner, you are actually making it impossible to sell. When entrepreneurs go to sell their business they often think of the blood, sweat, and tears that went into it and base their sale price on that. But this is not the true value of the business. The only amount a business is worth is the amount that someone is willing to pay for it. Listen to this episode to hear how Michael Michalowicz explains how to increase the value of your business.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [2:22] The earlier you start getting your business processes in place the better off your business will be
• [6:28] Mike Michalowicz discusses his new book, Clockwork
• [8:10] Why do entrepreneurs end up working harder than if they just had a job?
• [10:08] Mike defines the term “automatic”
• [11:18] The 4-week vacation
• [20:46] Your business is worth only what someone is willing to pay you
• [23:40] What makes 4 yr olds happy?
• [25:06] What can you do to start extracting yourself from your business

Resources Mentioned In This Episode

BOOK - Clockwork by Mike Michalowicz

BOOK - Profit First by Mike Michalowicz

BOOK - The Pumpkin Plan by Mike Michalowicz

Roger’s YouTube Channel - Roger That

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

 

Have you ever rented a vacation home for a large family gathering? Or have you invited friends to come to visit you while you’re in a vacation rental? That is what my wife and I have decided to do next summer. On this episode of Retirement Answer Man, I give tips for finding and renting a vacation home. During the practical planning segment, I answer several listener questions since this is the last episode of the 5-week You Asked series. Listen to episode 236 to hear the answers to thoughtful listener questions as well as tips for renting a vacation home.

What kind of experiences have you created with your loved ones?

When all is said and done and you have left this earth, what will your loved ones remember of you? We would all like to leave something behind for our children to enjoy, but nothing can be as important as wonderful memories. If you know that you will be able to leave your children a bit of inheritance, why not take some of that money and create beautiful experiences with them. One way to do that is by taking trips as a family or setting up a way to enjoy your loved ones in a fun setting. My wife and I have recently booked a vacation home for rent in Colorado next summer. Listen to this episode to hear how we did it and the experiences that we are trying to create.

Tips for finding a vacation home to rent

Finding a vacation home to rent is much easier than it used to be. There are many different websites that you can use to find a vacation rental. Look at as many different resources as you can, like HomeAway, Airbnb, and VRBO. Make sure you book in advance to ensure availability during the time you would like. One way to save money is to plan your vacation just before or just after the peak season. This way you can usually still enjoy the great weather and activities that a place has without the crowds and the hefty price tag. Another thing you may want to consider is the logistics of travel. How easy is this place to get to? Will your family be able to come? Listen to this episode to hear these tips and more for renting a vacation home.

What do you do if there is a market correction right before you decide to retire?

One listener asks how they can prepare for a market correction that may occur right as they get ready to retire. This is where agile retirement management plays a big role. With agile retirement planning, you are always testing your retirement plan. Another way to prepare for this scenario is to have plenty of cash reserves built up before you reach the time of retirement. Another way to be prepared is to become increasingly conservative with your investments during this time of change. This will help to ease your worries in case anything should happen. Listen to this episode to hear more ways to prepare for any eventuality during your transition to retirement.

What can you do when you inherit a large sum of money?

If you inherit or receive a large sum of money it is important to think tactically. Using a process strategy leads to tactics that you can use to plan what to do with the money. First, you should think about where are you in your life and what you want to accomplish in the next 3-5 years. What does your net worth statement look like? After thinking about these things then you really only have 5 choices. You can spend it, put it in cash savings, pay down debt, give the money away, or invest it. Any time a client receives a lump sum I walk them through this process to help them move forward. Listen to this episode to hear how I help clients strategize what to do with their money.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:23] A great way to spend time with loved ones is by creating experiences
• [7:00] Tips for finding a vacation home to rent

PRACTICAL PLANNING SEGMENT

• [14:36] What tax strategies can one use to lessen the burden of taking 2 RMDs?
• [16:50] Confidence ratio is good but then there is a market correction
• [20:14] What can you plan for when you inherit a large sum of money?
• [23:50] What is Roger’s take on annuities?

THE HAPPY LAB SEGMENT

• [27:30] Let’s think about our first cars

TODAY’S SMART SPRINT SEGMENT

• [30:22] Know what your realized capital gains are in your taxable accounts

Resources Mentioned In This Episode

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

On Episode 235 of Retirement Answer Man, I share helpful tips on adulting. Some of us in our 50s and 60s may not have everything in life figured out quite as much as we thought we would by now. I discuss an article that I read recently that has adulting tips that actually include great advice and I add in some (expert) advice of my own. This episode is the third episode in the You Asked series and our listeners continue to ask fantastic, intelligent questions. To hear the answers to these interesting listener questions as well as hearing some great life tips, listen to this episode now.

Adulting tips

You would think that by the time we are in our 50s and 60s we would have this life thing all figured out. Well, sometimes I do feel that way and sometimes I don’t. It’s great to be reminded of what we can do to make the most out of the one life we have. Number one on the list is: what you do every day is more important than what you do once in a while. What are you doing every day to improve your life? Listen to this episode to hear more tips like how every medicine can become poison, why you should play your own game, and how you will find what you seek.

What questions do I wish a prospective client would ask?

We have a list of questions on our resources page that you can use to ask potential advisors in your interviews with them. But one listener asks what I would like a prospective client to ask me in our initial interview. Truthfully, I would like potential clients to listen more than ask. Listen to your advisor's worldview. Do their views line up with your own? Are they talking gloom and doom or rainbows and butterflies? You also need to find out how they view retirement. Are they speaking purely in numbers, or do they take a holistic view in retirement planning? Listen to this episode to hear how to listen to your potential financial advisor.

What steps should someone put in place for late retirement years?

One listener asks an important question in regards to late retirement years especially as cognitive control may diminish. They ask how one can plan for decreased cognitive function in later years. What can we do to prepare our finances and our well being? This is a great question that I would like to explore deeper in a separate series. There are some things that you can do in advance to prepare for this eventuality. You can start by researching your healthcare network, touring care facilities before you need them, and finding a trusted third party to become involved in financial decisions. Listen to this episode to hear the full answer to this important question.

Where should you invest when stocks and bonds are questionable?

Nothing is certain about investing. This is why it is so important to diversify. One listener is worried about investing in stocks and bonds and would like to know where else they can invest. It is important to remember to always think about your balance sheet and not simply about asset allocation. First ask these questions, how much cash reserves do you need? How much money do you need to pay yourself? How much extra do you need? What are your long-term assets and how do you allocate them? Then you can look at how well you are diversified. There are different classes of stocks and bonds that can give you a large variety. If stocks and bonds still worry you then you can look into real estate. Listen to this episode to hear the answer to all the different layers that there really are to diversification.

 

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:42] Tips for being a better adult

PRACTICAL PLANNING SEGMENT

• [11:55] What questions does Roger wish a prospective client would ask?
• [15:03] What steps should someone put in place for late retirement years?
• [20:17] Where to invest when stocks and bonds are questionable?
• [25:33] Some social security calculators you can use

THE HAPPY LAB SEGMENT

• [27:22] Get outside and socialize and get dirty

TODAY’S SMART SPRINT SEGMENT

• [28:33] Get the social security calculator from 6 Shot Saturday to help you calculate your Social Security benefit

Resources Mentioned In This Episode

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

August is listener question month on Retirement Answer Man. The You Asked series devotes the entire 5 weeks to answering listener questions. During the hot topic segment, I discuss an interesting article that I read recently about the stats of alcohol abuse in retirement. You may be surprised to find out that over 3 million older adults abuse alcohol. You may even know someone that abuses alcohol yourself. Alcohol abuse is a concern for many retirees, listen now to hear many fantastic listener questions and to hear the main reasons that older adults abuse alcohol.

The main reasons for alcohol abuse among retirees

3 million Americans over age 65 abuse alcohol. There are many different reasons that may contribute to alcohol abuse among retirees. Studies have found that involuntary retirement leads to excess drinking. If you weren’t ready to retire or forced out of your job, you may be apt to drink too much. Another reason for alcohol abuse is your social network. If you live a party lifestyle then your friends may drink more and lead you to drink more. There are many retirement communities that enjoy that party atmosphere. Listen to this episode to hear the other reasons that may contribute to the high stats of alcohol abuse among retirees.

What is the best way to buy a home in cash?

One listener asks how to buy a home in cash when using the assets of the house he is in. He is trying to not be limited by the time frame from the sale of his house. There are a few ways around this. One way is to sell your home first and then live with relatives or find a rental. Another way is to take out a bridge loan. If you have a relationship with your bank or credit union this may be a good choice. Another way is to obtain a line of credit on your current home. Listen to this episode to hear if the last way is the right way for you.

How do you make your 401k and IRA into an income stream?

Be careful when thinking of creating an income stream from your 401k or IRA. Creating an income stream is traditionally how we think about getting income from a portfolio. But that is a dangerous way for baby boomers to think about retirement income because it can lead to investments that may have a lot of yields but have their own risks associated with them But on the other hand, if you just start taking funds out of the IRA or 401k the money could eventually run out. The core investments in your portfolio need to be about total return rather than income investments. This will help you grow your assets. Listen to this episode to hear how to take a more holistic approach to your retirement spending.

What are the pros and/or cons of setting up a gift annuity for charitable giving?

Just what is a charitable annuity? A charitable annuity is usually created after someone receives a large, highly-appreciated, taxable asset. One way to give to a favorite charity and get more from a tax perspective is to gift the asset to a charity and in turn, receive an annuity for the expected duration of your life. This is really a legacy issue and could be considered if you have the desire and wherewithal to do it. The annuity is taxed in different ways, but you would get a sizeable deduction for a portion of the gift. Listen to this episode to hear more about annuities and a lengthy answer to a tricky bond question.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:17] What are the main reasons for alcohol abuse in retirement?
• [7:55] Almost half of Americans shop online while drunk

PRACTICAL PLANNING SEGMENT

• [10:24] What is the best way to buy a home in cash without having to wait for the sale of the other home?
• [13:34] A social security clarification
• [14:49] How do you make your 401k and IRA into an income stream?
• [18:18] What are the pros and/or cons of setting up a gift annuity for charitable giving?
• [22:02] A bond question

THE HAPPY LAB SEGMENT

• [29:54] Treat people the way you want to be treated

TODAY’S SMART SPRINT SEGMENT

• [31:20] How can you practice self-control?

Resources Mentioned In This Episode

Retirement and Alcohol Abuse article

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

 

Episode 233 is the second episode in the You Asked series. During the entire month of August, I answer listener questions. In the hot topic segment, I confront the constant precursor that begins every financial conversation - “Given this market.” What does this phrase really mean? Why are people suddenly concerned with the markets now, should they be, and just what markets are they talking about? During the practical planning segment, I get the opportunity to answer several interesting listener questions. You won’t want to miss this episode. Listen now to learn about ‘this market’ and investing for retirement.

Given this market . . .

People think there’s something special about the markets right now, but the truth is, there has always been something going on with ‘this market.’ We had inflation in the 80s. The early 90s presented us with massive corporate layoffs. In the late 90s, we had the tech boom. Real estate was down, then it was up, then it was way up, then down again. We will always feel worried about the things that we can’t control. The most important way to combat ‘this market’ is by diversifying and managing your balance sheet, not just your investments. Listen to this episode to learn why you should be mindful of ‘this market’ all the time and to hear what you should be doing to help you in ‘this market.’

What market are you talking about?

When you preface the investment question with ‘given this market,’ just which market are you talking about? The market is not just the S&P 500. There are so many different markets out there. If you have a well-diversified portfolio then you should have investments in a range of markets. Yes the S&P 500 has had an average rate of return of over 10% over the past 10 years. It has been a nice long run. But this only includes U.S. stocks. The global market has only had an average rate of return of over 2.8%. It is important to know where your money is invested and just how diversified your balance sheet really is. Listen to this episode to hear why it is so important to have an agile approach when investing for retirement.

Why is it so important to have an agile investment practice?

The first thing to consider when investing for retirement is to know what kind of life you want to live in retirement. Next, you need to be agile. Your investment practice should be agile enough so that you can move with ease and without worry when one market gets a bit hairy. Lastly, you must pay attention. Paying attention to what is going on with your balance sheet will allow you to make little adjustments along the way. Investing for retirement is not a sure thing which is why it is so important to diversify and to stay on top of what is happening in ‘this market.’ Listen now to find out how to keep your retirement investment practice an agile one.

My listeners ask the best questions

Are you curious about 401k’s or Roth IRA’s? Do you know about the backdoor Roth IRA? One listener asks about the best way he should be investing for retirement. Have you ever considered buying a small home overseas to use for part of the year? Is this a good idea? When is it a good time to take social security early? What should you do if you get laid off at age 60? I answer all of these questions and much more on the practical planning segment. Listen now to hear my best answers to interesting listener questions.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:39] Why do we always preface our investment questions with ‘given this market’?
• [4:14] What market are you talking about?
• [7:18] Why is it so important to have an agile investment practice?

PRACTICAL PLANNING SEGMENT

• [12:15] Should we put more into Roth than 401K?
• [16:59] How to invest a large lump sum for retirement?
• [19:33] How to purchase a small apartment overseas
• [22:08] When is it a good time to take social security early?

THE HAPPY LAB SEGMENT

• [25:38] Think about what does this make possible?

TODAY’S SMART SPRINT SEGMENT

• [27:54] Respond to our email so we can work to serve you better

Resources Mentioned In This Episode

Episode 231 on Maximizing Social Security

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

This month on Retirement Answer Man we are focusing on you! We will be answering listener questions all month long. Since we just finished the Maximizing Social Security series I will answer some social security questions on this episode while the information is still fresh in our minds. If you had any more questions after listening to the Maximizing Social Security series then you will definitely want to listen to this episode to hear some excellent listener questions that I answer to the best of my abilities. Listen now to learn more about social security benefits.

Why should you have an agile retirement plan?

Have you ever wondered how are you doing relative to your peers? We all want to know how we are doing in comparison to our peers. When it comes to retirement savings sometimes it can be hard not to compare ourselves to others. But the truth is other people are on a completely different journey in life. It is important to be agile in your retirement planning so that you are ready for whatever obstacles may arise. Almost half of people end up leaving the workforce earlier than they had planned. This can be due to disability or a layoff from a decline in their field. Listen to hear some interesting facts about retirement to help you understand that it is important to have an agile retirement plan in place.

How do you calculate opportunity costs?

When trying to plan your retirement one challenge is factoring in when to claim social security and when to begin drawing on your own investments. One listener would like to know how to calculate these costs. No one can predict exactly what the market will do, but you need to look at specifically where the money is coming from. The first thing you should think about is: is the money coming from pretax assets or is it taxable? Another factor is whether you are married or not since this will bring spousal benefits into play. Listen to this episode to hear what else you should consider when calculating opportunity costs.

When is the best time to take survivor benefits?

A listener whose husband passed early on asks about survivor benefits. She is only 50 and wonders when the best time to draw survivor benefits is. The answer is different in each situation. Survivor benefits can start at age 60, but it may be a good idea to wait and claim it until full retirement age. You could claim your own benefits at age 62 and then wait until 66 to get the survivor benefits. Or you could do the reverse, you could claim survivor benefits starting at age 60 and then wait up until age 70 to claim your own benefits. One thing to remember is that you cannot double dip. Listen to this episode to hear more about social security benefits.

Can my husband file for social security and then suspend?

One listener asks about the file and suspend strategy for social security that has been used in the past. The social security administration has closed many of the loopholes that were once in play. File and suspend was one of these, so this strategy is no longer an option. Now your spouse must wait until you claim your benefits to receive spousal benefits. Another listener asks about inflation. Inflation is calculated into social security, but I’m not sure exactly how. Listen to hear the answers to all of these excellent listener questions and more on this episode of Retirement Answer Man.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:06] How are you doing relative to your peers?
• [8:02] Almost half of people leave the workforce earlier than they planned

PRACTICAL PLANNING SEGMENT

• [12:00] If I defer my social security benefit until full retirement age can my wife claim half at 62?
• [13:23] Is your social security income adjusted for inflation?
• [14:58] How do you compare taking social security early as to withdrawing from investments?
• [19:37] Can my husband file for his benefit early and then suspend it after I start receiving spousal benefits?
• [21:32] A question about survivor benefits

THE HAPPY LAB SEGMENT

• [24:35] If you want to live a happy sometimes you have to laugh at yourself

TODAY’S SMART SPRINT SEGMENT

• [27:00] There is always someone that needs a little more grace, give it to them!

Resources Mentioned In This Episode

20 Retirement Stats That Will Blow You Away article

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

 

Welcome to the final episode of the Maximizing Social Security series. In this episode, we get down to business. When do you file? How do you make this decision? If you are wondering these things then you need to listen to this episode. During the Practical Planning segment, I welcome social security guru, Devin Carroll. He has been studying social security for years and even has a book dedicated to learning the basics of social security. You won’t want to miss this final episode which answers your big questions about social security: when to file, when to relax, and when to panic. Listen now help you discover your best social security strategy.

How do you make the decision of when to file for social security?

The big question is when do you file for social security. Unfortunately, there is no easy answer. There are many things to consider, but ultimately you need to think about what your ultimate goal is. It’s not just math. What is your confidence level in your retirement? Taking full retirement social security benefits can give you more confidence in retirement. Understand what it is that you are trying to accomplish when considering whether to file early or wait until full retirement age. When you factor in your big picture then when to file could be a game changer. Listen to this episode to help you understand this multidimensional issue and help you rock your retirement.

What are some things to consider when trying to decide the best time to file for social security?

There are many factors to consider when trying to decide the best age to file for social security benefits. Some considerations are: will you have additional income? How is your health? How is your spouse’s health? What is the age difference between spouses? Do you really need the money? There are also tax implications to consider. If you fall into a certain income class then you could be taxed on 85% of your social security benefits. This could really affect your taxes and your IRAs. Before you decide when to file for your social security benefits, be sure to consider all of these questions. Listen to this episode to get a boost in your social security education.

In what situation would it be smart to file for social security benefits as early as possible?

You can file for social security benefits as early as age 62. You will not receive your full retirement benefits at this age, but there are some situations where this may still be a good choice. One mistake some people make is that they file for their social security benefits rather than disability if they can’t keep working due to a disability. If a disability is keeping you from working, be sure to file for disability benefits instead. If you really need an income, then filing at age 62 is a smart choice. Listen to this episode to hear all the reasons that you may consider filing for social security as early as possible.

How does retiring while in your peak earnings years impact your social security benefit?

Many people want to retire early. But does retiring while you are in your peak earning years impact how much you will receive for your social security benefit? Most of us still have 35 years of work history behind us by the time we are considering taking an early retirement, but these years often include low wage jobs. Retiring early can impact your social security benefit. But unfortunately, there is not a good way to estimate how it would affect your benefits. Devin would love to create a calculator to help others estimate the difference in benefits to help others. Listen to this episode to hear how your benefits could be affected by retiring early.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:32] How to make this decision for you?
• [7:18] What are some things to consider?

PRACTICAL PLANNING SEGMENT

• [8:28] How does Devin Carroll help people choose social security strategies?
• [11:00] What situation would it be smart to file as early as possible?
• [15:39] How do you navigate who takes what benefit when in a spousal situation?
• [17:34] There are some uninformed reasons to file early
• [19:08] Survivor benefits
• [27:04] How does retiring while in your peak earnings years impact your social security benefit?

