You know, there’s a lot of talk these days about the human lifespan being extended because of medical breakthroughs. Is it really going to happen? I tend to think that it’s likely just because of all the advances in nutrition, medicine, and even DNA research. If it does, what are the impacts that living longer is going to have on your retirement? In case you hadn’t noticed, I’ve been doing a bit of thinking on the topic and believe it’s worth sharing. So on this episode of The Retirement Answer Man, you get to hear me, Roger Whitney, wax philosophical and retirement investing as it relates to your later years… which could be longer than you expect.

HOT TOPIC: Oil prices are low… way low. What impact does it have on you?

Yes, the immediate answer is that decreased oil prices mean savings at the pump and on your utility bills, and with winter already hitting some parts of the Unites States that’s nothing but good news to your monthly budget. But oil prices being this low have other effects that aren’t so easy to spot because they are international effects that have to do with countries, governments, politics, and lots more. That, in turn, can impact your investments. I’ve been giving this some thought and want to give you some insights into those global issues and share with you how it could affect the decisions you make about your investments and your retirement… so give this episode of The Retirement Answer Man a listen.

If you live longer, your income level during retirement could increase.

For some of you that’s a no-brainer. You understood it the moment you read it. But for others, you’re kind of scratching your head. So let me explain… The assumption I’m making is that if you’re living longer, it’s because overall, you’re healthier. And if you’re healthier, you’re going to be able to generate income longer, even if it’s just a part time job you love or a hobby you turn into an online venture. Either way, you’ll have the potential to not only live on your retirement savings and investments, but also to add to the household budget by bringing in additional income on the side. That’s just one of the impacts longevity could have on your retirement. You can hear the rest on this episode of the show.

OK, I’ll give you one more impact longevity could have on your retirement: your monthly spending.

Why would living longer impact your monthly spending? There are actually a number of ways but let me give you just one. If you’re living longer because of the advances in medicine and science that we’re hearing so much about, it will mean that you’re generally healthier at an older age than has traditionally been the case. That means that instead of slowing down, you may be in better physical shape to enjoy the first season of your retirement years. You could be more active, more eager to get out and do things you always wanted to do, to see the world, see the grandkids, and all kinds of other great things. And all of those things take what? Money. So do you see how that could impact the amount you need to save for retirement? In this episode of the show I’ll be giving some of my thoughts on how you can plan for that possibility.

When can you retire? I’m doing a free webinar to help you figure that out.

It’s not a very smart idea to simply retire from your job because you’re 65, or because it’s traditional. You need to know that you will have enough money saved up to last you for your projected lifetime. That makes answering the question of when you’ll be able to retire much more difficult. Coming up on October 28th and 29th I’ll be doing a free webinar to educate you on all the variables involved in setting a retirement date. It’s going to be an interactive, fun, hands-on process where you can figure out the formulas using your own income and information. If you want in on this webinar, you can register for it by going to www.RogerWhitney.com/4steps - and if you can’t make the live webinar, I’m going to have a limited time replay available, so be sure to sign up anyway.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [0:24] Welcome and intro to this episode: Current oil prices, how Longevity can impact your retirement, and a couple of listener questions.
• [2:40] Roger’s upcoming webinar October 28th & 29th!

THE HOT TOPIC SEGMENT

• [13:00] The dangers associated with low oil prices.
• [18:31] What should you do in light of lower oil prices, as an investor and as one preparing for retirement?

PRACTICAL PLANNING TIP SEGMENT

• [12:09] The 5 major impacts longevity could have on your retirement.
• [13:39] Life expectancy continues to rise in the Unites States.
• [16:15] Spending issues impacted by longevity.
• [19:27] Income potential could increase because of longevity.
• [23:27] The impact on mind and body.
• [27:45] Lifestyle choices are impacted by longevity.
• [30:10] Your investments can be impacted by longevity issues.

RESOURCES MENTIONED IN THIS EPISODE

Register for the retirement webinar: www.RogerWhitney.com/4steps

Contact Roger: http://www.rogerwhitney.com/retirementanswers/

Hey folks, Roger here… Do you know what the 6 biggest expenses are that you’ll face during retirement? In this episode of the Retirement Answer Man, I want to walk through those expenses for a couple of reasons: 1) You need to have a clear picture of where you’re headed so that you can be prepared when you get there. 2) Because in keeping with the theme of my show this month, WHEN you can retire could depend on whether you actually make those preparations or not and on the decisions you make about the expenses you’re going to have to support during retirement. I’ve put together a great show for you, so I hope you’ll hit the play button, listen in, and give me your feedback to this episode.

In our “Hot Topic” segment: Is a Qualitative Easing 4 coming?

In case you’re not familiar with the term “Qualitative Easing” let me put it in a nutshell for you. Simply put, QE is when the government, for various reasons, decides to put more money into the economy. How do they do that? Basically, by printing more money and making it available. Their hope is that the new money they pour into the economy goes into the investing and business development sectors, thereby boosting the economy. There’s been a lot of talk lately about whether or not another QE is coming and in today’s hot topic segment I’m going to tell you what I think about the possibilities and give you a small bit of practical mindset advice about how you should think about it.

You don’t have to be at the mercy of your retirement expenses.

While it’s true that you won’t likely have the same amount of income during retirement as you have pre-retirement, you don’t have to feel like your lifestyle and ability to live is being ripped out from under you. I’d suggest that one of the main ways you can take control of those things is by examining and planning the expenses you’re going to face during retirement. You’ll have some big ones to contend with: Housing, Health care, Automobile expenses, and three others, but the choices you make about those could determine what your lifestyle is like during retirement AND whether you might be able to retire a bit earlier. In this episode I spend a good deal of time walking through each of those expenses so that you can not only go in with your eyes open, but also make good decisions ahead of time to enable you to make the most of your retirement dollars. Give it a listen.

Do you know what the #1 biggest retirement expense is?

You probably guessed it, it’s your housing. It makes sense that the biggest expense you have before retirement is going to be the same after retirement. But when you think about the cost of your housing during retirement it’s always helpful to keep in mind all the things related to housing that could impact the costs you pay. For example, I often see clients make the choice to downsize their home or even to move to another state where property taxes aren’t as high. Those are not necessarily easy decisions to make but can dramatically impact the amount of money you’re paying out each month so that you can keep a bit more in your pocket or to support the lifestyle you want to have in your later years. I’ve got lots of tips for you about how to plan for and mitigate your retirement expenses in this episode.

When can you realistically retire? I’ve got a free webinar coming up to help you figure it out.

To culminate my October theme of “When can you retire?” I’m going to be hosting 2 identical webinars to help you answer that question. I’m going to walk through a 4 step method you can use to answer the questions, “When can I retire and what will my retirement look like?” I I’m excited to bring you this informative and practically helpful webinar to help you discover the most things that will determine the answers to those questions. The webinars are coming up on Oct. 28th and Oct. 29th, 2015, and I’d love to meet you on that platform. To register or find out more about my free upcoming webinar go to www.RogerWhitney.com/4steps. Choose the date that’s best for you… and even if you can’t attend go ahead and register because we’ll have a replay that you can watch later at your own convenience.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [0:27] Preview of this episode: QE4, When can I retire?, the 6 biggest costs of retirement
• [1:14] 2 live webinars coming up: a 4 step method to determining your retirement timing

THE HOT TOPIC SEGMENT

• [3:15] Is “Quantitative Easing 4” coming?
• [3:45] A good working definition of quantitative easing.
• [5:06] How the economic data impacts rates and QE.
• [6:04] What happens if quantitative easing is implemented?
• [8:06] The bottom line whether QE happens or not.
• [9:14] What to do if QE4 happens.  

PRACTICAL PLANNING TIP SEGMENT

• [10:11] Taking control: acknowledging and managing the 6 biggest costs of retiring.
• [10:47] The mindset that impacts the decisions you make about when to retire.
• [15:46] The number one biggest cost in retirement: Housing.
• [22:01] The second biggest cost in retirement: Healthcare.
• [26:28] The third biggest expense in retirement: Taxes.
• [31:35] The fourth biggest cost in retirement: The car you drive.
• [35:52] The fifth biggest expense in retirement: Travel.
• [37:54] The sixth biggest cost in retirement: Caring for our children.    

RESOURCES MENTIONED IN THIS EPISODE

Register for the retirement webinar: www.RogerWhitney.com/4steps

Contact Roger: http://www.rogerwhitney.com/retirementanswers/

If you’re in your 40s or 50s you’ve probably started to wonder when you can retire and what your retirement lifestyle might look like.  You’re ready to be free from the set schedule of work and have more control over how you send your days. You’re ready to spend more time with your family and travel more. Maybe you’ve even played around with online calculators to see what your retirement might look like.

So why do you avoid putting together a plan to work towards the retirement you’ve dreamed about?

Let me guess:

• You feel you haven’t saved enough and are afraid of what type of retirement is truly possible.
• You have a awesome concept of what you want retirement to look like but you’re not sure how to put it all together.
• You want help, but you’re not sure where to turn or who to trust.
• It’s on your to do list, but somehow it never gets treated as a priority.

Busy people (like you and me) can easily get trapped in the urgent demands of day to day life. When we do have time to plan for our future, it’s easy to seek out quick, simple solutions rather than being intentional about creating a great retirement.

In my experience, I’ve found four major myths embedded in “simple” retirement plans are to blame for many people sacrificing too many of their retirement dreams.

I’m going to debunk those myths for you and show you how to work towards a better life in retirement.

Myth #1:  Your Retirement is a Number

True. You need to save for retirement, but it’s not as simple a specific amount of money. You don’t have a retirement “number.” Saving and investing is just part of the process of creating a great retirement..  If you make it your only focus,  you're placing the success of your retirement on things you can't control or predict (the markets).

In short, finding your retirement number may feel good in the moment but does little in helping you create a great retirement.

How to Avoid

A truly effective retirement planning process involves implementing strategies in 6 areas:

• Setting meaningful priorities (needs, wants, and wishes).
• Planning lifestyle expenses in retirement (see myth #2).
• Planning future income sources (see myth #3).
• Managing your balance sheet (assets and debts) not just your investments.
• Having the right “little conversations” to manage the uncertainties in your life and in the world.
• Investing in your health and relationships.

Myth #2 You’ll Spend a Consistent Amount Throughout Retirement

In reality, spending in retirement typically goes through 3 stages.

• In the “go go” years of retirement, your spending may be at its peak. This is the time for travel, activities, adventures and family.
• in the  “slow go” years, your spending may slow as you become more settled.
• In the “no go” years, you may spend even less as you settle in even more.

Absent, unforeseen health issues, these stages are becoming more the norm.

A “simple” retirement plan, just assumes you spend the same amount each year, adjusting for inflation. This seemingly reasonable assumption can drastically overestimate how much money you’ll need during retirement potentially forcing you to work longer or lower your lifestyle during retirement.

How to Avoid

Start by having a realistic discussion of how you'd like each phase of retirement to look like. Then put reasonable estimates of what each phase would cost on an annual basis. Some questions to ask yourself are:

• Do you want to front load your travel why you're healthy?
• Do you want to extend the time in your home before downsizing?
• Do you want to create experiences with your kids and grandkids while their less busy.
• Are you willing to live more simply later in life to experience more now?
• Are you willing to live more simply now to have a more consistent lifestyle throughout retirement?

Once you've defined the spending estimates for the different phases of retirement, you can start to create a more thoughtful plan to work to achieve the things you care about most.

Myth # 3 Retirement Means Not Working

In the past, retiring meant quitting the rat race and never working again. Today, more and more people are finding ways to transition from a full time career to a more independent style of work. They’ve seen the benefits physically, mentally, socially and financially.  Whether it’s freelancing, consulting, advising or normal part time work, the trend is to stay engaged….and earn some income.

Earning even small amounts of income early in retirement can have a big impact on what you can achieve during retirement. If you see yourself always doing something, then factor this into your planning. Doing so could allow you to take less investment risk, save less now, retiree earlier or increase your lifestyle during retirement.

How to Avoid

Stop thinking of retirement as an event and approach it as gradually transitioning to a more independent lifestyle. Think about what you enjoy doing that you could earn income doing. Nearly everyday, I hear of unique ways people are turing their interests it to money making ventures. Some questions to consider are:

• Can you become a consultant for your current employer?
• Could you transition to working from your home?
• Is there a side business you start now to discover what you'd enjoy?
• What skills could you use to do freelance work?
• Do you have a skills you could use to teach others?

Myth #4 Having a Financial Plan is Enough

Sure having a financial plan is important but it’s just the starting point. As soon as the ink is dry on your plan, everything starts changing. Your life starts to unfold in unexpected ways.

• Interests change.
• Family priorities change.
• spending patterns change
• Employment and income change.
• Health changes.
• Inflation changes.
• Taxes change.
• Markets move through cycles of bull, bear, and flat markets.
• EVERYTHING changes, most times quicker than we think

How to Avoid

The secret to creating a plan to help you work towards your ideal retirement is not figuring it all out in one, hundred page document. It’s faithfully implementing a process to make sure you’re having the right “little conversations” as your life unfolds so you can make LOTS of minor adjustments along the way.

Learn From Other's Retirement Mistakes

I’ve been creating financial plans for over 20 years now and have witnessed MANY mistakes along the way. You don’t need to do the same. I've created a cheat sheet on the 3 Talks You Should Be Having Now to Work Toward a Great Retirement (and How to Have Them). Click Here to Get the Cheat Sheet

This episode of the Retirement Answer man is filled with some debt-crunching, retirement building, volatile market enduring advice to help you put your financial life in order. The feature segment of the show features the story of Jamie and Ruth, a couple who paid off over $83,000 in debt in just over 30 months. 30 MONTHS! It’s a testimony to what a unified goal and lots of hard work can do. You’ll hear Jamie’s account of how that one decision has changed the course of their lives and set them up to have a greater vision for their future!

What should you do when the markets are so volatile?

The recent roller coaster that has been the S&P 500 has a lot of people in a conundrum. Do you change your retirement plan when the markets fluctuate so much, or do you stay the course? Roger Whitney says you have to keep your overall strategy in mind when making any decisions during volatile times. If your goal is to set aside money for retirement, you should be very slow to make changes in your strategy because of a temporary spate of volatility. The long term historical averages show that your investments are more than likely going to be alright by the time you retire. Find out a couple of other tips Roger has for you in this episode of The Retirement Answer Man.

When it comes to retirement and financial planning it’s so tempting to feel like you don’t measure up.

Think about it. We’ve all made those bad financial decisions. None of us has done everything we could have to save up for our retirement. What do you do when you realize that you haven’t measured up to the ideal you held out for yourself. Roger Whitney advises that you’ve got to come to grips with the truth that you are enough. What you’ve been able to do is enough. You can’t go back and change things. All you can do is to make changes moving forward, and you can do that, because you are enough. Hear more of Roger’s thoughts on this episode.

30 months to pay off $80,000 in debt. An amazing story!

When Jamie and Ruth made the decision to do everything they could to pay off their debt as fast as possible, Jamie didn’t even have a job. He’d been laid off and they didn’t really know how they were going to be able to accomplish such a crazy goal. But they were determined. Throughout the 3 years they worked to pay down their debt, Roger took all kinds of extra and radom jobs, and their income actually went up! They hammered away at their debt until they were able to pay it off. Now their future is different and their attitudes about life and what they can do in the near future to make the world a better place has grown. Hear their story as Jamie tells it, on this episode of The Retirement Answer Man.

Coming in October 2015: Group coaching based around the question, “When can I realistically retire and what will it look like?”

Roger is super excited to announce that coming up next month he’ll be starting some group coaching relationships to help you develop a plan for your retirement that is practical, simple, and doable. The space for these groups will be limited, but Roger’s convinced that anyone who participates will get a ton of value out of the time they spend in these groups. If you’d like to be a part of these groups, contact Roger at Roger@wwklc.com

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [0:24] Overview of today’s show.
• [1:47] Thanks to iTunes reviewers! And could you leave yours?
• [2:23] Thanks to you for leaving your feedback on the listener survey.
• [2:48] The focus of October’s shows: When can I realistically retire? and what will it look like?
• [4:13] November’s new program to coach you toward retirement.

THE HOT TOPIC SEGMENT

• [5:46] The markets are still volatile: What are basic things you can do?
• [6:25] The importance of cash reserves.
• [7:40] A quick best case VS worst case scenario to consider.
• [13:59] The importance of understanding the historical averages.

PRACTICAL PLANNING TIP SEGMENT

• [14:35] Roger’s thoughts after visiting his grandmother who recently passed away and what it has to do with his contentment.
• [16:50] Why it’s OK to not be enough.

MAIN TOPIC SEGMENT - Listener Questions

• [18:01] Jamie and Ruth’s “get out of debt” story, as featured on the Dave Ramsey show.
• [21:49] The key to paying off tons of debt in a short time.
• [22:42] Jamie’s story as told to Roger.
• [23:45] What Jamie thinks of when he hears the word “retirement.”
• [24:33] Is peace an internal state regardless of what you’re doing financially?
• [25:43] Why retirement will not be sitting around and playing golf for Jaime.
• [27:28] The “We’re debt free scream” story, from Jamie’s lips.
• [28:38] How aggressive Jaime and Ruth were in paying off their debt.
• [31:27] What worries Jamie about retirement and financial independence now that their debt is paid off.
• [32:20] How do you know when you have enough?
• [34:42] It’s never too late to start.
• [34:47] What is the worst financial decision you’ve ever made?
• [37:03] The hardest thing to manage in the financial realm.
• [37:47] How hard was it to become united in their communication as a couple.
• [38:25] The resources that have impacted Jamie the most.
• [40:23] How do you want to be remembered Jamie?

RESOURCES MENTIONED IN THIS EPISODE

BOOK: QBQ: The Question Behind the Question

BOOK: The Millionaire Next Door

Financial Peace University

Contact Roger at Roger@wwklc.com

Congratulations to YOU, the listeners of the Retirement Answer Man! Why are we congratulating you? Because you are the reason behind the recent honor Roger and the RAM show received at the FinCon Confernence. Roger received the equivalent of an Emmy award for broadcasters in the Financial Services Industry - a Plutus Award. He couldn’t have done it without you, your great questions, and the great guests who have come on the show to tell their inspiring stories and share their expertise. Thank you for supporting the show!

What happens historically after markets take a big drop?

Back in August 2015 we saw 4 days straight where the S&P 500 was very, very low. But it seemed to bounce back. What typically happens to the markets after a series of down days like that, and what impact should it have on your investments and investment decisions? In this episode of The Retirement Answer Man Roger gives the stats on that phenomenon and his advice on how you should respond to the information.

9 Books that have helped Roger invest and live with wisdom and confidence.

In the “Practical Planning” segment of today’s Retirement Answer Man show, Roger is talking about books. In particular, the 9 books that have most recently had an impact on how he lives and how he works. These 9 books range from financial and investing topics, to books on life, mindset, and how you arrange it all together. You’re sure to find something that is intriguing to you as you listen to this episode.

Can you work now to increase the amount of Social Security Benfits you’ll receive when you retire?

The answer is yes! Social Security is calculated based on your highest earning 35 years in the workforce. What that means is that if you’re nearing retirement and would like to increase the amount of benefit you will receive after you retire, you can intentionally take on more work (in order to generate more income) so that you’ll have another higher-income year to add to the average. In this episode Roger gives his advice on how to go about making that decision, including how to have a conversation about it with your local Social Security Administration office.

STRETCH IRAs: How can you roll them into ROTH IRAs?

A listener asks Roger a question about how to maximize the advantages of us stretch IRA when rolling it into a ROTH IRA and as always, Roger has some great advice. There are a lot of particulars and exceptions in how to handle a situation like this, so make sure you listen to this episode and take some good notes so you’ll know exactly how to ask your investment adviser about doing the same thing should you need to.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [0:24] Welcome and CONGRATULATIONS for helping the Retirement Answer Man win a “Plutus Award” at the recent FinCon conference.
• [1:34] Preview of the episode
• [1:59] Ways you can help get the word out about the Retirement Answer Man.

THE HOT TOPIC SEGMENT

• [3:37] What happens to markets  after a big drop?
• [4:32] Was the August 2015 drop in the S&P 500 a market correction in 4 days? Apparently so…
• [6:07] How has the S&P done after large drops, historically?
• [7:41] What are the takeaways for us?
• The importance of knowing the truth about market reactions.
• You need to be proactive in your investment decision making.
• Be slow in changing strategies.
• Remember that you can’t believe all statistics.

PRACTICAL PLANNING TIP SEGMENT

• [14:28] 9 books that have helped Roger invest with wisdom and confidence.
• [16:19] The How of Happiness
• [18:11] Love Does
• [19:15] Essentialism: The Disciplined Pursuit of Less
• [20:19] A Million Miles in a Thousand Years
• [21:40] Winning the Losers Game: Timely Strategies For Successful Investing
• [22:11] The Truth About Money
• [23:10] The Investment Answer
• [23:37] The Millionaire Next Door
• [25:32] Q.B.Q.: Practicing Personal Accountability At Work and In Life
• [27:23] Share your favorite books with Roger at Roger@wwkllc.com

MAIN TOPIC SEGMENT - Listener Questions

• How are Social Security benefits calculated and how can I improve the amount SS will pay me?
• How does a Stretch IRA work with a ROTH IRA?

RESOURCES MENTIONED IN THIS EPISODE

The Retirement Planning Center - Text “Planning” to “33444.”

The How of Happiness

Love Does

Essentialism: The Disciplined Pursuit of Less

A Million Miles in a Thousand Years

Winning the Losers Game: Timely Strategies For Successful Investing

The Truth About Money

The Investment Answer

The Millionaire Next Door

Q.B.Q.: Practicing Personal Accountability At Work and In Life

In today’s podcast Roger hosts a terrific conversation with Marc Miller. Marc is a veteran of the corporate world, having worked for IBM for many years. He ‘s made what he calls a “pivot” in his career journey by exiting the corporate world and starting up his own consulting and coaching business to help others pivot their lives into something more satisfying and enjoyable for the later half of their lives. You’ll hear all kinds of great topics in this chat as Roger asks Marc about how he made the transition, whether he truly IS happier now, and what others can do to position themselves for a great pivot of their own. Be sure to listen in to this episode of The Retirement Answer Man, with Roger Whitney.

Help Roger help you, by taking part in the annual listener survey

One of Roger’s greatest desires is to help you position yourself for retirement so you don’t find yourself facing financial hardship as you approach the last stage of life. Toward that end he wants to make this podcast the most helpful it can be. He’d love to hear what you like about the show and what you think has room for improvement. You can take part in the 2015 Listener Survey by texting “RAMSurvey” (all one word) to “33444.” Please take just a few moments to let Roger know what you think of the show.

Has your insurance company or investment advisor informed you that your insurance policy could be bought out?

