Retirement Answer Man

Welcome, welcome, welcome - to another episode of The Retirement Answer Man. My name is Roger Whitney and I am your host, companion, and guide to this episode, where we are going to navigate the farthest reaches of retirement theory and financial planning to help YOU create the retirement and future of your dreams. (Wow, that was a lot). On this episode I’ve got a bunch of good stuff for you, including the definition of a VERY important term (maximum drawdown), my take on the decision the FED made to raise interest rates, and I also get the great honor of introducing you to this year’s participants in my Retirement Plan Live event - James and Linda (not their real names). It’s packed, as you can see… so let’s get into it!

 

What in the HECK does “maximum drawdown” mean?

 

One of the features I’ve added to the Retirement Answer Man podcast recently is the “What Does That Mean” segment, where I explain sometimes complicated and other times boring terms that you really do NEED to know in order to plan wisely for retirement. This week, at the suggestion of a listener (Thank you, Rocky), I’m going to unpack the term “maximum drawdown.” You’ll not only hit the “stop” button at the end of this episode having learned what the term means, you’ll also know why it’s important in thinking through your retirement planning strategy when it comes to risk.

 

Well they finally did it. The Federal Reserve raised interest rates.

 

It’s been an unprecedented time of low interest rates for far longer than is normal, but just recently that came to an end as the FED finally decided to raise rates. It’s bad news for homebuyers but for everyone else it could actually be some very good news? Why? I’m going to tell you why. In fact, I’ve got 5 reasons for you to consider the interest rate hike a very good thing. It’s on this episode of the Retirement Answer Man, along with a lot of other goodies, so make sure you set aside the time to give it a listen.

 

This year’s participants in the Retirement Plan Live event are… (drumroll, please)

 

James and Linda! This couple has graciously agreed to lay their financial lives bare before the world as we do a few weeks of live planning sessions using their real numbers and situation. It’s an opportunity for them to get help and for you to learn a ton as I take them step by step through the things they’re looking to do towards retirement, saving for their children’s college educations, and supplementing an aging mother’s income. It’s a load of stuff and I’m eager to get into it with them. You can join us by doing your own planning right alongside… and you can get free resources to help you in the process. Give this episode of The Retirement Answer Man a listen so you can find out how to get the resources and when you can join us for the RPL sessions.

 

Instead of a New Year’s resolution, how about a whole life challenge?

 

Since New Year’s resolutions typically don’t stick, how about trying something different. Beginning in January I’m going to be taking part in a “whole life challenge,” a methodic way to intentionally work toward improvement in a handful of life areas. I’ve done this particular program before and found it very helpful. I’d like to invite you to join me this year as I start the program again. It’s a paid program (I’m paying, too), but I think you’ll discover that the support and accountability of doing it together will make it more than worth the cost. If you want to find out more… listen to my explanation of it near the end of this episode of The Retirement Answer Man.



OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

 

  • [0:24] Roger’s introduction to this episode.
  • [0:40] What to expect from Linda and James, this year’s Retirement Plan Live participants.
  • [1:35] Get your own resources to work alongside this year’s Retirement Plan Live (it’s free).

 

WHAT DOES THAT MEAN? SEGMENT

 

  • [3:58] Why Roger is talking about “maximum drawdown” - a listener question from Rocky.
  • [5:47] What IS maximum drawdown?

 

HOT TOPIC SEGMENT

 

  • [9:50] The FED has finally raised interest rates…what’s it mean for you?
  • [11:06] Reason #1 to like the rate hike: We now KNOW what’s happening.
  • [11:52] Reason #2: The economy is progressing.
  • [12:56] Reason #3: Savings accounts will yield more interest.
  • [14:13] Reason #4: Corporations may begin to merge or acquire other companies.
  • [14:46] Reason #5: This could be a benefit to quality companies.
  • [16:09] BONUS REASON: The more they raise rates, the more we’ll be able to fight an economic shock in the future.



PRACTICAL PLANNING SEGMENT

 

  • [17:14] Roger’s introduction to Linda and James, this year’s Retirement Plan Live participants.
  • [17:34] Why Linda has agreed to have her financial life exposed on the podcast.
  • [18:45] What Linda’s hoping for through her participation.
  • [19:17] Linda’s biggest fears regarding her involvement.
  • [19:47] What Retirement Plan Live is going to look like.
  • [20:09] Linda and James’ situation: what they’ll be dealing with in RPL.