THE HAPPY LAB SEGMENT

• [31:22] Nichole is reading Oola For Women

TODAY’S SMART SPRINT SEGMENT

• [32:55] Send us a question that you want to be answered

Resources Mentioned In This Episode

Devin’s website: Social Security Intelligence

BOOK - Social Security Basics by Devin Carroll

Devin Carroll’s podcast - Big Picture Retirement

BOOK - Oola For Womenby Dave Braun

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

This month on Retirement Answer Man we are maximizing social security benefits. All month long we are discussing the ins and outs of social security. The government doesn’t make anything simple, and social security is no different. So be sure to catch the entire series, beginning with episode 228 to fully understand the complexities of social security and how to maximize your benefits. This episode is dedicated to learning how earning income during retirement can impact your social security benefit amount. Listen to this episode to help you learn how to maximize your social security benefit and rock retirement.

This feature of social security is underappreciated

Did you know that social security is adjusted for cost of living? This added benefit was added in 1975. Each year social security is increased by COLA or cost of living adjustment. Since 1975 the average COLA increase has been 3.9%. This sounds awesome, right? The past 20 years the inflation increase has only averaged 2.1%, and in the past 10 years, we have only seen an increase of 1.7%. Well, at least it’s something! Listen to this episode of the Maximizing Social Security series to learn more about your social security benefit.

What happens if you take social security prior to your full retirement age?

Not everyone wants to work until the full retirement age of 66. The goal for many of us is to retire early. If you decide to retire early and take social security benefits starting at 62 or any time before age 66 you will receive less than the full retirement amount. Another penalty that you will incur is that if you earn over $17,040 your benefit will be reduced by one dollar for every 2 that you make over that amount. The government will eventually make it up to you over time, but of course, it will be rather complicated and paid out over 15 years. Listen to this episode to help you understand the social security complexities of taking early retirement.

If you work until full retirement age you could get the best of both worlds

Ideally, social security is not to be drawn until the full retirement age of 66. You will receive a higher benefit and you can earn as much as you want without a benefit reduction. This is why I am a huge proponent of pretirement. Taking on some sort of pretirement work like consulting, part-time work, or starting your own business offers an alternative to taking your retirement early and reducing your benefits. Are you ready to rock retirement? If so, listen to this episode to begin maximizing social security benefits.

What happens to your social security after full retirement age?

Although you receive your full benefit amount at age 66 this doesn’t mean that it’s all yours free and clear. Part of your benefit is taxable if you earn over certain amounts. For example, if you earn between $25-34,000 you will be taxed on half of your social security benefit. If you earn more than $34,000 then you will be taxed on 85% of your social security check. Each situation is different, so that is why it is so important to use more than simply numbers to decide when you want to start rocking your retirement. Start your social security education today by listening to this episode of Retirement Answer Man.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:17] This is a feature of social security that most don’t think about
• [6:46] How is cola calculated?

PRACTICAL PLANNING SEGMENT

• [10:05] What happens if you take social security prior to your full retirement age?
• [14:55] If you work until full retirement you could get the best of both worlds
• [15:30] What happens to social security benefits after full retirement age?

THE HAPPY LAB SEGMENT

• [19:40] Go get a little kookie

TODAY’S SMART SPRINT SEGMENT

• [21:14] Evaluate what type of income you may earn from age 62 on

Resources Mentioned In This Episode

Social Security Administration website

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Social security is an important part of retirement even if you have plenty of assets. That is why we are dedicating the whole month to learn how to maximize your social security benefits. This is the second episode in the four-episode series in which we discuss the best social security benefits calculators. This may not be the most exciting topic, but it is important to learn how to get the most out of your social security benefits. Listen to this episode to hear how to find the best social security calculators as well as how to use them.

How to protect your social security

Protecting your social security number is so important to keeping your identity and benefits safe. 158 million people had their social security number exposed just last year. That’s half the population of the country! There are a few protective measures that you can take to guard your social security number. You don’t need to carry your social security card with you at all times since it can easily get stolen. Instead, leave it at home in a safe place. Some organizations like medical offices ask for your social security number but don’t actually need it. You don’t have to give it to them. Listen to this episode to hear more tips on how to keep your social security number safe.

How to calculate your benefits

The social security administration is a great resource you can use to calculate your benefits. They send you a yearly statement with your lifetime earnings as well as a projected benefit amount. The important thing to remember is that the benefit amount they use assumes that you will continue to earn the same amount that you are earning right now all the way until you reach full retirement age. So if you plan on retiring early or taking a pretirement phase where you are not earning much then that number will change. Listen to this episode to hear how you can calculate your benefits if you plan to retire early or enjoy pretirement.

If you download your statement make sure to encrypt it

You can download your social security statement to your computer by going to the social security administration’s website. If you choose to do so, it is important to protect the file. Your social security statement is a treasure trove of information. It has such goodies as your name, address, the last four digits of your social security number, and your earnings from an entire lifetime. If you have your statement downloaded on your computer it is important to password protect the file to avoid all of that information being stolen by hackers. Learn how to password protect it on a Mac by listening to this episode.

What kinds of calculators should you use?

Ssa.gov has benefits calculators that can help you estimate your benefits based on your earnings. If you are going into pretirement or plan on retiring before full retirement age you will want to use their detailed calculator. This will give you the most precise estimate of what your benefits will be. You actually have to download the calculator onto your computer which brings another layer of complexity to things as only the government can do. The detailed calculator can help you decide when would be best for you to retire. There are several other calculators both on the social security administration website as well as through private organizations. Listen to this episode to hear which calculators you should use to help you understand when the ideal time to retire will be for you.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:52] Protecting your social security number so important

PRACTICAL PLANNING SEGMENT

• [11:04] How to calculate your benefits
• [15:08] If you download your statement password protect it
• [16:22] What kinds of calculators should you use?
• [19:56] A lot of financial planning is about maximizing the numbers
• [23:55] What are some other websites that can help calculate your social security benefits?

THE HAPPY LAB SEGMENT

• [26:13] Hobbies can make you happy

TODAY’S SMART SPRINT SEGMENT

• [29:22] Check out one of the social security calculators or make time for your hobby

Resources Mentioned In This Episode

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

The Retirement Answer Man theme for July is how to maximize social security. On this episode, we’re covering the basics: how it works, and are social security benefits even going to be there when you retire? This can be a bit of a dense subject, but I will do my best to make the topic as fun and interesting as possible. You may think that social security won’t play a very big role in your retirement if you have a lot of assets, but after listening to this series you’ll see that social security is more important to your retirement than you think. Get started with your research on social security by listening to this episode today.

What are the benefits of social security?

Even if you have plenty of assets, social security benefits are an important part of retirement. As with any benefit you need to learn how to maximize it to its fullest. There are different branches of benefits through the social security system; disability benefits, dependent benefits, and survivor benefits. The one we think the most about though, is retirement benefits. You pay into the system year after year and can begin to receive the benefits at age 62. Social security is a fantastic resource that helps many retire with dignity. You need to learn how to get the most out of it and can start learning as much as you can by listening to this episode of Retirement Answer Man.

Will social security be there when you need it?

Social security is 90% of income for about a third of American retirees, and for 50% of retirees, it consists of half of their income. So it is scary to think that this benefit could be exhausted as soon as 2022. Fortunately, according to the social security administration website, the fund will not completely disappear at this time. It will only cover about 75% of what it needs to, but it will not totally vanish. The reason there is a problem with funding is that there are more baby boomers retiring and receiving benefits than there are people contributing to the system. Listen to this episode to find out if you need to worry about vanishing social security and how that could affect your retirement plans.

How to fix social security

Since there is a maximum amount that you can receive, social security is a bit of a redistribution system. It is a highly politicized topic, but if it is to continue, a solution must be found to funding social security in the future. There are several ways that we could continue to fund social security in the years to come. Being that it is a significant income source for many retirees, finding a solution is important. Some ways to solve the funding issue are by increasing social security taxes on incomes, eliminating the maximum deposit, reducing benefits, modifying the cost of living adjustments, raising the retirement age, and closing loopholes. Listen to this episode to hear about the many different ways that we could easily help fund social security in the future.

How are benefits calculated?

How do you qualify for social security benefits? Social Security is earned over a 35-year work history. You earn credits each quarter and you need 40 quarters of wages to qualify to receive benefits. The amount you receive is determined by your work and earnings history. If you retire before retirement age the amount calculated will add zeros to your average. This will bring down your average earnings and reduce your benefits. The way they average the amount earned is called the AIME: or average indexed monthly earnings amount. It is important to consider your AIME if you are planning to retire early. Listen to this episode to hear how to download your latest social security statement and check your earnings record so that you can begin to calculate your estimated benefit amount.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:25] What are the basics of social security?
• [5:54] Will social security be there when you need it?
• [7:33] How to fix the social security problem

PRACTICAL PLANNING SEGMENT

• [11:11] How are benefits calculated?
• [16:05] What is the eligibility for spousal benefits?

THE HAPPY LAB SEGMENT

• [18:38] The next time that someone slights you, respond with grace

TODAY’S SMART SPRINT SEGMENT

• [20:15] Go to my YouTube channel and subscribe to find some fun bits of retirement wisdom and info

Resources Mentioned In This Episode

Social Security Administration Website

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Welcome to the last episode in the Entrepreneurship in Retirement series on Retirement Answer Man. We have been discussing the dream of entrepreneurship after retiring during the past three episodes of this series. This episode closes the series as I interview 3 different entrepreneurs that got sick of the rat race and struck out on their own. These entrepreneurs have very different stories about how they launched and lived their dream. They share what motivated them to entrepreneurship, how they started, and what their lives look like now. Listen to this episode to learn from their retirement lessons as you embark on your own entrepreneurial journey.

Vinnie quit his dream job to strike out on his own and now has so much time freedom that he never wants to retire

Have you ever heard about people that say they never want to retire? That is the case of my friend Vinnie. Vinnie was a sports photographer. He had a dream job at a newspaper traveling the world and photographing major sporting events. Vinnie won several awards for his photography but still only made about $15 an hour. Once his wife got pregnant with his first child he realized that his dream job was unsustainable for a family. This spurred him to pursue opening a freelance photography business of his own. After several years Vinnie pivoted his business to something that would free his time more than his wedding photography business. Listen to the valuable lessons Vinnie relays and hear why he doesn’t plan to ever retire.

Is entrepreneurship right for you? Carey Green doesn’t think it’s for everyone

After more than 20 years as a pastor, Carey Green lost his passion for his career. He knew he needed to start his own business after discovering that a change in career fields wouldn’t pay enough money to support his family. He did some audio editing for an online friend and soon discovered his niche. Carey has learned to scale his business slowly over time by implementing systems that will allow him to step away from the day to day operations. This will allow him more time freedom as his podcast company grows. Listen to this episode to hear why Carey feels that entrepreneurship is not for everyone.

Mark Ross helps those that are considering a pretirement stage to their retirement

Mark Ross worked for 30 years in public service at the parks department. At age 58 he retired after realizing that he should be doing something else with his life. He just wasn’t quite sure what it was. Mark says that letting go of a steady paycheck was the scariest thing he has ever done. Although he wanted to work, he wanted to do so on his own terms. This transition has led Mark to become a coach to those in their 40's and 50's who are contemplating pretirement. He has so much to teach his clients about how to discover the possibilities of pretirement and how to implement them. Listen to Mark’s retirement lessons for those considering a pretirement phase of their retirement.

What can these guests teach you about entrepreneurship?

All three of my guests come from very different backgrounds and have pursued their entrepreneurial dreams for different reasons. They each have valuable lessons to teach our listeners about many aspects of entrepreneurship. If you are considering opening any sort of business in retirement you’ll want to listen to the entire Entrepreneurship in Retirement series starting with episode 224. The lessons over the past four episodes are a great start to the research you will need to begin to get started on your own entrepreneurial journey.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [2:22] In July we will tackle social security so be sure to listen in if you have any questions

HOT TOPIC SEGMENT

• [3:14] Meet Vinnie, a sports photographer, turned wedding photographer, turned writer
• [22:33] Meet Carey Green, pastor turned podcast editor
• [39:05] Welcome Mark Ross, a solopreneur after 30 years in public service

THE HAPPY LAB SEGMENT

• [60:46] If you really want to pursue the entrepreneurial journey then meet some other people taking that journey

TODAY’S SMART SPRINT SEGMENT

• [61:58] Vince Pugliese has a group for those that are entrepreneurs, join it!

Resources Mentioned In This Episode

Next Thing Group with Mark Ross - get his free PDF to help you decide what to do next!

Email Mark Ross

Carey Green’s - Podcast Fast Track website

Vinnie’s website: The Freelance Tribe

BOOK - Freelance to Freedom by Vincent Pugliese

BOOK - 48 Days to the Work You Love by Dan Miller

BOOK - Don’t Retire Rewire by Jeri Sedlar

BOOK - Will it Fly by Pat Flynn

BOOK - Rich Dad Poor Dadby Robert Kiyosaki

BOOK - Lynchpin by Seth Godin

BOOK - Total Money Makeover by Dave Ramsey

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

So you want to start a business, but starting everything from scratch seems like so much work. Isn’t there an easy way to buy into an already proven system and execute it? If you think this sounds like a good way to start a business, then buying a franchise might be right for you. On this episode of Retirement Answer Man franchise attorney Josh Brown joins me to explain the pros and cons of buying a franchise. He is a leading expert in national franchise law that can explain how to create a franchise as well as how to purchase one. You’ll want to listen to this episode if you have ever thought of buying a franchise, or even if you want to pursue any form of entrepreneurship in retirement.

What exactly is a franchise?

The franchise idea sounds interesting, but what exactly is a franchise? A franchise is a system that has everything you need to start a business based on the model of a certain business. When most people think of franchises, they think of the gold standard: McDonald's. There is a good reason for this: fast food is the leading industry for franchises. Franchises don’t come cheap. The upfront cost of a franchise system can range from $100,000-1 million. For this cost, you get the entire business system which generally includes uniforms, payroll, and even coaching. Statistically, franchises fare much better than a private entrepreneur that strikes out on their own. Listen to this episode to learn more about the pros and cons of buying a franchise and begin your research into whether a franchise may be right for you.

Who is a franchise good for?

A franchise needs a strong leader who is an implementer and an excellent communicator. You may want to buy a franchise if you would rather implement a system than create your own. It is important to note that if you buy a franchise you will be able to use little to none of your own creative expression. If you do want to pursue this option you will need to have plenty of capital and time. This will not be a side-hustle as a franchise does not allow you much time freedom. A franchise requires a lot of hard work, but you could eventually get someone to operate it for you or sell it later on down the road. Franchises are not for the faint of heart, listen to this episode to find out if you may be a good candidate for buying your own franchise.

What should you evaluate when you are thinking of purchasing a franchise system?

The first thing you should think about when contemplating purchasing a franchise is yourself: is this the right form of entrepreneurship for you? Do you have the mentality to work within a franchise system? The way franchises are set up you don’t call the shots; you must follow their rules. If you are thinking of setting up your own business you need to think about whether you really want to follow someone else’s rules. It is extremely important to enter a franchise with your eyes open. It can be 18 months after you open your first store that you begin to bring in money. Listen to this episode of Retirement Answer Man hear the pros and cons of buying a franchise and to learn how to decide if a franchise is right for you.

How do you know the good franchises from the bad?

Of the thousands of franchises available in the United States, there are good ones, bad ones, and terrible ones. So how do you know the good from the bad? You need to look at the system that they have in place and decide, is this a good system? One way to do this is to talk to franchisees. There is a lot of good information in the legal documents if you know how to look for it. You can discover how many people have left the system and contact them to find out why. A good system will provide community and make you feel part of a team. Listen in as franchise expert, Josh Brown explains how to tell the good franchises from the bad.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:14] What is a franchise?
• [9:38] Who is a franchise good for?

PRACTICAL PLANNING SEGMENT

• [11:48] Meet Josh Brown
• [12:46] What should you evaluate when you are thinking of purchasing a franchise system?
• [24:12] Let’s discuss cash flow

THE HAPPY LAB SEGMENT

• [30:35] It’s easy to get excited and plan, but make sure it’s the journey you want to be on

TODAY’S SMART SPRINT SEGMENT

• [33:04] Do some soul searching on what kind of journey you want to be on, ask yourself: to what end?

Resources Mentioned In This Episode

Josh F. Brown’s email, his phone number - 317 688 9111

Josh’s website

TV show - Alone

BOOK - The E-Myth Revisited by Michael E. Gerber

MOVIE - Founder (about the McDonald’s franchise)

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

 

On this episode, we explore the aspect of mindset and explore the question: What are some of the mindset attributes of a successful entrepreneur? Mindset is a huge hurdle for so many entrepreneurs. You need to get into the mindset right before you ever consider entrepreneurship. At this stage in life, you don’t have the time to make up for any mistakes the way that you would if you were in your 20s. This is your one shot at becoming an entrepreneur, so you must make the most of it. If you are considering entrepreneurship in retirement you definitely don’t want to miss this episode to hear how you can adjust your mindset for success.

What are some bad reasons to start a business?

You need to think about whether you are starting a business for the right reasons. Just because you can start a business doesn’t mean that you should. If you are planning to open a business simply because you need a change, then you need to rethink. Starting a business isn’t a great way to run away from a bad job. This mindset won’t set you up for success. Boredom is another bad reason to become an entrepreneur. There are much less expensive ways to fill your time. Are you starting a business simply because you have a good idea? Well, I have bad news for you, ideas are the easiest part of entrepreneurship. Make sure you listen to this episode if you are thinking of starting a business.

Money won’t solve mindset problems

Becoming an entrepreneur in your 50s and 60s is much different than in your 20s. Most people have more money at this time in their lives than they have ever had before. Just because you have the money doesn’t mean you should throw it all at your new business venture. Some people get caught up in looking the ‘right’ part. They spend too much money on all the shiny things that they think they need when just starting out. The truth is you need to bootstrap as much as possible when beginning a new business venture. That way if you fail, you will fail cheaply. Listen to this episode to hear why having more money can actually lead to the wrong money mindset.

What are some mindsets of unsuccessful entrepreneurs?

There are many reasons that most new businesses fail. The biggest reason is the business owner has the wrong mindset. Most new business owners do not have the right mindset to create a successful business. If you are becoming an entrepreneur for the first time in your 50s or 60s then you must step away from the employee mindset and switch gears to that of a successful entrepreneur. Unsuccessful entrepreneurs often get stuck in the same routines. They are unable to pivot when something doesn’t work out. Listen to this episode of Retirement Answer Man to hear what kind of mindset it takes to become a successful entrepreneur.

How do successful entrepreneurs think?

Successful entrepreneurs come from many different walks of life, but successful ones share similar mindsets. A successful entrepreneur is action-oriented. When there is a problem with their business they don’t sit around pondering the situation. They are agile; after taking action a successful entrepreneur can quickly adjust to any situation and pivot as needed. Successful entrepreneurs are overly optimistic, yet always worried about what will happen next. Do you have the mindset needed to become a successful entrepreneur? Listen to this episode of Retirement Answer Man to find out.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:11] What are some of the bad reasons to start a business?
• [12:10] What are some bad mindsets for entrepreneurship?
• [13:43] The curse of capital
• [14:41] You can stick to your dreams too long

PRACTICAL PLANNING SEGMENT

• [16:57] Mindset attributes of a successful entrepreneurs
• [18:11] Be an optimist, yet be scared

THE HAPPY LAB SEGMENT

• [27:58] Watch The Greatest Snowman movie

TODAY’S SMART SPRINT SEGMENT

• [30:08] Go to my YouTube channel and watch the interview with Fritz

Resources Mentioned In This Episode

The Greatest Showman

The Retirement Manifesto Blog

BOOK - EMyth Revisited by Michael E. Gerber

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Intro music by bensound.com

Why do people start businesses in retirement? Over the next few weeks, we explore this question in the Entrepreneurship in Retirement series. Just because you retire doesn’t mean that you stop living. Many people have so much to give back after they retire that they choose to start their own business. This episode will cover the whys, the ways, and the hows of beginning entrepreneurship in retirement. If you are thinking of starting your own business or having a pretirement phase to your retirement you won’t want to miss this series. Listen to this episode to get started planning your own entrepreneurship dreams.