There are a number of big name insurance companies that have decided that the “income products” they’ve offered as part of insurance packages were not such a good idea. As a result they’re offering to “buy out” those policies from policy holders. But something Roger’s noticed that irks him a bit is that some of these companies are offering a “bonus” of sorts for investment advisors who take the time to help their clients make the decision TO sell out their policy. It may be the best decision for the client, but Roger’s concerned that providing a bonus may produce a conflict of interest for some advisors, and that many clients could be misguided as a result. Find out the details on this episode.

10 rules for retirement planning

In the “Practical Planning” segment of this episode, Roger covers a handful of the 10 rules for retirement planning. In particular, he refers to the old adage, “Pay Yourself First” and points out that it not only means setting aside the first part of your income for your savings or investments, but also that “lifestyle creep” could also be a factor in not setting aside enough of your income. What is “lifestyle creep?” Find out as Roger explains the concept and its effect on this episode of The Retirement Answer Man.

Marc Miller has made the pivot from corporate career to entrepreneur and he’d like to help you navigate those waters too.

After years of working at IBM as an engineer, Marc moved out of the corporate world in favor of building his own business and the life of his dreams. He’s achieved great success and now serves people who were once in the corporate shoes he wore, helping them discover the way forward that uniquely fits them and positions them best for their retirement years. Listen to this great conversation between Marc Miller and Roger Whitney to hear Marc’s story, the lessons he’s learned, and how he helps his clients navigate out of the corporate world.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [0:24] Welcome to this episode - where we work together to create not just a healthy retirement, but a healthy life.

• [1:57] Help  Roger help you… by taking part in the 2015 Listener Survey - text “RAMSurvey” to “33444”

THE HOT TOPIC SEGMENT

• [4:29] Welcome to “Roger’s Rant” about a subject that came across his desk this week.

• [5:09] The “income products” being offered by insurance companies, and the buy-out options the companies are offering.

• [6:32] Why Roger’s so angry… the letter he received from a major insurance company.

• [9:26] How you should evaluate a “buy out” option on an insurance product.

PRACTICAL PLANNING TIP SEGMENT

• [15:33] 10 rules for the retirement realm… a few tips to help you.

• [16:06] The importance of paying yourself first, and what it really means.

• [18:26] Don’t rob tomorrow

• [18:44] Put time on your side - today’s the best day to start.

• [19:08] Don’t count on social security.

• [19:45] Be slow to borrow from your investments.

• [20:00] If you’d like access to the Retirement Learning Center to get the rest of these 10 rules, text “Planning” to “33444.”

MAIN TOPIC SEGMENT - A CONVERSATION WITH MARC MILLER

• [21:03] Marc’s journey so far.

• [23:30] How Marc’s thoughts on retirement changed once he got out of a major corporation.

• [24:23] The thing that excites Marc the most about pivoting toward retirement.

• [25:08] Does Marc think his story is a “special case” that others can’t duplicate?

• [26:25] The comparison between Marc’s life when he was 30 or 40 and his lifestyle now.

• [27:01] The things that worry Marc the most about being in his new stage of life.

• [29:09] Marc’s assessment of how he’s doing in his “independent” stage of life.

• [29:31] The transition from a big company to an entrepreneurial lifestyle.

• [31:24] The worst financial decision Marc ever made.

• [33:29] The biggest struggle Marc has managing his own finances.

• [35:58] The two books that have impacted Marc most.

• [37:38] How Marc wants to be remembered.

• [38:56] Marc’s new e-book - Personal Branding for Baby Boomers

• [40:53] How to connect with Marc Miller.

RESOURCES MENTIONED IN THIS EPISODE

The Retirement Planning Center - Text “Planning” to “33444.”

Marc’s book: Personal Branding For Baby Boomers - https://careerpivot.com/personal-branding-baby-boomers/

Marc’s website: www.CareerPivot.com

Marc’s email: Marc@CareerPivot.com

One of the most tempting but dangerous things investors (and investment advisors) do is to react in light of what current markets are doing. Don’t misunderstand, it’s always wise to make adjustments when needed, but not to your overall strategy or plan. You put together that strategy to accomplish certain goals within certain timeframes, and over the long haul, it should accomplish your goals given the expected amount of time. When you change your investment strategy because of the markets, you’re changing horses midstream, and you could wind up in deep water! Roger’s got some great advice about how to stick to your plan even though the current market situation seems shaky, on this episode of The Retirement Answer Man.

Do you know what a STRETCH IRA is, and how it can benefit you and your loved ones?

When making investments for retirement, one of the oft overlooked issues has to do with what happens to the investment should you pass away. If you neglect to designate a beneficiary of your IRA for example, the money will simply pass into your estate upon your passing, and will be taxed almost immediately. That’s not a very good use of the money you worked hard to earn and save, is it? A Stretch IRA enables you to designate beneficiaries and actually S-T-R-E-T-C-H the tax benefits of that investment beyond your lifetime, into the expected lifetime of your beneficiary. Find out how this works on this episode.

Do you know how to choose an investment advisor wisely?

That issue alone could make or break your retirement investment strategy. You’ve got to know that the person advising you on your retirement is not only experienced, but the right fit for you and the goals you have. What should you ask a potential investment advisor to see if there’s a good fit? Do you know? In this episode of the Retirement Answer Man Roger spends a good deal of time discussing what you should look for in a good retirement investor and how you can ask the right kind of questions to discover if that advisor is the one for you. Listen in to hear Roger’s hard-learned advice.

How should a small company go about setting up retirement plans for employees?

There are many options out there, and sometimes the administrative costs make it very difficult to set up a plan that is generous to employees but also affordable for the business owner. In today’s episode Roger fields a “live” question from his friend Mark about how to assess the various retirement plan options, how to educate employees on the options without boring them to tears, and how to find the right investment advisor to guide the company and the employees through the process of setting up what is best for each individual. It’s a valuable conversation about retirement plans and small business. Listen in to hear the entire chat.

Did you know that Roger would love to answer your questions about retirement?

That’s what the Retirement Answer Man podcast is all about. You can ask your specific, personal question and Roger could answer your question on the air. It’s as easy as clicking a button and talking. Go to http://www.rogerwhitney.com/retirementanswers/ to record your question and Roger may address the issues you raise on the next episode. Where else can you get free, experienced, trusted advice on something as vital to your future as retirement planning? Don’t wait. Ask your question now!

Free Resources to help you do your retirement planning wisely.

Roger is an investment advisor. That means he makes his living advising people about how to wisely make investments for their future. But beneath that is a deeper motive to help people. One way that Roger is doing that is by creating his “Retirement Learning Center.” It’s a free resource on his website (www.RogerWhitney.com) where you can find all kinds of resources - from how to interview a possible financial planning partner (discussed on this episode) to caring for Elderly parents, to wise estate planning. You’ll be amazed at the valuable resources Roger has packed into the learning center, so make sure you get over there to check it out!

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [0:32] Roger’s welcome

• [1:00] Roger’s daughter turned 18 years old - got a tattoo - and why it matters!

• [3:06] Thanks to some iTunes reviewers!

• [4:24] Constructive feedback from a listener (Rick) and a great resource shared from another listener (Mark).

THE HOT TOPIC SEGMENT

• [6:38] Still talking about the markets!

• [7:00] A conversation Roger had and what he realized from it about asset allocation.

• [9:40] The temptation to change or alter your investing strategy during down times in the market.

PRACTICAL PLANNING TIP SEGMENT

• [13:00] What is a STRETCH IRA?

• [15:00] The tax benefits of setting up a Stretch IRA correctly.

• [16:27] Advanced strategies for IRAs.

• [17:23] The Retirement Learning Center resource concerning these IRA options - text the word “planning” to “33444.”

TODAY’S LISTENER QUESTION

• [17:52] An email from Elliot: 3 questions about recording income in a consulting business, setting up lifestyle expenses, and dividends from retirement accounts!

• [22:50] A question from Mark: How should I set up a small business retirement plan for my employees?

RESOURCES MENTIONED IN THIS EPISODE

The upcoming Investing Seminar - Text “Ram Webinar” to “33444.”

The Retirement Planning Center - Text “Planning” to “33444.”

“How To Find a Financial Advisor” worksheet

Mark Menard’s “Elevating Beyond” podcast

TWEETS YOU CAN USE TO SPREAD THE WORD

Use a #StretchIRA to maximize #TaxDeferred benefits for loved ones

How should you account for #consulting income? Find out on this episode

#SmallBusiness TIP: How to set up employee #RetirementPlan benefits

Ask your #retirement related investment questions from a pro! Find out how, here

Free resources to help you make wise #RetirementPlanning decisions

Today’s episode of The Retirement Answer Man debuts a brand new format that will help you make even more of your retirement and financial planning. From here on out all episodes of RAM will be consist of 3 segments - The Hot Topic, where Roger addresses current issues on the financial horizon - The Practical Planning segment, where Roger gives you practical, actionable tips to help you get your retirement planning headed in the direction you desire - and the Listener Question, where Roger answers YOUR questions about retirement related issues. Listen in to get a feel for the new format and to hear how Roger can help you get your retirement planning well in hand before it’s too late.

HOT TOPIC - A market correction or a bear market?

Last week’s market closed with some alarming numbers and as always, many people are speculating what it means. Is this nothing more than a natural market correction? It could be… it’s been a very long time since the market corrected. But it’s always possible that it’s the beginning signs of a “Bear Market” that could turn things in a very negative direction. Which is it? Nobody can say for certain but the advice Roger has for you in today’s show applies no matter which it turns out to be. Don’t miss this solid, practical tip.

THE KEY to being a great investor!

Nobody invests their money to get small returns. We all want our investment dollars to do the very most for us possible. In this episode of The Retirement Answer Man, Roger addresses the current market situation by advising you how to become the great investor you want to be, no matter what the economic climate. Listen in to find out what Roger believes to be THE KEY to becoming a great investor.

The retirement planning center is available for you - free of charge.

Whether you’re a seasoned investor with a solid track record of investments behind you, or are just getting started on the retirement investing journey, Roger has compiled a treasure trove of resources for you in his free Retirement Planning Center. It’s a quick and easy resource from an experienced retirement advisor that will get you moving in the right direction. If you’d like to gain access, listen to this episode to find out how you can!

What is a Community Foundation and how can it help you with charitable giving?

In today’s main segment Roger has a very informative conversation with Nancy Jones of the Community Foundation of North Texas. Nancy’s experience in dealing with both donors and charities, as well as her interest in finding worthy and trustworthy charities for the foundation’s members, make her a great resource for the topic of today’s show. In this episode you’ll learn what a community foundation is, how it can help you identify charities in your own community that may be the exact fit for your charitable desires, and how the vetting process a community foundation does can help you rest easy, knowing that your charitable contributions are being used well. Find out more about community foundations on this episode of The Retirement Answer Man.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [0:32] The theme of today’s show - giving to others without worry.

• [1:12] Thanks to Allen for the great review.

• [1:42] A new structure to the podcast - Hot topic - Practical Planning Tip - Main Segment

THE HOT TOPIC SEGMENT

• [3:35] A market correction or the next phase of a Bear market?

• [8:47] The key to being a great investor.

• [10:08] Roger’s seminar to help you plan out your investing goals - 8/27/15. Text “RAMWebinar” to “33444.”

PRACTICAL PLANNING TIP SEGMENT

• [12:00] The basics of giving to causes and people.

• [15:18] Get a free retirement planning learning center - text “Planning” to “33444.”

TODAY’S LISTENER QUESTION

• [16:13] What are ways I can find a “good” charity to support?

• [17:08] Roger’s introduction of his conversation with Nancy Jones from “The Community Foundation of North Texas.”

• [21:20] How a community foundation can benefit a person looking for somewhere to give.

• [23:56] How does a person with charitable intent manage the worry they might have about running out of money?

• [26:36] The current IRA rollover provisions, a new possibility.

• [28:11] What are the minimums required to set up a relationship with a community foundation?

• [29:15] The benefit of creating experiences for your kids rather than leaving them cash.

• [32:07] How a community foundation can match you with groups you would be interested in, but don’t know about.

• [34:39] What’s so important about a “community foundation?”

RESOURCES MENTIONED IN THIS EPISODE

The Community Foundation of North Texas - Nancy’s organization - http://www.cfntx.org/

The upcoming Investing Seminar - Text “Ram Webinar” to “33444.”

The Retirement Planning Center - Text “Planning” to “33444.”

Roger starts the show off with a bang today by answering a listener question: “I’m a smart guy. So why do I make such stupid decisions when it comes to money?” Feel familiar? We’ve all made our share of mistakes in the financial areas of our lives, and that pattern never really changes unless we come to grips with the REASONS we make those decisions in the first place. As you listen to Roger’s response to the listener’s question, see if you can pick out the main reason dumb financial decisions are made, and a handful of ways you can put safeguards in place to keep yourself from them.

What worries you most about retirement?

Have you given that question much thought? In today’s episode of Retirement Answer Man Roger speaks with Darryl Lyons, author of “Small Business, Big Pressure” and asks him that very thing. Darryl’s answer is reflective of many people in our day, concerned about whether or not he’ll have the amount of retirement funds set aside to truly achieve the things he wants to do in his “life pivot” (Darryl prefers to think of retirement that way). It’s a refreshing interchange between two swell guys, and you can hear it on this episode.

Is a college education really an important thing for your kids?

In modern America, it’s almost heretical to even ask a question like that, but Darryl Lyons not only asks it, he’s come to a a definitive “NO” answer. It’s not that Darryl is opposed to education,  he just believes that education is not the most important thing to him, especially as he considers the amount of money he’ll have to save to put his 3 girls through college. He’s not at all interested in paying that kind of money for an education that is top notch if the environment of the school isn’t supporting and promoting their character at the same time. Hear Darryl’s thinking on that and many other issues on this episode of Retirement Answer Man.

Is paying tens of thousands of dollars for your kids’ college education equipping them, or enabling them?

That’s the spirit of a question Roger asks his guest, Darryl Lyons on this episode of Retirement Answer Man, and Darryl’s answer is very intriguing. He’s convinced that much of the money spent on education today is wasted, and he’s got very strong reasons why he says that. Listen in to the conversation as Roger asks Darryl about that topic and many more, and see if you agree with Darryl.

Would you like to know what your Retirement Personality Profile is?

Roger’s been learning that when he helps his clients know themselves better, they are better able to know what they want and need in their retirement. That mental picture is what Roger is calling their “Retirement Personality Profile,” and Roger’s created a tool to help people (even you) get a clearer idea of what they value in retirement, and what is just wishful or romantic thinking that has no basis in reality. Want to get your profile? You can. Go to www.RogerWhitney.com/profile to get your Retirement Personality Profile now.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [0:27] Welcome and introduction to the episode.

• [1:37] Introducing the Retirement Personality Profile! Take yours today!

• [8:33] A listener question: “I’m a smart guy. So why do I keep making stupid financial decisions?”

• [17:30] The retirement journey of Darryl Lyons - Darryl’s story.

• [19:20] What does retirement mean to you? The most important question.

• [20:42] Darryl’s greatest area of excitement about his future retirement.

• [23:03] What worries you most about retirement? Have you considered the question?

• [24:23] Where is the line between supporting your kids and enabling your kids?

• [26:28] Darryl’s thoughts about why his kids’ education is not the most important thing.

• [27:11] Where Darryl is on the retirement road.

• [28:13] How a business that is growing can be a form of retirement.

• [29:16] Darryl is a financial planner… so does HE use a financial planner?

• [30:14] The worst financial decision Darryl has ever made.

• [31:52] The power of unwise counselors to ruin your life.

• [33:05] The hardest things Darryl’s had to do to manage his money wisely.

• [34:11] Darryl’s favorite resources and powerful inspira

• [35:53] “Small Business, Big Pressure” - Darryl’s book.

• [37:50] How you can have your question answered on the Retirement Answer Man.

LINKS MENTIONED IN THIS EPISODE

The Retirement Personality Profile on Roger’s website - www.RogerWhitney.com/profile

The Retirement Learning Center - www.RogerWhitney.com/learn

How to leave your question for Roger to answer - www.RogerWhitney.com/retirementanswers

Contact Roger via email - roger@wwkllc.com

http://www.smallbusinessbigpressure.com - Darryl’s Lyon’s book!

TWEETS YOU CAN USE TO SPREAD THE WORD

Sometimes it’s better to be a smart idiot, than a stupid genius #RetirementAnswerMan http://www.RogerWhitney.com/80

When it comes to our OWN #RetirementPlanning, we’re motivated by emotion http://www.RogerWhitney.com/80

Want to make smarter #FinancialDecisions? Put controls in place. Find out how on this episode http://www.RogerWhitney.com/80

Use your spouse to help you make better #FinancialDecisions - #RetirementAnswerMan http://www.RogerWhitney.com/80

#SmallBusiness, BIG pressure - the author speaks on this episode of #RetirementAnswerMan http://www.RogerWhitney.com/80

Retirement planning is as much about additional sources of income as it is about investments. Roger’s guest today, Matt Miller, has built a company that offers savvy retirement planners a legitimate way to add an additional stream of income to their current situation - either on the side or with hopes of it moving toward a full time business. It’s entrepreneurial to the core; becoming a business owner, making your own rules, living the life you want now, instead of waiting for retirement. But it builds toward retirement as well. Matt’s story is inspiring… and you’ll hear it all on this episode of Retirement Answer Man.

From the military, to corporate, to entrepreneur - Matt’s story

Matt Miller was a pilot in the U.S. Military, and when he decided to step out of that life the transition was more difficult than he thought it would be. Though the government had spent plenty of time and money giving him outstanding skills, potential employers seemed hesitant to give him a chance because they weren’t sure he’d stick with them. They thought he was likely to return to the military instead. As Matt dealt with the corporate politics and the difficulties of achieving the freedom and levels of success he wanted, he realized that his future retirement AND the life he wanted now were things he’d have to go for on his own. Get more details on this episode.

Retirement planning is about more than just amassing a pile of cash - it’s about making a meaningful life

That’s a mindset that many people planning for their eventual retirement don’t cultivate enough. Your life after retirement can be, and should be rich with activity that makes a difference in the world. Matt Miller (today’s guest on the Retirement Answer Man) says he could never see himself sitting on a beach doing nothing. He doesn’t want to be that person. He’s got to be busy investing himself in causes that are important to him, no matter his age or degree of physical stamina, and he’s built a business that makes it possible for him to do that, and empower others to have the same opportunity. If you’re tired of the rat race and want something different for your future, you should check out Matt’s great opportunity. Find out more by listening to this episode.

A listener question: Can I contribute to my ROTH IRA even though I’m not eligible to do so?

ROTH IRAs do have some limitations on when and how contributions can be made, especially if you’re single and make over a certain amount of income in the year you want to make a contribution. In this episode of Retirement Answer Man Roger fields a question from a listener who is in that exact situation and in doing so sheds light on the ways contributions can be made in that situation, and whether they will be tax free contributions or not. If you’ve got questions about your ROTH IRA, you should listen to this helpful Q&A with the Retirement Answer Man.

Do you have a question for Roger Whitney, the Retirement Answer Man?

Roger would love to hear from you and answer your question on an upcoming episode of RAM. You can easily submit your question in one of two ways: 1) Visit the website at www.RogerWhitney.com/retirementanswers . You’ll be able to leave your own voice message for Roger, asking your retirement related question. Or if you prefer to send in your question in writing, you can email roger at Roger@wwkllc.com . He’d be happy to hear from you!

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• [1:20] The revamp of the Retirement Answer Library - easier to use and to find what you need - www.RogerWhitney.com/learn

• [3:35] How you can leave your question for Roger - www.RogerWhitney.com/retirementanswers or send Roger an email - roger@wwkllc.com  

• [5:27] LISTENER QUESTION: How can I make a contribution to my ROTH IRA given that I am single and make too much money to contribute?

• [12:03] Introduction of today’s guest - Matt Miller.

• [14:00] The obstacles Matt discovered transitioning out of the military and into the corporate world.

• [16:20] It’s not just about building a pile of cash for retirement, it’s about a meaningful life.

• [17:09] What Matt’s business does that creates his personal income (and income for franchisees) and adds great value to the world.

• [19:22] The dangers of getting into the vending industry (where Matt’s company operates), and how Matt’s company is different.

• [21:46] Raising up generations of entrepreneurs.

• [22:57] Why mindset is most important for Matt’s franchisees - and what that looks like.

• [24:48] Matt’s view of retirement - what it means to him and how he thinks about it.

• [26:43] How Matt is living on his own terms now rather than waiting for retirement.

• [28:10] What kind of business should you start? How Matt made those decisions.

• [30:07] The one trait that enables Matt to be successful.

• [30:55] 13 years to overnight success - the power of continued iterations.

• [32:42] Get in touch with Matt Miller.

LINKS MENTIONED IN THIS EPISODE

The Retirement Learning Center - www.RogerWhitney.com/learn

How to leave your question for Roger to answer - www.RogerWhitney.com/retirementanswers

Contact Roger via email - roger@wwkllc.com

Get in touch with Matt Miller - matt@ssvbusiness.com

Matt’s company website - www.SSVBusiness.com

I've been hacked!!!! To prove that talking retirement planning doesn't have to be dull, Joe Saul-Sehy from the Stacking Benjamins Show hacked into this week's show.

We were all set for another super serious retirement planning show when Joe from Stacking Benjamins hacked in and took over. Evidently Joe thought I was getting a bit too serious and wanted to lighten up the show a bit. Although he made every attempt to suck the wisdom from the show, I was able to sneak in some great retirement planning lessons as he told stories, ranted and joked about personal finance.

If you listen closely, you'll there's some great lessons about:

• Financial Pornography: The dangers of listening to financial news.
• How everyone is marketing something
• Everyone presents themselves as financially savvy
• Why not to believe your friends investing stories.
• Don't count on your advisor to predict the future.
• The true role of an excellent financial advisor.
• Why humility is key to making good financial decisions.
• Joe's admits his worst financial decision.
• How to judge the competency of your financial advisor.

As light hearted as Joe is, he really knows his stuff. If you're looking for an entertaining personal finance show, check his out here.

Tell Me What You Think

Joe thinks I'm too serious in my show. Joe's a good friend and I respect him. You're a friend to so I'd love to get your feedback.

• What do you like most about the show?
• What would you change?
• Is my show too serious?
• Would you like to hear more about current events and the markets?
• Is it too long (or too short)?

TELL ME HERE

It's easier than ever to become a terrible husband. Our connected world has caused the outside world of news, work and friends to compete for the limited attention we have when we're at home.  If you're not careful e-mails, status updates and the internet can rob your wife of her rightful place as the center of your life.

This year my wife and I will celebrate our 25th wedding anniversary. I'm happy to say our relationship has never been stronger. This wasn't always so. For much of our marriage, I was a terrible husband. I allowed the pressures of work and the outside world to dominate my attention at the expense of my wife. Luckily, I woke up, got my priorities straight and can now say we have an awesome marriage.

I want this for you too.