TODAY’S SMART SPRINT SEGMENT

 

  • [23:01] Why Roger doesn’t want you to make any resolutions this year.
  • [24:02] Would you like to be a part of the Whole Life Challenge with Roger?

 

 

THE “BE HAPPY” SEGMENT

 

  • [25:16] Finding your own path to happiness.
  • [26:34] Happiness for you is different than it is for another person.

 

RESOURCES MENTIONED IN THIS EPISODE

 

www.RogerWhitney.com/RPL - Find out more about retirement plan live!

 

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

 

Roger’s retirement learning center: www.RogerWhitney.com/learn

 

The Retirement Answer Man Facebook page: www.Facebook.com/RetirementAnswerMan

 

The Whole Life Challenge Website

Direct download: RAM099.mp3
Category:general -- posted at: 6:00am CST

One hundred minus your age in equities. This is is the rule of thumb for asset allocation we've all heard. Recent research, however, has questioned the logic of whether during retirement you should become more conservative in your investment allocation. 

This best practice may not be best after all.

Michael Kitces, the chief nerd at the Nerd's Eye View, discuss:

  • The difference between achieving life goals vs. wealth maximization.
  • Why it may make sense to get more aggressive in your allocation as you age.
  • How the return sequence of your portfolio is more important than your average return during retirement.
  • The equity glide path.
  • The danger years for every retiree.

You can get links to the sources mentioned in the show at rogerwhitney.com

Direct download: RAM_Podcast_98.mp3
Category:Investing -- posted at: 9:16am CST

Good day to you once again and welcome to this show notes page for the Retirement Answer Man podcast. I’m Roger Whitney, your host… and I’ve once again been blessed to put together a great episode of practical information for you, to help you get underway on the retirement journey. On this episode there’s lots of good stuff, almost too much! You’ll hear about my upcoming Retirement Plan Live session that begins in 2016 and how you can be involved in that event in some very practical ways, you’ll learn what “High Yield Bonds” are and how they’re in the news these days, and a bit from my guest, Todd Tresidder of www.FinancialMentor.com. All of that is crammed into this ONE episode of the show, so be sure you listen!

 

Retirement Plan Live is ready to go!

Coming up in January 2016 I’ll be hosting my second Retirement Plan Live, where I’ll be leading a couple of volunteers through an actual retirement planning session - as an example for you to learn from as we walk through each step. This multi-session event is going to allow you to be involved in some conference calls where you can ask questions, create your own retirement plan with the free worksheets I provide, and follow along as we navigate the various real life hurdles our demo-couple brings to the table. You won’t find a more practical way of learning about and planning for your retirement needs as you will as a part of this free event. If you want to find out more, go to www.RogerWhitney.com/RPL

 

What are “High Yield Bonds” and why should you know about them?

 

The “why” is the easy part… because high yield bonds are in the news today and are going to be impacting many, many investors who have tried to benefit from them. A company just this week announced that they are not allowing the investors in their high yield bonds to cash out their bonds, and that they will be liquidating their bonds for whatever price they can get to pay back their investors. That means that a lot of people will be out a lot of money. But what ARE high yield bonds? They’re an investment vehicle that you need to know about… and you can learn all about them by listening to this episode of The Retirement Answer Man.

Todd Tresidder’s amazing journey to early retirement at 33 years of age.

 

I think you’d agree with me that 33 is not only young to retire, but it’s young to be ABLE to retire. Todd achieved that amazing feat because he learned some non-intuitive ways to go about building wealth and on this episode we’re going to dig into his expertise and strategies, including a discussion about why neither of us agree with the “retirement number” way of approaching retirement planning. And true to form, Todd’s going to give you an alternative to what he suggests instead. You’ll not only get to hear Todd’s incredible journey into retirement and how he got there, you’ll also get to hear what he experienced once he got there, and how he’s had to adjust things as a result. It’s all on this episode!

 

Today’s smart sprint is simple: Beneficiaries.