Why do people start businesses in retirement?

More people between the ages of 55 and 64 start businesses than people under the age of 25. This fact surprised me. Why do baby boomers want to pursue entrepreneurship in retirement? There are several reasons. Just because we retire doesn’t mean we stop living. We still have a purpose. Many people start a business in retirement to pursue their passions. Some people want a bit more money to supplement their lifestyle, others find it a great way to give back to their community. Many want to share their expertise with the world. Why are you thinking of entrepreneurship in retirement? Listen to this episode to hear the many reasons people start businesses in their retirement years.

What are you trying to accomplish?

Before you start a new business you should ask yourself, what are you trying to accomplish? Are you strictly looking to supplement your income? Are you looking to follow your passions? Are you trying to give back to your community? The reason that you choose entrepreneurship in retirement is important. This will shape how you form your business. You don’t want to start a business where your goal is to have flexibility and then find yourself working 60 hours a week. Listen to this episode to hear why it is important to think about why you want to start a business first before you actually begin.

What are the different ways to start a business?

There are many different ways to start a business. A solopreneur is someone who wants to strike out on their own. A solopreneur could make crafts to sell, have a coaching business, or pursue a passion. Usually, a solopreneur doesn’t want to grow too big. A franchise is a way to buy a ready-made business that already has a plan and structure in place. A service business is a business where you can serve others. These different types of businesses have different structures and varying start-up costs. Listen to this episode to help get you thinking about the type of business you would like to start.

Be careful that you don’t commit financial suicide

When you retire you probably will have access to more money than you ever had before. This can be tempting when you want to start your own business. You may want to start your business small so that you can see if it is actually a viable business plan. Test your idea to ensure that it fits your finances as well as the market. You may find that your passion may not be the passion of others. If you start out small you can always find a way to pivot your business without committing financial suicide. Listen to this episode to hear why it is so important not to throw all of your money at your new business.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:49] Why do people start businesses in retirement?
• [8:54] What to expect in this series of episodes of Retirement Answer Man

PRACTICAL PLANNING SEGMENT

• [9:51] What are the ways that you could start a business?
• [12:20] What are you trying to accomplish?
• [15:50] Be careful that you don’t commit financial suicide
• [19:55] Make sure that your business idea fits the market
• [21:17] What are some tools you can use to help you get started?

THE HAPPY LAB SEGMENT

• [23:20] Change your mindset to control your life

TODAY’S SMART SPRINT SEGMENT

• [25:10] Go to the resource section and get a book to help you get started

Resources Mentioned In This Episode

BOOK - 48 Days to the Work You Love by Dan Miller

BOOK - The Lean Start-Up by Eric Ries

BOOK - The Pumpkin Plan by Mike Michalowicz

BOOk - The E-Myth Revisited by Michael E. Gerber

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Intro music by bensound.com

Welcome to the last episode in this Retirement Plan Live series. This is the Flying Solo Edition where you can learn how to rock single retirement. Several listeners offer fantastic retirement questions and comments that I answer on this episode and the answers will interest you. On the practical planning segment of the show I am joined by Herb who gives us a male perspective on retiring single, so you won’t want to miss that. Be sure to listen to this episode as well as the webinar on June 7th to hear the grand finale and find out what happens to Sam’s retirement plans.

How do you save your own retirement funds from an ill spouse?

The first retirement question is actually from a married person, but she brings up an interesting point. Jackie is concerned that she and her husband’s shared retirement funds may run out with his exorbitant end of life medical expenses. She would like to know if there is a way to protect her own IRA account so that she will have enough money for herself to live on after he passes. End of life medical expenses can be incredibly costly, so this is a valid question that affects so many. Singles may not realize that this question is one advantage of being single. Listen to the hot topic segment to hear my answer to this challenging retirement question.

What inflation rate should be used for retirement planning?

Another listener has a retirement question about inflation rates. It is important to hedge against inflation when planning retirement. I use a rate of 4% even though there has only been a 2% inflation rate over the past 15 years. It is important to use all the available data over a long period of time to get a better idea of what inflation could do. If one only relies on 15 years of data to plan then it doesn’t paint a complete picture of what could happen. Listen to this episode of Retirement Answer Man to hear retirement questions and why and how I calculate inflation for retirement planning.

What can you learn from my aunt and uncle about retirement planning?

My own aunt and uncle join me on the practical planning segment to give us their perspective on retirement issues that you may not have considered. Recently after my aunt had surgery they were surprised to find that Aunt Patty needed 24-hour care for a whole week after a routine surgery. This brings about the retirement question: how do you plan for 24-hour care? This is hard enough for a married couple to plan for, and if you’re single it may take serious consideration. If you are considering moving to a new area after you retire you may also want to consider the medical facilities available. Listen to this episode as my aunt and uncle share insight that only comes with hindsight.

Finally, a single man volunteers to represent half the population!

Herb steps up to give a male perspective on retiring single. He recently contacted me and was the only male to volunteer to share his point of view on retirement. Thankfully Herb is a great candidate to represent half the single retirement population. Herb is 55 and planning on retiring in 3-5 years. Since he lives where there is a high cost of living he would prefer to move when he retires. One of the benefits of retiring single is that the choice is all his, and he won’t have to compromise. Herb is great at getting out of his comfort zone and feels that this will help him to create a network of friends wherever he decides to land. Listen to the practical planning segment to hear Herb’s perspective on retiring single.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] Find out about the webinar where you discover the results of Sam’s retirement conundrum

HOT TOPIC SEGMENT

• [4:08] Jackie has a question about how to save her own retirement funds from her husband’s medical expenses
• [6:39] Carla asks: what inflation rate should she use for retirement planning?
• [7:40] Scott would like to know: Why does Roger use such a high inlfation rate?
• [10:10] Mark remarks on travel plans
• [11:40] K.J. asks where can she find affordable financial planning
• [13:27] Sarah feels less weird about being a happily single woman after listening to this series

PRACTICAL PLANNING SEGMENT

• [15:10] My aunt and uncle join me on the show to discuss healthcare
• [27:27] Herb joins me to give a male perspective on retiring single

THE HAPPY LAB SEGMENT

• [36:02] Embrace life, be adventurous

TODAY’S SMART SPRINT SEGMENT

• [37:10] Go buy my book, it really will help give you a better perspective

Resources Mentioned In This Episode

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Intro music by bensound.com

On this episode of Retirement Plan Live: Flying Solo Edition we tackle a challenging question. Is retiring single risky? This episode is all about risk and the special or riskier situations that retired singles may find themselves in. Single people have different considerations than married people and may need to plan their retirement in more detail. I ask Sam, my guest, and case study for this edition of Retirement Plan Live, about what types of concerns she has retiring single. You’ll want to make sure that you listen to this episode so that you can begin to think about all of the circumstances you may encounter when retiring single.

Should you embrace risk or hide from it?

There are risks to everything in life, but to live a full life you have to take on a certain amount of risk. If you run away from risk entirely you end up living a smaller life. The more you embrace risk the more it can broaden your life. There is a certain amount of freedom that comes with being a single person. You don’t have anyone that you need to check in with, you can travel whenever and wherever you want. But there are situations that a single person needs to prepare for more than a married person. Listen to this episode of Retirement Answer Man to start thinking about how much risk you are willing to take in your retirement and your life.

What are some of the normal risks that are increased for singles?

Retired singles have an increased chance of loneliness as they age. You can begin to combat loneliness in your elderly years by establishing a strong network of friends now. Making friends with similar interests is easy to do. There are groups and clubs for just about every hobby, even solo activities like knitting and fishing can be enjoyed with others. Another consideration you may not have thought of is whether or not you have someone to use as a sounding board for big decisions. Making life altering decisions can be a challenge and it is always helpful to have someone you trust to help you talk things out. Listen to this episode to hear several considerations that you may not have thought of that you will need to plan for as a single person.

How do you plan your estate when you’re single?

If you don’t have any heirs you may think that what happens to your estate doesn’t really matter, but you do need to think about who you would like to be the executor of the estate. There are professionals that can be hired to do this job if you don't have anyone to ask. Long-term care insurance is a good option when thinking about what will happen when to you when you are no longer able to care for yourself. But have you considered who will have power of attorney and can handle the personal medical decisions that may be faced if you are incapacitated? This episode may not be as fun as the dreaming big episode, but it is important nonetheless. Listen in to hear many of the significant considerations that you may not have thought of when retiring single.

What are Sam’s worries about retiring single?

Sam has been considering retirement for quite some time and has put a bit of thought into many things. She has been working with a financial planner whom she trusts for many years. He has helped her weather the financial upheaval of 2008. Sam thought it was important to purchase long-term care insurance, so as not to burden her daughters with caring for her if she becomes unable to care for herself. Sam considers herself pretty conservative and not much of a risk taker, so listen to her concerns as she considers retiring single on the practical planning segment of this episode.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [2:42] The live results webinar is on Thu June 7

HOT TOPIC SEGMENT

• [6:22] What are some of the normal risks that are more heightened for singles?
• [17:22] How do you plan your estate when you’re single?

PRACTICAL PLANNING SEGMENT

• [21:21] How does she handle her investment accounts?
• [27:21] What are her worries as a single person?
• [32:03] How did she find her investment professional?

THE HAPPY LAB SEGMENT

• [40:02] How do you balance taking risks and staying safe?

TODAY’S SMART SPRINT SEGMENT

• [42:39] What risks am I allowing to restrict my life?

Resources Mentioned In This Episode

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Intro music by bensound.com

 

Welcome to Retirement Plan Live: Flying Solo Edition. On each Retirement Plan Live, I walk prospective retirees through the same agile retirement planning session that I do with my clients. This edition is created by popular demand for singles who are planning to retire. There are so many retirement planning resources out there geared toward married couples, but hardly any are focused on singles. This series hopes to change that. Listen to this episode of Retirement Answer Man as Sam and I discuss the resources she has at her disposal to help us plan her ideal retirement.

What resources do you have to achieve your ideal retirement?

The last episode in this series focused on dreaming big. Sam shared her retirement dreams and I dared her to dream even bigger. We start to come back down to earth in this episode as we focus on what resources she has to plan her retirement. It’s great to dream big, but then you have to find a way to fund it. The next step in creating a retirement plan is uncovering what resources are available to you. Resources are any income sources you may have, these may include income, pension benefits, social security, etc. Listen to this episode to discover how to take the next step in your retirement plan.

Create an action plan

When you create an action plan you have to organize yourself and your finances. Luckily on this week’s 6 Shot Saturday I include a heap of resources for you to use to create your own action plan. This action plan will help you consider all of the income streams that are available to you that you may not have even thought of. Your action plan may include pretirement income, downsizing your home, or even social security from an ex. Be sure to listen to this episode so that you can begin your action plan to help you plan your ideal retirement.

Do you have a net worth statement?

Many people have never even heard of a net worth statement, and many more haven't created one. I’m here to tell you: you need one! A net worth statement can seem intimidating to create, but you will feel much better once you have one in place. It will help you become more intentional in your retirement planning. A net worth statement gives you an easy snapshot of all of your available resources. I love net worth statements so much that I am including a worksheet to help you create your own in this week’s 6 Shot Saturday. So make sure you are signed up to get all the goodies that I have coming your way to help you build your ideal retirement plan.

Does Sam have a net worth statement?

Last week Sam got to dream big, but this week we come back to earth a bit and discuss how to make those dreams happen. Sam has heard of a net worth statement but has never created one herself. I walk her through a series of questions to build an understanding of her assets and debts so that I can create an accurate net worth statement for her. We also discuss her different income sources, inheritance, pensions, and pretirement options. Listen to the practical planning segment as I walk Sam through the steps to build her net worth statement and action plan. These steps will help you build your own agile retirement plan.

 

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:22] What resources do you have to identify your ideal retirement?
• [8:02] Do you have a net worth statement?

PRACTICAL PLANNING SEGMENT

• [[12:00] How did it feel to hear herself on the podcast?
• [14:35] What are Sam’s income sources?
• [18:23] Sam and I build a net worth statement
• [31:22] Next week we’ll discuss risks

THE HAPPY LAB SEGMENT

• [32:59] Building a net worth statement can be intimidating, but it helps you be more intentional

TODAY’S SMART SPRINT SEGMENT

• [33:47] Get the resource in 6 shot Saturday to build your own net worth statement

 

Resources Mentioned In This Episode

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Intro music by bensound.com

 

Retirement Plan Live is flying solo this time around. Retirement Plan Live is a series of episodes on the Retirement Answer Man podcast designed around real, live case studies with listeners that would like to retire in the near future. This time I looked high and low for the perfect single potential retiree. Sam agreed to come on the show and share her retirement dreams, goals, and aspirations as well as her financial realities. This conversation focuses on the fun stuff. We envision what her ideal retirement would look like. Listen to this episode of Retirement Answer Man to hear Sam’s retirement dreams so that you can get some great ideas on how to plan your own single retirement.

How do we deal with this retirement dilemma?

The age-old retirement dilemma is how do you have as much fun as you can while you still can and have enough left over to see you through the rest of your life? So many of us worry about spending anyways, and once we stop working the anxiety can worsen. When you’re single this can prove even more challenging. You don’t have anyone next to you help you bring balance to your financial planning. You won’t want to miss the Retirement Plan Live: Flying Solo series if you are planning a single retirement. So make sure you listen to this episode to help you get started in your retirement planning.

Are you looking for tips on how to plan your retirement?

When you are planning for a single retirement it can be a challenge in many ways. There is only one income and you don’t have anyone to bounce ideas off of. A great way to get started planning your single retirement is to draw your own retirement vision board. Think of what your ideal life would look like. Concentrate on these aspects: environment, relationships, hobbies, and health. Thinking of these categories will help you negotiate and prioritize where your money should go and keep your eye on the fun. Listen to this episode of Retirement Answer Man to hear some great tips on your retirement planning.

Start retirement planning by focusing on your ideal retirement

What would your ideal retirement look like? If you could have anything you want in the world and money was no option, what would you do? Would you have a garage full of fancy cars, travel around the world, or maybe spend quality time with family? The best way to get started planning your retirement is by shooting for the stars. After you have really dreamed big, then you can start trimming away to find a balance between the dream and the perfect lifestyle that is within your reach. Make sure you are signed up for 6 shot Saturday to get a worksheet to help you begin to plan your retirement fun. Listen to this episode to hear more about how you can begin planning your single retirement.

What does Sam’s ideal retirement look like?

Sam joins me for a fun conversation on the practical planning portion of the show. She and I discuss what her ideal retirement would look like. We plan big trips, work on her house, family time, healthcare and more. She gives me some ideas on how much her ideas cost and I help her guestimate some expenditures. This is the fun part of planning for retirement and you won’t want to miss hearing what Sam is envisioning in her single retirement. Tune in to the practical planning segment to hear what Sam’s ideal single retirement sounds like and to get some great ideas on how to begin planning your own retirement.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:55] How do we deal with this retirement dilemma?
• [10:43] Tips for dealing with the retirement dilemma

PRACTICAL PLANNING SEGMENT

• [18:38] Sam defines her ideal lifestyle
• [26:22] What are Sam’s big expenditures?
• [29:29] What does her travel look like?
• [34:38] All of the other extras Sam may want in retirement

THE HAPPY LAB SEGMENT

• [39:19] Planning your ideal retirement can be fun

TODAY’S SMART SPRINT SEGMENT

• [40:33] Sit down and dream up your ideal retirement

Resources Mentioned In This Episode

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Intro music by bensound.com

Can you be single and still rock retirement? This Retirement Plan Live series focuses on a single person. Over the next four weeks, I’ll help Sam make up her personalized retirement roadmap based on her individual needs. Being single in retirement is a topic that isn’t covered by me or by other retirement resources nearly enough, so I’m glad to be investigating retirement as a single person over the next four episodes. If you are flying solo and ready to rock retirement, you won’t want to miss this episode or the ones to come.

There are few retirement resources geared toward singles

You can look high and low, but there isn’t much out there to help single people plan for retirement. Just about everything is geared toward married couples. Single people have different concerns than married couples when planning their retirement. Listen to the Hot Topic segment to meet Sam, the subject of this Retirement Plan Live and then stick around for the Practical Planning segment as I interview several other singles that are embarking on their retirement planning journey.

Meet Sam, the next subject of Retirement Plan Live

We don’t talk about single people enough in the retirement planning industry. That is why I decided to focus this series on a single retiree. Sam is the subject of this month’s Retirement Plan Live. Sam is 59 and lives in Arizona. She is trying to figure out what kind of lifestyle she can afford in retirement with the amount of money that she has. Her goal for this series is to find out how she can balance lifestyle, money, and longevity. If you are single and thinking about retirement you won’t want to miss this series, so listen to episode 219 to begin.

What are the biggest worries as a single retiree?

In the Practical Planning segment, I chat with several different singles to get a feel for what their concerns are as they plan for retirement. The biggest worry for each of them seems to be when they reach old age. As a single person, this brings on different types of worries than a married couple. It may be advantageous to start planning for old age while you are still relatively young and have all of your faculties. You’ll want to hear how these people are planning to handle old age in different ways. Use this episode as a starting point for your retirement plan as a single retiree.

Planning for retirement as a single person doesn’t have to be scary, it can be quite exciting

Planning for retirement isn’t all gloom and doom. Think about it: what are you excited about when you think about retiring as a single retiree? I ask several different people this question. The answers range from freedom, to travel, to giving back to the community. This episode of Retirement Answer Man is all about planning your retirement as a single person. Get started planning now by listening to the Retirement Plan Live series so that you can enjoy all the freedoms that retirement brings just as soon as you are ready.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] Retirement Plan Live is back!

HOT TOPIC SEGMENT

• [5:05] Let’s meet Sam and hear why she chose to do this
• [6:59] What are we trying to figure out?

PRACTICAL PLANNING SEGMENT

• [11:27] What are Elizabeth’s biggest worries as a single person?
• [20:29] How is Lisa planning her retirement?
• [27:18] Kirbie would like to hear more about possible paths forward for single people
• [32:54] Jen lives in a high cost of living area and wants to connect in her community
• [39:44] What does Twila think is different between retirement planning when you are single vs. when you’re married?