In this week's episode, Nick Pavlidis shares his journey from terrible husband to husbandly awesomeness (He wouldn't say this, but I will).  We discuss:

• Signs you could be a terrible husband.
• The importance of taking inventory of your actions and priorities.
• How to apply workplace leadership skills at home.
• Ways to make your wife your top priority.
• Why it all starts with you.
• How to walk your talk.
• The benefits of investing in your marriage.
• The magic of continually asking yourself,  "What is the next right thing?"

Join Nick in Becoming a Better Husband

Nick is, admittedly, a work in progress. If you'd like to join him on his journey towards being more intentional in marriage here's how:

• Read Nick's new book Confessions of a Terrible Husband: Lessons Learned from a Lumpy Couch.
• Listen to his podcast.
• Connect with him via:
  • Facebook
  • Twitter

Question

What is your nest advice for improving your relationship with your spouse?

Tell me here

What do you think the midyear outlook for the market is? Greece, is all over the news (what is it with Greece, anyway?), markets in China are crazy and here in the U.S. everyone is freaked out about when interest rates will rise. What is an investor to do?

In this episode, we'll discuss the midyear outlook for the markets as well as the importance of managing your assets in a consistent well thought out way.

Your Investment Assets Should Be Aligned with Your Financial Priorities. 

All to often, we collect investments over time just like we collect "stuff" in our closet. As we walk through life, we see an interesting investment, buy it and repeat again and again. Over time, many end up with an investment portfolio that looks more like a storage closet than a well structured portfolio laser focused on helping achieve goals. 

Over the years, I've seen some horrendously constructed portfolio (by Advisors as well as individuals).  I recall one IRA that had over 45 different managed portfolios! All actively managed by an advisor.  Geez!!!

Collected portfolios pose some serious risks to your long-term investment experience. Such portfolios make it very difficult to evaluate:

• the individual and aggregate risk you're taking.
• whether each manager is performing adequately.
• the appropriateness of the fees you're paying.
• Whether you're portfolio allocation is aligned with your family's priorities.

Much better, in my opinion, to have your portfolio, and your balance sheet, laser focused on helping you achieve things you know you care about. In short know:

• what you own.
• why you own it.
• how to evaluate it.
• how it helps position you to achieve your family's priorities.

It is Essential That You Stick with ONE Well Thought Out Investment Process.

This is such an important point I need to do an entire show on it. If you switch from process to process you really don't have any process at all. This can be DISASTROUS to your long-term performance.

Decide on a well thought out strategy and stick to it. Stick to it even when it feels uncomfortable; especially when it feels uncomfortable. 

Stay tuned for a future show focused on investment process. 

Highlight's From LPL Financial's Midyear Outlook

In this week's episode, I speak with LPL Financial's Anthony Valeri, C.F.A. about LPL's midyear outlook for the world economies and markets. Anthony and the entire LPL team are sharp cookies. More importantly though, because LPL does no investment banking or selling of proprietary products, they're investment opinions are not tainted by the normal conflicts of interest you see at major firms. 

Anthony is a Senior Vice President, Investment Strategies and sits on LPL's tactical allocation committee. 

Get LPL's Midyear Outlook for Investing

• The economy has helped deliver six consecutive calendar years of positive returns for stocks since the end of the 2008 – 2009 Great Recession, as measured by the S&P 500 Index; however, constructing a strategy for the remainder of the economic expansion will require a tricky assembly. Divergent monetary policies reveal an uneven global recovery that has triggered an uptick in stock market volatility. A few important pieces requiring assembly for the remainder of 2015 include: „
• How the U.S. economy pieces together the components needed to bounce back from a lackluster start of the year. The U.S. economy hit an unexpected soft patch to start the year due to a severe winter freeze, the West Coast port strikes, ongoing effects of lower oil prices, and the surging U.S. dollar. Returning to a more normalized 3% growth level will be crucial to build further upon the market’s first half gains. „
• After successfully delivering the U.S. economy out of the recessionary “warehouse,” how does the Federal Reserve (Fed) assemble an exit strategy from its six-year policy of zero interest rates? With unprecedented levels of accommodative monetary policy rendering any traditional instruction manual pointless, the Fed will have to use its entire toolbox to construct a delicate increase in interest rates without disrupting the fragile economic growth and the wavering confidence of businesses, consumers, and investors.
• Corporate earnings growth continues to search for that spark to ignite equity advances. In the U.S., lackluster profits aligned with weak first quarter 2015 economic growth to produce the lowest level of year-over-year corporate earnings growth in 11 quarters. Overseas markets are looking for a power boost from the very accommodative monetary policies of global central banks across Europe and Asia, in an attempt to spur sustainable growth, improve earnings, and avoid deflationary forces.

Although many packages are still in transit as we approach the midpoint of 2015, the biggest challenge for the market is putting the necessary pieces together to construct the backdrop for solid global economic growth, stable prices and currencies, and expanding corporate profits. The task is complicated by the Fed’s expected first interest rate increase in nine years later this year. The assembly will not be an easy one, but the LPL Research Midyear Outlook 2015: Some Assembly Required provides the investment instruction manual, tools, and tactics to construct portfolio strategies that may flourish in a market that remains in transition.

If you're an auditory learner, here's a link to their midyear outlook video.

Enjoy the Podcast?  Please Help Others Find it in iTunes By Leaving a Review 

Click HEREo leave a review.

Many say the American dream is dead. That getting married, starting a family and building for the future is no longer possible. Unfortunately, many others believe it when they hear it. All the while though, there are people with "normal" jobs building the American Dream step by step.

One such person (or couple) is Molly and her husband. He works as a teacher. She works part time. They have a home and young daughter but still safe 15% of their gross income. From our conversation, they don't seem to do anything magical. They simply work at being intentional with how they spend money.

Lessons I Learned From Molly's Story

1. The word retirement is changing. It's becoming more about working on your own terms than leaving the workforce. This is significant, and if you share this vision you can use it to plan more intelligently of your future.
2. It's important to be careful about what you spend on your education. According to Career Builder, over half of college grads are in jobs that don't require a degree. Education is important, but it may lead you to work you hadn't considered.
3. It is possible to start a family, build a life and save for the future in "normal" paying careers. It takes being very intentional about your spending and working together.
4. It's important to learn about the time value of money and investing early. Although parents and schools, generally, do poorly at this, there are lots of great resources for those that want to learn. In fact, today I had a perfect example. A 19 year old called me to discuss how to start saving for the future. This young man is working, going to school and has extra money he wants to start saving and investing with. Where'd he learn this attitude?  Books and podcasts!
5. It's so easy to buy things that we forget about the great free resources available to us. Whether it's on the internet or at the local library, there are free resources to help you learn about nearly anything. Molly gives a great example of this in her quest to learn Spanish. Rather than buy a expensive (highly marketed) language program, she found free resources at the local library.

Molly

• Early 33’s
• Married 5 years
• A toddler daughter (20 months)
• Registered nurse

What Does Retirement Mean to You?

“In my 20’s it was this nebulous way in the future concept  that happens to other people, but would never happen to me because I’m never going to grow old."

"Retirement to me would be a continuation, where I’m able to work just the amount that I want to. Maybe some of that is paid. Maybe some of that is volunteered. "

"I think of retirement as the point that we hit financial independence, so that I’m not just working because I have to. I’m working because I want to."

What Are You Most Excited About Retirement?

“The flexibility to do whatever I want to do with my time.”

"I would love to live close to my children, when they have children.”

What Worries You Most Worried About?

“Unexpected future expenses (home remodeling, more kids) could push back the date of our financial independence.”

“I spend most of my time focusing on what I can control.”

How Do You Think You're Doing on Your Journey Towards Retirement?

“If you’re looking at the average American in their mid-30’s I think we’e ahead of the curve.”

“We’re saving about 15% of our gross income towards retirement.”

Do You Use a Financial Planner?

“I took a Retirement Planning Today class at a local community college.  They offered a free consultation. It was very sales oriented.”

What is the Worst Financial Decision You’ve Ever Made?

“I got an undergraduate degree that I’m not using. I got a teaching credential that I’m not using. I even went back to school to start to get a masters in nursing (and then dropped out). So, I’ve spent a lot of money on education that I’m not using.”

“I didn’t pay more attention and try to learn about investing in my 20’s.”

What Do You Struggle With When Making Financial Decisions?

“I would probably say, I’ve gotten borderline obsessed with learning about personal finance.”

What is Your Number One Resource?

“The Library.”

“I am in love with the public library.”

How Do You Want to Be Remembered?

Well, I think I want to be remembered by what kind of relationships I had with people in my life.”

Question:  What is the One Thing You Can Do Today to Be More Intentional With Your Money?

For me, it is having better conversations about money with my wife Shauna. Lately, we've gotten a little lazy in our spending. Actually, I've gotten a little lazy with our spending. Not crazy lazy. More like I've become less intentional than I'd like about my spending decisions. Sorta like there's a hole in my pocket that bits of money falls though. I know it's there, I just haven't gotten around to fixing it yet. My wife helps me stay focused and fix these little things.

What About You?  Let me know here.

Many say the American dream is dead. That getting married, starting a family and building for the future is no longer possible. Unfortunately, many others believe it when they hear it. All the while though, there are people with "normal" jobs building the American Dream step by step.

One such person (or couple) is Molly and her husband. He works as a teacher. She works part time. They have a home and young daughter but still safe 15% of their gross income. From our conversation, they don't seem to do anything magical. They simply work at being intentional with how they spend money.

Lessons I Learned From Molly's Story

1. The word retirement is changing. It's becoming more about working on your own terms than leaving the workforce. This is significant, and if you share this vision you can use it to plan more intelligently of your future.
2. It's important to be careful about what you spend on your education. According to Career Builder, over half of college grads are in jobs that don't require a degree. Education is important, but it may lead you to work you hadn't considered.
3. It is possible to start a family, build a life and save for the future in "normal" paying careers. It takes being very intentional about your spending and working together.
4. It's important to learn about the time value of money and investing early. Although parents and schools, generally, do poorly at this, there are lots of great resources for those that want to learn. In fact, today I had a perfect example. A 19 year old called me to discuss how to start saving for the future. This young man is working, going to school and has extra money he wants to start saving and investing with. Where'd he learn this attitude?  Books and podcasts!
5. It's so easy to buy things that we forget about the great free resources available to us. Whether it's on the internet or at the local library, there are free resources to help you learn about nearly anything. Molly gives a great example of this in her quest to learn Spanish. Rather than buy a expensive (highly marketed) language program, she found free resources at the local library.

Molly

• Early 33’s
• Married 5 years
• A toddler daughter (20 months)
• Registered nurse

What Does Retirement Mean to You?

“In my 20’s it was this nebulous way in the future concept  that happens to other people, but would never happen to me because I’m never going to grow old."

"Retirement to me would be a continuation, where I’m able to work just the amount that I want to. Maybe some of that is paid. Maybe some of that is volunteered. "

"I think of retirement as the point that we hit financial independence, so that I’m not just working because I have to. I’m working because I want to."

What Are You Most Excited About Retirement?

“The flexibility to do whatever I want to do with my time.”

"I would love to live close to my children, when they have children.”

What Worries You Most Worried About?

“Unexpected future expenses (home remodeling, more kids) could push back the date of our financial independence.”

“I spend most of my time focusing on what I can control.”

How Do You Think You're Doing on Your Journey Towards Retirement?

“If you’re looking at the average American in their mid-30’s I think we’e ahead of the curve.”

“We’re saving about 15% of our gross income towards retirement.”

Do You Use a Financial Planner?

“I took a Retirement Planning Today class at a local community college.  They offered a free consultation. It was very sales oriented.”

What is the Worst Financial Decision You’ve Ever Made?

“I got an undergraduate degree that I’m not using. I got a teaching credential that I’m not using. I even went back to school to start to get a masters in nursing (and then dropped out). So, I’ve spent a lot of money on education that I’m not using.”

“I didn’t pay more attention and try to learn about investing in my 20’s.”

What Do You Struggle With When Making Financial Decisions?

“I would probably say, I’ve gotten borderline obsessed with learning about personal finance.”

What is Your Number One Resource?

“The Library.”

“I am in love with the public library.”

How Do You Want to Be Remembered?

Well, I think I want to be remembered by what kind of relationships I had with people in my life.”

Question:  What is the One Thing You Can Do Today to Be More Intentional With Your Money?

For me, it is having better conversations about money with my wife Shauna. Lately, we've gotten a little lazy in our spending. Actually, I've gotten a little lazy with our spending. Not crazy lazy. More like I've become less intentional than I'd like about my spending decisions. Sorta like there's a hole in my pocket that bits of money falls though. I know it's there, I just haven't gotten around to fixing it yet. My wife helps me stay focused and fix these little things.

What About You?  Let me know here.

Do you remember your high school sweetheart?  I remember.....all of them. Young "love" is exciting how often does it turn into true love, that lasts into retirement?  I found my true love, Shauna, in college. This year, we'll celebrate our 25th anniversary. When did you meet your true love?

In this week's journey to retirement story, we hear from true high school sweethearts, John and Patti.

Lessons Learned

• Your story matters. It’s great to hear couples have conversations based on the stories you share on this podcast.
• Retirement is more about having flexibility in what you do than simply not working.
• Fixing things yourself can save a lot of money and keep you engaged.
• Not knowing when retirement is possible and what it could look like is a central issues people struggle with.
• You and your retirement goals will evolve over time. It's important you have a nimble process to help you make good retirement decisions along the way.

John and Patti

• Patti age early 50’s and has worked for the same company of 28 years
• John works in the technical field
• They've dated since age 17 (how sweet is that??)
• Two grown Daughters
• Gearing up for retirement

What Does Retirement mean to you?

• Patti:  Retirement means doing a lot more things, doing the things I want to do. I don’t think I could not do something. It’s flexibility at an age when you can still enjoy it.
• John:  I’m kind of a do it your selfer. There’s really a lot of money to be saved by fixing things yourself. Retirement for me is going to be doing the things I want to do, on my terms. That in a nutshell is what I’m hoping for. I’ve got a laundry list of things I want to do.

What are you most excited about?

• John:  Right now I commute an hour each way. I’ll have 2 hours my day back just like that. There are some things I’ll probably be doing in my 70’s that I could never think I would do.
• Patti:  Moving to a warmer climate in the winter. Maybe downsizing our main home.

What are you most worried about?

John: Do I have enough money. Am I going to run out of money. That kind of thing.  I have a lot of things I’m planning on doing. Am I going to be able to do them?  Is my health going to be okay?

Patti: The worry for me would be managing the money properly so we have enough. We always worry about the health care costs. I think that will be a major cost that’s hard to predict.

How do you think your doing?

Based on the calculators we’ve run, I guess, we’re not panicking. We’re doing the best we can. If it means working longer that’s what we’ll do. If it means retiring earlier, that’s what we’ll do.

Do You Use a Financial Planner?

• We do a lot ourself.
• What I’m looking for is someone to help me with a plan to move forward, give us recommendation and Patti and I execute them.
• A lot of the places say we need to transfer all our money to this financial institution in order for them to manage it.

What is the worst financial decision you’ve ever made?

John: Before we got married…I read a book on penny stocks and I proved that book wrong.

What are some of the things you have to deal with personally when your managing your finances?

John: I think the biggest thing is…it’s (financial planning) not exciting. You can see it’s important but it’s not urgent so it doesn’t get the attention it desereves.

Patti: The budget part. John wants to stick to it more than I do. He wants it all documented whereas I know more of what I spent and what I didn’t.

What is the one resource that has had the most impact on your lives?

Patti: My parents. I think being brought up in a modest home and working at a young age…has made me into a conscientious spending adult.

How do you want to be remembered?

Patti: I’d like to be remembered for helping others and being a core part of the family.

John: For the positive experiences we’ve had together.

Have a question or want to share your story? Click Here.

You'd never intentionally make a stupid investment for your retirement. Yet, most of us do everyday. We invest or should I say digest horrible things into our body. Over time these bad "investments" rob us of the most important thing in retirement, our health, and potentially give us a huge negative return in the form of high health care expenses. Luckily, there are some simple things you can do now to create a healthy retirement.

Simple Investments to Create a Healthier Retirement.

Pharmacist, Phil Carson of carsonnatural.com has counseled patients for years on medications to treat their health problems. Over those years, he's seen the long-term effects of treating symptoms and not the causes of common health issues.

In this episode he shares his simple advice to create a healthier retirement.

Highlights From Our Conversation

 "I want to help those that are half living to learn that they can live fully alive."

"You get to that point when your retired and you don’t want to end up spending all of your money on health care. You have this nice nest egg and they start to see it dwindle away because they have to spend so much on healthcare because they didn’t do what was necessary before hand."

"Be proactive. Don’t wait until your dealing with a health issue like high blood pressure or cholesterol ."

"What I see a lot are people at retirement age that have been working to build up that nest egg, waiting to retire. When they finally retire and then they get sick because they’ve pushed themselves so hard. They failed to stop to thing and be proactive in taking care of their body."

"When your talking about health and being proactive and taking care of your body, I look at that as an investment in your future."

"It’s not just about the quantity of life, you’ve got to think about the quality."

"A lot of medications are designed to just treat symptoms. They’re not designed to treat the underlying cause."

Don’t just look at treating symptoms, treat the cause."

"The majority of people with high chlorestorol issues, its because of their lifestyle problems"

5 Simple Health Investments to Make Now

• DRINK WATER (one half your body weight in ounces).
• Get source minerals from spring water or supplements.
• Replace electrolytes.
• Eat more food instead of food products.
• Exercise.

Diagnosed with Diabetes or Pre-Diabetes?

Facts From Dr. Phil Carson

• 29 million diagnosed with diabetes
• 86 million diagnosed with pre-diabetes
• Statistics show that if within 5 years, these folks don’t make some type of lifestyle changes they will be in a diabetic state.
• Making lifestyle modifications can help turn things around for most that have been diagnosed with pre-diabietes.
• A health coach can make all the difference in helping you make lifestyle habits.
• A lot of times we need that person to come along side us to give us that nudge and help keep us on track.

Find More From Phil Carson Here

IS ANYONE THERE???  I ask because, no one wants to talk about dying or end of life costs. Seriously, when does one bring this subject up?  At a family dinner?? Maybe on your Saturday date night???  Most likely the subject is broached when you bear witness to the devastating effects it has on someone you know.

The Emotional and Financial Costs of End of Life Care

I've learned a lot about the devastating costs of end of life care lately. Over the last year, there's been a lot of death in my family. Last year my sister, Barbara passed away at age 51 and my aunt Nicola passed too. Now, at age 96, my grandmother is tiring out and is in hospice.

When someone you love is dying, it takes a toll on everyone close to them. If you're not careful the emotional and financial toll can be devastating.

In this episode,

We'll discuss:

• How to manage the emotional cost of end of life
• The role of family in end of life
• The average cost of end of life care
• The uncertainty of the end of life process
• Ways to plan for end of life costs
• The importance of good estate planning documents
• How to write a family love letter

Listener Question

After listening to episode #69 I have had a question I have needed answered for a while.. .

Quick background Im 33yrs old have no retirement working on life/work balance.

Married 3 kids

Built my own business for last 8 years best profits have come last 2 years and current year.

I have no debt personally besides my mortgage.

I have some business debt im paying off over next 2 years.

My question is how much should I start investing in retirement vs reinvesting into my company to help it grow. Up until age 30 I have had the mindset that ill invest in my retirement later and building the company

Great question!  I struggled with this question as well and work with many owners that have the some issue. We business owners tend to be very confident in our abilities and company. Most business owners have the majority of their assets tied to their business. Makes sense, since typically the best return on investment is investing in themselves.

If we're not careful, though, we can become addicted to fueling our business and fail to diversify our assets outside our business.
We'll discuss:

• The difference between a cash flow business and enterprise.
• How to decide when to start diversifying your assets outside your business.
• The difference between wealth creation and wealth preservation and growth.
• The importance of not getting "addicted to the deal."
• How to separate your business and personal finances.
• The importance of "don't go broke" money.

You may die tomorrow. You may get sick. There's no way to predict it and there's nothing you can do about it. Yeah, It sucks, I know. I've got the same deal. As important as planning for retirement is, its just as important...no, more important....you make the most of the only life you have. The one that's happening right now!

The frailty of life is so easy to forget. We're so busy planning, worrying and doing we can miss enjoying the here and now. Lately, I've had lots of reminders of how important enjoying today is. Last year, my sister passed and aunt passed away, my grandmother (age 96) is in hospice and a old neighbor was just diagnosed with MS. I think of events like these as taps on the shoulder. God reminding me, that I was created to live NOW.

Don't just plan a great retirement. Not at the expense of living today. To create a great life, you need to find that balance between living well today AND planning for tomorrow. I know, it's a hard balance to achieve. It might be impossible. You still need to try though. And don't wait, as many do, for a health issue to force your hand. Start today to:

Dream up, plan out and begin living an amazing life.

In this week's episode, we here Amy's journey to retirement and how health issues helped bring into focus the need to find better balance between living today and planning for retirement?

Lessons Learned From Amy's Story

• Don’t postpone living. Tomorrow is promised to no one. Health issues can hit at any time.
• Resist the urge to inflate your lifestyle as your income rises. Society has trained us to be consumers and it can rob us of our financial security.
• Even after financial ruin, you can have a great life.

Who is Amy?

• 46 married 15 years
• Two children, 19 and 20
• Owned our own business, CPA
• Teaches part time at a local university
• Shares the same financial philosophy as her spouse
• Very debt adverse

What Does Retirement Means to You?  

“I enjoy working. I consider being a professor being retired from being a CPA.”

“I don’t see us every not doing anything.”

“We envision traveling and work camping to help pay expenses.”

“I am disabled and my mobility has gotten worse as I’ve gotten older.”

What Are You Most Excited About Retirement?

“Not having to worry about the money”

“Being able to travel”

“Retirement means being able to go do what I want to do.”

What Are You Most Worried About Retirement?

“My health.”

“It (health issues) kinda opens your eyes that you’re not promised tomorrow.”

How Do You Think You’re Doing?

“My grandparents were always a good role model.”

“Being a CPA and seeing a lot of people struggle. I didn’t want to structure.”

What’s the Worst Financial Decision You’ve Ever Made?

“One thing we both regret, as the careers were lifting off…you always think you’re supposed to have that next big thing. The Cars the boats, the house…So we traded in this really nice house for this big mammoth..house. We got into it thinking that is what we were supposed to have.”

What has been the Hardest Thing to Deal with Personally in Managing Your Finances?

“I think telling myself that we have enough….because we had nothing and I never we want to go back there.”

“For the past 40 years we’ve been accumulating and accumulating. It’s hard now to decompress and flip that switch.”

What Resources Have Had the Most Impact in Your Life?

• It comes from your multitude of experiences.
• Mr. Money Mustache
• Financial blogs

How Do You Want to Be Remembered?

“Just a good mother, wife and someone that gave back.”