 

Each week I give you a small chunk of action you can take to put some smart things into practice in your life and this week I’m focusing on all those tax-deferred accounts you’ve got. IRAs, 401Ks, others… and I want you to consider looking into the beneficiaries you’ve designated for each of those. It’s not uncommon for people to have no beneficiary set, or to have people receiving their investments upon their death who they don’t want to receive those funds any longer. So take a little bit of time to check on that information and you could save your family a ton more grief than they’ll already have because of your passing. Find out how I advise going about it, on this episode.

 

Stress is one of the biggest detriments to true happiness.

 

I know that’s an obvious statement, but sometimes we need the obvious to shake us into reality. Overwhelm is one of the main things that causes stress in modern society and the happy reality is that you can actually take control of your life to a degree that you remove that sense of overwhelm from your experience. How? By managing your responsibilities and activities to a greater degree, by keeping tabs on how you’re feeling about the load you’re carrying, and by adjusting things as you begin to feel that sense of overwhelm creeping higher on your emotional thermostat. That’s the focus of today’s “Be Happy” segment on the Retirement Answer Man, and I think you’re going to like it!



 



OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

 

  • [0:24] A Christmas Gift idea!
  • [1:15] The upcoming Retirement Plan Live and an introduction to this year’s participants.
  • [2:09] How you can plan your retirement alongside this year’s example and how you can sign up.

 

WHAT DOES THAT MEAN? SEGMENT

 

  • [3:41] What are “High Yield Bonds?” (Junk bonds)
  • [5:46] Reasons you might consider purchasing a high yield bond.
  • [7:39] The risks involved with high yield bonds.

 

HOT TOPIC SEGMENT

 

  • [9:35] How high yield bonds are in the news today.
  • [12:48] Steps you might want to take in light of the high yield blowups happening now.

 

PRACTICAL PLANNING SEGMENT

 

  • [13:28] Introduction of today’s guest, Todd Tresidder.
  • [14:07] Why Todd began his Financial Mentor website.
  • [16:27] The unconventional things Todd thought would earn him pushback.
  • [18:12] Why a “retirement number” is not a reality.
  • [19:40] The difference between the simple answer and the more advanced answer.
  • [20:54] How to approach retirement from a fuller perspective.
  • [23:10] One of the greatest deceptions in the world of investing.
  • [26:20] How Todd goes about creating range of outcomes for retirement planning on the asset based side of retirement.
  • [28:35] An example of how there are a variety of things you can think about for retirement.
  • [30:35] Why lifestyle design for retirement is just as important as the financial side.
  • [32:32] Todd’s story of creating his early retirement.
  • [35:39] What people can do to get started planning on a more realistic level.
  • [43:01] Todd’s website and what you can find there.



TODAY’S SMART SPRINT SEGMENT

 

  • [45:10] Renew the beneficiaries of your IRAs, Annuities, 401Ks and and other retirement investments.

 

 

THE “BE HAPPY” SEGMENT

 

  • [46:46] The importance of not allowing yourself to be overwhelmed… a key to happiness.

 

RESOURCES MENTIONED IN THIS EPISODE

 

www.RogerWhitney.com/RPL - sign up to be considered for Retirement Plan LIVE

 

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

 

Roger’s retirement learning center: www.RogerWhitney.com/learn

 

The Retirement Answer Man Facebook page: www.Facebook.com/RetirementAnswerMan

 

BOOK: Essentialism: The Disciplined Pursuit of Less

 

Todd’s website: www.FinancialMentor.com

Direct download: RAM097.mp3
Category:general -- posted at: 6:00am CST

Hello, it’s Roger again, and welcome, welcome, WELCOME to this episode of the Retirement Answer Man. I’m so happy you’ve joined me! In this edition we’re going to talk about lots of great things that you can learn to help you understand and navigate the time of life we call “retirement” and I’m going to do with a bit of humor and make it fun (I hope). But before we get into all of that make sure you listen carefully for the information about my upcoming “Retirement Plan Live.” It’s where I take someone through their very own, situation-specific, retirement planning session, episode after episode of this podcast. This year, I’m adding lots of bells and whistles to the project so make sure you listen in to get all the details on how you can be involved in the most beneficial way.

 

Do you know when it’s time to begin withdrawing your pension?