THE HAPPY LAB SEGMENT

• [46:14] Don’t mislabel things, they can be pretty cool if you make them your own

TODAY’S SMART SPRINT SEGMENT

• [47:49] Sign up for 6-Shot Saturday

Resources Mentioned In This Episode

BOOK - The One Thing by Gary Keller and Jay Papasan

BOOK - AARP Guide: The Single Woman’s Guide to Retirement by Jan Cullinane

Roger’s YouTube Channel - Roger That

BOOK - Rock Retirement by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Intro music by bensound.com

This is the third episode in our April series on bonds. On this episode, we discuss interest rates and how they affect bonds. One question we explore is, are interest rates the nemesis of bonds? To help me explore this question and explain a bit about bonds Chief Investment Strategist, John Lynch of LPL Financial joins me. Together we discuss rising inflation and interest rates and find out what this all really means for the economy and your portfolio. If you are worried about what rising interest rates mean for your portfolio then you’ll want to listen to John’s explanation

Interest rates are rising, but what does that mean?

Now that interest rates are rising everyone is in a panic, but the reality is that interest rates have been at a historic low and were dropping for more than 30 years. We still aren’t even back to normal levels. The Fed’s job is to control the rate at which interest rates rise and it ensures that they don’t rise too high too fast. So even though interest rates are rising it’s not the end of the world. Learn more about what rising interest rates mean to you by listening to this episode of Retirement Answer Man.

How do rising interest rates affect bonds?

Interest rates and bonds have an inverse relationship. When interest rates drop, bond returns increase. So now that interest rates are on the rise again after 37 years of falling, bond prices will probably fall. According to Bloomberg Barclays U.S. Aggregate, interest rates may continue to increase. These rising interest rates can seem scary for the bond market, but it may not be as scary as you think. Listen to this episode of Retirement Answer Man to learn how rising interest rates may affect the bonds in your portfolio.

Bad news for interest rates leads to good news

These rising interest rates seem like really bad news, but rising interest rates and inflation are actually good news for the economy. The economy is growing and employment rates are on the rise. Inflation means growth for the economy. The interest rates have been artificially low to stimulate the economy but now that the economy is moving again the Fed doesn’t have to keep interest rates artificially low. The Fed can now help them to rise slowly back to normal rates. Listen to this episode of Retirement Answer Man to hear how this bad news is actually good news all around.

What is duration?

Duration is the mathematical formula that indicates the value of a bond. It is the amount of time that an investor has to receive coupon payments to and get the principal back. It is a useful tool that investors use to measure risk or volatility. The benchmark used by financial professionals is Bloomberg Barclays U.S. Aggregate. Barclays predicts that long-term investors should not have a problem with interest rates and duration as long as bonds are used in a balanced approach to your portfolio. Listen to this episode of Retirement Answer Man to hear how and why you should still add bonds to your mix.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] Are rising interest rates the villains of bonds?

HOT TOPIC SEGMENT

• [5:36] Interest rates may rise faster than we are used to
• [7:26] Meet John Lynch
• [13:29] What do interest rates mean in terms of bond performance
• [15:15] Bad news leads to good news

PRACTICAL PLANNING SEGMENT

• [22:44] What is the relationship between bonds and interest rates
• [27:40] What is duration?

THE HAPPY LAB SEGMENT

• [33:03] Who is your favorite villain?

TODAY’S SMART SPRINT SEGMENT

• [34:49] Look at where you keep your cash reserves so that you don’t leave money on the table

Resources Mentioned In This Episode

John Lynch on LinkedIn

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Intro music by bensound.com

Why would you ever add bonds to your portfolio if their return is so low? This is the second episode in the April bond series. This month we are learning all about bonds. On this episode, we delve into the question: why do we even have bonds in our asset allocation? I really get into the science behind why bonds are in our portfolios. If you are planning on retiring soon your role as an investor is changing and you may want to have more bonds than you think. Find out why you need bonds in your mix and what bonds add to your portfolio by listening to this episode of Retirement Answer Man.

What is the difference in investing when you’re younger vs when you’re older?

When you’re younger you have a lot of time for your investments to work for you. When you’re in the wealth accumulation mode of youth you’re on autopilot, socking away money each month without even paying attention. This strategy no longer serves you when you are preparing to retire and you stop accumulating wealth. Now your role is changing, soon you will start tapping your wealth. So when the markets dip you will actually feel it in your portfolio. Psychologically you will feel more vulnerable because the market volatility becomes pretty scary. This changes the way you think about markets and investing. Listen to this episode to understand how your role as an investor has shifted with age.

What can bonds add to your investment cocktail?

Bonds add more than you think to your portfolio. Soon you will stop adding to your portfolio and you will be taking money out of it. Now that you don’t have as much time to play the markets, the security that bonds bring to your investments will provide peace of mind. And a healthy mix of bonds in your asset allocation can actually bring about good returns while also providing stability and less risk. It may be time to start thinking about managing your assets differently. Listen to this episode to understand how bonds can lead to the perfect investment cocktail.

What is the science behind asset allocation?

Let’s get to the science behind why we have different asset classes and what their benefits are. The modern portfolio theory is considered the best practice in portfolio management. This theory states that for a given level of return you will try to minimize as many risks as possible. And that for a given level of risk you will try to optimize returns and get the most bang for your buck. We measure this by using standard deviation. Is this bringing on flashbacks from college? Listen to me explain standard deviation in a way that you can finally understand, I promise there won’t be a pop quiz at the end!

What does modern portfolio theory mean for your assets?

Modern portfolio theory is great for helping to measure your risk tolerance. And this is the whole reason that your financial planner asks you to fill out risk tolerance questionnaires. The problem with all this science is that once you reach your 50’s and 60’s everything changes. You should no longer be measuring your maximum amount of risk tolerance, but how to live the life that you really want to. This episode will help you to understand how much science and how much art you should apply when managing your money, so grab your favorite pair of headphones and listen in.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] What can bonds add to your investment cocktail?

HOT TOPIC SEGMENT

• [4:00] What happens when you accumulate assets when you’re younger?

PRACTICAL PLANNING SEGMENT

• [11:02] What role do bonds have in your investment cocktail?
• [12:25] Let’s understand the science behind different asset classes
• [17:28] Why are risk tolerance questionnaires are so important?

THE HAPPY LAB SEGMENT

• [24:42] Try a new cocktail (or a new recipe!)

TODAY’S SMART SPRINT SEGMENT

• [26:13] What is the role of the bonds in your portfolio

Resources Mentioned In This Episode

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Intro music by bensound.com

April is Bond Month on the Retirement Answer Man podcast. Over the next four weeks, we will be discussing all things bonds. This is the first episode in the bond series in which we will discuss what exactly a bond is and why we all love them. You’ll want to listen to this series to find out what a good bond is and how to get one. Start learning about bonds by listening to this episode to find out exactly what a good bond is, how to buy them, and what the future holds for bonds.

Is our love affair with bonds coming to an end?

We have had a love affair with bonds for the last 30 years, but is the love affair with bonds coming to an end? The reason we have had such a good run with bonds is that they have had great returns while at the same time being a pretty low risk. Over the past 37 years, bonds have yielded an average of 8% a year. The worst year in bonds has brought -10% profit. Let's compare bonds with the stock market during the same period. The stock market yield has averaged 10.4%, not much higher than bonds. But the stock market low was -50%! Listen to this episode of Retirement Answer Man to find out if the stability and high rate of return of the bond market are at the beginning of the end.

What do interest rates have to do with bonds?

Interest rates may end up spoiling our love of bonds. Interest rates and bonds have always had an inverse relationship. As interest rates have dropped, bond returns have increased. Over the past 37 years, interest rates have dropped steadily, but it looks like that time has come to an end. According to Barclays, interest rates may continue to increase. These rising interest rates can be scary for the bond market. Listen to this episode of Retirement Answer Man to learn how rising interest rates may affect the bond market.

What is a bond?

A bond is basically a loan to someone else. Different bonds have different ratings depending on the borrower’s credit rating. The coupon rate is the amount of interest that the borrower pays depending on their credit rating. The maturity date is the length of time that the money is borrowed for. There are many different types of bonds including treasury bonds, corporate bonds, municipal bonds, and international bonds. All of these different types have various characteristics. If you want to learn all about bonds you need to listen to this episode of Retirement Answer Man.

How do you buy a good bond?

There are a couple of different ways that you can go about buying good bonds. You can research the kinds of bonds that you are interested in and have your broker find them for you. The pricing of bonds is a bit shady and not as straightforward as with stocks and it’s hard to tell whether you are getting a good deal. Make sure to diversify your bond portfolio. Mutual funds and exchange-traded funds are ways to diversify. By buying mutual funds your portfolio never really matures like with buying individual bonds. But they make it easy to reinvest the interest payments. Listen to this episode of Retirement Answer Man to hear about the various ways to buy good bonds so that you can decide what’s right for you.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [0:52] This month we explore bonds

HOT TOPIC SEGMENT

• [4:01] We have seen a steady decrease in interest rates for 37 years
• [6:29] Let's look at bond returns
• [9:19] Is the love affair with bonds coming to an end?

PRACTICAL PLANNING SEGMENT

• [10:40] What is a bond?
• [15:23] What are the different types of bonds
• [16:57] How do you buy a bond?
• [20:06] Next week we discuss what role bonds play in your portfolio

THE HAPPY LAB SEGMENT

• [21:05] What is your favorite James Bond theme song or soundtrack?

TODAY’S SMART SPRINT SEGMENT

• [21:58] Identify what kind of bond investments are in your portfolio

Resources Mentioned In This Episode

Listen to listener questions on Retirement Answer Man on YouTube

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Intro music by bensound.com

This is the fourth and final episode of the Healthcare Before Medicare series. On this episode, we discuss two more options to consider when thinking about healthcare before Medicare: taking on a part-time job for the insurance benefits and COBRA. We also answer some listener questions and comments in the practical planning segment of the show. Learn more about which companies are the best for part-timers to receive healthcare benefits as well as whether COBRA may be a good option for your healthcare coverage needs listen in to gain more knowledge about how to maneuver our complex medical insurance system.

Have you thought about pretirement?

Will you take a pretirement phase of retirement? Would you enjoy finding low-key meaningful work to ease yourself into full-blown retirement? I often refer to this option as pretirement. A part-time job can be a fun way to work your way into retirement and it could also provide you with insurance benefits. You could find something fun that you enjoy doing as a part-timer. One example of this is if you enjoy handy work you might enjoy a part-time position at Home Depot. You’ll definitely want to factor in your physical limitations and you certainly don’t want to go back to the grind of full-time employment. Listen to this episode to find out which companies offer benefits to part-time employees.

Would COBRA work for you?

You can maintain COBRA coverage for up to 18 months after leaving your work so if you are close to Medicare age you may want to consider COBRA. COBRA is also a good option if you don’t qualify for ACA subsidies. The good news is that you have 60 days to notify the insurance company that you would like to elect COBRA coverage. COBRA is probably the closest you will come to your current healthcare coverage, so if you have many healthcare needs you may want to consider this option. There are a lot of great benefits when choosing COBRA, listen to this episode to hear them all.

How do you decide what the right choice is for you?

Are you curious to find out which healthcare option I will choose? This entire series has come at a great time for me since my wife recently left her job and we are seeking alternative healthcare options. The ACA is a nonstarter for my family due to the exorbitant costs for us without a subsidy. We have narrowed our choices down to Medishare and COBRA. Planning for every eventuality is challenging, especially since no one wants to think about a catastrophic medical event happening to them, but that is the point of having medical insurance. Listen to this episode as I walk through my thought process in making this decision for myself and my family. Who knows, maybe my process may help you with a difficult decision of your own.

Who do you turn to help you figure out health insurance?

As usual, my listeners have some fantastic questions and comments. One listener asks, who can help you figure insurance out? An insurance broker, a financial planner, a tax consultant? That’s a tricky question! Listen to the answer to this question and a few others during the practical planning segment. There are so many different factors to consider when choosing the right healthcare option for you before Medicare kicks in, be sure to listen to the whole 4-part series to help you make your healthcare before Medicare decision.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] April’s theme will be all about bonds

HOT TOPIC SEGMENT

• [3:55] Will you take a pretirement phase of retirement?
• [5:12} What kind of work might you enjoy?
• [9:12] Would COBRA work for you?
• [12:24] What are my options?
• [22:21] How do you decide?

PRACTICAL PLANNING SEGMENT

• [24:46] A listener comment from a health insurance broker
• [28:55] Who is the best person to talk with about healthcare?
• [31:48] A customer comments about their Medishare experience
• [34:41] What are some other options and ethical questions?

THE HAPPY LAB SEGMENT

• [38:30] Check out the think up affirmation app

TODAY’S SMART SPRINT SEGMENT

• [40:14] Identify one area where you need to be healthier

Resources Mentioned In This Episode

careerpivot.com

Forbes Article on benefits for part-time workers

Think Up App

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Intro music by bensound.com

Over the past few weeks on the Healthcare Before Medicare series, we have been exploring the different ways to solve the question of how to pay for medical insurance before you reach Medicare age. On this week’s episode, we are getting creative. We are thinking outside the box of regular insurance and we are exploring medishare arrangements. Medishare is not typical insurance, so we will learn what the difference is between these programs and traditional medical insurance. I continue my discussion with Keith and Linda to hear more about their research into healthcare and I also have Michael Gardner from Christian Healthcare Ministries on to get the details on this medishare program. If you are thinking of retiring before retirement age or simply interested in insurance alternatives you will want to see if this is a good option for you. Listen to this episode as we explore all the options on how to get healthcare before Medicare.

What is medishare?

Medishare is an alternative to traditional health insurance. Medishare is a medical cost-sharing program, an arrangement between a group of people to share medical expenses. Although it is not traditional health insurance, there are some similarities between the two. There is a monthly fee similar to a health insurance premium and there is a yearly out of pocket portion that your family is expected to reach before asking the medishare community for help. Listen to this episode to hear about the medishare option when researching healthcare before Medicare.

Medishare is not insurance, it’s a community

The biggest difference between health insurance and a medishare ministry is that the money you pay each month goes to help another member of your community. When you pay your monthly share amount this money goes directly to another member who needs care. Healthcare sharing companies are nonprofit Christian based cost-sharing programs. Being part of this community is just one benefit of the medishare model. Listen to this episode to hear Michael Gardner discuss all of the benefits of joining the Christian Healthcare Ministries community.

What about the ACA?

If this isn’t insurance, how do people stay in compliance with the ACA? Medishare communities are insurance alternatives that have been around for about 30 years. Being as such, there is a provision in the ACA for these health sharing communities. Since these organizations are faith-based they can get around the religious loophole in the law that was put in place. These faith-based organizations require a statement of faith that must be signed as well as certain agreements to live a healthy lifestyle. Listen to this episode of Retirement Answer Man to hear all the details about medishare programs and how they can help in your search for healthcare before Medicare.

Why would you not want to participate in a medishare community?

During the Practical Planning segment, I continue my discussion with Keith and Linda. They were on the show last week to discuss their research into the ACA. This week Keith shares all that he has learned about medishare communities in his research into the subject of healthcare before Medicare. Keith discovered many great reasons to use a medishare community, but he also encountered some downfalls. I know you’ll want to hear why they decided not to go with this option, so listen to the show to discover the lowdown on medishare communities.

 

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:32] Alternative to health insurance
• [6:06] Michael Gardner shares the basics of what medishare is
• [9:09] What are some distinctions between the Christian Care ministry and insurance
• [15:52] How efficient is the system?
• [22:28] Extra perks from medishare

PRACTICAL PLANNING SEGMENT

• [26:15] What does Keith think about medishare?
• [31:42] What was the application process like?
• [35:43] Why did they not choose it?
• [41:55] What are the benefits of each company?

THE HAPPY LAB SEGMENT

• [52:50] My book Rock Retirement is officially out!

TODAY’S SMART SPRINT SEGMENT

• [54:30] If your mom is around, call her!

Resources Mentioned In This Episode

Christian Healthcare Ministries

Medishare

Liberty Health Share

Samaritan Ministries

BOOK - Rock Retirement by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Intro music by bensound.com

John Leland is a New York Times columnist and best-selling author of Happiness is a Choice You Make. He spent a life-changing year talking to six really old people. John thought that the year would be somewhat depressing, but it turned out to be quite different than he expected. He gained a lot of insight from his interactions with his subjects. Each person was quite different and they came from all walks of life. But even though they were such different people they shared the knowledge that they defined themselves by the choices they made. He learned so much in writing his book, mostly he learned how to live in the present moment and not worry about the future. His book is a fascinating insight into the wisdom of people that have so much life experience. You’ll want to hear this interview with John as he discusses some of the more memorable subjects in his book. Listen to this great interview to hear wonderful tips on happiness from those who know how to enjoy life.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] On this special bonus episode I chat with John Leland
• [3:25] What was it like hanging out with really old people?
• [5:44] John discusses one of his subjects, John
• [10:42] Lessons from Ping, who worked hard her whole life
• [13:48] Lessons from Fred who really chose happiness
• [16:48] Jonas was a fascinating case filled with wisdom
• [19:10] Some commonalities between the subjects in the book
• [21:12] John used this experience to make a choice to be happy

Resources Mentioned In This Episode

BOOK - Happiness is a Choice You Make by John Leland

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Intro music by bensound.com

This is the second episode in our Healthcare Before Medicare series and one you will not want to miss! This episode covers ACA and COBRA and we have a lot of ground to cover. The whole point of this series is to help you guys (and myself) figure out how to afford medical insurance before Medicare kicks in. If you have ever considered early retirement this is an important series for you to listen to since the healthcare system in the United States can be extremely confusing. So grab your headphones and a pen and paper to take notes because you’ll want to take in all the information you can in this important episode on the ACA and COBRA.

The ACA is a mess! But is it a mess that you need to consider?

The Affordable Care Act or Obamacare is a mess. I mean a political mess, no one knows what the next year, or 2, or 5 will bring for this attempt at healthcare reform. Even with the political turmoil that surrounds it, the website is actually quite good and the support staff is very well trained. The ACA is set up differently in each state. All the plans have gold, silver, and bronze categories. Obamacare covers young adult kids up to age 26 and chronically ill people or those with pre-existing conditions can’t be denied. The cost of premiums depends on a person’s modified adjusted gross income, or MAGI. Listen to this episode to hear how your MAGI drastically affects your premiums when dealing with the ACA.

How does the ACA work?

The ACA was created to help people that couldn’t afford health insurance be able to afford it. This is why 85% of ACA users have some sort of subsidy or advanced premium tax credit. The amount a person pays for coverage depends on how much they make. Take for example a random couple aged 55 that lives in Texas and makes $100k annually would pay $1660 per month, reduce that income to $75k and they would pay $1440 per month, but if you reduce that income to $50k then the couple would pay only $350 per month! The trick here for retirees is all about where your money is coming from. Listen to this episode to hear the details about how where you should be taking money from to fully benefit from the ACA tax credits.

Have you considered balancing self-insuring some things to help keep costs down?

My guests Keith and Linda have been down this road recently. They are aged 53 and 58 and recently retired. Keith started researching the ACA two years ago and has learned a lot. As an engineer, it was only natural that he tried to break down this decision into a spreadsheet, but he soon realized that part of this health care decision is emotional and doesn’t simply come down to numbers. He and his wife had to decide how important it was to them to keep all of their beloved doctors. Keith also considered the costs in self-insuring some procedures since convenience and familiarity come at a high cost with the ACA. Listen to this episode to hear Keith’s insight after two years of painstaking research into the ACA and COBRA.

What do you need to consider when checking into the ACA?