“I just want to be happy and for my family to be happy. That’s how I want to be remembered.”

I Need Your Help

Many of you have asked questions about Social Security benefits.  Smart move. Your Social Security benefit may be the most important retirement assets you have. I'm in the process of creating educational materials on how to maximize your Social Security benefits. 

What are the 3 things you'd like to learn about taking your Social Security benefit?

Click here and let me know.

If you're working to build a great retirement, stop listening to weekend investment talk radio. The economics of these local shows encourage the sale of investment product rather than offering sound investment advice. 

In this week's episode, I answer listener questions and talk about the difference between investment and investment product and why too much worry will rob you of your life. 

Brenda asks: 

"What do you think about those weekend radio shows where they talk about "no risk investing" and how their clients "never lose money"? Are they legit?"

In my answer I discuss:

• The economics of weekend investment talk radio.
• Why you should be careful in responding to messages playing off your fear or greed.
• The differences between investments and investment products.
• How to make smarter investment decisions.

Janie Asks:

Question: My husband and I are both self-employed. (I am 35, he is 40). I am paralyzed with stress about retirement. We save about $20,000 per year, max out Roth, remainder in mutual funds. In addition. we also save for college funds (3 kids) and paying $350/month extra towards 30yr fixed mortgage. (Really have only been able to save like this for past 5 years--prior to that paying off student loans, building business etc.)

We have no credit card debt and no car payments.

What stresses me out, is that I don't have a traditional 401K so I don't know what is "normal" amount saved. 

I guess my question is. . . . . is 20% the right amount? Is it  WAY low?  Way high?

Frankly, I want to be safe. I had a very uncertain, unstable childhood. I've built a great life for myself but I find myself not being able to enjoy my efforts because I'm constantly worried about the what ifs. (Are you a financial planner and a shrink. . lol).

In my answer I discuss:

• Why Janie needs to STOP worrying and start living more (I say it with love).
• Why Janie and her husband should be PROUD of their progress.
• The dangers of constant financial worry.
• How a having sound plan can help lessen financial worries.
• How a good financial planner might bring needed perspective and structure to their financial life.

Want to Make Smarter Financial Decisions?

Get free access to resources to help you:

• Create a net worth statement
• Manage cash flow if you hate to budget
• Understand the basics of Social Security

Click here and get access to these and over 30 other retirement resources.

Have you noticed how these Journey to Retirement stories have little to do with money? Each listener story has focused on freedom and experiences.

Favorite Quote From This Week's Story

"It (retirement) means the freedom to do what we want, when we want and where we want.”

Lessons Learned

• It’s important to think about what financial situation your spouse will be in when you pass.
• Pay attention to fees and make sure the fees pay are adding value to your financial life.
• Brake the habit of using consumer debt. It can be a major drag on building wealth.

Who is Harold

• Age 56
• Retired Air Force
• Current civil servant
• Married 23 years
• Goal to retire in 6 years

What Does Retirement Means to You?  

"It means the freedom to do what we want, when we want and where we want.” 

"Our big hold up is not having the time to do the things we love."

“Our time is limited and everything we want to do feels rushed.”

What Are You Most Excited About Retirement?

“I’m excited about…well, see above answer.”

“Traveling is our big thing.” 

What Are You Most Worried About Retirement?

“My main worry is...if something happens to me that she is taken care of.”

“I used to assist widows and widowers upon the death of their spouse. I saw so many times when the main breadwinner died and they were in horrible financial straights. I want to assure my wife is not in the same boat.”

“I want to make sure she knows where everything is because I don’t want her to feel paralyzed if something happens to me.”

How Do You Think Your Doing?

“I’m feeling very good.”

Who Do You Use in Your Life to Help Make Smart Financial  Decisions?

“I have not and I’ve come close on three different occasions.” 

What Has Been Your Worst Financial Decision?

“I really don’t have a big financial mistake, but I have several small ones.”“Prior to my wife coming into my life, I was not at all bothered by carrying debt. After she came into my life, she put a stop to that quickly.”

“I never used to pay attention to fees on the mutual funds I would get into.”

What has been the Hardest Thing to Deal with Personally in Managing Your Finances?

“The 2001-2002 and 2007-2008 markets were very hard to watch the bottom fail out of the market.”

“Putting money in is easy to me. Taking money out (in retirement) I think will be mentally a little more difficult.”

What Resources Have Had the Most Impact in Your Life?

“The Truth About Money” by Ric Edelman

“Buckets of Money” by Ray Lucia

How Do You Want to Be Remembered?

“Well Roger, I’d like to think of myself as a loyal, kind family man.”

Ask anyone and they'll most likely say they want to have a great retirement. But looking at the day to day financial decisions of most people might tell a different story. 

What you do speaks so loud that I cannot hear what you say.

Ralph Waldo Emerson

It's not enough to want a great retirement. You need to decide what it will look like, create a plan to work towards it and execute your plan day by day. In short, you need to live an intention life.

This was the message I heard loud and clear from this week's listener story.

Favorite Quote From This Week's Story

"To this day, when I want something, I think through it and make sure I want it"

Lessons Learned From Ken, Jr.

• Intentional decision making helps you think ahead and avoid rash decisions.
• Don't overthink investing. Patience is a key to success.
• Parent's play a big role in shaping how kids think about money
• Not letting your lifestyle creep up as your income grows is essential to wealth creation

Who is Ken Jr.

• Ken, Jr. was a Corporate computer guy for almost 20 years
• Married 20 years
• No  Kids
• Average age late 40’s
• Both retired

What Does Retirement Means to You?  

“I think mostly the freedom to set my own schedule. To enjoy anything I want to do."

“I do computer consulting on the side.”

“I do volunteer presentations at senior centers on technology.”

“I loved my day job, its just I wanted all of my own schedule."

The truth is, I feel much busier now that I can’t catch up with all the things I saved up wanting to do.”

What Are You Most Excited About Retirement?

“Actually, part of it is the challenge of planning money over time.”

“I just like doing whatever we want to do that week we’ve planned.”

What Are You Most Worried About Retirement?

“The usual three things, investment return income, expenses and inflation and longevity.”

Who Do You Use in Your Life to Help Make Smart Financial Decisions?  

“It’s been on my list to do”. I planned aggressively for retirement 8 years before I retired.”

“I need to…to give me a checkpoint, an alternative view and to help me check in every year or two.”

"Mine wasn’t how to get to retire, it’s how to manage the puzzle into the future.”

What Has Been Your Worst Financial Decision?

“Was not knowing about Total Market Indexes, 20 years ago.”

What has been the Hardest Thing to Deal with Personally in Managing Your Finances?

“It has been the fine tuning and optimizing…”

What Resources Have Had the Most Impact in Your Life?

”My parents led by example. They lived below their means. They lived on one salary.  They tracked their spending every day.”

"My parents taught me patience."

"Clarke Howard"

How Do You Want to Be Remembered?

“As a whole, I just want to be a good, helpful person.”

Ask anyone and they'll most likely say they want to have a great retirement. But looking at the day to day financial decisions of most people might tell a different story. 

What you do speaks so loud that I cannot hear what you say.

Ralph Waldo Emerson

It's not enough to want a great retirement. You need to decide what it will look like, create a plan to work towards it and execute your plan day by day. In short, you need to live an intention life.

This was the message I heard loud and clear from this week's listener story.

Favorite Quote From This Week's Story

"To this day, when I want something, I think through it and make sure I want it"

Lessons Learned From Ken, Jr.

• Intentional decision making helps you think ahead and avoid rash decisions.
• Don't overthink investing. Patience is a key to success.
• Parent's play a big role in shaping how kids think about money
• Not letting your lifestyle creep up as your income grows is essential to wealth creation

Who is Ken Jr.

• Ken, Jr. was a Corporate computer guy for almost 20 years
• Married 20 years
• No  Kids
• Average age late 40’s
• Both retired

What Does Retirement Means to You?  

“I think mostly the freedom to set my own schedule. To enjoy anything I want to do."

“I do computer consulting on the side.”

“I do volunteer presentations at senior centers on technology.”

“I loved my day job, its just I wanted all of my own schedule."

The truth is, I feel much busier now that I can’t catch up with all the things I saved up wanting to do.”

What Are You Most Excited About Retirement?

“Actually, part of it is the challenge of planning money over time.”

“I just like doing whatever we want to do that week we’ve planned.”

What Are You Most Worried About Retirement?

“The usual three things, investment return income, expenses and inflation and longevity.”

Who Do You Use in Your Life to Help Make Smart Financial Decisions?  

“It’s been on my list to do”. I planned aggressively for retirement 8 years before I retired.”

“I need to…to give me a checkpoint, an alternative view and to help me check in every year or two.”

"Mine wasn’t how to get to retire, it’s how to manage the puzzle into the future.”

What Has Been Your Worst Financial Decision?

“Was not knowing about Total Market Indexes, 20 years ago.”

What has been the Hardest Thing to Deal with Personally in Managing Your Finances?

“It has been the fine tuning and optimizing…”

What Resources Have Had the Most Impact in Your Life?

”My parents led by example. They lived below their means. They lived on one salary.  They tracked their spending every day.”

"My parents taught me patience."

"Clarke Howard"

How Do You Want to Be Remembered?

“As a whole, I just want to be a good, helpful person.”

"The younger generation is ruining this country!" This was said about the baby boomers. Now it's said about the millennials. The fact is, each new generation brings a fresh perspective that helps our society and country renew itself. Recently I spoke with a "millennial" who, like you and I did, is working to raise a family and save for the future. 

Want to Learn How to Draw From Your Savings During Retirement?

I'll show you the system I use with clients during a free webinar on May 26th at 2:00 pm CST. 

A free replay will be available to all that register.

CLICK HERE to register

Favorite Quote

"My goal is to get compound interest on my side as quickly as possible."

Lessons Learned From Jordan's Journey

• Millennials are rejecting debt and working hard
• There's a big difference between being frugal and cheap. 
• It's important not to rush into big purchases. 
• How important it is for couples to walk together as they manage their finances.

About Jordan

• 27 years old
• Married, one child and one on the way
• Very cheap or frugal
• School teacher
• Loves working with kids

What Does Retirement Means to You?  

The idea if being a millionaire really struck me

That idea of being wealthy sounds good

The idea of traveling a lot is wonderful

What Are You Most Excited About Retirement?

What Are You Most Worried About Retirement?

Health, obviously

I think my biggest worry right now is will I have enough money. I think that’s what drives me to save.

The other thing that scares me….is the idea of inflation. What inflation will be like in 30, 40, 50 years.

My goal is to get compound interest on my side as quickly as possible.

How Do You Think You’re Doing?

“Based on where most people are, I’d give myself an A”

Do You Use a Financial Planner?

“I do but probably not as well as I should.”

What has Been Your Worst Financial Mistake?

Being cheap rather than frugal when buying their home.

What Do You Struggle With When Managing Your Finance?

She (my wife) just wishes we could spend a little more money and I ‘m just more on the frugal side.

…I wish I was a little bit less frugal, but then again I wouldn’t be in the situation I’m in now.”

What Resources Have Had the Most Impact on Your Life?

Dave Ramsey

Rick Edelman Podcast

How Do You Want to Be Remembered?

The most important thing to me is to be a good father and husband

We all screw up along the way to retirement. We blow all our earnings. We accumulate a pile of debt. We dig a hole so deep, we wonder if we can every get out and prosper financially.

In my 20's I bought a nice BMW and my wife and I built a fancy custom home. Both of us were earning good money and our prospects for future increases were great.  I thought this adult career thing was easy. Projecting "normal" wage increases on our income, meant that we would be on easy street. I mean my income could never go down could it?

Lets just say I spent my 30's learning hard lessons and cleaning up the mess I made in our 20's.

Jen's Journey to Retirement

In this week's journey to retirement story, we here from a smart lady that screwed up with debt, dug herself out of her hole and is now prospering.

If you're feeling like you're in a financial hole, listen to her story. She dug out and so can you.

About Jen

• Native Californian
• Divorced
• Mid-40’s (aka 29)
• No children
• Works in middle management

What Does Retirement Mean to You?

“I do believe that as we’re exposed to new ideas…our values shift”

“I didn’t realize how much debt could be shackles to your future”

“Retirement is freedom for me. Freedom in terms of my determining where I want to spend my time”

“Maybe for me it’s not really retirement, it’s financial freedom and independence”

What Are You Most Excited About Retirement?

“That ability to make spur of the moment decisions”

How Would You Have Changed Your 20’s?

“I would not have lived what I thought a typical american lifestyle was. I would not have lived beyond my means.”

What Are You Most Worried About Retirement?

“That I’m not going to make it and if I do my health won’t be there.”

“What am I missing now since I’m deferring so much for this date in the future.”

“The fact that maybe it’s too late. That I won’t be able to make that catch up date.”

“Retirement is the language I grew up hearing. We all work until we’re 65 and then we collect Social Security”.

“I don’t want to be that person that I have to augment my retirement.”

“You can’t bank on the fact that you have good health in retirement and that you’ll be able to work”

How Do You Think You’re Doing?

“I would love it if someone could look into their crystal ball and say I’m okay.”

Do You Use a Financial Planner?

“I’m afraid I’m going to choose someone that is inexperienced or has dealt with a situation similar to mine”

What is the Worst Financial Decision You’ve Ever Made?

“Oh there are SO many”

The decision to be a self employed individual and I was ill prepared with what that meant”.

“I got into something like $40,000 of credit card debt”.

"“I understand depression. When you wake up and there’s nothing and there is nothing I can do to get out of this mess.”

What Has been the Hardest Thing to Deal With Personally in Managing Your Finances?

“There’s a fear that any moment now my good fortune could disappear.”

What Resources Have Had the Most Impact on Your Life?

• The Little Engine That Could
• Young, Fabulous and Broke, by Suzi Orman
• Why you need FU money, Jlcollinsnh.com
• Mr. Money Mustache

How Do You Want to Be Remembered?

“I’m hoping who ever I meet…that I impact them positively.”

Despite what the media and some financial advisors tell us, preparing for retirement isn't about fancy strategies or the best investment. This week listener "Rick" shares his story of how he became a 401(k) millionaire by using a simple but powerful strategy.

"Rick" was the first listener to share his story. Rick isn't his real name and in order to present you a better image of who he is, I asked him what his financial "spirit animal" was. After an awkward pause he replied tortoise and after hearing his story, I thought it was perfect!

As you listen to Rick's story, you may feel like I did...a little jealous.  Rick grew up with a sound financial basis from his parents. As you heard last week, I didn't. In fact, I think most of us didn't. If you're like me, don't worry. Regardless of where you are, you can begin a journey towards financial independence.

About "Rick"

• Age 59
• Has worked for the same company for 30 years
• Married 30 years
• Same House 30 years
• 3 grown kids
• Shares hobbies with spouse

What Does Retirement Means to You?  

“I found it a little bit frightening"

“I love my work…though I;m caught between the parts I like and the parts I don’t like”

“I’ve always had a big lazy streak…work has so much structure and so many demands that it keeps me going”.

What Are You Most Excited About Retirement?

“The lack of stress!"

"That I’ll have time to do the things I like to do”.

What Are You Most Worried About Retirement?

“I think it would be health issues”.

“I’ve seen a lot of healthy people get hit with significant deseases out of the blue.”

“Nobody lives for every but I’d love to have 20-30 years of health left in my life.”

How Do You Think Your Doing?

“We probably have saved 20% of more of my pay since day 1.”

“Even in the early years when my income wasn’t anything special we saved.”

“We’re 401k millionaire now.”

“Money doesn’t come into our lives just so we can get as many toys as possible, it’s there to help people.”

“If you don’t save it, it doesn’t matter what your rate of return is, you’ll never have much.”

What Has Been Your Worst Financial Decision?

“I didn’t make many money mistakes because my parents were kinda Dave Ramsey people, long before Dave  was born.”

"When we first got enough money to afford cars, we bought new cars”.

What has been the Hardest Thing to Deal with Personally in Managing Your Finances?

“I really don’t know an answer to this one.”

What Resources Have Had the Most Impact in Your Life?

• How to Win Friends and Influence People. "That ability to communicate and sell my ideas had as much to do with my intellect when it came to the success of my career.”

What Do You Want to Be Remembered By?

“I think really all I really want is my kids to remember me a certain the way, like I remember my parents.”

“Someone that is honest, generous and was a loving father.”

Want to Share Your Story?

Tell me below. I'll send you the questions and details on how it will work.

As a thank you for contributing to the community, you'll receive a free 30 minute consultation to address any financial planning issue you want.

There are plenty of people around today that will offer their services as a “life coach” or “business coach.” Few have the demonstrated history of success as businessman, family man and friend to man as Aaron Walker. 

Register for May 26th's Webinar: How to Manage Cash Flow in Retirement

Click Here to Register

In this episode, Aaron shares his Journey Towards Retirement. Below are some notable quotes from our talk. 

Aaron Walker's Journey to Retirement

What Does Retirement Means to You?  

“I won’t ever retire. I may slow down but I love building…”   

“Retirement means, I just want to be safe because I may not be able to work”

“I don’t want to quit, but I do believe we should have common sense”

What Are You Most Excited About Retirement?

“I’m excited I’m able to help ordinary men become extraordinary….pouring knowledge and whatever little bit of wisdom I have into others” 

What Are You Most Worried About Retirement?

“What creeps up sometimes is the fear of not being healthy”

“Recently I started paying attention to my health…I’ve lost 40 lbs since November 1^st”

How Do You Think You're Doing?

“I’m a big real estate guy, 75% of my retirement is in real estate”

“I wish I’d saved a little more cash”

“I worry sometimes if I’m balanced properly”

Who Do You Use in Your Life to Help Make Smart Financial Decisions? 

“For the most part, I’ve done it for myself, that’s the reason I’m not as balanced as I should be”

What Has Been Your Worst Financial Decision?

“I’ve never blown money, I work to hard to make it”

“Its simultaneous with one of my biggest successes. It was when I was 27 years old and I sold my business”

“Looking back now, I think I probably could have parlayed that into something larger”.

“I didn’t know I was going to get bored as fast as I did”

“I came from a very poor family…when to opportunity came along, it was the most money I could ever imagine”

What has been the Hardest Thing to Deal with Personally in Managing Your Finances?

“In managing my finances, I’m self reliant and I probably should have been looking outward more and seeking more expert advice”

What Resources Have Had the Most Impact in Your Life?

• Essentialism: The Disciplined Pursuit of Doing Less
• How to Win Friends and Influence People
• The Bible
• TED Talks
• Mastermind groups “absolutely a game changer for me” 

What Do You Want to Be Remembered for?

“I want to be remembered as the guy that helped other achieve their goals and dreams”

‘I want to be remembered as the guy that stops waiting to talk and fully engages”

Free Resources From Aaron Walker to Help you Find Meaning

Click Here to Get Aaron's Free Resources

• A Personal Assessment
• What Do I Want?
• Steps to a Productive Day

At the end of day, all that matters is what retirement means to you. Forget what the commercials say. Forget what the brochures say. Forget much of what your advisor may say. You don't have a "number", you have a life that you get to define and live. 

This week, I'm starting a new series called Retirement to Me, where you, the listener, get to share the lessons you've learned along your journey and what retirement means to you. 

Each of you have unique experiences, knowledge and perspective about money and retirement. By sharing your story, you can have a positive impact on other's journey and help them view retirement from a fresh perspective. My guess is, by telling your story you'll learn more about yourself as well.

Here's How it Works

• I'll interview willing listeners for approximately 20 minutes about their money and retirement story.
• Our conversation will be just that: an informal conversation (no fancy interview structure).
• I'll ask the same 10 questions (see below).
• You'll get the exact questions beforehand.
• Our talk will be prerecorded to allow for review and editing before publishing on the podcast.
• You can share as much or as little as you're comfortable with. In order to protect your identity, you can change your name and/or elements of your story.
• As a thank you, any participant whose talk is aired will receive a 30 minute planning call with me to address any financial issue they'd like to discuss.

Interested?

Let me know here (remember to include your e-mail!)

I'll Go First

To start things off, here is my money and retirement story.

If you want to retire and are looking for guidance don't just find someone smart. There are plenty of smart advisors with plenty of smart ideas. It's been my experience that smart by itself, isn't enough. If you want to retire successfully, it's better to seek out wisdom.

"It ain't what you don't know that gets you into trouble. It's what you know that just ain't so."

In this episode, I discuss some of the value a wise advisor can bring to your financial life. Including:

1. Finding blindspots in your retirement plan
2. Bring perspective learned from walking the journey with others on the same path
3. Creative solutions to your unique life
4. Manage emotions that can derail the best laid plan to retire
5. Diligence to help you address the right issues,
6. Consistent communication to assure the right conversations happen in the right frequency so you can make adjustments as your life unfolds

Listener Question

One question I had is if the Monte Carlo model factors in the different investment bucket assumptions. My assumption is it assumes the regular draw out amounts occurs evenly between the buckets in good times and bad.  If this is the case then not drawing on the equity bucket during bad time will help to increase the likelihood of not running out of money in retirement.  Please clarify.  Thanks, Monte

Great observation Monte. How you manage drawing from your assets during retirement is critical. Do it wrong and you could seriously handicap your chances of maintaining your lifestyle. In this episode, I answer your question directly.

How to manage drawing from your assets during retirement is one of the most common questions I get.  To help you understand, it will be the focus of my next webinar.

How to Manage Cash Flow in Retirement Webinar

During the webinar I'll show you how to:

• Draw from your assets for income
• Set up and manage your cash flow reserve buckets
• Manage cash flow during down markets
• evaluate the best strategy for you

When:  Tuesday, May 26th

Time:  2:00 CST

Click Here to register 

If you work for a company you're a cog in the machine. You're a replaceable part, easily eliminated or replaced if it suits the needs of the company. Sorry to be so blunt. I'm not trying to hurt your feelings. It's just important you accept this if you're going to thrive in the years ahead.

Marc Miller is the founder of Career Pivot, which helps Baby Boomers design careers they can grow into for the next 30 years. Miller authored the book “Repurpose Your Career: A Practical Guide for Baby Boomers.” You can follow Miller on Twitter or Facebook.

In this episode we discuss:

• What to do when you're offered a buyout
• What is negotiable
• How to evaluate a buyout package
• How to maintain your professional network
• The loss of the "social contract" 
• How to succeed in the freelance economy
• Why everyone is an entrepreneur

Most of the personal finance blogs you read focus on how to be more frugal. How to cut costs so you can safe and invest for retirement. it's important to be frugal but frugal only goes so far.

I've invited Paula Pant from Afford Anything to chat about frugality and what might be a better place to focus your time if you're saving for retirement.

Paula, is a thirtysomething that has chosen a unique path for her life. She's rejected the "normal" work path baby boomers learned and has embraced the opportunities of the growing freelance economy. Us "old folks" can learn from this sharp lady.