 

It’s not a real intuitive decision to make, so I don’t blame you if you’re a bit confused about it. One of my listeners asked my advice about that issue, and I don’t give financial advice on this show, but I did tell him some mindsets and considerations that would be wise for him to ponder if he’s going to be making a decision about his pension. There’s a lot to consider - much more than you’d think on the surface, so you have to take it slowly and carefully. On this episode I’m sharing those considerations and mindsets about withdrawing a pension, so I hope what I share with this listener will also be helpful to you!

 

Rebalancing: A financial term you hear, but what exactly is it?

 

Most financial professionals use the term “rebalancing” so regularly it’s like they’re talking about something you do to the tires on your car. But when it comes to financial planning, rebalancing is a very important concept that has to do with how your portfolio is divided, and how you keep it arranged over time. On this episode of The Retirement Answer Man I spend a considerable chunk of time walking you through the basics of rebalancing, why it’s important to you, and provide a handful of things you need to be aware of that will affect your decisions about rebalancing your investment portfolio. I think you’ll get a lot out of this segment.

 

What’s the emotional component of the financial decisions you make?

 

Did you even know there’s an emotional component? There is, almost always. For example, in the discussion I have regarding rebalancing I demonstrate how looking at your returns, you will no doubt see that the very things listed that make you excited (your assets that are performing nicely) may be the very things you have to sell in order to keep your portfolio balanced. But your emotions will get involved and try to talk you out of the wisely and carefully considered decision you made at the outset about the balance levels you wanted to keep. How do you handle that emotional component? I’m glad you asked, because I tell you on this episode!

 

What’s the impact of a simple smile?

 

Smiling doesn’t directly relate to retirement planning, unless you’ve got some kind of windfall that made you happy for the moment, but smiling does have a lot to do with overall happiness. Research is showing that the physical act of smiling releases certain “happy” chemicals in the brain that enable you to actually feel happy as you look happy. I’ve been thinking about the happiness level of my life and wanted to address this issue, simply because if I’m not smiling, I’ve been told that I look like I’m kind of ticked off. Give the “Be Happy” segment of today’s show. I think it will make you happy. :)

 

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

 

  • [0:29] Welcome to the episode.
  • [1:01] The Retirement Plan Live begins next month!
  • [1:40] Get updated information, resources, and video from Roger for the ongoing Retirement Plan Live!

 

HOT TOPIC SEGMENT

 

  • [3:39] ROGER MADE A MISTAKE!
  • [4:07] When should someone withdraw their pension?

 

JARGON TALK SEGMENT

 

  • [8:56] What does “rebalancing” mean? It has to do with asset allocation!
  • [10:50] Why should be concerned about rebalancing?
  • [12:37] An example to consider.
  • [15:36] Considerations surrounding rebalancing.

 

PRACTICAL PLANNING SEGMENT

 

  • [ 20:36] Carl shares his experience, 1 year after his participation in the first Retirement Plan Live event, last year.

 

TODAY’S SMART SPRINT SEGMENT

 

  • [33:28] The challenge to you this week: track every penny you spend for 7 days.

 

 

THE “BE HAPPY” SEGMENT

 

  • [35:01] The “neutral face” and how you should adjust it, a bit.

 

RESOURCES MENTIONED IN THIS EPISODE

 

www.RogerWhitney.com/RPL - sign up to be considered for Retirement Plan LIVE

 

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

 

Roger’s retirement learning center: www.RogerWhitney.com/learn

 

The Retirement Answer Man Facebook page: www.Facebook.com/RetirementAnswerMan

 

www.FreeErisa.org - get from 5500 on your company pension

 

www.PensionRights.org - Learn how to read form 5500

Direct download: RAM096.mp3
Category:general -- posted at: 6:00am CST

Well hello and welcome to the Retirement Answer Man. I am your host, Roger Whitney and today’s show is packed full of great retirement information for you to use to educate yourself on your own retirement planning. But make sure you know this: The things I talk about on this show are purely for entertainment and informational purposes. I’m not able to give you specific retirement advice because I don’t know you. If you need that kind of advice, go to your local tax accountant or financial planner, someone who knows you a heck of alot better than I do! Alright, enough of that stuff… on with the show!

 

Retirement Plan Live is going to be happening in the new year! Help me make it great!