After all his research Keith feels that spending lots of time on the ACA website really helped him find clarity in the muddy pool of the U.S. healthcare system. What Keith realized is that there is no one size fits all solution to the healthcare system. The biggest factors in premium costs are your income, whether you’re rural or urban, and which state you live in. If you want to get the best deal that works for your family it will take a lot of diligent research. Listen to this episode to get started in your research into the ACA and COBRA and hear about all the things you need to consider.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] I want to make sure that you can afford healthcare before you get to Medicare age

HOT TOPIC SEGMENT

• [3:22] The ACA is a mess!
• [5:12] Here’s what I can explain to you about how ACA works
• [12:53] Here’s an example of a hypothetical couple that wants to sign up for ACA
• [15:43] Here’s what it would cost me to be insured through ACA

PRACTICAL PLANNING SEGMENT

• [18:20] Keith and Linda have been down this road
• [22:12] How important was keeping their Dr. or self-insuring
• [24:03] Have you ever tried to get a quote for a procedure?
• [28:13] Keith’s perspective on the ACA
• [36:10] What do you need to consider with the ACA

THE HAPPY LAB SEGMENT

• [40:23] Nicole’s cell phone fast has really made her happy

TODAY’S SMART SPRINT SEGMENT

• [41:58] What is one step you can take to better your health

Resources Mentioned In This Episode

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Intro music by bensound.com

This is it, the long-awaited beginning of the Healthcare Before Medicare series!! I’ve been meaning to cover this topic on the show for awhile and the timing couldn’t be better because I’m now deep in the search for my own insurance. So as I dive in to research this topic for all of you I will be looking to cover my wife and I as well. I think together we can get this insurance quandary all figured out. I am no insurance expert so you’ll have to take everything I tell you with a grain of salt. If you are one of the 67% of Americans that retire before the age of 66, or even if you are part of the 100% of Americans that are confused about the insurance system then you will want to listen to this episode and the whole series to come about insurance before Medicare.

What are all the health insurance options?

Searching for insurance can be so confusing! So, what are the options that are out there for those of us looking for medical insurance before we reach Medicare age? Basically, there are 4 options for people that haven’t reached Medicare age and need to find insurance solutions. We will be delving into some of these options in greater detail over the next few weeks. The ACA or ‘Obamacare’ is the first option. There are also alternative Medishare programs out there as well. Another option is to work part-time for a large company primarily for the health insurance. The fourth option isn’t much of one, but some people choose it, and it’s simply being uninsured. Listen to this episode and the rest of the episodes in this series to hear greater details about all of the healthcare options that you have available to you before you reach retirement age.

Are you one of the 67% of Americans that will need alternative insurance solutions?

Health insurance is a big issue for so many people. 67% of the American population retires before the Medicare retirement age of 66, so that means that 67% of Americans will need alternative insurance solutions at one time or another. The ACA can be a quagmire for just about anyone, but thankfully the website is much improved from the early days. There is actually some great information on there that can be very helpful. When choosing to go the ACA route there are many considerations. Listen to this episode to hear about what you need to think about when considering the ACA.

What are some of the challenges facing the ACA?

The ACA is a challenge to plan for since no one knows what the future of the health exchanges will look like. This brings up so many questions when one tries to plan for the future. There are plenty of ways to improve the program, but unfortunately, no one knows what the politicians and insurance companies will choose to do with the program.The different health insurance companies involved in ACA either drop off or raise their rates sky high each year. There is no clarity as to the future of the program, and no one is quite sure as to what will happen in the next year or two. The average cost of an ACA premium is a staggering $1000 or more a month. Listen to this episode as we discuss the ups and downs of the health insurance beast.

What types of insurance are there for the nomads?

Our listener questions are all about health insurance. The first one is about what type of health insurance is available to retirees without a permanent address. More and more retirees are hitting the road and choosing to enjoy the nomadic life for a while after retiring. Is there any sort of insurance available to those who wander? Another listener wonders if there will be a multi-state health exchange in the future. If you have any questions of your own or perhaps some helpful experience to share make sure to leave a comment on our website so that we can address it during this month as we explore healthcare before Medicare.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] Time stamped outline according to the “segments” of Roger’s show

HOT TOPIC SEGMENT

• [3:36] My own search begins for health care before Medicare
• [5:02] What are all the options that we have before Medicare?

PRACTICAL PLANNING SEGMENT

• [11:12] What sources or funds are not included in the calculation for ACA
• [12:52] What health insurance is available to retirees without a permanent address
• [17:45] Will there be a multistate exchange in the future?

THE HAPPY LAB SEGMENT

• [19:27] Try and figure out whether you should fix it or feel it

TODAY’S SMART SPRINT SEGMENT

• [21:04] Send us an email with your comments and questions about health care before Medicare

Resources Mentioned In This Episode

Healthcare.gov

BOOK - Rock Retirement  by Roger Whitney (Pre-Order this book now!)

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Intro music by bensound.com

Many of my listeners have remarked about how I am always giving advice for married couples, they feel that some of my information may not be directed toward them. But what about those of you who are single? I have plenty of listeners that are single, widowed or divorced. Are you wondering what you need to consider to retire as a single person? On this episode, we will discuss special considerations for single people; the costs, networks, and networking as a single retiree. Retired singles, this episode is just for you! Listen to this episode to hear how to rock being single in retirement.

There may be some extra considerations that retired singles may not have thought of

Did you know that half of the women over 65 are likely to be single? Way more women than men are single in their retirement years. Being single in retirement is not a negative and there is so much freedom to be enjoyed. But being single means there is more pressure on you to build your resources to support yourself during retirement. Just because you are single doesn’t mean that your cost of living is half as much as a married couple. There are many things to consider as a single retiree such as life insurance, long-term care, and medical decisions. Listen to this episode to hear all of the considerations that you may not have thought of as a single retiree.

What kind of network do you have in place to help you?

Being single is great for the freedom to drop everything and fly off to Rome at a moment’s notice, but what about the dog? As a single retiree, it is even more important to have a strong network to support you. Whether it’s a handyman, a driver, a pet sitter, or just an ear to talk to, you will need to have a support system in place as you get older. Having a network of friends and confidants can help you make difficult decisions and support you during challenging times. Listen to this episode to hear how to build your support network to help you in your golden years.

How to rock being at being retired and single

You can rock being a retired single person, but it takes planning. You will need to be extra diligent when planning your income streams to ensure that you have a consistent cash flow to sustain you throughout your retirement years. Without a spouse, you will need to have an emergency plan and trusted proxy in place for whatever emergency may arise. You won’t have the need for life insurance but you may need to consider long-term care insurance. Long-term care can be an important consideration for single retirees. Listen to this episode to hear how to plan your retirement well so that you can rock being a single retiree.

How do you find a financial advisor?

During the Practical Planning segment, a listener asks how to find a financial advisor. This can be tricky since financial advisors like myself cannot ask for testimonials from clients. Many people choose their advisors through a referral from a friend. This is a great way to find someone, but you need to make sure to use due diligence. When choosing a financial advisor it is important to be armed with the right questions. You can get the Retirement Answer Man advisor interview worksheet in the Learning Center. These questions will give you a framework to find someone to serve you the way that you need. One benefit of living in the modern age is that you have a huge selection. You can hire someone anywhere in the country and meet with them virtually. Listen to the Practical Planning segment to hear more fantastic advice on how to find a financial advisor that best suits your needs.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [0:22] What are some considerations to being single and retired?
• [1:34] Are you single and interested in becoming the next case study for Retirement Plan Live?

HOT TOPIC SEGMENT

• [4:10] How to rock being single in retirement
• [5:58] What are some considerations if you are thinking of retiring single?
• [13:48] Who is your network?

PRACTICAL PLANNING SEGMENT

• [17:13] How do you find an advisor?
• [21:55] A cash flow bucket question
• [25:05] When are we going to discuss healthcare before Medicare?

THE HAPPY LAB SEGMENT

• [27:26] Learn to be happy without someone else - Own your happiness

TODAY’S SMART SPRINT SEGMENT

• [28:42] Are you owning your own happiness?

Resources Mentioned In This Episode

Advisor Interview Worksheet

Episode #204 - Is Your Financial Advisor Worth the Cost?

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Intro music by bensound.com

We need to have a social network in retirement. A good network of friends can help you live your life to its fullest and expand the quality of your life. Retirees with the most robust network of friends are happier, healthier and more engaged than those who are lonely. Your social network doesn’t have to be a huge group of friends. Making new friends will also help you figure out who you are as you enter this new phase of your life. Listen to this episode to hear how to find some great ways to embark on new friendships.

Making new friends can help you define who you are

Who are you? It is easy to label yourself in your younger years. You are what you do, right? When you hit retirement the previous label you gave to yourself no longer applies. So you need to base your answer on what your interests are and exactly who you really are. Think about how you will spend your time in retirement. These thoughts can help you discover how and where to look for a new circle of friends. Making new friends will help you figure out who you are and who you want to be in this next phase of your life. Listen to this episode of Retirement Answer Man to get an idea of how you can start defining yourself and finding new friends in retirement.

Don’t be left lonely

On a previous episode, I touched on loneliness and how vulnerable the elderly are to loneliness. Our circle of friends can shrink as we get older as people move away or pass away. Sometimes if our spouse passes away then we can be left even more lonely. Our circles of friends get even smaller as we age and become more sedentary. This is why making a solid friend base early on in your retirement years is vital to combating loneliness as you age. I give some fantastic tips for combating loneliness in your retirement years on this episode of Retirement Answer Man so listen to the full episode to hear them all.

How do we make friends in retirement?

Sometimes it’s harder to make friends when you’re older. If you’re not in school or working where do you even begin to make friends? One way is to follow your passion. What do you like to do? Passion brings a commonality. If you’re a knitter, join a knitting group. If you’re a reader, join a book club, If you enjoy yoga, hang out after class and get to know other yogis. Get outside. Become a joiner. Make acquaintances first and see if they turn into friendship.People crave human connection and are often looking for new friendships. Build friendships with those that are younger than you and this will support you in the years that lie ahead. Listen to this episode of Retirement Answer Man to hear how you can get out there and make some friends.

What can you do in pre-tirement?

On the Practical Planning segment, we discuss pre-tirement. Pretirement is that sweet spot when you are still working but maybe not full time. It’s like a dimmer switch, where you plan your life to slowly move from full-time work to part-time work to full-time retirement. The time to think about pre-tirement is while you're still working. Do some research to discover what you might like to do. Research who you want to serve and what problem they are trying to solve and help them solve it. Listen to this episode to find out if pre-tirement is right for you.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] What is an introvert?

HOT TOPIC SEGMENT

• [4:46] Our circle of friends can shrink as we get older
• [6:25] How do we make friends during retirement?

PRACTICAL PLANNING SEGMENT

• [14:02] What are some ideas for pre-tirement?
• [20:58] Can you earn money and defer it to retirement accounts while not having your social security benefits reduced?

THE HAPPY LAB SEGMENT

• [26:29] We define who we are by what we do

TODAY’S SMART SPRINT SEGMENT

• [27:44] Who are you?

Resources Mentioned In This Episode

BOOK - Building a Story Brand by Donald Miller

Pretirement Episode

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Intro music by bensound.com

Let’s talk marriage! On this episode of Retirement Answer Man, I want to spark a discussion on how to have a happy marriage so that you don’t spend your retirement years alone. People with happy marriages live longer and are healthier than single retirees. Divorce in the retirement years can completely destroy your finances and even your social life. So having a healthy marriage comes with a lot of benefits. Listen to this episode to discover how to help your marriage thrive so that you can make the most of your retirement and your life.

The hidden benefits of a healthy marriage

Retirement can be an inflection point in a marriage because you are really There with that other person. One of the most common times that divorce happens is when couples hit retirement. But did you know that people with great marriages live longer, have fewer rates of heart disease, stroke, and advanced cancer at diagnosis? Married retirees are generally happier and don’t suffer the same rates of depression as their single counterparts. It turns out that having a healthy marriage leads to a healthy life overall. Listen to this episode of Retirement Answer Man to hear all of the health benefits that having a great relationship can bring you.

Are you familiar with the law of familiarity?

The law of familiarity states that when you become too familiar with someone you dismiss all their greatness and instead focus on their small annoyances. Because we're so familiar with our spouses over a long-term relationship we take for granted their good stuff. That is the natural battle to fight in the flow of relationships. When was the last time that you noticed something special about your spouse? This episode of Retirement Answer Man can help you learn not to take your spouse for granted, so listen in!

What can you do to create a better relationship?

Having a great marriage is good for your health, your mental health, and even your finances. So, how can you make the best of your relationship? One way is to learn to have fun together and share some common interests. If you are having trouble in your marriage give pause and appreciate your spouse and all of their good traits. Do you want some great tips to help your marriage not just survive but thrive? If so, you'll want to hear some more of these great ideas to bring back that spark and enjoy each other again.

My listeners ask the best questions

Once again my listeners have asked some excellent questions. I take some time in the Practical Planning segment to answer two great questions. The first is a very important question about the role of bonds in asset allocation. Here’s the question -- Nobody talks about what kind of bonds you should invest in. They just tell you to invest in bonds. Does it matter what type of bonds you should invest in? Another listener asks about low cost investing and using robo-accounts to manage your asset allocation. Listen to the Practical Planning segment to hear the answers to these interesting listener questions.

 

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] What are the danger zones for marriages

HOT TOPIC SEGMENT

• [4:39] How do you make your marriage thrive?
• [6:40] What is the law of familiarity?
• [9:25] Intentionally of make a better relationship

PRACTICAL PLANNING SEGMENT

• [14:01] What type of bonds should you invest in?
• [28:33] What is my opinion on robo accounts?
• [32:03] I have some general comments on investing

THE HAPPY LAB SEGMENT

• [38:52] What does your spouse want to receive from you?

TODAY’S SMART SPRINT SEGMENT

• [40:36] Think about what your spouse needs from you

Resources Mentioned In This Episode

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

On this great episode of Retirement Answer Man I touch on the recent developments in the markets, but I'm here to really discuss loneliness. Loneliness can be a limiting factor during the retirement years. It can seriously degrade quality of life and even lead to an untimely demise. Loneliness can be caused by many different reasons and if you don’t begin to take action now you could end up alone at a time of life when you are most vulnerable. Listen to this episode to hear some great ways to begin to combat loneliness right now so that this doesn’t become a problem for you in your retirement years.

How not to be lonely in retirement

Loneliness may be an aspect of retirement that you haven’t thought of before, but it actually can threaten not only your quality of life but your life itself. Loneliness is a leading cause of death in those over 60. It can cause depression and isolation from the world around you. Loneliness affects the elderly more than any other demographic. If you are looking for some ways to stay active and combat loneliness in your retirement then starting now is key. Listen to this episode of Retirement Answer Man to hear how not to be lonely during your retirement years.

What are some causes of loneliness?

There are many causes of loneliness in retirement. Work has a built-in social aspect. It gives you a social network to foster relationships, but once you stop working you may lose the network of friends that you once had. Loneliness can also be caused by the loss of a spouse. Oftentimes your entire social realm is created by your marriage and the loss of a spouse can lead to the loss of all of your social outlets. Immobility is another cause of loneliness, as you get older this can lead to loss of physical mobility or the decreased ability to travel by car or plane. Listen to this episode to hear how you can combat loneliness as you age.

How to combat loneliness

Combating loneliness can be an intimidating endeavor. It might put you out of your comfort zone. The key is finding a way to meet people with similar interests. This can be done by finding a book club, a meetup, taking crafting classes and opening yourself up to meeting new people. Building connections with younger people can guarantee that you are not the last man standing so to say. Another way to combat loneliness is to cultivate your purpose. We often lose our purpose when we stop working. Find out now what gets you out of bed in the morning. Listen to this episode to hear some great ways to cultivate friendships with people either your age or younger

Be intentional about fostering relationships

As we get older we begin to have more and more limitations that play a factor in our lives. But you can’t control everything that your body does. Instead, you can change what can you control and free yourself from the burden of the things that you can't control. Be intentional about fostering relationships with new and interesting people. If you only see the limitations that you have you will not give yourself an opportunity to create new relationships. Create a happier retirement by learning how to combat loneliness now. Listen to this episode to hear some fantastic tips on how to be proactive about creating a diverse network of friends that will take you into retirement and beyond.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [0:22] Let’s talk about the recent markets

HOT TOPIC SEGMENT

• [4:10] Loneliness can kill you
• [10:02] How to combat loneliness

PRACTICAL PLANNING SEGMENT

• [15:40] I correct an error I made - the best way to track non deductible contributions
• [17:40] Merriman’s ultimate buy-hold allocation
• [19:19] Vanguard’s payout fund
• [21:21] Some comments on mortgages

THE HAPPY LAB SEGMENT

• [23:55] I have rebuilt my network to create a happier life

TODAY’S SMART SPRINT SEGMENT

• [25:20] Take an inventory of your social network

Resources Mentioned In This Episode

Merriman’s blog

BOOK - Rock Retirement by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

What are you filling your head with? The "Facebook effect" or "social media effect" can lead us to be mentally consuming more junk than we would like. That’s why now it is even more important than ever to be intentional about what you read. Each year I buy dozens of books to line my bookshelves. This year I have compiled a list of books that I would like to read over the year. I'm sure I will read more than just these books, but I created this list of books as a way to ensure that I will get to them. If you have ever wondered what is on my bookshelf, then listen to this episode to hear my book list for this year.

Upgrade your beliefs by changing what you read

You are what you eat. We’ve all heard that expression our whole lives, but the more accurate description is that we are what we read. My intentional book list for this year covers a variety of genres, one is finance related, one is about growing my business, another is a cookbook, one will help me practice agile thinking. I also have a few books that I have enjoyed so much that I reread them each year. Are you curious to hear about what I am reading? Listen to this episode to hear which books are on my nightstand and then you can create your own intentional reading list.

What is a melt-up and do you need to worry about one?

In the news recently there has been a hubbub of an impending melt-up. Have you heard this worrisome term being thrown around on various media outlets? Are you curious about what it actually means? One listener heard about a melt-up that happened in Japan and is concerned that the same thing could happen here in the U.S. A melt-up is a dramatic and unexpected improvement in the performance of an asset class driven by a stampede of investors.  Listen to this episode to hear if a melt-up is something that you may need to worry about.

Social security can leave us with a lot of questions - here’s one from a listener

One listener asks about social security, his spouse isn’t eligible to draw on social security as a survivor, so should he go ahead and draw on it early? The government never makes these questions easy to answer; you can’t just do the math and simply figure it out. While mathematically you can figure out the break-even point, there are other considerations to take into account like what are your other income sources in early retirement. What do you need the income for? Listen to this episode to hear all of the questions you should ask yourself when considering this question.

Choose what you read

Live life more intentionally by choosing a personal reading list this year. I’ve chosen to live my life more intentionally by removing social media from my constant attention and in doing so I have been able to consume content that I have deliberately chosen. This book list will give me a broad range of reading material that may even help me better myself. If you would like to find out what’s on my book list and why then listen to this episode to hear the full reading list, you’ll even get to hear what Nichole is reading too!

 

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] What are you filling your head with?

HOT TOPIC SEGMENT

• [2:02] Some new books that I am going to read this year
• [10:21] Books that I reread every year

PRACTICAL PLANNING SEGMENT

• [13:54] What’s on Nichole’s book list
• [15:29] What is a melt-up?
• [21:33] A social security question
• [26:34] How can you tithe from investments

THE HAPPY LAB SEGMENT

• [29:07] What happened when I deleted social media from my phone?