Show Topics Include:

• The diminishing returns of frugality
• The opportunities to earn income
• A different way to approach retirement
• Understanding the new freelance economy
• What side hustle is
• How to find income opportunities
• Her article Flex Your Hustle Muscle

PLUS Listener Questions & Webinar Feedback

• What are the actual mechanics of drawing money from my accounts during retirement?
• Can you explain return sequence risk?
• Is iCloud storage save for my In Case of Emergency plan?
• How do distributions work from an inherited IRA

Just because Bill & Sally can't achieve their ideal retirement, doesn't mean they can have a great retirement.

In this episode,  we'll discuss:

• Why it's okay to not be able to achieve an ideal retirement
• Common ways to adjust your retirement plan
• Uncommon ways to adjust your plan
• How to gauge how much investment risk to take during retirement
• Preview tomorrow's webinar results show

How to Access Tomorrow's Free Webinar

If you've signed up to plan alongside Bill and Sally, you'll receive an e-mail with all the details.

1. Thursday, March 26 at 7:00 pm CST
2. Webinar replay available to those that register

If you haven't and want to attend...

Click Here

Yeah, you read that right.  Bill and Sally cannot achieve their ideal retirement. That really sucks....or does it???

Remember in episode 55, when I outlined Bill and Sally's ideal retirement? I said "too many people are being too reasonable when setting their retirement goals" and challenged you to think BIG about yours. Well, that's what Bill and Sally did. The fact that they can't achieve their ideal demonstrates that they did it right. They thought BIG about what their life could be. 

Now that they realize that "ideal" isn't reasonable, they can begin the work of prioritizing what matters most to them. That's an awesome accomplishment. Only by thinking BIG first were they able to identify everything they might want. Now they can choose the most important things.

In this episode, I review their ideal retirement goals, financial resources and the results of their ideal retirement analysis. 

Here Are Your Action Items for the Week:

1. Listen to the episode and think creatively about how we can build a plan for their retirement
2. Review the ideal retirement analysis, are we missing anything?
3. Answer the challenging questions.  This is important because YOUR input will be used in our live webinar on March 26th. 

Help Create Their Retirement Plan

1. What possible changes can they can make?
2. What changes would have the most impact?
3. What are some "outside-the-box solutions you've seen?
4. If they are unwilling to take more investment risk, what is the impact on their life goals?

Go Here and submit your answers and I'll work to incorporate them into next week's webinar.

Bill & Sally Want to Retire Webinar, March 26th at 7:00 CST

If you're not already signed up to plan along side Bill and Sally

sign up for the webinar here.

If you asked me what was the most important item you should do to track your financial health I would tell you to track your net worth. A net worth statement is the most powerful tool you can use to track your financial progress over time. This simple one page document represents the sum of all your financial decisions over time.  There's no hiding with good intentions on a net worth statement. Ultimately, I think, it reflects what you value most.

Organizing Your Financial Resources

Now that Bill and Sally have dreamed big and identified their needs, wants and wishes for retirement, it's time to see what resources they have to work with.

This week, we review their cash flow (income sources and expenses) and create a net worth statement to see their assets and debts.

If you've signed up to plan alongside Bill and Sally, here are your action items for the week. (Haven't signed up yet? see the bottom of this post)

Here’s Your Action Items for This Week:

1. Make sure to listen to the episode. I review your comments and walk through Bill and Sally's financial situation.
2. Review Bill and Sally’s cash flow summary and net worth statement. This will give you a snapshot of what the end result can look like.
3. Watch the short video. I walk you each step of  identifying your income sources and creating your net worth statement.
4. Complete these worksheets. It might take a little homework to get the estimated value of your social security, pension, assets and liabilities. It’s worth the effort. Your net worth statement will be the key document you use to track your financial life.

• Estimate future retirement income sources
• Build your net worth statement
• Manage your current lifestyle and cash flow

Challenging Questions of the Week

1. Should they pay off their car loans? Why or why not?
2. Should they contribute to ROTH IRAs? Why or why not?
3. Are they saving enough? Why or why not?

Respond with your answers here.

It's Not Too Late

Get All the Free Resources and Access to the Webinar on March 26th

Click Here to Sign Up

Too many people are being too reasonable when setting their retirement goals. STOP! When you start your planning for retirement it is critical that you think big. There's time enough later to be reasonable. Right now, focus on what your ideal life would look like....what would your life be if you could "have it all"? 

I know, thinking big about your future, is much harder than it seems, especially when it comes to retirement. That okay, I'll help you snap out of it.

Dream Up Your Ideal Retirement

In this first step of planning with Bill and Sally, I personally challenge you to suspend our reasonableness. Sit down with your spouse and a glass of your favorite beverage (for these talks, this is mine) and dream big.

Your Action Items for This Week:

(For those of you that signed up to plan along)

1. Listen to this episode. You'll learn what their ideal retirement looks like and some issues they face.
2. Review Bill & Sally's Ideal Retirement Summary (If your not signed to receive it go here).
3. Watch the short video. In it I give quick tips on how to think BIG about your retirement.
4. Complete your own IDEAL retirement worksheet. Start off with your needs, dream a little and jot down some wants and then dream a lot more and add your wishes. DON'T BE REASONABLE, just put down needs, wants and wishes that would truly be meaningful to you.
5. Ask questions. Having trouble dreaming big about your retirement?  Shoot me an e-mail. I’ll do my best to answer your question. Send me an e-mail or go here.

 Challenging Questions of the Week

1. How should Bill and Sally address their personality differences?
2. How have you dealt with a similar issue?
3. What other potential issues do you see in their ideal retirement?

Send me an e-mail or go here to give my your answers.

It's Not Too Late to Get All the Free Resources to Plan Too 

Just Click Here

Want to retire a year earlier? Maybe have a bigger lifestyle budget for travel? You might be able to if you change your relationship with your car.

 "According to Edmunds.com, the average monthly payment on a new vehicle is $479. Considering your existing car is trouble-free, saving that $479 per month means an annual savings of $5,748 by postponing the purchase of a new vehicle" (bankrate.com).

In this episode I talk with James Kinson from Cash Car Convert. James is on a mission to change how people think about and buy cars. 

• What to look for when you're buying a used car.
• The value of buying used
• The dangers of long car loans
• How to buy a used car
• The value of buying a used car from a new car dealer
• How long a car can last (and still look great)
• Why you should do all the schedule maintenance

In the Market for a Car?

Connect with James and learn how to do it right

• The Cash Car Convert blog
• The Cash Car Convert podcast

Bill and Sally Want to Retire

Based on your feedback from January's Can Carl Retire series, I've created a case study for us to work through in the month of March.

Meet Bill and Sally :

Sign up and plan alongside Bill and Sally and get access to an exclusive retirement planning webinar

rogerwhitney.com/billsally

Okay, you're planning for retirement, but what exactly are you planning for? I don't think most of us think about this. We work and save and work and save, but spend little time figuring out what we'll actually do when we retire. 

In this episode, I interview Tom Schwab of Goodbye Crutches and Inbound for eCommerce.  Tom is a great example of someone that overcame a potentially devastating business set back to build a build a business that he can enjoy well into retirement. There are a lot of great lessons we can learn from his story. Such as:

• How your lifestyle choices can set the tone for your entire life
• Why we're created to serve
• The importance of focusing on people and experience rather than things
• How to organize your life to stay engaged well into "retirement"
• How to think intentionally about your career

I'm still amazed at the level of engagement and transparency "Carl" has had throughout the process of creating his retirement plan on the show. I'm just as amazed at how much the series has resonated with you, the listener. Your questions, comments, suggestions and thank you's made the series better.

In this episode, you'll get to hear directly from Carl and Jane as we discuss the Can Carl series, retirement, planning, investing and where they go from here. Recently, while on a business trip, I had the privilege of spending an evening with Carl and Jane at their home. After a great dinner (thank you Jane), we sat together and I recorded our conversation. Lots of pearls of wisdom here, so it's worth a listen.

A Personal Reflection on “Can Carl Retire”…. 

On September 5^th, 2014 a listener to The Retirement Answer Man wrote the following email to Roger:

Roger, 

New to you, impressed. Spent 30 mins in your library today - well done. Wondered if you'd be interested in doing a "deep profile" as a blog? I could share all my detail, you could use as a case study for a blog (keeping me anonymous, preferably?). I'm 51, manage my own $, have ~ $1.8 M net worth and pension, looking to sell house to downsize to cabin (2nd home at the moment),  have a detailed tracking of actually spending by month. Question: Out by 54, 55, or 56?  How much "cushion" is worth the extra time being a corporate rat vs pursuing our dream of RV'ing and working seasonal jobs in National Parks. I could share any level of detail you'd ask for to build an interesting case study. Interested?

That listener was me, who you all now know as Carl.

Three nights ago I had the wonderful experience of sharing dinner in my home with Roger and my wife (who you know as Jane), and found it to be a perfect celebration of success. Success via an innovative podcast series which grew from that seed of an idea first planted in that email 5 months ago.  It’s personally very rewarding to have conceived of an original idea and participated as the idea grew to a beneficial fruition, and I’d challenge all of you to seek similar opportunities. So…..

……What worked?

1. Beneficial:  To me (free retirement review), The Retirement Answer Man (interesting podcast fodder) and The Listener (education and free resources).  Find something that brings value to folks beyond yourself.

1. Mentally Stimulating: The podcast recording sessions with Roger were a blast.  I’ve been 100% “Self Studied” until now, having the opportunity to banter with a pro was stimulating.  Find something that stimulates your mind.

1. Assuring:  Having a professional review of this critical question (Can You Retire?) goes a long way in steading nerves as you approach perhaps the most important decision in your working career. Find something that answers that “nagging question” in your life.

1. Relationships:  They’re important, and a new relationship was built between Carl and Roger that I am confident will continue for years to come.  Find ways to build relationships.

To close:  Carl didn’t do anything extraordinary.  He came up with an idea (case study), identified the right platform (podcast), then approached the right person for the concept (The Retirement Answer Man).  Any of you can do the same, and I hope this series encourages you to try.

Your Feedback

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From Dave 

"After living through the dot com downturn in 2000-2001, I never really recovered in my ability to deal with the market volatility and staying the course in downturns.  As a result, I have generally stayed out of the market for many years. I know that inflation risk is an issue so I am slowly getting back into the markets.  I would like to see you cover a case study or set of recommendations / strategies that would address these issues."

From Kevin

"I’ve been enjoying your blog & podcast for the last three months, your content is interesting especially for finance geeks like me.  I would be interested in either another real world example or case study of a plan you've previously worked on that does not include a large pension."

From Ken

"I really enjoyed the podcast series with Carl.......I would like for you to do another with someone that isn't perhaps as well off financially and much closer to retirement... I think this would prove beneficial to all age groups."

 You Get to Help Me Answer: Can Bill and Sally Retire?

Starting March 4th, I'll start a new series with a fact set based on your feedback. And the best part is, this time, YOU GET TO HELP. 

Just like last time, you'll have the chance to sign up to plan along side Bill and Sally and attend a live webinar at the end of the month.

Unlike last time, this will be a pure case study (no live subject) and you'll get to help build the plan for Bill and Sally. Each week, as we walk through each step of process, I'll ask you to brainstorm solutions to help Bill and Sally get close to their IDEAL retirement. 

I'm still working out some of the details but here are the basic facts:

• Bill is 56, Sally is 57
• Married 13 years (2nd marriage)
• Both work and their household income is $180k
• 2 children, age's 20 and 25 (one his, one hers)
• No pension 
• Started saving late (late 30's)
• Worried about the markets and economy

More Details Soon (I think this is going to be great!)

WOW, your response to the Can Carl Retire? series in January and last Friday's results webinar were off the charts. I received so many kind comment and sharp questions from you. In today's episode, I'll answer a portion of your questions and will work to get to the rest of them in next week's episode. Please keep them coming. If you're wondering, no doubt thousands of others are too.

Want to Watch the Webinar Replay?

The webinar replay will remain available until Sunday, February 8th (11:59 pm). You can watch it by clicking below.

rogerwhitney.com/webinar

Listener Questions Answered in This Episode

1. From Ken "I didn't see you mention an emergency fund, why is that?"
2. From Ken "What provision is made to pay for taxes on his 401(k) plan when required minimum distributions are required since most of his wealth is in tax-deferred plans?"
3. From Randy "Quicken sells software, called "WillMaker Plus", to create "a Will, Health Care Directive, Durable Power of Attorney for Finances and other essential documents".  Do you have an opinion on the value of such software?"
4. From Joe. "I appreciate the webinar yesterday; helps me in thinking thru retirement planning.  The question came up around pensions and taking a lump sum vs. taking annuity payments.  You said something to the effect of "99% of the time it's better to take the annuity." That's one of my central planning questions, as I have a company pension that I will eventually be drawing from.
5. From Ken. (Ken was getting into this) "I just listened to the replay and thought it was very informative and provided a nice example of the process. As you mentioned during the webinar, given Carl is lucky enough to have a healthy pension which is rare these days, it would be interesting to know what the equivalent lump sum in current investable assets would need to be to get him to the same answer if he did not have the pension."
6. From Dave. Good podcast and interesting information about Carl's situation.  I am wondering whether your estimated returns for Carl were too aggressive.  Where the estimated returns (8+%) that you were showing after tax returns?  It just seems, while the portfolio would be a nice blend, that the return estimates were higher than I have been estimating in my personal returns.  Regards, Dave

Question for You: What do you want next?

The Can Carl Retire? series really resonated with most of you. It's been exciting to see you participating and asking question.

What would you like me to focus on next:

• Another real world example?
• Case studies of plans I've worked through (good and bad)
• What to do if you're behind on savings?
• More webinars?  If so, on what? Social Security Maximization, goal planning or understanding market returns are some topics that come to mind

Click here and let me know

WOW, your response to the Can Carl Retire? series in January and last Friday's results webinar were off the charts. I received so many kind comment and sharp questions from you. In today's episode, I'll answer a portion of your questions and will work to get to the rest of them in next week's episode. Please keep them coming. If you're wondering, no doubt thousands of others are too.

Want to Watch the Webinar Replay?

The webinar replay will remain available until Sunday, February 8th (11:59 pm). You can watch it by clicking below.

rogerwhitney.com/webinar

Listener Questions Answered in This Episode

1. From Ken "I didn't see you mention an emergency fund, why is that?"
2. From Ken "What provision is made to pay for taxes on his 401(k) plan when required minimum distributions are required since most of his wealth is in tax-deferred plans?"
3. From Randy "Quicken sells software, called "WillMaker Plus", to create "a Will, Health Care Directive, Durable Power of Attorney for Finances and other essential documents".  Do you have an opinion on the value of such software?"
4. From Joe. "I appreciate the webinar yesterday; helps me in thinking thru retirement planning.  The question came up around pensions and taking a lump sum vs. taking annuity payments.  You said something to the effect of "99% of the time it's better to take the annuity." That's one of my central planning questions, as I have a company pension that I will eventually be drawing from.
5. From Ken. (Ken was getting into this) "I just listened to the replay and thought it was very informative and provided a nice example of the process. As you mentioned during the webinar, given Carl is lucky enough to have a healthy pension which is rare these days, it would be interesting to know what the equivalent lump sum in current investable assets would need to be to get him to the same answer if he did not have the pension."
6. From Dave. Good podcast and interesting information about Carl's situation.  I am wondering whether your estimated returns for Carl were too aggressive.  Where the estimated returns (8+%) that you were showing after tax returns?  It just seems, while the portfolio would be a nice blend, that the return estimates were higher than I have been estimating in my personal returns.  Regards, Dave

Question for You: What do you want next?

The Can Carl Retire? series really resonated with most of you. It's been exciting to see you participating and asking question.

What would you like me to focus on next:

• Another real world example?
• Case studies of plans I've worked through (good and bad)
• What to do if you're behind on savings?
• More webinars?  If so, on what? Social Security Maximization, goal planning or understanding market returns are some topics that come to mind

 Let me know if the form below

Don't Skip This Step!

Sign Up for Friday's Webniar Here

One of the most heartbreaking things I've seen over 24 years advising families is a surviving spouse or family member dealing with an unorganized estate. Not having your affairs in order, puts a huge burden on your family and compounds the stress of there loss.

According to a recent survey, 61% of people don't have a will. Even those that have a will, have failed to organize their financial information to make it easy for their loved ones to act.  Don't be one of them.

Leaving a big mess of your affairs and estate plan will make life suck for your family when you die. A messy estate can take major financial and emotional tolls on your family.

Take the simple steps outlined this week and give a beautiful gift to those you leave behind.

Here Are Your Action Items for the Week

• Listen to episode 50.  We discuss, the basics of organizing your estate.
• Review these worksheets. These 3 worksheets will give you the basics to make things easier for your heirs:
  • 9 Important Estate Planning Steps
  • What Your Survivors Need to Know
  • What to Do When A Loved One Dies
• Compete these to give your spouse or family the gift of an organized estate.
  • Organizing Your Financial Life
  • Create an I.C.E. Plan
  • Family Love Letter

1. Ask questions. If you're stuck or unclear about something, shoot me an e-mail. I'll do my best to answer your question. Simply click here and ask your questions.

Don't Miss Friday's Webinar

Don't forget to tune in to the Can Carl Retire? Results Webinar this Friday at 3:00 CST.

You'll watch live as Carl finds out whether he can achieve his ideal retirement.

Plus, you see live as I stress test Carl's plan against the most common worries in retirement:

• Bad market returns
• High inflation
• Long-term care costs
• Outliving his assets

Risks can rob you from living a great life. Focus too much on them and you can miss out on a full life. Ignore risks and you can destroy your family's financial security. If you've started planning for retirement, you're probably overwhelmed with all the things you should worry about. This week, we'll address, head on, some of the biggest risks during retirement and help you assess  how to handle them.

Important Note: If you haven't listened to step 1 or 2 of Carl's Plan you'll want to start there:

• Step 1 Imagine Your Ideal Retirement
• Step 2 Identify and Organize Your Financial Resources

This week, you'll focus on identifying and managing some of the big risks we all face during retirement.

• Longevity risk--Will you live to 100? Here's a calculator to estimate our chances
• Inflation risk--What could the cost of living be 15 years from now? Find out here
• Market risk
• Tax risk
• Health care risk
• Long-term care risk

1. Make sure to listen to the episode. I discuss each one of these retirement risks and provide some insights into how you can plan for them.
2. Review Carl's health care cost estimates. This will give you some insight into what you can expect.
3. Review worksheets. Review the Facing the Complexities of Medicare and Choosing Long-Term Care Insurance worksheets. These will give you the basics on how to address each area.
4. Complete the Will I Live to 100? calculator. The odds might be greater than you think.
5. Complete the Retirement Health Care Cost Estimator (optional). If you submit it, you'll receive a free personalized estimate of your retirement health care costs to help you plan for the future.
6. Finally, ask questions. If you're stuck or unclear about something, shoot me an e-mail. I'll do my best to answer your question. Simply click here and ask your questions.

Want Access to the Free Resources to Plan Along Side Carl?

It's Not Too Late to Create Your Ideal Retirement

Sign up (rogerwhitney.com) and  you'll receive:

• All the retirement planning resources from week 1 and 2
• This week's resources
• Access to next week's webinar to find whether Carl is positioned to achieve his ideal retirement.

Well, Were You Able to Dream Up Your Ideal Retirement? It can be hard to think big. Hopefully, you stretched yourself. No worries, if you're not finished. Your life is always a work in progress.

Important Note: Sign up late? If you'd like the resources from week one, replay and let me know.

This week, you'll focus on identifying and organizing your financial resources. In this step you'll create a clear snapshot of your current financial situation. This is a critical step. Don't get bogged down in getting every number right. You can fine tune things later on. Just focus on getting a read on your current financial picture.

For some, this can be hard to look at. If that's you, please relax. We've all walked a similar road (including me!). If you've made mistakes (maybe BIG mistakes), forgive yourself. The fact that you're receiving this e-mail proves, you are working to create the best life you can.

1. Make sure to listen to the episode. There are a number of subtle points made that will help you as you plan. For example, Carl made an important statement early in our talk. He said "Retirement planning should be about running to something, rather than running away from something."
2. Review Carl's cash flow summary and net worth statement. This will give you a snapshot of what the end result can look like.
3. Watch the short video. In it I give quick tips on how to think BIG about your retirement.
4. Complete these worksheets. It might take a little homework to get the estimated value of your social security, pension, assets and liabilities. It's worth the effort. Your net worth statement will be the key document you use to track your financial life.

• Estimate future retirement income sources
• Build your net worth statement
• Manage your current lifestyle and cash flow

1. Finally, ask questions. If you're stuck or unclear about something, shoot me an e-mail. I'll do my best to answer your question. 

It's Not Too Late to Create Your Ideal Retirement

Sign up (rogerwhitney.com) and receive weekly e-mails with all the resources we've covered.

Are you ready to dream up your IDEAL retirement? This is week one of the Can Carl Retire? virtual retirement planning event.  If you signed up for the free resources, you should an e-mail with all the items you need to complete this first important step. Haven't signed up yet??? No worries, there's still time. Click here and learn how you can plan along with us.

Dream Up Your Ideal Retirement

In this episode, you'll listen is as I help Carl clearly defines his IDEAL retirement.

This is the week you get to think BIG about your future too. Don't worry about getting it all right. Your goals will change countless times. Focus on identifying what you care about right now. We'll discuss a process later, on how to adjust them as your life unfolds.

Your Action Items for This Week

1. Make sure to listen to the episode. There are a number of subtle points made that will help you as you plan. For example, Carl made an important statement early in our talk. He said "Retirement planning should be about running to something, rather than running away from something."
2. Review Carl's Ideal Retirement Summary. This will give you a snapshot of what the end result can look like.
3. Think BIG. Not thinking big enough could rob you of your dreams. Suspend your reasonable attitude and focus on what "having it all" might look like. There will be time later to see what is actually possible. For now, focus on creating your IDEAL.
4. Watch the short video. In it I give quick tips on how to think BIG about your retirement.
5. If you're married, include your spouse. Each of us have our own dreams of the future. You're spouse's may be similar but different. Now is the time to hear each others dreams and to create dreams together. This way, the two of you will be in harmony about the future. This is crucial to a great marriage and a great retirement.
6. Complete the worksheet. Start off using scratch paper and go crazy with your dreaming. No filters here. Then, identify the goals that truly mean something to you. Don't forget to rate them as described in the worksheet. This will be important later on.
7. Finally, ask questions. If you're stuck or unclear about something, shoot me an e-mail. I'll do my best to answer your question. Simply hit reply to the e-mail I sent you with the resources.

It's Not to Late to Plan Alongside Carl

 Click here 

It's New Year's Eve and I've got two important items to help you create a great year in 2015. So let's get to it.

Item 1 Get Your Retirement On Track

Starting January 7th, I'll be creating a retirement plan for a listener, "Carl", of the Retirement Answer Man Podcast ON THE SHOW. 

