Retirement Answer Man

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!

Direct download: PWIW_6.30.14.mp3
Category:Finance -- posted at: 8:49am CST

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

Direct download: PWIW_6.23.14.mp3
Category:general -- posted at: 8:43pm CST

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.

 

Direct download: PWIW_6.16.14.mp3
Category:general -- posted at: 9:03am CST

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

Direct download: PWIW_6.8.14.mp3
Category:general -- posted at: 4:49pm CST

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

Direct download: PWIW_6.2.14.mp3
Category:general -- posted at: 6:34pm CST

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