TODAY’S SMART SPRINT SEGMENT

• [31:22] Create an intentional reading list for the year

Resources Mentioned In This Episode

BOOK - Washington: A Life by Ron Chernow

BOOK - The Daily Stoic by Ryan Holiday

BOOK - The One Thing by Gary Keller and Jay Papasan

BOOK - Essentialism by Greg McKeown

BOOK - Necessary Endings by Henry Cloud

BOOK - Your Best Year Ever by Michael Hyatt

BOOK - The Advisor Playbook by Duncan MacPherson

BOOK - The Back of the Napkin by Dan Roam

BOOK - The Mind Diet by Maggie Moon

BOOK - QBQ! by John G. Miller

BOOK - Great by Choice by Jim Collins

BOOK - Checklist for My Family by Sally Balch Hurme

BOOK - The Automatic Millionaire by David Bach

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Sometimes people use retirement as a reason to stop planning. This is a bad idea. The purpose of my retirement planning services is not simply to manage your money. My goal is to give my clients the best retirement that they can have. But without planning this can’t be done. Planning helps people make great things happen. Without a plan people often find themselves drifting through life without anything meaningful to work towards. This episode of Retirement Answer Man is your gentle reminder that you need a plan. Listen to this episode to hear why you don’t ever want to stop planning and making goals.

Don’t just wait for your retirement to happen

Hopefully, this podcast has helped you understand that you can’t just sit back and expect to live a perfect retirement without proper planning. You should have a good vision of the meaningful life that you want to work towards.  If you don’t start planning for your retirement and stay on top of your financial goals there’s no way you will be able to make your retirement the best that you can. When you plan on the best you can achieve the best. Listen to this episode to hear how proper planning can help you achieve your retirement goals.

Make this year your best year ever

Have you ever found that if you sit back on your heels and just let life happen then you are not at your best? Being intentional and setting an action plan helps you move forward and keeps you happy and connected. I’m reading a great book that has helped me reconnect and reassess my life. This is a great time to think about how you can continue to move forward in your life by reassessing your goals and finding something meaningful to work towards.

Listen to this episode to hear some great tips on how to set goals and to plan for the best year ever. If you sign up for 6 Shot Saturday you will even get a worksheet to help you assess your life and see where you can make some improvements.

How to upgrade your belief system

Part of reassessing life and making future plans can include reassessing your old belief systems. I went through a process of upgrading my beliefs and making myself a better man a few years ago. This completely changed my life and made me the man that I am today. I had to shed my limiting beliefs about the world, other people and about myself. I have since surrounded myself with people that help support a growth mindset and because I did all this I am more connected, happy, and my life has a purpose. How are your current beliefs limiting the way you think? Listen to this episode and sign up for 6 Shot Saturday to hear how upgrading your belief system can help you change your mindset.

Some fantastic listener questions

My listeners have some great questions, and unfortunately, those questions have backed up over the past months. I examine a few listener questions on this episode of Retirement Answer Man. One question covers how much you can put into a Roth IRA without penalties. Another listener is curious to find out if his cash reserves could be put into short-term bond funds. Another asks about passive investments. Listen to the practical planning segment to hear the answers to questions about Roth IRAs, cash reserves, and passive investments.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:18] To have the best retirement you have to be intentional

HOT TOPIC SEGMENT

• [3:13] Make this your best year ever
• [6:33] A quick book recommendation
• [9:13] Upgrade your belief system

PRACTICAL PLANNING SEGMENT

• [14:55] Backdoor Roth IRA
• [16:52] Cash reserves vs. short-term bond funds
• [22:55] What do I mean by passive or side investments

THE HAPPY LAB SEGMENT

• [26:35] Find something meaningful to look forward to

TODAY’S SMART SPRINT SEGMENT

• [28:53] Sign up for 6 Shot Saturday to get the wheel of life worksheet

Resources Mentioned In This Episode

BOOK - Your Best Year Ever by Michael Hyatt

BOOK - Rock Retirement by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover 

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

The cost of financial advisors vary greatly, but so does the value that they provide. On this episode of Retirement Answer Man, I address the question, is a financial advisor worth the cost? This is a tough question to answer, especially since I am a financial advisor myself! In this episode, you will learn about an important tool to measure the overall cost of your financial advisor and some ways that your advisor may be helping you. These areas will help you see if he or she is providing the best value for your investment management. Listen in to the episode so that you can fully understand how to measure their worth.

The financial advising world is changing

The world of financial advising is changing from investment management to client lifestyle planning. A financial advisor no longer simply invests your money. Good advisors bring the whole package to the equation. They are able to advise you on spending, risk management, forecasting, retirement planning and much more. The question remains, are advisors really worth their value? Is a financial advisor worth the money spent on them? Different advisors provide different values for their services and either they are a colossal waste of money or the best money you’ve ever spent. Listen to this episode of Retirement Answer Man to learn how to determine the qualities of a great financial advisor so that you can make the most of your money.

How can you quantify the value of a financial advisor

How do you determine whether an advisor's services are worth the investment and whether it is cost-effective to utilize their services? Determining the value of a financial advisor's service can be a challenge, but luckily Vanguard provides a process in which the layperson can help determine this value. Vanguard's Advisor Alpha Study actually breaks down the value of a financial advisor into six different areas. During this episode, I describe each of the six steps and how the Vanguard index can help you to measure your financial advisor’s worth. You probably have not thought of all of these points when considering whether or not to hire a financial advisor. Listen to this episode of Retirement Answer Man to hear all the different indexes that the Vanguard Advisor Alpha Study uses to measure the cost of a financial advisor. You will learn how you can assess whether your financial advisor is providing the optimum value that they should.

What are other areas where advisors can add value

If you use an advisor the value shouldn’t be in investment management alone. Your financial advisor should also provide the holistic strategizing and wisdom that can help you see your assets through the retirement years. It is also important that your financial advisor gets to know you so that they have a history with you and understand the vision that you see for your life and future. A holistic advisor understands more than just the markets, they understand their clients, and how they desire to live their lives. This type of value is hard to quantify and something that you can’t simply measure with an index or measuring tool. Listen to this episode to see if your financial advisor is providing the type of value that you really need.

Is your financial advisor providing you with a good value?

Weighing the cost and benefits of your financial advisor can be a challenge, but determining whether or not you are benefitting from their services is an important way to stay on top of your investments. Use the knowledge you gain from this episode along with the tools that I give you in this 6 Shot Saturday to decide whether your financial advisor is a good fit for you. Together these tools will give you an excellent reference to check whether you are getting the value you deserve from your financial advisor. Listen to this episode to hear all the details about how you can measure the performance of your financial advisor and whether or not they are worth the investment.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] How can I justify the cost of a financial advisor

HOT TOPIC SEGMENT

• [5:46] How to quantify the worth of a financial advisor with Vanguard’s Alpha Study
• [17:38] What are other areas where advisors can add value?

PRACTICAL PLANNING SEGMENT

• [21:38] Life distractions, spend time on what is actually important to you
• [22:47] How to take equity from a house, if needed
• [33:34] On staying active in later years
• [36:30] Target date funds

THE HAPPY LAB SEGMENT

• [39:39] My new favorite app - Sticky

TODAY’S SMART SPRINT SEGMENT

• [40:55] If you use an advisor, evaluate the value that they add

Resources Mentioned In This Episode

Vanguard’s Advisor Alpha Study

Sticky App

BOOK - Resilience by Eric Grietens

BOOK - Rock Retirement by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

 

There are many big questions that don’t get touched on in portfolio management sessions. Instead of asking the important questions, you and your advisor may be solely focused on market performance or market projections during these annual meetings. But what do these things actually have to do with your life and your retirement? On this episode of Retirement Answer Man, we discuss the important questions. We will find out what you should really be asking yourself, your advisor, and your money! Grab a pencil and listen to this episode to get the answers to the questions that you really should be asking.

Don’t become distracted by the details

When dealing with investments and money managers it is easy to get distracted by the details. Investment managers tend to overcomplicate money matters and rather than advising you on the things that really make sense, they focus on the small details of the markets, market performance, and market projections. Their talk can be a distraction from what you should be thinking about. This can be overly complicated and without the answers you are actually looking for. This doesn’t add any value to your situation and the conversations become too technical. Keep the main thing the main thing. The main thing is how can you live your best life now and in retirement. Listen to this episode to hear what you should be talking about with your investment manager, or the questions you should be asking yourself if you manage your own investments.

What is the purpose of your investments?

Often advisors want to become portfolio managers. While attempting to do so they often begin diversifying assets. But over-diversification can be a distraction. This adds no value to the situation and can be intimidating. And you should never feel intimidated when discussing your money. Investment managers often get focused on pulling all the strings, being the manager, instead of the purpose of your investments. Portfolio management will not save you and advisors can’t portfolio manage your life. Think about what the purpose of your retirement investment is. On this episode of Retirement Answer Man, we discuss the questions that you should be asking, like when can I retire? If you’d like to hear all the questions you should be focusing on with your retirement investments, listen in to hear.

What kind of investment questions should you be focused on? 

On the practical planning segment of this show, I answer some listener questions. One listener asks about using the Sortino ratio vs. using the Sharp ratio to measure returns. He asks what these are and which he should use to measure his returns. While this is a great question which I answer fully, my real advice is to focus on the questions that really matter to your retirement. Try not to get bogged down with overly complicated measures and investment strategies. It is easy to get distracted from the business of living your fullest life now and in retirement when you get overloaded with the heavy questions of the investment industry. Listen to the full episode to hear all the listener questions that I answer.

Focus on living your best life 

The purpose of your retirement investments is to create a process for having a great life now and a great life later. Don’t lose focus on the real questions which are: when can I retire, how can I live now and how can I live better in retirement? By focusing on these questions during every strategy session you can stick to what really matters rather than the minutiae of typical strategy sessions with financial advisors. This keeps both you and your advisor focused on the real goal, which is living your best life. Listen to this episode of Retirement Answer Man to find out more questions that you should be asking yourself and your financial advisor to keep you and your money both focused on living your best life.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] Time for an annual review - what are the questions you should be asking in your review

HOT TOPIC SEGMENT

• [7:49] Don’t become distracted by the details
• [10:05] When your investment advisor tries to become a portfolio manager

PRACTICAL PLANNING SEGMENT

• [15:55] Geeky question time
• [16:32] What do Sortino ratio and Shark ratio mean, and which should you use?
• [21:10] What are the pros and cons of QLAC
• [25:53] Is eating healthy really more expensive?

THE HAPPY LAB SEGMENT

• [26:35] Celebrate, my word for 2018 - what is your word that guides you this year?

TODAY’S SMART SPRINT SEGMENT

• [28:18] Get a pre-release copy of my book, Rock Retirement

Resources Mentioned In This Episode

BOOK - Rock Retirement by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

This is the third episode in the Market Correction Fire Drill series. On this episode, we discuss how much cash you need to have on hand to be prepared for the inevitable market correction. When investing for retirement it is imperative to keep thinking about your long-term goals. It can be easy to lose sight of this if and when the markets take a tumble. One way to always focus on the long-term is by making sure that you have liquidity on your balance sheet to get you through the short-term. This ensures that your investment strategy has the time to make a recovery in the event of a market correction. My goal today is to ensure that you have enough cash reserves on hand in your retirement investments to help you ride out a market correction with grace. If you’re curious to hear how much cash you need to have on hand, then you’ll need to listen to the full episode.

What is the magic number you need to have in liquid assets?

How much cash reserves do you really need to have on hand? The basic rule of thumb is that you need to have 3-6 months of cash on hand for an emergency. This money is specifically for an emergency. The exact number really depends on the stability of your income and employer. In the next bucket of cash, you’ll need the extraordinary cash reserves that will be needed within the next year. For instance, a child going off to college or a new roof for your house. Listen to the full episode to learn how to calculate just how much liquid assets you need to have to be prepared for any eventuality.

You can’t use short-term thinking for long-term assets

By having cash reserves, you can appropriate your long-term investments exactly how long-term investments need to be managed. If you constantly have to worry about the next eventuality, you won’t have the piece of mind to manage your investments the way that they need to be. By having a reserve set aside for the short term you’ll be able to concentrate on getting the most out of your retirement investments. Remember that you can’t use long-term assets in the short term. Learn how to make the most out of your retirement investments on this episode of Retirement Answer Man.

The real return on cash reserves

The ROI of cash on hand doesn’t come from the cash itself obviously. The real return comes from the power of not having to sell investments that are down or not having to pay extra taxes or capital gains because you weren't prepared. The real return on having cash on hand is having emotional resilience and flexibility in financial decision making. Life is not a simple math problem and neither are your investments. You must be able to position yourself to create the kind of lifestyle that you really want in your retirement. If you want to be able to invest your long-term assets in a way that is free of worry then you’ll need to hear about the real return on investment of having cash reserves in this episode.

Achieving a happy balance with your investments

Thinking about a market correction can be a daunting thought when planning for retirement, but being well prepared mitigates the risk. Just because the S&P is at all time highs does not mean that you should get comfortable. If your investments are going well and have been over the past few years, that’s great! But, having enough cash on hand to see you through everything that may pop up at you over the next couple of years will ensure that you will be able to make the most of your long-term investments. If you want to invest your long-term assets in a way that is free of worry then you’ll need to hear how to achieve the balance that I lay out in this episode.

 

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [3:31] When investing for retirement keep the long term in the long-term
• [5:13] The first line of defense
• [7:00] The next line of expenses
• [11:18] What is the ROI for cash reserves?

PRACTICAL PLANNING SEGMENT

• [16:02] How to repurpose a nondeductible contribution to an IRA?
• [18:32] What are the risks of the lump sum vs. single life annuity?
• [20:33] What is the best vehicle to save when you have a pension?
• [22:25] When you should consider purchasing earthquake insurance

THE HAPPY LAB SEGMENT

• [24:18] What can you reflect on with pride from the past year

Resources Mentioned In This Episode

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

This episode of Retirement Answer Man is the second in the Market Correction Fire Drill series. After listening to the previous episode you know that a market correction is inevitable and how to measure your risk tolerance to help you become prepared for every eventuality. On this episode, we discuss how to rebalance your portfolio. Are you wondering why all of this is important to your retirement planning? Listen to this episode so that you fully understand how important rebalancing your asset allocation is to your portfolio, being prepared for the market correction, and your future lifestyle.

Apply your risk tolerance to your portfolio

Last week we discussed how to measure your risk tolerance and how to connect that tolerance to the life you want to live. On this episode, I cover how to implement what you learned in the Market Correction Fire Drill Step 1. Hopefully, you have been able to analyze your risk tolerance and discover how much risk you are comfortable with and match that risk accordingly to the life that you desire. When you listen to this episode, you will learn how to rebalance your portfolio to match the risk level that you have set for yourself. Listen to this episode to hear how regularly rebalancing your portfolio can help you keep in line with your risk tolerance.

What does rebalancing mean?

I know you are wondering what I mean by rebalancing your portfolio. Rebalancing means adjusting your portfolio to reflect the risk level that you have intentionally set for yourself. The better your stocks are faring the more off balance your portfolio can become, which means that you may be taking on more risk than you are comfortable with. As with all of your investment strategies, always keep your future retirement lifestyle in mind. Listen in to the full episode to hear examples so that you can truly understand what a rebalanced portfolio looks like.

How often should you rebalance your portfolio?

Remember to rebalance according to your retirement goals. If you don’t rebalance your assets could be out of balance and set up for more risk than you want. As the markets rise your assets can get out of balance. When your investments grow you’ll need to step back and analyze your portfolio. That way you can adjust your asset allocation so that you can get back on track and back into your comfort zone. The questions of when and how often you should do this can be challenging. While it might be different for each individual, if you listen in to this episode I’ll give you a good rule of thumb about when to do this and how often.

Rebalancing can be harder than you may think

It is hard to sell when you are doing well in the markets, sometimes you just want to ride the wave. When we rebalance regularly we ensure that you are thinking about how far you want to ride each particular investment. This can be very counterintuitive. We tend to want more of the good and less of the bad. But rebalancing regularly helps ensure that you sell high and buy low, which is what investing is all about. Listen to this episode to hear more detailed advice on how and when you should be buying and selling.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

• [2:56] Rebalancing your portfolio
• [5:52] How often should you rebalance
• [7:02] Rebalancing can be harder than you may think

PRACTICAL PLANNING SEGMENT

• [10:26] How can a portfolio of pure stocks have a probability of success so close to a 50/50 stocks/bonds
• [13:54] Is there a benefit to paying your January mortgage in December?
• [14:59] How do you decide between an annuity and a lump sum?

THE HAPPY LAB SEGMENT

• [18:02] What is the key to a Merry Christmas?

TODAY’S SMART SPRINT SEGMENT

• [20:23] Rebalance your asset allocation that is tied to your goals

Resources Mentioned In This Episode

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Talking about a market correction can either seem scary or far-fetched in this economic climate. But it is important to understand that a market correction will happen. And it is important is to know what to do when the market correction does happen. On this episode, we will go over how to prepare for when the market correction happens. This episode explains step one of a multi-step process. You will want to make sure to listen to this episode and all the episodes in this series to help you prepare for the impending market correction. Don’t let the market catch you off guard!

What are the most important things to do to help prepare your portfolio for any eventuality?

How do we fortify our investments when the market correction happens? If you are near retirement assessing your risks is one of the most important things you can do to prepare yourself for retirement. On this episode, we go over two important questions to have in mind to see if you are really prepared for any eventuality. As you get closer and closer to retirement age you need to reassess your risks and their connection to how you hope to live in your retirement. Listen to this episode to find out which questions you should be asking yourself to prepare yourself for the inevitable market correction.

How do you measure your risk tolerance?

Have you really thought about your risk tolerance when it comes to your retirement investments? This episode will make you think again. You need to make sure you know how much risk you are taking in your investments. The investment industry maximizes your risk tolerance, but the last time you thought about risk may have been some time ago. Sign up for 6-Shot Saturday to get the PDF tables that I have created to help you really analyze your risk. You’ll want to listen to this episode to understand how to ensure that you are taking the right amount of risk for your comfort.

Is your risk tolerance tied to the life that you want to live?

Make sure your risk tolerance is actually tied to the life that you want to live in retirement. Sometimes the risks you can tolerate may have no actual connection to the lifestyle that you hope to live in retirement. Take some time to this week to really analyze the risks that your portfolio is set up to take. Are these the risks that you are willing to withstand, and how could these potential risks affect your retirement? You can use the PDF models that I will send out in 6-Shot Saturday to help you analyze your risk tolerance. Be sure to listen to the full episode to find out what else you should be thinking about to prepare for the market correction.

Find your balance

As you begin to move from the accumulation phase to the distribution phase of your investing your risk-taking behaviors may need to be tweaked. Finding the right balance that you are looking for is the first step in preparing for a market correction. The PDF models that I use will really help you get a grasp of your risk tolerance and help you visualize your chances of success with different planning models. These models will help you strike the balance that you are looking for in your investments. Make sure you listen to this episode to hear how mitigating your risk can help you prepare for any market correction and be sure to sign up for 6-Shot Saturday to get the free PDF model to help you make the right choices for your investments.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] A market correction hasn’t happened for eight years, how will you handle the next one?