The best part is, you can plan along with Carl and I!!! Click here to find out all the details.

Item 2 Start Making Your Dream a Reality (with Lady J)

Tonight a special lady, Jevonnah Ellison, is hosting her book launching party. On January 19th, her book, You Have What It Takes: How to Finally Start Making Your Dreams a Reality, hits book stores. 

If you're feeling stuck and want to jumpstart your 2015, please listen to our talk and consider buying her book. She has an amazing message and spirit that just might start you on your journey.

You can visit her blog and get a free worksheet to help you discover your purpose here.

THANK YOU

A big thank you, for all your e-mails, phone calls and messages. You're encouragement and content suggestions are great. I've got a lot of cool stuff planned for 2015 to help you find that balance between living well today and securing a great tomorrow.

One of the most common comments I get from readers is how hard it is to get straight answers to their most important retirement planning questions. "When can I retire?" "What lifestyle can I expect?" "Will I run out of money?" What am I missing???"

Starting January 7th, I'll answer these questions for a fellow reader (Carl). You'll get to listen in as we create his retirement plan each week, culminating in a LIVE webinar where you (and Carl) will hear the results for the first time.

NOTE: check out the bottom of this post for an opportunity to plan alongside Carl

Who is Carl?

• 51 years old
• Married 27 years with a 19 year old child
• 29 year corporate executive

What He Wants From the Plan:

• When can I get out?
• Will I run out of money?
• How do I plan for worst case scenarios?
• How do I handle healthcare?

During the webinar, you and Carl will watch LIVE as I stress test Carl's plan against the most common retirement worries:

Here's the Schedule

• January 7th   Defining Carl's ideal retirement
• January 14th Reviewing Carl's financial resources
• January 21st  Identiflying risks to Carl's plan
• January 28th Reviewing Carl's estate and giving wishes
• January 30th LIVE webinar presentation giving Carl his results

Register now and create your plan alongside Carl

Go to www.rogerwhitney.com/rpl

"Why won't someone give me a straight answer?" This is the comment I get most from listeners trying to find answers to their most pressing retirement planning questions. In 2015, I'm stepping up my game to help you find the answers to your most pressing retirement planning questions.

Announcing Retirement Plan Live

Want to find the answers to the most common retirement planning questions?

• Can I retire?
• What the risk is that I'll run out of money?
• What lifestyle can I expect during retirement?
• What risks could blow up my plan?

Starting January 7th, you'll get the chance to listen in as I work with a fellow listener, "Carl" , to answer these very questions as we create his retirement plan.

You'll listen in, as I walk Carl through each stage of the planning process culminating with a LIVE webinar in which I present the results of Carl's plan.

Who is Carl? Carl is a listener to the show. He reached out to me earlier this year with a fantastic idea. He said, "What if, you work with me to create a retirement plan and recorded the whole process so listeners can hear how it works?" "BRILLIANT", I said, "I don't think it's ever been done". So we did it.

Carl and I have never met and have only interacted for this project. Each week, we'll play our meeting for each stage of the planning process. On January 30th, we'll have a LIVE webinar where you can watch and listen as I present the results of Carl's plan. Frankly, I haven't done the analysis yet, so even I don't know the results.

This is your chance to get a demonstration of the retirement planning process and hopefully see how your most important retirement questions can be answered.

Want to Create Your Plan Along with "Carl"?

Sign up for weekly e-mail updates and launch yourself towards a great retirement. Each week during the month of January you'll receive a worksheet along with an instructional video to walk you through each step of the process.

How to Launch Yourself to a Great Retirement with Stacking Benjamins

My favorite financial podcast (besides my own ;-) ) is Joe Saul-Sehy's Stacking Benjamins. It's informative, fun and often times just goofy.  To quote his site, " In a world of hard-hitting, deep-thought financial stories, SB’s goal is lighter, more relaxed entertainment about money."

In this episode, Joe and I discuss his recent white paper,  "Why You Shouldn’t Follow Dave Ramsey, Suze Orman or the Motley Fool".

Joe doesn't  argue that you shouldn't follow a money guru, just that it's important you follow the right one. The right one depends on what stage you're your at in your money journey.

He says there are three stages of your financial journey and an appropriate guru for each stage.

Seriously, does watching the market and comparing your investment performance to some benchmark help you create a great life??? Of course it doesn't. So stop. Stop worrying about "keeping up with the market" and get down to the important work of creating a great life.

INVEST WISELY Segment

If you are investing without trying to achieve some greater goal, you're setting yourself up for disappointment.

Comparative investing is a losers game. It can:

• create a never good enough mindset
• cause you to over trade and chase investments
• make you susceptible to product sales pitches
• cause you to take too much investment risk (for no reason)
• increase your stress
• cause you to become disillusioned with investing

Last week, I asked a recently retired couple what they wanted. Did they want to keep up with the market or have confidence that they could maintain their lifestyle? You guessed it, they didn't care about the market, they cared about their life. Smart ones, they are.

PLAN WELL Segment

During working years a lot of our purpose comes from our job, but once we stop working nothing will automatically replace them. Unless we are intentional and planful, retirement can feel like a big let down.

John Knowlton, CFP just launched beerandpeanuts.net to help you avoid this big letdown. He's created resources  in 3 areas that research has shown are critical to a healthy retirement:

• Purpose (a reason to get out of bed)
• Meaning (what if leisure isn't enough?)
• Social contact (people to connect with)

Listen to our great conversation for key insights into how to create your own fulfilling retirement.

Want to Learn to Retire with Confidence?

Get ready for a special never before seen event coming in January.  Get Ready for Retirement Plan LIVE.

Sign up at rogerwhitney.com for free updates on this special month long event. 

Yeah, there are lots of articles this time of year talking about year-end tasks to complete, but mine are Super Simple ones.  Okay...maybe it's just my way of trying to sound different. Still, these ARE 7 relatively simple  tasks that could make a big difference in your financial life (so indulge me).

Invest Wisely   When Should I Rebalance My Portfolio?

Today I read an article on market watch titled "The Hidden Truth About Rebalancing Your Portfolio" on marketwatch.  The article discussed a recent study that argues that rebalance can actually increase the risk in your portfolio. In this episode, I discuss my observations on their conclusions and my "best practices" for rebalancing a portfolio during retirement.

Plan Well   7 Super Simple Tasks to Complete Before You Rock in the New Year

1. Pay your real estate tax bill, before year-end if you want to deduct it on your 2014 taxes.
2. Get your RMD done. If you are over 70 1/2 or have inherited an IRA you need to do this before year-end to avoid a huge IRS penalty. Click here to learn more.
3. Identify opportunities to harvest tax losses. If you have realized gains for the year, look for current positions with losses that you can use to offset your gains. I discuss a few strategies for doing this.
4. Conduct an annual beneficiary review.  Even if you know the primary beneficiary is correct, you still need to make sure you have contingent beneficiaries. There is a worksheet to do this in the Retirement Toolbox
5. Consider year-end giving. You can give $14,000 to any individual without tax consequence. If you have charitable intent, consider making charitable gifts before yearend.
6. Change your important passwords. Changing your passwords is like locking your door at night. It's just common sense. This is so important and almost no one does it. The holidays are a perfect time to do this. I use a password manager (1Password) to create and track complex passwords. 
7. Consider diversifying your tax liabilities. The pressure to save on taxes each year can cause you to save too much in tax-deferred accounts. It's important that you have assets in taxable, tax-deferred and tax-free account. When you retire, you'll have more flexibility to manage your cash flow and tax bracket. If all you do is save in tax-deferred account (like most people), you could end up staying in a high tax bracket during retirement

You'd think that with all the great information and tools available today that making smart money choices would be easy. The fact is, it's harder than ever before. We live in a world designed to get us to "buy now" or "avoid that". These messages are designed by savvy marketers to get us to take action. Take action, when most of the time, doing nothing is the best course to take. 

Recently I fell pray to one of these "buy now" messages and made a really poor money choice. Two weeks ago, I was in Charlotte working on a project when a e-mail arrived announcing the closing of registration for a $2,000 training program. It was a program I really wanted to take (I'm a sucker for learning) but I'd already determined I didn't have the time or the budget this year. The e-mail offer included extra valuable resources if I registered before the deadline. I fell for it. In the middle of my meeting, while focused on the task at hand, I clicked on the link and bought it. What a sucker. 

Later that night, as I was driving home from the airport literally pulled over on the freeway and requested a refund. 

In this episode, I outline 3 habits that will help you (and me!!!) make smarter money choices. They are simple and organized around the acronym R.A.W. Think R.A.W.

Plan Well Segment

“We no longer live life. We consume it.” Vicki Robin

The next time you feel the pull of a marketing message remember R.A.W.

• Remember to review your 1 year financial priorities every week. this will keep your "why" top of mind.
• Avoid marketing messages. Don't browse in stores or online, unsubscribe from sales e-mails. 
• Work your plan. Have a plan for how you make money decisions and stick to it. It can save you.

Invest Wisely Segment

Economist Paul Samuelson reminds us, “investing should be more like watching paint dry or grass grow. If you want excitement, take $800 and go to Las Vegas” or Wall Street."

The next time you feel the urge to react to market news remember, R.A.W.

• Remember why you are investing. Your purpose for investing should drive your decisions.
• Avoid market messages. Financial media does not help you invest wisely. Avoid it.
• Work your investment plan.  Have an investment plan based on facts and stick to it. It can save you

Want Free Checklists to Help You Make Smarter Money Choices?

Click Here

Working towards retirement can feel like rafting a river full of dangerous rapids. As you flow down the river of your life, your constantly having to navigate events that threaten to turn your life upside down. Unemployment, death, divorce, college costs, healthcare, recessions, corrections, inflation and countless others can put you on the rocks. This week, I discuss how to "self rescue" if the rapids of life put you into the water.

INVEST WISELY  The Folklore of Finance: Beliefs That Contribute to Investors’ Failure

Last week I read article in the New York Times discussing the release of a study by the State Street Center for Applied Research. It's titled:

The Folklore of Finance: Beliefs That Contribute to Investors’ Failure

The 2 year study tried to answer the question: "What does true investment success look like?"

Interestingly, according to the article, instead,  they found "that the way individual and professional investors made investment decisions was so skewed that achieving both high returns and long-term objectives was nearly impossible."

• In the Podcast I discuss some of their findings, including
• Overconfident in abilities
• Unable to stay focused on long term objectives
• Short term noise
• Investors want to invest with a long time horizon yet react to short-term swings that derail the strategy
• Come to distrust their advisors
• Focus on the noise
• Focus on short term results
• A Culture of “beating the markets”

The study found that financial services firms spent 60 percent of their capital expenditures on resources to help generate short-term high performance. 60 Percent!! As a veteran of a major financial firm, I can attest that the value proposition of most major firs is that they can predict markets and guide you through them. I've always found this funny...having a value proposition based on predicting the future.

Better, I think, to accept the uncertainties of the world, have a prudent process and focus having lots of little conversations so you can adjust as life unfolds.

PLAN WELL   How to Ride the Rapids Towards Retirement

If you've every been on  a rafting trip you're probably familiar with the term "self rescue". How to self rescue is a talk given by your rafting guide before you venture onto the river. The Guide makes it very clear. If you get thrown into the what, do NOT wait to be rescued. It is YOUR responsibility to rescue yourself.

Self rescue involve 4 steps that you can use to rescue your financial future:

Get to the Surface

• Stabilize your cash flow
• Self assess your financial health (skills, assets, debts)
• Clearly define your 1 year objective

Take a deep breath (you may be pulled down again)

• Build some cash reserves
• create margin in your cash flow (increase income/cut expenses)

Float down river

• Take a little time to reflect.
• Set clear 1, 3, and 5 years objectives
• Identify initial action steps

Start to Swim

• Learn from others
  • Seek out fellow travelers that you can emulate
  • Learn from online resources and books
• Find a guide to help you navigate the rapids

Being thrown into the rapids by life can be scary. It's okay. You can self rescue. I know you can.

What Rapid Are You Most Afraid of?

Tweet to @roger_whitney

Working towards retirement can feel like rafting a river full of dangerous rapids. As you flow down the river of your life, your constantly having to navigate events that threaten to turn your life upside down. Unemployment, death, divorce, college costs, healthcare, recessions, corrections, inflation and countless others can put you on the rocks. This week, I discuss how to "self rescue" if the rapids of life put you into the water.

INVEST WISELY  The Folklore of Finance: Beliefs That Contribute to Investors’ Failure

Last week I read article in the New York Times discussing the release of a study by the State Street Center for Applied Research. It's titled:

The Folklore of Finance: Beliefs That Contribute to Investors’ Failure

The 2 year study tried to answer the question: "What does true investment success look like?"

Interestingly, according to the article, instead,  they found "that the way individual and professional investors made investment decisions was so skewed that achieving both high returns and long-term objectives was nearly impossible."

• In the Podcast I discuss some of their findings, including
• Overconfident in abilities
• Unable to stay focused on long term objectives
• Short term noise
• Investors want to invest with a long time horizon yet react to short-term swings that derail the strategy
• Come to distrust their advisors
• Focus on the noise
• Focus on short term results
• A Culture of “beating the markets”

The study found that financial services firms spent 60 percent of their capital expenditures on resources to help generate short-term high performance. 60 Percent!! As a veteran of a major financial firm, I can attest that the value proposition of most major firs is that they can predict markets and guide you through them. I've always found this funny...having a value proposition based on predicting the future.

Better, I think, to accept the uncertainties of the world, have a prudent process and focus having lots of little conversations so you can adjust as life unfolds.

PLAN WELL   How to Ride the Rapids Towards Retirement

If you've every been on  a rafting trip you're probably familiar with the term "self rescue". How to self rescue is a talk given by your rafting guide before you venture onto the river. The Guide makes it very clear. If you get thrown into the what, do NOT wait to be rescued. It is YOUR responsibility to rescue yourself.

Self rescue involve 4 steps that you can use to rescue your financial future:

Get to the Surface

• Stabilize your cash flow
• Self assess your financial health (skills, assets, debts)
• Clearly define your 1 year objective

Take a deep breath (you may be pulled down again)

• Build some cash reserves
• create margin in your cash flow (increase income/cut expenses)

Float down river

• Take a little time to reflect.
• Set clear 1, 3, and 5 years objectives
• Identify initial action steps

Start to Swim

• Learn from others
  • Seek out fellow travelers that you can emulate
  • Learn from online resources and books
• Find a guide to help you navigate the rapids

Being thrown into the rapids by life can be scary. It's okay. You can self rescue. I know you can.

What Rapid Are You Most Afraid of?

Tweet to @roger_whitney

If you're working towards retirement you know that investing wisely is a key part of reaching your goals. The problem is, investing means putting your money at risk. That's stressful. As a result, many of us tell ourselves lies or believe "trues" that can be dangerous to our financial future. In this episode, I'll discuss 7 lies we tell ourselves about investing and how to avoid them.

INVEST WISELY

The 7 Lies We Tell Ourselves About Investing

1. There is too much uncertainty right now to invest
2. I'm not wrong, the market is
3. Thinking the current trend will continue
4. I just need to hold a losing investment until I get back to even
5. Past performance can predict future results
6. I just need to find an investment guru
7. Investing alone will make me wealthy

How to Avoid Them

1. Come to peace with the fact that the future is unknowable
2. Educate yourself about how investment markets work
3. Use a sound process for investing
4. Diligently monitor and adjust your plan as your life unfolds

PLAN WELL

Last month I conducted my 1st annual listener survey. A big thank you to all that participated.

Here are some interesting facts about you:

• 100% of you are male (do ladies not take surveys!!!)
• 73% of you are over 50 (makes sense)
• 73% of you have been married over 20 years (great job!!)
• On average you have 3 children
• 42% of you say you never plan on retiring (I'm with you on this)
• Top retirement concerns include
  • Investing and the economy
  • Healthcare costs
  • Running out of money
• Top retirement goals include
  • Spending time with spouse
  • Spending time with family
  • Travel

Some of your top questions you need answered are:

• What's the best way to invest for income?
• When is a will sufficient (without a trust)?
• When should I start social security?
• How do I create passive income?
• What is the right portfolio mix during the different stages of retirement?
• Will the popularity of index investing cause more investment bubbles?

In future episodes, I'll work to answer each one of these questions. 

What is the #1 Thing You Struggle with As You Work Towards Retirement?

Tell me in the form below and I'll try to help.

I'm convinced that the most stressful part of planning for and living in retirement is that we don't know how to balance living well today, while not sacrificing tomorrow. As a result, most of us live out of balance.  Some of us are so worried about tomorrow that they sacrifice their current life in order to be "prudent". Others "live for the day", assuming without a thought for their future.  both are wrong. In this episode, I talk about my #1 retirement planning tool to help other find this delicate balance.

Invest Wisely--Investing Potholes in November and December

If you're planning on making large investments in your taxable accounts be careful. 

In December, most pooled investments, like mutual funds, distribute to shareholders the capital gains and dividends they've accumulated throughout the year. If you buy one of these products in a taxable account before this distribution, you could have a tax liability for capital gains that were realized before you even owned the fund. 

In this episode, I discuss how this works and some things you can do to avoid a potential nasty tax surprise.

Plan Well--My #1 Retirement Planning Tool to Help People Find Balance

• Can I afford to retire a year earlier?
• Do I need to change my spending plan after this market correction?
• Can I save less now and still retire comfortably?
• Do I need to take so much investment risk?

These are some of the frustrating questions that people struggle with every day as they plan for retirement. About 16 years ago, I discovered a tool to help me help people answer these questions and confidently live a more balanced life.It's called Monte Carlo engine. 

Today, I've integrated it into my Plan Well process to help other make smarter financial decisions and find some balance between living well today without sacrificing their tomorrow.

Like most tools, some are better than others and much of it's usefulness is dependent upon the skill of the user.

In this episode, I use a planning example to demonstrate how I use it and some of it's advantages and drawback. 

Note: Normally just read these show notes, it's best to listen to this one. Just click on the audio play at the bottom of this post.

Here is the Fact Set for John Smith

• Age 55
• Retirement goal 60
• Investment assets $2,000,000
• Retirement lifestyle goal, $100,000 annual 
• Retirement lifestyle goal #2, $70,000 RV at age 60
• Life expectancy, age 90
• Target Portfolio, balanced II

To see the full report that I discuss, click here.

How Not to Use It

• It's not a one time evaluation tool (you can't set it and forget it)
• It does not determine or predict results
• It can't overcome bad inputs or assumptions

How to Use It

• As a important part of your annual financial review
• As a tool to help you prioritize competing goals
• As a tool to help you evaluate tradeoffs between competing priorities
  • Spending/Saving
  • Working/Retiring
  • Risk/Reward
  • College/Retirement
  • Giving/Investing
• As compass to help evaluate and correct course as your life unfolds
• As a guide an warning system to help you know when your plan may be unsustainable
• To provide more color on the long-term impact of today's financial choices

There is no tool that will solve for all the uncertainty in your life or the world. 

The best we can do is acknowledge what we don't know (can't know) and use a sound compass to help guide our life's journey.

"He who is enslaved to his compass, will enjoy the freedom of the seas"

Ken Davis

Are You Confident in Your Compass?

Is your soul on fire? Too many of us live in a prison within our mind. We are trapped by our past choices, not realizing that today, right now, we can start a new journey.  If you feel stuck, you can create a new life. You can ignite your soul and live your own hero's journey.

Invest Wisely  You'll Never Get the Average

One of the biggest roadblocks to setting good expectations about investing is focusing on average returns. We financial planners are the biggest abusers of this. No one get's average returns. By focusing on them, we set unrealistic expectations on what the experience will actually be.

Look at the returns of the S&P 500 stock index over the last 15 years. How often did it hit it's average return?

In this episode I discuss this and how to develop a better understanding of what to expect (and not expect) from your investment assets.

Plan Well     How to Live an Intentional Life with Kary Oberbrunner

Kary Oberbrunner is like you or I. He went to school, got a job, got married and lived a normal life, until something happened inside him. His soul ignited. Today, he is living a more intentional life and is on a mission to help you ignite your soul and do the same.

Kary's message really resonates with me. Much of my life, I was blind to the choices I had. I felt imprisoned by my past decisions. I think many of us feel this way. We're not. Our prison is in our mind. If we break free from our past self, we can create the life we desire.

Kary and I discuss:

• The roadmap from Day Job to Dream Job
• How to get unstuck from your past stuck self
• How day jobs are killing people
• Why it's so hard to leave a day job
• How to go from prison, to plan, to payoff
• How to design your story
• Why it's important to go through your own hero's journey
• How to change your life in a half hour a day
• Dream Job Boot Camp

Take the assessment and let's compare results on twitter Tweet to @roger_whitney

You don't like to lose money. Nobody does. That's one reason it is so hard to stick to a long-term investment plan when we feel like we're getting punched in the face by the markets. Just like a boxer, it's natural to want step back and protect ourselves. This natural reaction, however, has caused most investors to underperform the very assets they invest in.  In this episode, I discuss 7 steps to help you fight through a normal market correction.

Invest Wisely: 7 Steps to Fighting Through a Market Correction

A 2014 Dalbar Study  once again showed that average investors drastically underperform the very assets they invest in. Over the last 10 years the average investors, investing in a mix of stocks and bonds, had an average annual return of 2.6%. Over that same period, the S&P 500 had an average return of 7.4% and fixed income averaged 4.6%.

One of the biggest contributors to this is our natural reaction to run from pain.  It's a strong instinct that I struggle with during every market downturn.

In this episode, I introduce 7 steps you can take to help fight through a market correction so you can invest wisely for retirement.

1. STOP listening to financial media and market "experts." They only magnify your fear
2. Learn the nature of the markets you invest in. Develop a clear understanding of how they work
3. Determine your appetite and need for market risk. How much volatility can you stomach? How much market risk do you need to achieve your goals?
4. Set a portfolio allocation that fits your needs.
5. Rebalance it religiously to manage your risk and potential return goals
6. Maintain enough cash reserves. This will help your long-term assets be focused on long-term objectives
7. Revisit steps 1 thru 7 religiously to adjust as your life unfold.

Not sure how?  Find someone to help.

Investing wisely is easy to understand.  The hard part is sticking to a well thought out plan when you get punched in the face by a market correction.

Plan Well: Budgets That Work With Jim Munchbach

Recently I had the pleasure of talking with Jim Munchbach from imakeyourmoneycount.com about how to find a budget that works for you. Jim is a Certified Financial Planner, State Farm agent and instructor of Introduction to Personal Finance at the University of Houston.

Here are some of the topics we cover:

• Why it's important to track your spending
• Finding the truth about your financial behavior
• A budget that works, if you hate to budget
• How a budget helps you create free cash flow in order to save
• The value in learning to track your spending
• It's not the tool that is important, its the goal
• How to manager your cash flow like a business
• The law of spending and saving

Retirement Toolbox:  Retirement Planning Worksheet

It's natural to fear a market correction. Losing money (even if on paper) sucks. News reports, act as if market corrections are bad.  That's not true. The economy and the markets don't function well without corrections.   Just as there are benefits to a forest fire, a market correction is an essential element of a strong economy and market. 