 

I’m soon going to be rolling out the 2nd edition of “Retirement Plan Live,” a live workshop where I use the financial situation of one lucky listener as an example so that everyone in the listening audience (that’s you) can follow along and do your own retirement planning at the same time. Last year I provided some handouts and other nifty things but I know there’s probably some additional things I could do to make this year’s RPL even better. So if you’ve got any ideas on how I can provide you great resources to make it a practical and helpful resource for you, go to www.RogerWhitney.com/RetirementAnswers and let me know what you’d like to see. Thanks!

 

Standard Deviation: What in the heck is that?

 

In the “Jargon Talk” segment of today’s show I’m going to do my utmost to unpack the concept of “standard deviation.” It’s a term that has to do with comparing investment portfolios and the way in which they might perform in either volatile or non volatile ways. It’s a bit much for me to put in one little paragraph on a show notes page like this, so take a bit of time and listen in to this segment. It just might help you get a better handle on your portfolio. And if not, you’ll learn a little bit about weather and whitewater rafting (those are the examples I use).

 

A great idea to set yourself up for a very merry Christmas.

 

For the first time ever I did something to help my family prepare for the Christmas season and it gained me $1400, took only a little bit of time, and involved some exercise equipment and a pool table. Can you guess what it was? You got it! I sold some things that were sitting around my house to scrape together a bit of extra cash to pay for Christmas. On this episode I’m going to tell you exactly how I did it and give you a couple of handy safety tips to help you sell your stuff without putting yourself or your family at risk.

 

A listener inherited some funds in an IRA. What’s he got to do to remain legal?

 

I just love answering questions from listeners. There’s nothing more practical and helpful than real life scenarios. In this episode I actually have two listener questions. One of them has to do with some money that was inherited from an IRA account of the deceased family member. Are there timelines and procedures that have to be followed in order to keep the funds tax free or tax deferred? Does the money have to be moved into a special kind of IRA account? If you don’t know the answers to those questions, that’s OK. I’m going to tell you how it all works on this episode of The Retirement Answer Man.

 

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

 

  • [0:29] Welcome to the episode.
  • [1:01] The upcoming Retirement plan live is going to be happening soon. Roger needs your help in knowing how to make this year’s event the best ever!

JARGON TALK SEGMENT

 

  • [3:50] Today’s “jargon”: Standard Deviation - what in the heck is that?
  • [4:39] The boat trip VS whitewater rafting analogy.
  • [5:40] The temperature analogy.
  • [7:53] How these analogies relate to financial investments.

 

HOT TOPIC SEGMENT

 

  • [8:23] Christmas shopping has begun… now is the time to consider what you might be able to repurpose or sell, in order to pay for Christmas.
  • [10:23] Tips for how to resell items you don’t need anymore.
  • [12:22] Craigslist tips for the sake of safety.

 

PRACTICAL PLANNING SEGMENT

 

  • [14:45] A 25 year old needs info on how to use her IRA more effectively.
  • [19:30] Steve has a question about handling an IRA he received in an inheritance.

 

TODAY’S SMART SPRINT SEGMENT

 

  • [24:08] Today’s S.M.A.R.T Spring challenge: Get a realized gain and loss report. Identify the losses, and consider selling to offset gains.
  • [26:27] What could you do if you only have losses?

 

 

THE “BE HAPPY” SEGMENT

 

  • [27:27] Avoiding the “3 Ps” when hard times hit - What?
  • [29:30] The “personal” hurt rejection brings.
  • [30:05] The temptation toward believing one rejection is “pervasive.”
  • [30:23] Don’t believe that the bad situation is “permanent.”

RESOURCES MENTIONED IN THIS EPISODE

 

www.RogerWhitney.com/RPL - sign up to be considered for Retirement Plan LIVE

 

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

 

Roger’s retirement learning center: www.RogerWhitney.com/learn

 

The Retirement Answer Man Facebook page: www.Facebook.com/RetirementAnswerMan

 

TWEETS YOU CAN USE TO SPREAD THE WORD

 

How to legally handle funds inherited from an #IRA, on this episode of The Retirement Answer Man

 

Do you know what #StandardDeviation means for your investment portfolio? Find out…

 

When hard times hit, you want to avoid the 3 Ps. Find out how on this episode

 

How you can fund your Christmas buying and simplify your life at the same time


#RetirementPlanLive is coming up in the new year. Here’s how you can be involved

Direct download: RAM095.mp3
Category:general -- posted at: 6:00am CST

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