HOT TOPIC SEGMENT

• [4:52] What to do when the market correction will happen
• [9:20] Let’s learn about risk tolerance

PRACTICAL PLANNING SEGMENT

• [18:47] I answer questions on health insurance costs
• [21:50] What are some book recommendations for retired people

THE HAPPY LAB SEGMENT

• [26:11] On self talk becoming your reality

TODAY’S SMART SPRINT SEGMENT

• [28:21] Understand how much investment risk you are taking and analyze whether that is the risk you are willing to take

Resources Mentioned In This Episode

 BOOK- Essentialism by Greg McKeown

BOOK- The Slight Edge by Jeff Olsen

BOOK - Investing for a Lifetime by Dr. Richard Marston

BOOK - Rock Retirement by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center 

The Retirement Answer Man Facebook Page

 

What can we control in life? How can we identify factors beyond our control? The trouble with retirement planning is that so much of it relies on factors beyond our control. Join me today as I discuss the impending force of a market correction and answer some listener questions from our Retirement Plan Live Webinar. We must learn to accept that there are things beyond our control. Once we do that and we learn to only worry about the things that are within our power to change we begin to feel much freer. So listen in to today’s episode to find out how to identify forces that are within your control to free yourself of inner turmoil about your retirement.

Market corrections may not be all that scary

Vanguard published a report recently stating that there is a 70% chance that there will be a stock market correction. I’m here to tell you that that’s not true, there is a 100% chance of that happening! Unfortunately, no one can accurately predict when this will happen. There is so much concern that head of Goldman Sachs feels unnerved by things going on in the stock market. Listen in to hear what his 8 reservations are. As scary as market corrections are, they can be healthy, similar to a forest fire. They help to burn off the excess, weaker growth in the markets. Find out what I mean by this by listening to this episode of Retirement Answer Man.

What can we control?

We know a correction is going to happen but not when or how extensive it will be. So, knowing all this, what do we do with this information? We can’t control or predict when a market correction will happen, but we can control how we allocate our assets to work towards a life that we want. Right now is the best time to discover how to control your balance sheet and make sure that your financial plan is fully in order. Listen in as I discuss how to financially weather a market correction and what you should be doing to prepare yourself for the inevitable market correction.

How do taxes affect your retirement plan?

Are you curious as to how to apply what you learned in the Retirement Plan Live Webinar to your own retirement plan? You guys chimed in with some incredible questions about our Retirement Plan Live webinar. On this episode, I address some listeners’ questions and make things clearer on how we can take Lori and Bruce's situation and apply it to you. Listen in as I answer some fantastic listener questions about taxes and retirement. We discuss state income tax and when to contribute to a Roth IRA. Listen to the Q&A portion of the show to find out to what extent the planning tool takes taxes into account and how moving states can affect your retirement plans.

What you can do to raise your confidence level in your retirement plan

Are you concerned about confidence levels in your own retirement plan? One listener is. Listen to this show as I address this question. You may feel concerned that your money could run out. But what can you do to up your confidence level in your retirement plan? Think of the all the levers you could pull; work longer, spend less in retirement, save more, take more risk. What could you do to become more confident in your retirement? I get down to the heart of this question so listen in to hear my thoughts on this matter and discover why is an 80% confidence level ok when talking about retirement. We must make smart, balanced choices to live a great life today but be confident about tomorrow.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] Today I discuss market corrections and answer some questions from listeners

HOT TOPIC SEGMENT

• [3:36] Vanguard says there is a 70% chance for a stock market correction
• [4:42] The 8 worries that the head of Goldman Sachs has for the stock market
• [8:42] What can we control in the market?

PRACTICAL PLANNING SEGMENT

• [12:52] Listeners comments and questions about Lori and Bruce
• [13:52] Listener questions about taxes
• [20:10] Confidence scores in retirement

THE HAPPY LAB SEGMENT

• [27:56] On Christmas decorating and allowing yourself to fully celebrate events

TODAY’S SMART SPRINT SEGMENT

• [30:02] Make a list of events to celebrate at a higher level than in the past

Resources Mentioned In This Episode

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

This may surprise you, but there are youngins out there that we can learn from! My guest today is only 34 years old, but he knows quite a bit about retirement. Deacon Hayes is the author of a new book called You Can Retire Early and he has a fantastic website full of resources that can help you start planning your early retirement. Don’t let his age fool you, Deacon is full of great retirement advice. Listen to today’s show to hear about some innovative ways to prepare for your retirement.

Find your why

It’s not just me! I’ve been telling you guys all along that you need to find your why. Deacon Hayes agrees that finding your why is so important. Deacon advocates early retirement, but having a reason to get out of bed and have a goal is important to everyone. Whether you're 35 or 65 you need to focus on your why to help you stick to your financial goals. Without your why behind you, it’s easy to lose focus and get off course. Listen to this conversation to hear Deacon’s point of view on finding your why.

Retire towards something, not away from something

Do you have antiquated ideas about retirement? Just like workplaces, retirement is evolving. These days retirement doesn’t mean that you stop working and sit on your couch watching the news for the rest of your life. Like me, Deacon feels that retirement is an opportunity to live your life with purpose. He says that you should retire towards something, not away from something. Deacon shares with me a wealth of excellent information on today’s show about how retirement is changing and the traditional way of spending our golden years may be a thing of the past. I think you’re going to like what he has to say, so listen in to hear more!

 

Do you really need millions of dollars in the bank to retire?

So now that we know that you won’t be spending your retirement the same way that your parents and grandparents did, how will you fund this new form of retirement? Maybe you don’t need to have millions of dollars saved up in your 401k. I love talking to Deacon since he really thinks outside the box. Listen to this discussion to hear about some innovative ways of making money in your twilight years.

How to deal with life outside the paycheck

Since Deacon advocates early retirement and finding different ways of making money, how does he deal with the instability of not having a steady paycheck? It’s tricky when you are living life outside of the box, but by diversifying your income streams you can find a bit more stability when hard times hit one sector. Listen to our discussion to find out how to handle your finances without a biweekly paycheck. Deacon has some great strategies that you can use to transition into a life without a steady paycheck.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] Welcome Deacon Hayes

HOT TOPIC SEGMENT

• [2:44] The webinar replay is available, email me your questions and comments

PRACTICAL PLANNING SEGMENT

• [4:03] Let’s meet Deacon Hayes
• [4:32] How does Deacon define retirement
• [11:32] Build a nest egg but also build skill set
• [12:01] What will Deacon’s retirement look like?
• [13:29] How do you deal when you don’t have a consistent income
• [17:12] Understanding the choices that we make that impact your long-term financial goals

THE HAPPY LAB SEGMENT

• [22:58] Turn things off and be with the people you love

TODAY’S SMART SPRINT SEGMENT 

• [23:54] Sit down and write 5 things that you are going to stop doing in 2018

Resources Mentioned In This Episode

Deacon’s website - WellKeptWallet.com

BOOK - You Can Retire Early! By Deacon Hayes

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Many people love to travel, as a matter of fact, it is at the top of just about everyone’s list of things to do when they retire. Usually, when we think of travel we think of stays in 4 or 5-star resorts and all-inclusive hotels. But what if you could find a deeper meaning to travel? Chris Niemeyer joins me today as we discuss meaningful travel. On this show, Chris and I discuss how you can create more meaningful experiences through travel. When you travel with focus and meaning you can incorporate my favorite acronym -- FOR, family, occupation, and recreation all in one fantastic experience. If you are looking for some insider secrets on how to incorporate meaningful travel into your retirement then listen in to this show to get the scoop.

What is voluntourism?

Is it possible to have a mission trip and a vacation all in one? Is voluntourism only for Christian missionaries? The answers to these questions and more are on this show! My guest, Chris Niemeyer, specializes in voluntourism. Chris is the founder of Mission Travel, a website that helps people find real travel volunteer opportunities all over the world. Would you like to find out how to incorporate helping others into your next trip? Listen to this conversation to find out some excellent insider tricks to plan how to volunteer to help others on your next vacation.

How to plan a multigenerational trip

Have you ever thought about traveling with your family? Enjoying travel with grandkids creates an incredible common bond with them that no Christmas toy ever will. Would you like your family to discover and learn about different cultures all while helping others? My guest, Chris Niemeyer, founder of Mission Travel, helps people do just that. As a matter of fact, he has taken his four young children all over the world to learn about and experience different cultures all while assisting those in need. Find out some fantastic ways to plan your next multigenerational travel experience by listening to my interview with Chris.

Live like the locals

Have you ever wondered what it would be like to live like the locals whenever you travel abroad? Travel expert, Chris Niemeyer, gives me some excellent ideas on how to travel and learn more about local cultures by actually living like them. Chris teaches us how we can expand our comfort zones to go deeper and have a richer travel experience. Chris describes how connections with locals have been the best part of his travels. Listen in to our conversation to understand how traveling like a local can provide you a more authentic experience

How can you save money when you travel

Are you looking for some money saving ideas for your next vacation? Travel expert, Chris Niemeyer, gives me some insider tips on how to do just that! Listen to the show to find out how traveling during ‘shoulder’ seasons can save you money and give you a richer experience on your next vacation. Find out which websites and apps are helpful to saving money by listening to my chat with Chris.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [0:58] Register for the free webinar on Monday to hear how I walk through Lori and Bruce’s retirement plan

HOT TOPIC SEGMENT

• [4:08] What do you want in your pretirement and retirement years
• [5:02] FOR - what does this stand for

PRACTICAL PLANNING SEGMENT

• [7:12] How can we combine family occupation and recreation through travel to create meaningful experience
• [13:48] How can you travel more like a local
• [17:58] Experience of missions
• [20:52] How can you find purposeful travel
• [22:53] Multigenerational travel
• [26:02] Chris’s mission podcast

THE HAPPY LAB SEGMENT

• [27:03] Living up to our values

TODAY’S SMART SPRINT SEGMENT

• [28:54] Play a game with someone

Resources Mentioned In This Episode

Mission Travel Podcast

Mission Travel Website

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

This is my third episode of the Retirement Plan Live case study. Over the past few weeks, we have gotten to know Lori as she has shared many details of her finances, lifestyle, and how she and Bruce have begun to prepare for retirement. Today we continue our journey by delving deeper into their finances and learning how they have prepared for the unexpected. Listen to hear how Lori and Bruce have prepared for some major retirement risks and to see if you have considered these risks when planning your own retirement.

How much money does the average American retiree live on? The answer may surprise you!

Some of you have emailed me with concerns that Lori and Bruce may not be the best examples to use as my case study. Many feel that this couple doesn’t best represent the average American retirees. On this episode I address these concerns, we discuss how much money the average American retiree lives on, and we discuss how to manage retirement risks. You’ll want to listen to this episode since you may be surprised by some of the answers. You also need to listen to find out how to register for the live webinar where I break down the details of Lori and Bruce’s retirement so that you can learn how to do this to plan your own retirement. 

Have you planned for the financial surprises that can pop up in retirement?

What lessons can we learn from Lori and Bruce? I realize that they may not represent what Your financial situation looks like. But regardless, we Can learn something from them. You can use their situation to consider your needs vs wants. Everyone’s financial profile is unique, and each situation is different, so use this information to help you decide what is best for you. Listen in to hear how Lori handles the little extra financial surprises as well as how they plan for the big surprises. Do you plan for the car breaking down? How about major illness? Listen in to hear about these and other retirement risks that are important for everyone to consider.

How well do you track your spending?

It is important to track your spending well. You must really pin down your spending numbers to accurately plan your retirement. Since Lori and Bruce have such a low overhead I drill Lori on the details, how they track their budget, how they have their money invested, and whether or not they still have life insurance. Listen in to find out all the small details you need to be keeping track of when planning your retirement budget.

What are the three biggest risks to your retirement?

Do you need to continue a life insurance policy after the rates go up? Have you thought about this? I ask Lori about their insurance policy and if they are financially prepared for long-term specialized care. These are important things to consider when planning retirement. Listen in to today’s podcast so you can discover the three major risks to your retirement and how to prepare for them. 

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] I read a few emails I have received about whether Lori and Bruce are good examples of the average American retirees

HOT TOPIC SEGMENT 

• [5:32] What is the average retirement cost for the average American couple
• [9:32] Needs vs. wants when it comes to retirement
• [11:52] Make sure you register for the webinar

PRACTICAL PLANNING SEGMENT 

• [13:39] I ask Lori about the details of how they live on 24k a year
• [19:53] We discuss inflation and how that may impact their retirement plans
• [20:45] How Lori invests her money
• [24:35] We discuss the major risks to Lori and Bruce‘s retirement

THE HAPPY LAB SEGMENT

• [34:02] On being grateful

TODAY’S SMART SPRINT SEGMENT

• [35:10] Write a sentence describing these 3 risks to retirement

Resources Mentioned In This Episode

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover 

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Try the online Rubik's Cube simulator! Set up a random scramble then try to figure out the solution!

No matter how much money you may have, worrying about money is part of human nature. We all worry that we may not have enough no matter what our tax bracket is. Even though that is the case, I still say money does not come first when planning retirement. When planning out your financial resources to prepare for retirement, first think about the life you want, then think about the money. This is the second episode in a four-part series where I use Lori and Bruce as a case study to help you to discover how to plan your own retirement. You will want to make sure that you listen in to the full series to understand how to plan your retirement.

Do you have a net worth statement?

On this episode, I discuss what a net worth statement is and why you need one. Make sure you listen so that you can find out how to prepare one for yourself. This tool is indispensable when tracking your financial resources. You definitely want to make sure that you have one of these prepared when you begin thinking about retirement. A net worth statement is a financial dashboard that lists all your assets and debts so that you can understand your worth and work towards planning a great retirement. Are you curious as to what a net worth statement is and how to build one? Listen in today to find out how to use this invaluable tool to help you plan your retirement.

What is the next step of Your financial plan for retirement?

On this episode, I continue my discussion with Lori and we move on to the next step of her and Bruce’s plan for retirement. Last week we discussed what their ideal retirement lifestyle would look like and in doing so we talked about Family, Occupation, and Recreation. This is the FOR part of my acronym FORM. Today is we get to the M part -- Money. Lori discloses her financial resources so that we can get a better feel for how well they are prepared for their impending retirement.

How are you preparing your life for retirement?

Find out how Lori and Bruce downsized their life in preparation for retirement. They used to have the large house and dual incomes and decided that they needed to start preparing for retirement by downsizing their house. Lori gives us the nitty-gritty about their financial resources so that we can discuss their financial plans for retirement. Lori also tells us how she got started as a virtual assistant and how this has been like a pre-tirement phase in her life.  If you've been thinking of having a transition period between full-time employment and retirement, you will want to listen to this episode as we discuss Lori and Bruce's preparations for full retirement.

Have you thought about at what age you would like to retire?

Will you wait until age 65, or retire a bit early? Do you need to wait a bit longer? These questions cannot be answered entirely until you have a full grasp of your financial resources. The first step in understanding your financial resources is to have a net worth statement. Make sure you listen in to this show to hear the case study of Lori and Bruce and to learn what a net worth statement is and how and why you need to prepare one.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:02] Money doesn’t come first

HOT TOPIC SEGMENT

• [2:57] Nobody feels like they have enough money
• [3:57] FORM- Family, Occupation, Recreation, and lastly, Money
• [5:32]  What is a net worth statement
• [7:02] The difference between a use asset and a productive asset
• [8:56] Six shot saturday is where you can find the tools to help you build a net worth statement

PRACTICAL PLANNING SEGMENT

• [9:39] Lori explains how they downsized their life to prepare for retirement
• [13:56] We discuss the possibility of full retirement at the age of 66 for both of them
• [19:15] We discuss their assets
• [21:52] Lori discusses how she got started as a virtual assistant

THE HAPPY LAB SEGMENT

• [29:03] Find a way to reach out to someone that may need some help, however little

TODAY’S SMART SPRINT SEGMENT

• [31:50] Create a net worth statement

Resources Mentioned In This Episode

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

On today’s show, I interview Lori and we begin to plan her ideal retirement. There is no one size fits all retirement plan out there. Everyone’s ideal retirement will look different since we all have different priorities and financial goals. Listen in on this show to find some excellent resources to plan your own retirement. You’d be surprised to hear where the challenges are in planning this important stage of your life. Planning is the first step in ensuring that you are not left in the dark for what may be a thirty to forty year period. Listen in for important tips today as I walk Lori through the first steps that I take with my clients as we begin the retirement planning process.

What are the barriers to retirement?

There are many out there who claim that retirement is dead. This doesn’t have to be true. It’s important to have a plan in place so that you can enjoy this time of your life without the worry that you’re overspending. Planning for retirement can be a daunting process. There are a few challenges that we face when retirement planning that you need to pay attention to. Listen in to today’s show to learn what the obstacles to planning a sound retirement are and how to address them. You don’t want to get stuck on the last barrier when planning your retirement!

It’s OK to dream big when planning your retirement!

When planning your retirement it’s important to think of your needs, your wants, and then your wishes. Dreaming and wishing for things to do in your retirement is OK! But first, you must plan what you need. What are your basics for everyday living? After you get that down then you can start thinking bigger. Listen in on today’s story to hear how we can plan your retirement step by step. You’ll learn what the acronym F.O.R. is for and how thinking about it can help you with your planning process.

How will you spend your retirement?

We met Lori on last week’s episode, and this week we delve into her needs and wants to try and learn how best to prepare her and Bruce for the next thirty years. One of the problems they had when planning their ideal retirement was thinking big. They have lived frugally for so long that dreaming big didn’t come naturally to them. How about you? Do you have trouble thinking of big ways to spend your retirement? Listen in today to find out how I helped Lori think big when planning her golden years.

Are healthcare fears preventing you from retiring early?

Have you thought about healthcare if you plan on retiring before the age of 65? Is this stopping you from retiring early? Retiring before 65 can happen, but healthcare is a big priority when planning your retirement. Find out the creative way that Lori and Gene have discovered to cover their health insurance needs by listening to today’s episode. If you are at all considering retiring before the age of 65 you will really want to listen to Lori’s solution to this important issue.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:22] The benefits of enrolling in 6 Shot Saturday

HOT TOPIC SEGMENT

• [4:20] Barriers to retirement
• [11:38] How do we get over those barriers

PRACTICAL PLANNING SEGMENT

• [18:14] Lori's ideal perspective of retirement
• [21:54] What Lori and Bruce's basics are
• [26:56] Insurance needs
• [31:52] Their wants and needs

THE HAPPY LAB SEGMENT

• [39:46] Define and envision your future

TODAY’S SMART SPRINT SEGMENT 

• [40:29] Define your needs, wants, and wishes for retirement in the worksheets from 6 Shot Saturday

Resources Mentioned In This Episode

Roger’s Kindle Book Rock Retirement

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

 

Planning for the future has many challenges and you may not know what could be a threat to your retirement. There’s something you may not have thought about when planning your retirement. Over the next four weeks, we’ll be learning about Lori and Bruce in my Retirement Plan Live case study. By studying them you will gain great insight into how to prepare for your own retirement. Listen today as I introduce Lori and we discuss marriage and how a healthy marriage can lead to a healthy retirement.

Investing in your marriage is an investment in your retirement.

You may not think about this as a threat to your retirement, but divorce, especially when you are close to retirement age, can have a huge impact on how you retire. You’d be surprised by how many people get divorced in their fifties and sixties. Why would this be a threat to your retirement? What are some great tips for a healthy marriage? Listen in on this episode of Retirement Answer Man to find out how a healthy marriage can help ensure a financially healthy retirement.

Have you ever thought of investing in your marriage?