Invest Wisely  4 Benefits of a Forest Fire and Market Correction

Are we headed for a market correction? Last week the S&P 500 was down 3.4%. It's been over 34 months since we've had a correction in the S&P 500 of over 10%. Normally we experience one every 18 months. 

I've always likened market corrections to forest fires. Both cause some short term pain but are essential to the long-term health of the forest (or market).  I've used this analogy for years. Sure enough, if you read the Benefits of Fire from the California Department of Forestry and Fire Protection, the 4 benefits of forest fires parallel to the benefits of a market correction.

In this podcast I explore these 4 benefits of forest fires and market corrections:

• Cleans the Forest Floor

  "Fire clears the weaker trees and debris and returns health to the forest"

• Provides for More Habitat

  "When fire removes a thick stand of shrubs, the water supply is increased. With fewer plants absorbing water, streams are fuller, benefiting other types of plants and animals."

• Kills Disease

  "Fire kills diseases and insects that prey on trees and provides valuable nutrients that enrich the soil. 

  Fire kills pests and keeps the forest healthy."

• Provide Room for New Generations 

  "Without fire, these trees and plants would eventually succumb to old age with no new generations to carry on their legacy."

Plan Well   Kim Blanton From the Center for Retirement Research at Boston College

Recently I had the pleasure of talking about the retirement landscape with Kim Blanton. Kim works with the Center for Retirement Research at Boston College and writes their Squared Away Blog. Her Blog is about financial fehavior as it relates to working, saving and retiring. 

Kim and I discuss the changing landscape of retirement and how we can plan for it.

• How retirement is changing
• The impacts of being responsible for your own retirement savings
• More than half of Americans are on track to have their standard of living decrease during retirement
• The benefits of working longer
• The benefits of taking Social Security later
• Retirement: a Good State of Mind
• The danger of consumerism during retirement
• Stark Differences in U.S. Cost of Living
• How to better plan for retirement

Retirement Toolbox: Retiring to a Different State

If your family is considering retiring to a different state, there are some important planning items to consider. To help you, I’ve added a new worksheet to the Retirement Toolbox titled Retiring to a Different State.  www.rogerwhitney.com

Medicare eligibility starts at at 65. If you're blessed to be able leave your career earlier, you'll need to evaluate your healthcare options until then. This week I talk with health insurance guru, Misty Kimbrough about your healthcare options before age 65.

Invest Wisely     3 things you can do to ignore the voices in your head

I'm starting to hear voices in my head. Maybe you are too. They're asking "Should I move to the sidelines? Should I wait to invest?"  Certainly we've heard these voices on our beloved financial media outlets. Over the last 3 weeks or so, equity markets have had some big down days and it's making people nervous.

Don't base your investment strategy off of intuition, regardless of how well reasoned you think it is. The fact is professional investors struggle with timing markets. Even those that have great "market calls" can't do it consistently enough to be of much use to you or I.

1. Stop chasing rainbows. Turn off all financial that peddles predictions, forecasts, etc. Don't fall for the siren sound of predicting the future. It's hard to tune out. We all want certainty. We crave it. It's uncomfortable to sit with not knowing. You must though if you are going to focus on the things you can control
2. Revisit your cash reserves. Having enough cash so your long-term investments can be long-term. Selling at the wrong time because you need the money can be a disastrous to your portfolio.. Initially target 3 months lifestyle expenses and increase it if your income is less certain. For retirees, we target 18 months of expected lifestyle expenses.
3. Rebalance your portfolio. If you haven't rebalanced your portfolio to your target risk/return profile, do it. Part of investing wisely is consistently rebalancing to your targeted risk/return profile.

Plan Well     Health Insurance Options Before Age 65

This week I talk again with Misty Kimbrough from Red Apple Insurance. She and I discuss the insurance landscape if you've been blessed to retire early. We discuss:

• How COBRA coverage works
• Insurance options before you're eligible for Medicare
• Individual insurance plans (Bronze, Silver & Gold)
• How to structure your individual policy
• Should you go on your spouse's plan
• Insurance add on options.

Retirement Answers     How Do I Choose Long Term Care Insurance

This week I added a 2 page fact sheet to give you the basics on long term care insurance. You can access it for free by clicking the cool button below

If you're planning on living a long life, make investing in your health a priority. USA Today recently reported that the top retirement concern for people over age 50 is healthcare costs. Growing older and being unhealthy can be financially disastrous. It just makes sense, to take a proactive approach to investing in your health. 

INVEST WISELY: 5 Steps to a Healthier Life with Corbin Links

Corbin Links not only talks the talk, he has walked the walk. His 12 year journey to living a healthy lifestyle 
included tons of research on nutrition, slowly creating healthier habits that helped him lose over 80 lbs. Today, his is a walking encyclopedia of health and nutrition.

In this episode we explore his 5 steps to living a healthier life. We discuss:

• How to approach your journey to living healthier
• Why it's important to get out in front of your health issues
• How to simply evaluate your current health condition (beyond physical fitness)
• The value of making small incremental changes
• His 5 steps to living healthier today (and the science behind it)
  • Mineralized water
  • Green juice
  • Sleep
  • Probiatics
  • Magnesium

How to learn more:

• Corbin's Podcast
• His book Up Your Health Game

PLAN WELL:   How does working affect Social Security Survivor Benefits?

Last week I a listener e-mailed me this question. 

Here are the facts about Social Security Survivor Benefits that we discuss in this episode

• The Social Security Administration's resource on the topic
• If you are under Full Retirement Age (FRA) and receive a survivor benefit it can be reduced based on the income you earn. Here is the current table
• Once you reach FRA, your survivor benefit will not be reduced
• A spouse survivor can receive 100% of the worker's benefit at Full Retirement Age (FRA)
• If you are 60 or over but under FRA, you'll receive between 77-99% of the benefit
• A surviving spouse of any age with children 16 or under can receive 75% of the worker's benefit

Question: What steps are you taking to invest in your health?

Tweet to @roger_whitney

Are you in a career that matches your God given talents? Most of us are in careers that we were trained to do. Not careers that centered on our talents.  After college, we start work and our careers generally progress on their own, without much intentional direction from us. If you're in your 50's and this fits you, it's not too late to begin to pivot you're career towards something you have natural talents for. In this episode, Career Pivot's Marc Miller, outlines how to start your pivot.

INVEST WISELY: Things to Consider Before You Buy Alibaba

Interesting. Over the last few days I've heard more people talking about the blockbuster Alibaba IPO than the new iPhone 6. As a result, I've gotten more than a few inquiries asking whether Alibaba is worth buying. Now, I would not dare to recommend the purchase of any investment on this blog. That would be silly. I know nothing about you or your situation. In fact, please RUN from any site that makes such recommendations.

• If you are considering buying Alibaba stock, ask (and answer) yourself these questions:
• Are you gambling or investings?
• If you're gambling, treat it as such and make sure you are only using excess funds that you can afford and are willing to lose.
• If you say you are investing, then do your homework and evaluate for yourself:
  • Is Alibaba a well run company?
  • Is it profitable?
  • What is the competitive environment?
  • What is the regulatory environment?
  • Does Alibaba have a solid balance sheet (that can survive growing pains)?
  • Are you paying a discount, premium or fair value for the projected growth?
  • What is your exit strategy?
  • How does this help you Retire Well?

 PLAN WELL:   Doing What You Love: A Conversation with Marc Miller from careerpivot.com

Marc and I discuss:

• The origins of the “retirement” concept and why it’s outdated
• How Baby Boomer’s view of themselves is changing the concept of retirement
• The importance of having a purpose during retirement
• How the social contract has changed between employers and employees
• How to pivot your career even in if you’re in your 50’s
• The difference between skills and talents
• How to make the transition from doing what you’re trained for to doing what you love
• The importance of relationships in your career pivot
• The value of simplifying your life as you pivot

You can connect with Marc at careerpivot.com

Question: If you're in your 50's, do you plan to work during retirement? Let me know on Twitter

Tweet to @roger_whitney

Wouldn't it be great to learn about retirement from those that have retired successfully? Here's your chance.  Today at FinCon, the national conference for money media, moneytips.com is releasing the book, The Retiree Next Door. The best part is you can get it for free.

Over the last year, the folks at moneytips.com conducted a survey of over 500 successful retirees. Their objective: to identify clear traits and strategies they used to do so. 

Recently, I spoke with Moneytips.com's Michael Dubrow about the project and some of the lessons learn for those working towards retirement.

Take a listen and learn:

• Where you can get your free book
• How to use the research to plan well for your retirement
• How the research was conducted
• What the biggest surprises were
• How you have more control over your retirement then you may think
• The wisdom learned from those surveyed 

These projects are great because they help us learn from those that have walked before us. No theory here, just practical incites into the Retiree Next Door.

Have you ever felt distant from your wife? I sure have. In my 23 years of marriage, there were times my wife and I drifted apart. It's easy to do. Work, kids, hobbies, etc. can cause a man and wife to drift apart. We eventually learned we needed to be intentional about nurturing our marriage. 

Plan Well:  Invest in Your Marriage

In this week's episode Jackie and I discuss how married men can become the leaders they want to be.

Jackie helps husbands and fathers learn how to lead and love their families so they can have lasting, fulfilling marriages and meaningful influence on their kids.

• How to be the leader you want to be
• Husband as a servant leader
• The G.E.T. strategy: Give, Encourage, Teach
• How to control your inner voice
• The importance of having a date night with your wife
• The top ten dates to improve communication
• How to have date nights that fit your time and budget
• Lessons he learned from his parents 50 year marriage
• Why you need to know the  7 Rings of Marriage

Want to be a better husband and father? Check out Jackie's great resources:

• His blog at jackiebledsoe.com
• Date Night in a Box
• The 7 Rings of Marriage

Invest Wisely: Should I Worry About Big Bad Events?

The recent anniversary of the 9/11 terrorist attack reminds us that big bad events can happen in the world. There always seems to be some catastrophic event "just around the corner":

• Russian and the Ukraine
• ISIS
• Syria
• Terrorist threats
• China

Should you worry about these as you invest for your future? It sure seems so. This week, I take a look at how markets have acted after some of the biggest "big bad events" over the last 75 years. 

It's easy to act emotionally with investing.  Our emotions drive most decisions. If you are going to Invest Wisely for your future, it's important you focus on facts and process. This will help you make smarter financial decisions

Here's a table to give you some perspective:

Taxes suck. They erode away your income, savings and investments. One strategy to maximize your retirement savings is to convert your IRA to a ROTH IRA. ROTH IRAs are a powerful tool to help you do this but there are lots tax and planning issues to consider first.

That's why I turned to Ed Slott, America's IRA expert. He is a nationally recognized IRA-distribution expert, a professional speaker, and the creator of several public television specials, including the most recent, Ed Slott’s Retirement Rescue!

Investing Corner--The Importance of Dividends

When most people thing of making money in equities, they think of buying low and selling high. That's a great strategy, but it's only part of the story. This week I explore the importance dividends can have in any investment portfolio.

I discuss these 5 reasons dividend can be a benefit to any portfolio:

1. How dividends have comprised over 50% of the total return of the S&P 500 index
2. The favorable tax treatment dividends can receive
3. How dividends can be a good hedge against inflation
4. Why dividends can help you control risk in your portfolio
5. What are the attributes of most companies that pay dividends

Retirement Tip of the Week

During my conversation with Ed Slott, we cover:

1. Best places to save for retirement
2. The benefit of contributing to a ROTH IRA
3. Ed's "Forever Tax to Never Tax" strategy using a ROTH IRA
4. The importance of understanding the ROTH IRA conversion rules
5. When it doesn't make sense to use a ROTH IRA
6. How to use ROTH IRAs as an estate planning vehicle
7. The types of people that should consider converting to a ROTH IRA
8. The order to draw from your taxable, IRA & ROTH IRA accounts during retirement
9. The benefits of drawing from your IRA in order to delay Social Security during retirement
10. Biggest mistakes people make with IRAs

Have you considered converting to a ROTH IRA?  

If you have a question, ask me at rogerwhitney.com

Stressed about planning for retirement??? Your not alone, most of use (including me) freak out when we look at what it could take to provide for our family in retirement. Don't believe all the statistics, you can take control.

Investing Corner

Listener Question Wayne Asks

My question is are there hidden risks doing my diversifying on top of diversity that I do not realize, other than my time for managing, and the loss of opportunity of my conservative and explore portfolio $s?

Wayne has multiple portfolios, each with it's own allocation

• Large aggressive portfolio
• Small moderately conservative portfolio
• Explore portfolio (where he invests based on his economic views)

Hidden risks might include:

• You are 55, and close to the danger zone. A time 5 years before and after retirement when big investing mistakes can have the most impact on your retirement. The retirement danger zone is a time to focus on consistent investment returns.
• Not having a consistent risk profile of your investments based on what you are trying to accomplish
• Not having a process for evaluating the value, performance of each bucket. (no bonus points for complicated investments)
• Chasing returns or safety at the cost of focusing on your lifestyle goals for retirement

Retirment Planning Stress: How to take control

No Wonder We're Stressed:

• 60% of all works have less than 25k saving for retirement (USA Today)
• Only 22% of workers have over 100k saved for retirement
• Only 28% of current retirees have over 100k in savings and investments

4 Strategies for Beating Retirement Planning Stress:

1. Forgive yourself--We've all made financial mistakes. Stop with the coulda/woulda/shoulda's and own where you are now and focus on the future.
2. Don’t stick your head in the sand--Don't get discouraged by the statistics about retirement. Regardless of your financial situation, you CAN make progress.
3. Take control of your financial decisions
4. Think creatively about your future

rogerwhitney.com

Setting retirement goals can be a big waste of time.

In my 23 years of advising individuals and families, I've rarely found someone that had clear retirement goals.  Guess what?  They were still able to live a great life and retire comfortably.

In this episode I'll explore the problems with setting retirement goals and offer a better way to plan.

Retirement Tip of the Week

How to Prepare for the Unthinkable: a House Fire

Recently someone close to me went out for a movie and returned to find their home burnt to the ground. They lost everything, including their dog.  In a few short hours they had no home, no clothes, no furniture, no family photos, no records, no nothing.

This is the type of thing that can never happen to us, right? It's the type of thing that happens to "other" people. Think again.

Here are some simple tips to help you prepare for this unthinkable crisis.

Complete a Video Inventory

• Work room to room
• Narrate, describing items (brands, models, amounts)
• Specifically document valuables (jewelry and artwork)
• Don't forget the garage
• Keep copy of video outside the home
• Update annually

Back Up Important Documents

• Tax returns
• Photos
• Contracts
• Estate plan
• Financial information
• Keep back up offsite (loved one's safe or safe deposit box)
• Update Annually

Understand Your Home Fire Coverage

• Full replacement cost coverage
• Market value coverage
• Personal property coverage
• Valuables rider for expensive items such as Jewelry, etc.

After the Fire

• contact insurance agent immediately
• Ask for advance on your claim to cover short-term costs
• Secure your property
• File claim right away
• Keep track of all living expenses (with receipts)
• Don't stop paying your homeowners insurance premium
• Don't close your claim out too fast
• Get grief counseling

Feature Presentation: Screw Retirement Goals, Here's a Better Way

Retirement Goals. In my experience, few people set them and even fewer stick to them over the long-term. Retirement goals are something we are told we need to have so we can plan for them. Traditional planning forces them upon you and then shows you all the saving and sacrificing you'll have to do to achieve them.   No wonder nobody plans.

Recently a mentor of mine, Michael Hyatt, wrote a great blog about the problem with the traditional concept of retirement (Why Retirement is a Dirty Word). I agree with him.

If retirement and retirement goals are outdated concepts than how do you plan for the future?

In this episode, I'll explore some of the problems with setting retirement goals and show you a more productive way to plan for the the future.

I discuss:

• The problem with traditional retirement goal setting
• Why we don't stick with retirement goals
• How you might be limiting your future
• How you might be limiting your current life
• The importance of priorities
• How to turn your financial priorities into actions
• How to negotiate with yourself
• How to live a more balanced life

QUESTION:  Do you have retirement goals?

• If so, are they meaningful?

• If not, Why?

Let me know via Twitter Tweet to @roger_whitney

If you chose to invest in real estate as part of your retirement plan, you better understand what you're signing up for. 

Most "educational" classes, workshops etc. focus on all the benefits of real estate and gloss over the realities of doing it. Buying, owning and operating rental properties is hard work.  This week, I talk with Philip Wetzel about the real work that goes into investing directly in real estate.

Retirement Tip of the Week

3 lessons from Jim Collins' books Good to Great and Great By Choice that you can use to make smarter financial decisions. 

Two of my favorite business books are Great By Choice and Good to Great. Last week, I had the pleasure of hearing the lead author of each, Jim Collins, speak. It was awesome.  The lessons learned from his research on what made companies great can easily be applied in managing your financial life. Here are 3 that you should start using today...

• First who, than what
• Confront the brutal facts (yet never lose faith)
• Fire bullets, then cannonballs

Feature Presentation: What You Should Know Before Investing in Real Estate

Investing in real estate can be a good thing-as long it fits your situation, you truly understand the risks and work involved and stay diversified.

There are plenty of workshops, classes, seminars, infomercials systems, etc. out there to "teach" you how you should do it. Unfortunately, they are typically strong on the benefits and light on all the work needed to position yourself for success.  In this episode, I start to give you the rest of the story.

Some of the topics we cover are:

• Why you need to run it like a business
• How to do your homework before you buy your first home
• Why passive real estate investing is not really passive
• The difference between flipping house and real estate investing
• The importance of having cash reserves
• The advantages of being a handyman
• The advantages and dangers of using leverage
• Why you need to put 20% down when you buy a property
• The importance of finding quality tenants
• How management companies work

My financial records are a mess. Are yours?

In this episode, I'll outline the framework I'm going to use to get my recording keeping in order. 

Could you find that important docuement if you needed to?

If not, listen and we can get organized together.

In the Retirement Tip of the Week, I'll give you a framework for lending money to friends or family so you can help out without ruining the relationship.

Is the stock market correction here?  In the last week of July the S&P 500 index lost 2.7%. The worst weekly loss in over two years. It didn't take long for the sensationalist headlines to pop up. Here are two of my favorites.

Warning: That plunge in stocks is just the beginning

MarketWatch.com

3 market warning signs predict 20% stock tumble

Insight: When these indicators flash together, it’s time to sell

MarketWatch.com

Strategies to Help You Handle Market Corrections

I'm all about investing wisely for retirement. If you are a trader, market timer, trend follower, etc. you might want to click away. For the rest of you, here are my suggestions to help you invest wisely and sleep better at night.

1. Have a Plan

Sounds simple but most people don't. They invest based on intuition, emotion and trust rather than facts, process and purpose.  Your plan doesn't have to be elaborate it just needs to be clear and actionable. It should include:

• Goal for investment assets
• Investment timeframe
• Risk/reward target
• Target investment allocation
• Rebalancing policy
• Communication and evaluation schedule

2. Have adequate cash reserves

More than anything, this may the most practical strategy to weather market corrections. One of the biggest mistakes you can make is  to sell an investment at the wrong time because you need the money.

With interest rates on savings accounts near 0%, it is tempting to put all your money "to work". Don't. Cash reserves give you the flexibility to weather uncertain times in your life as well as the markets. (in episode #17 I discuss cash reserves). Here are the basics of cash reserves

Emergency fund (3 months to 2 years living expenses) + Expected expenses within the next 12 months=Less emotional decisions

3. Have at Least a 3 Year Investment Timeframe

Anything under a three year time frame is speculating not investing. Investing wisely requires time.

4. Be Well Diversified

Every time I say this I feel like the teacher in the Peanuts cartoons...Blah, Blah, Blah. Diversification and asset allocation help you avoid the trap of trying to pick winners and losers. They position you to participate in the economic growth of the world. That is the point of investing.  The more you try to game the system, the more likely you'll miss out (Here is a recent episode on investing mistakes).

One thing you can do right now is make sure your allocation is rebalanced back to the target you should have set in the beginning. Over the last 4 years, the stock markets have done quite well. If you haven't rebalanced to your target you probably have a lot more equities than you originally intended. This could mean you have more volatility than you bargained for. Studies have shown that rebalancing your portfolio regularly helps you achieve better results. Rebalancing Feels bad, but works good.

5. Understand Market Corrections are Healthy for the Markets and Your Portfolio

You've heard it said that investing is like gambling. In a sense that's true. If you invest based on intuition, emotions and the advice of the financial press, you're just one of the suckers walking into the casino. If, however, you invest based on history, research, process and prudence you are more likely to have the odds of the casino over the long-term. That is investing wisely.

Retirement Tip of the Week

Try it Before You Buy it

You need to be very careful when you are in the Retirement Nesting stage of life. Retirement Nesting occurs during the 3 years prior to retirement and the 2 years after you retire. This is the time of retirement lifestyle dreams. AND a time when you are susceptible to marketers selling the retirement dream.

The Retirement Nesting stage is a danger zone for poor financial decisions. Don't fall for the emotional urges to buy an R.V., vacation lot, condo or big toy. They can be great but you need to be certain, very certain, that it is something you will truly use. Just recently, I had to help a gentleman unload a beach condo he purchased on a whim 5 years ago. He lost over $100k on the deal (and only used once). Don't be that guy.

Here are some tips to avoid the same mistake:

• Do LOTS of research over  a 12 month period before you buy
• Always pay cash.
• Rent the object of your desire for the first 2 years to see how much you actually use it. It is easy to rent anything anywhere nowadays.
• Test drive vacation homes, R.V.s and resorts over the first 5 years of you retirement. It can be great fun and save  you from making a costly mistake.

Resources Discussed

• A Field Guide to Market Corrections
• Vacation Rentals By Owner (VRBO)
• Episode on the Importance of Cash Reserves
• Common Investment Mistakes

The cost of a financial misstep in retirement can be devastating. During retirement it is hard to "earn" your way out of poor decisions. Poor planning or a big loss during retirement can ruin your financial security. In this episode I discuss the most common retirement "screw ups" I've seen and how you work to avoid them.

7 Ways to Screw Up Your Retirement

Having unrealistic return expectations for your investment assets (too high in 1990s, too low in 2007-08)

Crazy as it sounds, in the 1990s people retired thinking they could earn 15%-20% per year and take 10% from their assets for retirement income.

Today, we see the opposite extreme. After 2008-07, people aren't so optimistic about retirement. In fact, they are down right pessimistic.

Not sticking to a spending plan and reviewing it annually

When you  retire it is essential that you become more intentional about your spending. In retirement your earnings power diminishes. You'll have less opportunities to earn your way out of poor spending choices.

Set a spending plan and review it annually. This will allow out adjust as your situation changes.

Falling in love with an investment or investment strategy

Real estate; Gold; Rental houses; Tech stocks; Dividend stocks. I've seen it all over the last 23 years. Just because you've had great success with a particular investment or strategy doesn't mean it is the be all end all.  Managing assets during your retirement years is more about consistency and protection than stellar returns. The past is littered with "sure thing" investment that have gone bust. Just look at the list above.

Financially supporting/enabling adult children

I'm not sure where the line is between occasionally helping a child out and enabling them. We've seen retired parents destroy their financial security by bailing out their children from there poor choices. A good litmus test is to ask yourself: Are you preparing your children for the path, or the path for the child?

Starting or investing in a small business

Starting a business or investing in a new venture is exciting. Be careful. They all sound exciting at the start but most small businesses fail. Retirement is not the time to invest a lot of money in an entrepreneurial dream.

Buying expensive lifestyle toys (vacation home, R.V. or land)

Go ahead and dream big but be careful about spending big money on your retirement toy. It's very common to see older retirees saddled with debt on an expensive R.V. or vacation lot that isn't used and worth a fraction of the loan amount.

Sticking your head in the sand when it comes to your financial life

Not being aware and willing to address the financial realities of your retirement is a sure way to screw it up.

Retirement Tip of the Week

Complete your estate plan. Yeah it's boring and can cause some uncomfortable conversations, but get it done. Please

Tips to getting the estate planning questionnaire done:

• Don't try to do it at home
• Set an appointment with your spouse outside of the house to complete
• Have your advisor or a trusted friend interview to complete it

Tips for Keeping it up to date:

• Review it once a year with your spouse and trusted advisor
• Review the same time each year (like a holiday or annual family gathering)

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This week I speak with Burt White, Chief Investment Officer of LPL Financial. Burt and I discuss LPL's mid-year outlook Titled: The Investor's Almanac. 

Burt and his team do a great job simply communicating the economic and investing environment.  Their Investor's Almanac is a great tool to help us invest wisely.  No bold predictions or market calls here, just easy to understand insights you can use to make better informed investing decisions. If you'd like a free copy of their Investor's Almanac you can access it in the Retirement Answer Library. 

In this episode we discuss:

• how to use investment outlooks to Invest Wisely
• where the U.S. is in the economic cycle
• where they see potential risks and opportunities
• how international markets are not in sync with U.S. markets
• why you should consider harvesting high quality bonds
• possible alternatives to traditional fixed income
• places to find income
• super themes that should provide a benefit the U.S. economy
• the importance of turning off the worry factory of financial media

Retirement Tip of the Week:  Designating a Trust as a Beneficiary of an IRA

Last week a client called requesting the beneficiary of his Individual Retirement Account (IRA) be changed to a trust. This planning strategy has become more popular over the last few years. This strategy for IRAs can has some benefits if the ultimate beneficiary is:

• a minor child
• someone with special needs
• a spouse from a second marriage
• a spendthrift with poor financial skills

The trust can help protect the inherited assets and better control how those funds are used by the beneficiary of the trust.

Be careful using this strategy though. Done incorrectly, the strategy could conflict with IRS rules and possibly create big tax problems. It is important the attorney drafting the trust be familiar with certain aspects unique to inherited IRAs.  

Some things to consider are:

• Make sure the beneficiaries of the trust are people. They cannot be non-persons (like a charity)
• Consider adding language specifically prohibiting distributions to non-persons
• Make sure it is a Conduit Trust. It should include language that requires the distribution from the trust to the beneficiaries of the Required Minimum Distributions coming from the inherited IRA.
• If there is more than one beneficiary, consider having a separate trust for each. This will also each trust beneficiary to use their own age for required minimum distributions

In this episode, I'll show you how to come to terms with your worry and the uncertainty about retirement.

"I worry"

I talk to a lot of people about retirement. Not only clients but most everyone I meet over age 50.  I'll always ask them what their #1 thought is on retirement. I've learned a lot from this exercise. The most important thing I've learned is that people worry about retirement....alot!.

They worry about:

• all the uncertainty
• living without a paycheck
• inflation
• running out of money
• maintaining my standard of living
• my health and healthcare costs
• being a burden to my children
• long-term care costs
• losing money in the markets
• the economy
• my country

In this episode, I'll show you how to come to terms with your worry and the uncertainty about retirement. Once you've done that, you'll be free to build a system to manage through the uncertainty in your life. I discuss:

• Market uncertainty
• Economic uncertainty
• Uncertainty in your life

How to begin to manage it by:

• Scheduling "little conversations"
• Using checklists
• Making lots of little adjustments as your life unfolds during retirement

Building this structure is really what this blog, the Retirement Answer Library and podcast is all about. 

Retirement Tip of the Week

The importance of tax diversity on your balance sheet as you near retirement. If you're within 5 years from retirement, why it may make sense to significantly lower the amount you save in your 401(k) retirement plan. 

Resources Discussed

• The Retirement Answer Library
• Tax Deferred vs. Taxable Savings Calculator

Enjoy the Podcast?

A big THANK YOU to Dean for sending me your kind note, thanking me for the podcast and Retirement Answer Library. So glad it's been helpful to you. It really means the world to me.

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“How do I understand Social Security and Medicare?”  This is a question I hear most often from people planning for retirement. It's understandable. Social Security and Medicare benefits will play a big part in your retirement. 

In this episode we begin to unwrap both and begin to build a framework for you make decisions about your Social Security and Medicare benefits. I say we “begin” intentionally. These are BIG subjects. In future episodes, we’ll continue to improve your understanding of your Social Security and Medicare.

Announcements

• If you enjoy the podcast, I would consider it a great favor if you subscribed in iTunes and leave a review. This helps others discover the show. 
• Last week I announced my Retirement 2.0 project. This is an initiative to redesign the retirement planning process to serve you better.  To help, go here and share your thoughts on retirement.

Retirement Tip of the Week

I suggest you visit and explore our government's Social Security website. It is an easy to navigate, useful resource to help you manage your Social Security benefits. YES, I just said “useful” and “government” in the same sentence. They did a great job designing the site.

 You can easily:

• Apply for benefits,
• Check the status of an application
• Set up direct deposit
• Estimate your Social Security
• Estimate your spouse’s benefit
• Sign up for your Social Security benefit
• Set up direct deposit
• Access their Retirement Toolkit (a great PDF document that outlines key dates for Social Security and Medicare)

Unwrapping Medicare: The Basics

This week I talk with Misty Kimbrough, a local insurance expert about the basics of Medicare. She outlines the basic parts of Medicare and the 3 most common missteps people make when planning medicare benefits for retirement.

Part A “major medical” coverage covering health care costs at hospitals 

Part B Covers the costs of health care outside of a hospital. Doctor visits, outpatient procedures, x-lab test and related services

Medicare Supplements (Medigap)

Part C Medicare Advantage Plan

Part D Prescription Drug Plan

3 Common Medicare Missteps 

Resources Discussed

• Social Security website
• Medicare website
• Medicare Plan Finder
• Retirement Answer Library
• Red Apple Insurance

I Hate Keeping a Monthly Budget.

Yes, I know that keeping a monthly budget is personal finance 101.  Over the years I've tried, repeatedly, to track every expense in a monthly budget. Each time I failed after a few months. It's just too much work. I have better things to do than be a part-time bookkeeper. 

Do You Hate to Keep a Monthly Budget?

Tracking all your expenses is easier than ever. Programs like Quicken and Mint have powerful accounting tools in simple to use packages. Still...most of us don't track monthly expenses or keep monthly budget for one simple reason; We have better things to do than being a part-time bookkeeper. 

In this episode, I walk you through my budget system which gets you 80% of the benefits of detailed budgeting, without all the work. In just four easy steps you can take control of your spending and capture the excess income as savings. 

I Call It the Cash Flow Bucket System.

The advantages of the Cash Flow Bucket System:

1. You don’t waste time tracking every transaction.

2. You have less stress deciding how to spend money each month.

3. You don’t spend money just because it’s there.

4. You easily capture (save) excess income as savings.

5. You can make smarter decisions on allocating savings.

6. You maintain flexibility for unexpected expenses.

Try It and Stop Feeling Guilty About Not Keeping a Monthly Budget

I've added a worksheet to the Retirement Answer Library to walk you through the process. It's free, just sign up here.

The Retirement Tip of the Week

I give you Sammy's 5 secrets to living a happier retirement. These are worth listening to!

Deal with Death By Celebrating Life

Last week, I wrote about my sister's passing and her wish that her family have a "Celebration of Life" picnic (you can read it here).

In this podcast, I share my thoughts on my sister's choice and how you can do the same.

How to Overcome New Car Fever

New car fever is a difficult bug to beat. Everyday, driving, you window shop as you drive, imagining yourself in the car models you see whizz by. Once you're bitten, the fever typically ends in you in a shiny new car.

1. Remember your priorities
2. Detail your car at least every other month
3. Pay for a complete car wash once per week
4. Buy a some key accessories to refresh your cars look

A Useful App to Help You Identify Spending Habits

Once every two months you should track your spending habits with an app like Expensify to:

1. Create an opportunity to discuss spending habits
2. Reconcile your spending habits with your stated financial priorities
3. Identify wasteful spending habits
4. Keep you and your partner accountable to each other 

Resources Discuss

• Storyline 2.0, by Donald Miller
• Expensify
• How to Budget
• How My Sister's Death Became a Celebration of Life

This week we discuss:

• Why you should ask your advisor about their succession plan
• How to manage cash flow during retirement

Less Than 10% of Advisors Have a Succession Plan

This is a scary number considering that if your advisor is unable to serve you due to injury or death, the retirement plan you’ve put in place could be in jeopardy. 

• Who will service you?
• Who will advise you?
• What communication will you receive?
• Who will manage your assets?

These are just some of the important questions that need to be asked by you to assure your retirement plan is not disrupted.

I discuss:

• the importance of asking your advisor about their written succession plan
• what items to look for
• the communication plan that should be in place
• how to protect your retirement plan in the event your advisor is suddenly unavailable.

This month, I’ll post a checklist in the Retirement Library of items you should look for in your advisors succession plan to assure some continuity of service.

Listener Question:  Lynn asks, “How do I manage my cash flow during retirement?

How to manage cash flow during retirement is one of the questions I’m asked most. Not receiving a monthly paycheck during retirement can be unnerving. In retirement, it is important to have a system to create a paycheck to pay your monthly retirement expenses. 

I outline the Cash Flow Reserve system we use to help clients cover their retirement expenses. 

The Benefits of the System

1. It can help you feel safer about meeting your needs
2. It provides a margin of safety during turbulent markets
3. It positions you to make smarter financial decisions
4. It gives you more flexibility to adjust as conditions change
5. It helps you sleep at night

How It Works

1. Checking Account—To pay your lifestyle expenses
2. Cash Reserve Account—maintain 2 year’s expected living expenses, distributing a monthly “paycheck” to your checking account
3. Extraordinary fund—Maintain cash reserves for extra expenses you will incur over the next 12 months
4. Long-term Investment—Long-term investment assets that include bonds maturing in 3-5 years
5. Review and adjust every 6 months

This week I’ll post a detailed outline on how to build your Cash Flow Reserve system  in the Retirement Answer Library.

Resources Discussed

Retirement Answer Library

Enjoy the Podcast?

You can do me a big favor by subscribing in iTunes and leaving your honest review. 

This would help bring more listeners and questions so we can all work together to PLAN WELL and INVEST WISELY for retirement.

Working during retirement could be the best thing you do to find meaning, stay healthy and earn money while doing what you love.

In her book, Second-Act Careers: 50 Ways to Profit from Your Passions During Semi-Retirement, Nancy Collamer has created a great resource for anyone wanting to take their passion and earn income from it during retirement.

Nancy Collamer is a speaker, career coach, and author who writes a semi-monthly career column for NextAvenue.org (PBS) and Forbes.com. Her home on the internet is mylifestylecareer.com.

In This Podcast We Discuss:

• Why second-act careers are a second chance to do what you love
• How Baby Boomers will change the concept of retirement
• Why it is important to fill your days with meaning
• How to blend your passion and work to live more fully during retirement
• How part-time income during retirement can allow you to retire earlier
• How to take things you love (like travel) and make money doing it during retirement
• How to test drive retirement work options before committing
• Examples of others that are doing what they love during retirement and earning an income
• Common mistakes retirees make with second-act careers

Also, 4 Reasons You Should Completely Ignore Extreme Market Predictions

Want access to the free Retirement Answer Library?

Last week, I  introduced a great resource to help you find the answer to your retirement questions.

The Library includes worksheets and checklists to help you plan for and live in retirement. Each month new resources are added based on client and reader questions. Together we can build a library to Plan Well and Invest Wisely for retirement.

Gain Access Here

Resources Discussed

• My Lifestyle Career website
• Second-Act Careers: 50 Ways to Profit from Your Passions During Semi-Retirement, by Nancy Collamer
• The Retirement Answer Library
• Nextavenue.org, online magazine for people over 50

Jeff Goins doesn't want to miss his life. And he doesn't want you to either.

His latest book, "The In-Between: Embracing the Tension Between Now and the Next Big Thing" serves as a reminder to himself, and everyone that most of our lives are spent "in-between" the big things. It is in these moments we can find opportunities to live more fully.

In  This Podcast We Discuss:

• Practicing being present in your life
• Regrets and how they can lead to positive change
• Managing the natural tension between living well today and planning for tomorrow
• Jeff's retirement plan
• The portfolio of life concept of living
• The prediction that, by 2030 over half of the population will be working as freelancers
• Embracing that life is a journey, not a destination

Also, I answer a listener question

When Should I take Social Security?  

Want access to the Retirement Answer Library?

Last week, I  introduced a great resource to help you find the answer to your retirement questions.

The Library includes worksheets and checklists to help you plan for and live in retirement. Each month new resources are added based on client and reader questions. Together we can build a library to Plan Well and Invest Wisely for retirement.

Gain Access Here

Resources Discussed

• When to take Social Security
• The In-Between, by Jeff Goins
• The Retirement Answer Library
• The Age of Unreason, by Charles Handy

Want a great gift for a graduating high school or college senior?

Jon Chevreau’s book, Findependence Day, is a great gift that teaches important financial lessons within an interesting fictional story of a young couple walking through life.

We discuss:

• The definition of financial independence
• Life energy and the cost of spending
• The war against consumerism
• Why it’s harder to save than it used to be
• The danger of paying too much attention to financial media
• The call to action of “Freedom Not Stuff”
• The secret costs of moving homes

Are Your Password Safe?

Last week a client of ours had his e-mail hacked. The hacker then requested a wire from the client's account. Our security measures prevented it (Thankfully).  The story should make you seriously consider being more diligent about using strong passwords.  I explain how I manage my passwords.

Want access to the free Retirement Answer Library?  

This week we introduced this great resource to help you find the answer to your retirement questions. 

The Library includes worksheets and checklists to help you plan for and live in retirement. Each month new resources are added based on client and reader questions. Together we can build a library to Plan Well and Invest Wisely for retirement.

Gain Access Here

Resources Discussed

• The Retirement Answer Library
• Money Sense Magazine
• Findependence Day
• 1Password

In Honor of Those That Serve

A big thank you this week to Frank Gustafon of One Bold Move for his service and for leaving a review of the podcast in iTunes. Frank is a Marine and has a great podcast for Service Members.

Lead like a Marine is a weekly podcast focused on helping Marines and other Service Members translate their leadership skills and abilities as they transition back into the civilian job market.  We interview those who “have been there and done that”.  Great stories of successful transition into the civilian marketplace.

If you enjoy the podcast and are so moved, I sure would appreciate a honest review in iTunes. It would help us build the Plan Well community which helps everyone make smarter financial decisions

Happy Memorial Day Friends

Johns Hopkins University's Center for Innovative Care and Legg Mason recently issued a study titled "Aging and It's Financial Implications: Planning for Housing.

Kathleen Pritchard, Managing Director with Legg Mason, talks with host Roger Whitney about the importance of planning ahead for housing during retirement

There are three typical phases during retirement. The:

• Go Go Years--when you are healthy and active (60s & 70s)
• Slow Go Years--when you slow down due to health issues (70s & 80s)
• No Go Years--the late retirement years (80s & beyond)

By planning ahead for each of these phases, you can make smarter financial decisons and maintain control over your lifestyle choices.

There are five basic housing options for retirees:

1. Aging in place
2. 55+ independent living communities
3. Continued care retirement communities (CCRCs)
4. Assisted living facilities
5. Skilled nursing facilities

You can find due diligence worksheets to help you find the option that is right for you at rogerwhitney.com/worksheets

"He who asks a question is a fool for five minutes; he who does not ask a question remains a fool forever." - Chinese proverb

There really are no stupid questions.

We're told this all the time but I don't think most of us truly believe it. As a result, we leave many very important questions unasked.  When your planning for your financial future this can be, at best, an inconvenience, at worst, financially devastating.

The mission of this blog and my podcast, PLAN WELL INVEST WISELY, is to help you make smarter financial decisions and answer those retirement planning questions that keep you up at night.

Have a question? Ask me here

In this week's episode, I answer questions from three listeners. 

1. Sam Asks “How do you even go about coming up with a plan to pay down debt when the future holds student loan debts for two children in the next few years? Basically, What realistic steps could a family take without completely changing their lifestyle?"

2. Lisa Asks “I wondered if at some point you might touch upon establishing the necessary documents for elderly parents?”

3. Kevin asks "What is the best way to consolidate all of the retirement accounts I've accumulated over the years and find good advice to help me plan for retirement?

Resources Discussed

• Dave Ramsey's Seven Baby Steps
• How to Pay For College HQ
• Debt Free U: How I Paid for a Great College Education without Loans, Scholarships or Mooching Off My Parents
• AmeriCorps
• Creating an In Case of Emergency (ICE) Plan
• Nine Important Estate Planning Steps
• How to Choose a Financial Advisor

Have a retirement planning question you'd like answered? Ask me here.

Over the last 20 years studies show that the average investor greatly under performances the stock and bond markets.  Why do investors underperform virtually every capital market?

In this week's episode, I speak with Weston J. Wellington a Vice President with Dimensional Fund Advisors about how you can make smarter investment decisions and possibly improve your investment success. Mr. Wellington is an expert in behavioral finance and investing with over 35 years of experience in the investment industry.

We discuss:

• How the daily diet of investment news can hurt your investing success
• Why it's nature to want to know what will happen next in the investment markets
• The affect our ingrained "fight or flight" response has on our investment decisions during stressful market periods
• Why your behavior as an investor can be the biggest determinate of your investment returns
• Why this time is not "different"
• Like living a healthy lifestyle, investing is not complicated it is just hard to do consistently
• Why using a competent Financial Advisor can help you make smarter investment decisions
• How an investor can increase their chance of having a successful investment experience
• Why you should ignore most market information and news driven investment predictions

Resources Discussed

• Dimensional Fund Advisors
• Random Walk Down Wall Street
• Weston Wellington Articles Surprise! No Sell of in 2013, "You Have to Be in Gold", He Called the Crash

Walt Disney World is the classic family vacation. 

If you’re planning on visiting Walt Disney World, you’re going to love this week’s  PLAN WELL INVEST WISELY podcast. I speak with Lou Mangello, an internationally recognized expert on the Walt Disney World Resort.

Lou is a former attorney from New Jersey who has made his lifelong passion (Walt Disney World) his full time career. His website wdwradio.com is an amazing resource for all things Disney. 

In this episode we discuss:

• His book, 102 Ways to Save Money for and at Walt Disney World
• How to safe money on your Disney World vacation
• The best and worse times to visit Walt Disney World
• When Walt Disney World is busiest
• When it costs less to go to Walt Disney World
• How to begin planning your Walt Disney vacation
• How to maximize your time and still have fun
• Discount ticket sources
• The advantages of the Disney annual pass
• How to get discounts on food and lodging
• Things to consider when buying your ticket package  (to park hop or not?)
• Whether to stay on or off property
• Simple strategies to save money on food and drinks at Disney
• Saving on Souvenirs
• What to pack to make your day at Disney World comfortable

Resources Discussed

• wdwradio.com
• The book, 102 Ways to Save Money for and at WaltDisney World
• Disney Authorized Vacation Planner
• Mouse Fan Travel

For a TON of resources to help plan your trip to Walt Disney World visit wdwradio.com

How to pay for college is one of the most frequent questions I get from parents.

This week I interviewed Celest Horton from How to Pay For College HQ to learn about the great resources to help parents pay for college.

Celest knows it's possible to pay for college without student loans (she did it). Each week, on her How to Pay for College HQ podcast she interviews industry experts to help listeners learn what is necessary to plan, prepare and pay for college without the assistance of loans.

In this episode we discuss:

• The need for your teenager to be engaged in the process of selecting a college and applying for aide
• The importance of your teenager to show a "demonstrated interest" in schools they want to go to so they can improve their chances of receiving merit aide. They can do this by following a school on social media and intreating with the admissions department.
• How a high school senior could graduate with 1 or 2 years of college credit by taking duel purpose classes in high school to earn college credit.
• What the FAFSA form is and why its important to complete in January each year.
• The importance of researching potential college's average SAT scores, tuition and how generous they are with merit aide.

Resources Discussed

• Scholarshipopportunity.org Online resource for scholarship opportunities to help pay for college
• College Navigator Online resources to research average tuition, SAT and aide for colleges
• College Data Online resources to research average tuition, SAT and aide for colleges

Visit How to Pay for College HQ to receive the free report : Top 5 Things Every Parent Should Know To Pay for College Without Loans

In this Plan Well Invest Wisely podcast, Roger Whitney interviews Lauren Gaggioli, founder of Higher Test Prep Scores. They discuss the importance of the SAT and how to help your child select the right school for them.

Here are some of the topics Lauren and I covered:

• The importance of taking college preparatory tests such as ACT, SAT, PSAT.
• Determining which test(s) to take when choosing a college.
• The advantages of taking both ACT and SAT tests.
• Motivating students to take responsibility in preparing for college.
• Why some students should consider taking an intentional "gap" year between high school and college.
• With their parents' help, students should examine themselves (passions, strengths, personality) to discover which college may be a best fit for them.
• Various kinds of financial aid, including need-based and merit-based.
• Why students should diversify their college options.

To learn much more about ACT, PSAT and SAT test prep, listen to Lauren's free podcast called The College Checklist.

Lauren is offering a FREE video on her website at Higher Test Prep Scores.

It's spring and the desire to spend time outside with the family is blooming. Before you allow that budding desire to lead you to buy an RV, boat or other recreational item make sure you closely look at the potential pitfalls of ownership.

In this episode, host Roger Whitney tells his story of how he did everything wrong when he purchased an RV. He also outlines 10 things you should consider before you purchase your RV.

This is the REST of the story not told in the RV brochures and outdoor shows that are springing up this time of year.

Have a retirement or personal finance question? Ask Roger here and he'll answer personally.