What are the 3 phases of life in which people think about divorce? I’m no expert, but I have noticed that there are three seasons in life where couples begin to contemplate divorce. I have Ted Lowe, a Real marriage expert, and author of Your Best Us, here with me to see if we can come up with some everyday ideas that you can use to invest in your marriage. Many people have thought about divorce at times, even in a healthy marriage. However, they may not think about how divorce affects their finances and how that could affect their retirement. Listen in on my discussion with Ted Lowe as we talk about how to invest in a strong marriage. 

Is fun an important part of marriage?

What marriage tips and strategies can you learn from Ted Lowe? Ted gives us some wonderful advice on how to maintain a great relationship each day so that you don’t have those big blow-ups that can lead to divorce. Does your wife want to be heard or helped? This can be a challenging question, and knowing when she wants help is important. Do you think fun an important part of marriage? Listen to what Ted Lowe has to say about these questions and other fantastic tips on marriage on this episode of Retirement Answer Man.

Words don’t lead to connections, connections lead to words.

We all think about ourselves, that’s natural, but should we bring the “Me” mindset into marriage? Connection is a huge part of marriage and Ted gives us some great advice for learning how to connect with our spouse during the different seasons of marriage. Listen now to hear how you can make real connections with your spouse. A stronger marriage can lead to a stronger place in retirement. I gained so much insight in my chat with Ted Lowe, I can’t wait to implement his suggestions in my own marriage!

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• {00:05] Investing in your marriage
• [00:30] Reasons for NOT getting a divorce in your 50’s and 60’s

HOT TOPIC SEGMENT

• [3:15] All about Retirement Plan Live case study to learn how to help yourself
• [5:43] Let’s meet Lori
• [7:32] We discuss longevity and life quality
• [9:20] What Lori and Bruce will be excited about in retirement

PRACTICAL PLANNING SEGMENT

• [13:32] Let’s discuss marriage and divorce
• [17:00] Meet my guest, Ted Lowe, author of Your Best Us
• [23:10] How can we diffuse difficult situations in marriage
• [27:30] How can we manage our marriage through the stages of life
• [32:30] Where will our connections lead us

THE HAPPY LAB SEGMENT

• [40:51] What can we do to make each other happy

TODAY’S SMART SPRINT SEGMENT

• [41:53] Sign up for Six Shot Saturday and start thinking about your retirement

RESOURCES MENTIONED IN THIS EPISODE

Ted Lowe

Your Best Us: Marriage is Easier Than You Think by Ted Lowe

The Slight Edge by Jeff Olson

Ask a question

Work with Roger

3-Video Series: 5 Minute Retirement Makeover

Roger’s retirement learning center

The Retirement Answer Man Facebook page

My grandmother lived through the great depression. She was 10 years old when it started and remembers the struggle. What she went through during those years has shaped her decision-making process. She is very frugal. I can remember her saving small bits of wrapping paper when I would have thrown them out. For many of us, we have been affected similarly by the Great Recession and make decisions based on that experience. Many of you might be asking the question, “Is another crash just around the corner?” Tune in to this episode of the Retirement Answer Man to find out.

 

Focus on what you can control, not on what you can’t.

 

The ever-present question looms in the back of our minds, “Will the markets crash again?” No one knows the answer to this question. Many financial forecasters are very vocal about their opinions warning about the impending crash. Some people are making extreme future decisions based on those forecasts. How smart is that? Should we rest our future on such forecasts? Maybe the best plan is to worry about what we can control, not stress about the things we can’t.

 

Insurance premiums are rising, what should I do?

 

As the market changes many people are falling victim to the ever-rising premiums of Long Term Care policies. On this weeks show a listener writes in with this very concern and wants to know what options they have. They could always drop the plan. But then they would have to self-insure. They could lower their coverage to keep their lower premium which might leave them without needed coverage. Or they could suck it up and pay the higher premiums. It’s a tough decision. Listen in to this episode to hear my thoughts.

 

My House is Leaking!

 

Nichole walked into her home the other day to find water soaking her closet. Her AC system had sprung a leak and soaked a hole through her ceiling. Her in-laws came to visit and help fix the damage. Family in the house can be uncomfortable at times but they can often line a huge helping hand. It’s often good to live near family to have a support network. If you live with or near family and often find it challenging, take time this week to look for the good in the situation.

 

Could the data breach cost me my house?

 

With this Equifax data breach, our imaginations can run wild with possibilities our information could be used maliciously. It’s possible someone could steal your identity and take out a loan on your home causing you to possible lose it. There is a service being advertised that monitors the title of your house for any fraudulent filings and notifies you. While this might seem like an easy hands-off way of staying proactive, it could be just as easy to check on your title yourself. Make sure to catch this episode to hear more.

 

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

[0:29] My grandmother lived through the Great Depression

[1:37] Nowadays many of us have lived through the Great Recession and it has laid the foundation for our decision making.

[2:00] Is another recession just around the corner?

 

HOT TOPIC SEGMENT

[4:17] We are in the 2nd longest Bull market in S&P 500 history.

[6:30] Are you asking the question, “Is another crash on the horizon?”

[8:54] Making extreme decisions on forecasts is not the wisest move.

[10:38] What do we do?

[10:50] Focus on what you can control not on what you can’t.

[14:00} What investment actions can we take?

 

PRACTICAL PLANNING SEGMENT

[17:11] Listener questions with Nichole.

[17:15] Our new voice coach.

[20:11] I am self-employed. Should I set up a company 401k plan?

[27:20] The premiums on my long-term care plan are going up. Should I continue to pay the premiums or should I lower my coverage?

[33:18] Is Title Lock Insurance worth the investment?

 

THE HAPPY LAB SEGMENT

[37:22] Nichole’s house is leaking!

[37:30] It’s great to live around family and have them as a support network.

 

TODAY’S SMART SPRINT SEGMENT

[39:16] Take the time this week to check your title and see in anything has been filed against it.

[40:00] The subject for Retirement Answer Man Live has been chosen. Sign up for Six Shot Saturday to receive all the details.

 

RESOURCES MENTIONED IN THIS EPISODE

 

Ask a question

 

Work with Roger

 

3-Video Series: 5 Minute Retirement Makeover

 

Roger’s retirement learning center

The Retirement Answer Man Facebook page

I’ve been married to my wife for 27 years. That’s a long time! I have noticed that there has been a rhythm within our relationship over the years where, as we have become more comfortable with each other, we begin to become disengaged. Not disengaged in a spiteful way but simply not as focused as a team. This happens in any relationship whether it be a parent and a child, the relationship between spouses, or even between you and your advisor. Listen to this episode of Retirement Answer Man to hear my tips for staying on track in your relationships and keeping your advisor on the same page.

An advisor in Colorado Springs has allegedly stolen millions from clients.

This financial advisor seemed like a great person. There was no past history of dishonesty or crime and no red flags seemed to pop up. It seems very easy to be fooled into a bad relationship like this one. Are there ways you can stay on top on the relationship and catch the red flags if they arise? There certainly are and I will outline 4 steps you can take in your relationship with your financial advisor to keep the relationship healthy.

Pursuing purpose in retirement

On this episode of Retirement Answer Man, I’ll interview a friend of mine, Jeff McManus, who is turning his passion into an income stream he can benefit from during retirement. Jeff is the director of Landscape services to the University of Mississippi. He has a wealth of horticultural knowledge and has found joy in applying it to his career. Now, as he is nearing retirement and thinking of the future he is applying that knowledge in unique ways to grow opportunities for himself in retirement. Listen to this episode to hear his story.

Don’t wait for Retirement to pursue your joy, start now!

My books are finally here!! I’ve been working on my book for about 4 years and I just got the call that it is ready. Since I contractually have to buy 2500 copies I decided to have them all sent to my house so I could see what that many books looked like. I didn’t rationalize it, I just dove in and ordered them. They arrived on 2 pallets and have taken over a room of my house. It's been so fun looking over them and signing them for friends and family and even for the delivery lady. Is there something you think will bring you joy? Are you waiting for the perfect moment? Are you waiting for retirement? Don’t! Jump in now and experience the joy, don’t wait until it is too late. Tune in to this episode to hear all about the book delivery.

This time of year is a great time to get on the same page with your financial advisor.

As we near the end of the 4th quarter a great opportunity to refocus is presented. Take the chance to have a quarterly meeting with your advisor and refocus on your goals and make sure you both are on the same page. Trust me, you don’t want to begin the new year without being unified on your savings and the direction of your retirement.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [0:33] It’s easy to become disengaged after many years of marriage.
• [1:00] Constant vigilance is needed to keep a good relationship of any kind.
• [1:40] The same goes for your relationship with your advisor.

HOT TOPIC SEGMENT

• [3:25] An advisor in Colorado Springs has allegedly stolen missions from clients.
• [4:00] The longer a relationship continues the more likely you are to become disengaged and draw apart.
• [6:00] If you have quality meetings with your advisor you will have a better idea of what is happening with your money.
• [6:30] Keep it formal.
• [7:00] Have an agenda.
• [7:50] Have an agreed upon plan.
• [9:30] Make sure your goals are mutually agreed upon and addressed in order of importance.

PRACTICAL PLANNING SEGMENT

• [12:05] One baby boomer is making a change and living his dream!
• [14:50] We all want some measure of control and freedom in our life.
• [17:00] Cultivate a culture of teamwork and collaboration and grow a mutual passion.
• [19:27] Setting up a passion and source of income you can devote yourself to during retirement.
• [23:19] A vision for retirement.
• [25:19] Get your foot in the door of your passion.

THE HAPPY LAB SEGMENT

• [28:15] My book is finally here!!
• [29:11] Hear about the delivery ladies response in Six Shot Saturday
• [29:30] What can you do that may not be practical but will bring you joy.

TODAY’S SMART SPRINT SEGMENT

• [29:54] It’s nearing the end of the 4th Quarter. Make sure you have a 4th Quarter meeting to stay on track.

RESOURCES MENTIONED IN THIS EPISODE

Ask a question

Work with Roger

3-Video Series: 5 Minute Retirement Makeover

Roger’s retirement learning center

The Retirement Answer Man Facebook page

Get Jeff’s book here on Amazon

Several years ago I participated in an Ironman Triathlon. I didn’t win, not even close. I finished in the 77th percentile. Turns out, the winner could have started 6 ¼ hours after me and still beat me. So was this experience a failure? It depends on how you look at it. I enjoyed the experience, I loved the cycling and felt refreshed by the countryside surroundings. So for me, this was definitely not a failure. Comparison is important to keep us on track with our goals but when we put all of our focus on our performance v.s. someone else's performance...we often become unhappy. Regardless of where you are in life or how much you have saved for retirement, comparison could be the death of joy. Listen to this week’s episode to hear my thoughts on how to stay on track without letting go of your joy.

 

A Fidelity study shows exactly how much you should have saved for Retirement

 

A recent Fidelity study lays out exactly how much you should currently have in savings for retirement based on your age. They say that by age 30 you should have 1x your annual income in savings, 3x at age 40 and 7x at age 55. For some of us on the journey to retirement that may feel like a daunting task. Many of us don’t start saving as early as we should, I know I didn’t. But are these numbers really where we need to be? Can we make it work with less? Join me this week on the retirement Answer Man show to hear my thoughts.

 

Are my assets safe in the hands of my advisor?

 

Recently a financial advisor absconded with over 1 million dollars of their client's money. The advisor had no history of fraud and seemed to be a good person. If anyone can snap and steal from us, how can we trust our advisor? In this episode, I’ll dive into a few things to look for in your advisor to help you decide whether or not they are trustworthy. I’ll also outline some red flags that signal something fraudulent might be happening with your money. If you want to make sure your advisor can be trusted with your money, listen to this episode of Retirement Answer Man.

 

How should I allocate my 401K contributions to provide future security?

 

A listener called in with a question. He is making contributions to his 401K and wants to know how he should allocate his assets. Of course, I can’t give him specific advice but I can give guidelines of how you should think of your contributions based on your retirement goals. Make sure you catch this episode to hear my advice.

 

Life is full of changes. Go along for the ride and have fun.

 

Fall has come to Texas. It’s not as unbearably hot and pumpkins are selling in all the stores. I love the change of seasons, the change of pace and the excitement. Life, like the earth, often has many seasonal changes as we get older and they can be exciting as or sometimes challenging. Whether or not you are ready for the next season of life remember that there is nothing you can do to stop it so you might as well go along for the ride and focus on being happy.

 

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [0.28]  Several years ago I participated in an Ironman Triathlon
• [3:29]  I finished behind many. But was it a failure?

HOT TOPIC SEGMENT

• [6:38] Fidelity study shows what you should have saved for retirement.
• [7:50] Regardless of where you are, you compare yourself to others.
• [9:01] By age 50 you should have 6x your annual salary saved for retirement.
• [11:57] Many of us start saving late.
• [12:00] Many of us make bad savings and investing decisions.
• [13:50] Comparison can be the death of joy.

PRACTICAL PLANNING SEGMENT

• [14:33] Listener questions with Nichole.
• [16:04] How safe is my money with a financial advisor?
• [20:00] How can I verify an advisor’s trustworthiness?
• [27:00] Be wary of private investment opportunities.
• [28:01] How should I allocate my 401k contributions?
• [32:08] I have 80% of my 401K in stock. How can I balance my investments?

THE HAPPY LAB SEGMENT

• [37:57] Fall has come to Texas
• [38:39] The seasons are changing. Whether you like it or not, try to enjoy the ride.

TODAY’S SMART SPRINT SEGMENT

• [39:22] Look at all of your investment assets and see, based on Fidelity’s study, where you are based on your age.

 

RESOURCES MENTIONED IN THIS EPISODE

Ask a question

Work with Roger

3-Video Series: 5 Minute Retirement Makeover

Roger’s retirement learning center

The Retirement Answer Man Facebook page

Indexes are comprised of many companies. Yet only the top few companies drive the index. What happens if we hit a rocky patch in the markets and those companies falter? On this episode of the Retirement Answer Man, I dive into the pros and Cons of investing passively v.s actively and what might happen if a Bear Market does indeed come.

Bear Markets might be bad news for your Retirement.

A Bear Market is a self-sustained drop of the market and if one of these shifts does happen, it might impact your ability to retire. Passive based investing becoming very popular nowadays, but if the majority of your strategy is comprised of these kinds of investments you might be in for trouble if a Bear Market shift happens before or during your retirement. A shift like this would affect the big companies in the major indexes, causing the index to drop. A drop like this could negatively affect your investments. You could always wait for things to stabilize but you may not have the luxury of waiting. In this episode of Retirement Answer Man, I’ll give you a rundown on what you can expect in a Bear Market and how you can act wisely to mitigate your risk.

Passive based investing is sweeping the nation.

What is passive based investing? Well, whatever it is it makes us more than %40 of the nation's investments. In this episode of Retirement Answer Man, I’ll dissect the differences between active and passive based investing and which one might be the best for you and your retirement. I also talk about how a market downturn affects them and what steps you can take to be safe.

Should I use my raise to pay off debt or add to my investments?

A raise can make your year! Not only does it say “good job” it gives you options to change aspects of your lifestyle, investment strategy or even the lives of someone you know. There are many things we could do with a raise.  You could spend it, invest it, pay down debt to free up future cash, or even give a gift to someone in need. In this episode of Retirement Answer Man, I’ll expound on the options a raise make possible and give you a framework for deciding what is the financial priority in your life.

I’m looking to work with a retirement advisor, what red flags should I look for?

On this week’s episode of Retirement Answer Man a listener writes in with a question about an advisor he is looking to work with. The advisor has worked for many firms and not stayed long at any one. Is this a red flag? Should he be worried? Tune in to this episode to hear my thoughts and get tips for asking your advisor the right questions.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

 

[0:26]  Would you like to place a wager against Warren Buffett?

[2:00] Should we all switch to passive investments?

HOT TOPIC SEGMENT

[2:59] Passive based investing is taking over the investing world.

[4:47] Does passive make the market more or less efficient?

[5:33] Passive investing is driven by the “hot” sectors of the market.

[6:50] Jim Rogers says Bear Market is coming!

[8:50] We are down to the wire in Retirement, there is no more time to wait.

PRACTICAL PLANNING SEGMENT

[12:27] Should I allocate my raise into my investments?

[14:50] What should I do with a raise?

[17:50] How does unstable politics affect my investment strategy?

[19:58] Ed’s question about advisor research.

[24:40] Think of an advisor as an investment. How can you have the best returns?

[28:50] Should I pay off debt or fund a 401K?

RESOURCES MENTIONED IN THIS EPISODE

Ask a question

 

Work with Roger

 

3-Video Series: 5 Minute Retirement Makeover

 

Roger’s retirement learning center

 

The Retirement Answer Man Facebook page

Have you ever had your identity stolen? I have. It’s not fun. It can leave you feeling helpless and frustrated as you try to prove who you are and undo the false financial claims against you. In this modern era data is everything. Your life is wrapped up in one 9 digit code, your Social Security Number. If someone were to get that number they could open credit cards in your name, access your life savings, and even take out a mortgage. While the dangers are high, there are effective ways to protect yourself and your assets. I will outline some of the most effective ones in this episode of the Retirement Answer Man.

Equifax has been breached by hackers

Equifax has been breached by hackers. Almost 60% of the American population’s cyber data is in the wind. For many of us, this is a fearful thing. We have spent our whole lives planning for our future. As we draw near to retirement we can see the light at the end of the tunnel as all our hard work starts to pay off. Identity theft could put a serious damper on those retirement plans and could take years to recover from. Luckily, you are not at the mercy of these hackers. There are steps you can take to ensure that your data stays safe. Listen to this episode of Retirement Answer Man to hear my simple steps to guard your identity.

5 simple steps to guard your identity

With the daily increase of cyber threats facing our modern world, it is essential that you know what to do if your information is compromised. Over 100 Million Americans were affected by the Equifax breach. Odds are you are probably one of them. It’s never too early to take offensive steps to make sure your credit is monitored and you will be alerted to any suspicious activity.

Is new technology all it’s cracked up to be?

Apple has just announced the release of a few new devices, an Apple watch that can be used as a cell phone and the new I Phone X. The ads for these devices portray them as just what you need to fill the technology gap in your life. Having the new I Phone will make your life easier, safer, and on the cutting edge. Are these claims true? Think back to the last time you got a new device. It feels great and it’s exciting, but after a few days or a week, the excitement fades away. It becomes normal. Did it really bring you joy? We might be better off searching for joy in an area that doesn’t put a dent in our bank account.

Don’t let your identity fend for itself.

I’ve created a Free Credit Breach Protection Plan that you can find on my website. It gives simple instructions to help you take steps to protect yourself, your assets and your loved ones. Don’t wait until it’s too late, be proactive and protect what you have worked so hard for. Don’t miss this episode of the Retirement Answer Man.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [0:25] Have you ever had your identity stolen?
• [1:50] It can be difficult to regain your footing after an id breach.

HOT TOPIC SEGMENT

• [3:47] Hackers infiltrated the Equifax database.
• [4:20] The information of 60% of the American population has been compromised
• [5:49] There's a way you can know if you have been affected by this breach.
• [6:00] What does this mean for me?

PRACTICAL PLANNING SEGMENT

• [8:24] Protecting yourself without becoming a cybersecurity expert.
• [9:18] Credit Protection Action Plan
• [9:50] 5 Basic ways to protect your cyber data.
• [14:24] The best ways to respond to this data threat.

THE HAPPY LAB SEGMENT

• [21:39] The new Iphone X
• [22:08] The “new” is overrated

TODAY’S SMART SPRINT SEGMENT

• [23:45] Download the Free Credit Breach Action Plan