Retirement Answer Man

I’ve been hearing a lot lately about the so-called retirement crisis that’s happening in the United States. And what I think has happened is this - a long-held belief that rising costs and the decreasing value of the dollar make retirement more and more difficult - has conditioned us to think in terms of survival instead of in terms of possibility. We approach retirement planning with a crisis mindset instead of taking the time to dream about what might be possible. On this episode, I walk you through how I would advise one of my clients to dream up their ideal retirement to avoid any crisis thinking and live their best life as a result.

Why you need to ignore the news about the so-called retirement crisis.

It’s easy to get into negative ways of thinking without even knowing it. Pessimism comes naturally to people who want to think wisely, which most people who actually engage in retirement planning are. How do we get out of the pessimism trap when it comes to our retirement planning? I think first off we have to realize that there IS no retirement crisis. It’s really a crisis in how we think about retirement. I’ve got some ideas about how you can plan for your ideal retirement from a place of possibility and dreams instead of a place of pessimism. Listen to this episode and you’ll get an earful of how I have seen it happen.

Learn to dream about your retirement to open the door to possibilities.

One thing I’ve learned from taking trips is this: you aren’t able to see the next mile down the road until you first travel the mile you’re on. It’s a simple and obvious truth about the way life is. When it comes to retirement planning you’re not going to know what’s possible unless you first take steps toward those possibilities - and one of the primary ways you can do that is by dreaming. I mean the nothing-off-limits dreaming we're often afraid of. It helps you set the stage for what your ideal retirement could be. On this episode of The Retirement Answer Man, I walk you through how I advise my clients to dream up an incredible retirement and then show you how we plan for it practically. It’s not theory or rainbows and unicorns, it’s real life planning that makes for a great retirement.

Avoid the retirement crisis by getting your financial spaghetti in order.

I like to think of retirement planning like a plate full of delicious spaghetti. There are 3 primary things that go into the dish. The pasta, the sauce, and the spices that give it the “zing” you want in a good Italian dish. If you miss any of those things you won’t have the flavor you want and won’t be very satisfied as a result. Too many people approach their retirement planning with a focus on only one of the very important things that go into a great retirement. Can you guess what that is? On this episode, I’m going to tell you what it is - and tell you how to avoid the kind of thinking that gets you into that situation in the first place.

Your retirement is YOUR retirement. Make it what YOU want it to be.

As I work alongside clients I see it time and time again - people who are concerned that they have the same kinds of things their parents had during retirement, or that they are able to maintain a standard of living comparable to a friend who just retired. You know, I get that way of thinking but I can’t say it’s the best approach. That’s because your retirement needs to be exactly what YOU want it to be, not some vague standard set by somebody else who traveled the road before you. On this episode, I want to say few words about this important issue because if you can make the switch to think of your retirement as truly YOURS, you’re going to discover a retirement that makes you truly happy.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

  • [0:28] Why I’m going to emphasize how you can think bigger and thrive in retirement.

HOT TOPIC SEGMENT

  • [2:58] Michael Hyatt’s “Best Year Ever” event is coming up.
  • [4:35] Custom conference calls we can use together after attending the event.

PRACTICAL PLANNING SEGMENT

  • [5:24] Dream up your ideal retirement life when you meet with your financial planner.
  • [8:01] Don’t be reasonable - just WAG a number.
  • [9:23] Retirement planning is not just about the money (the numbers).
  • [12:02] Why investing in relationships is more crucial than ever before.
  • [13:41] Figuring out your purpose in life and what that really means.
  • [15:53] Dealing with the financial part of retirement planning - it’s like spaghetti.
  • [22:35] Why you need to separate your retirement planning into 3 categories.

TODAY’S SMART SPRINT SEGMENT

  • [27:18] How you can get Michael Hyatt’s free assessment (6 shot Saturday).

THE HAPPY LAB SEGMENT

  • [28:52] My recent experience getting a manicure and what it teaches me about being open to new experiences.

RESOURCES MENTIONED IN THIS EPISODE

Text “Sixshot” to “33444” to get 6 Shot Saturday

The Rusty Lion Academy

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

Direct download: RAM147.mp3
Category:general -- posted at: 6:00am CST

In case you haven’t noticed, the recent election has had a pretty significant impact on the strength of the dollar worldwide. The U.S. dollar is actually gaining strength in the world economy - it’s at a 13 year high - and it’s in large part because of what financial gurus around the world believe is going to happen in the U.S. economy because of the election of Donald Trump. But do you know what impact the growing power of the dollar will have on you? If you want to hear how this phenomenon happens, why it happens, and what it means for you, I’ve got you covered on this episode of The Retirement Answer Man.

Do you understand what the FOREX market is?

The term “FOREX” stands for “Foreign Exchange Market” and it’s where people worldwide trade in currencies. You may not have even known such a thing happens. But anytime you go to another country and you have to trade U.S. dollars for another currency, you’re taking part in a FOREX style trade - one currency value compared to another and exchanged in kind. With the rising value of the dollar these days the FOREX market is going a bit nuts at the moment. Find out why and what it means for you on this episode.

Is your long-term care policy safe even if your company is no longer providing long-term policies?

After my comments on the last episode of the podcast about John Hancock’s announcement that it will be getting out of the long-term care business, some of you were a bit concerned. You have JH long-term policies so you’re wondering what’s going to happen to that policy. On this episode, I walk you through the scenarios of what typically happens when a large insurer like John Hancock makes an announcement of this type, including how they take care of the policy holders they already have on the books. I think you’ll find that it’s not as bad for you as you may be fear.

Should long-term market averages impact the way you draw cash from your retirement account?

A listener to the podcast wrote to me this last week pointing out that long-term averages indicate that market downturns are almost always corrected over time. Looking at that fact he suggested that because the market will correct itself in time we shouldn’t be so concerned if we are living through a market downturn during retirement. But I’ve got a slightly different take on the issue simply because even though the facts and figures do add up just like he’s saying, we are emotional creatures and aren’t always able to live with the reality of what’s happening around us. You can hear my entire train of thought about the subject clanking along the tracks, on this episode.

What retirement-related issues do you want to hear on this show?

It’s time once again for my annual listener survey. It may not sound like a very exciting thing for you to take part in but the responses I receive from the listener survey are the primary way I determine what I’m going to be talking about over the next year’s episodes of the podcast. I’d really love to get your feedback and input. It’s a great way that you can help me help you! If you’d like to know how you can take part in this year’s survey I cover it step by step on this episode of the podcast so set aside some time and give it a listen.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

  • [0:29] My introduction to this Thanksgiving episode - and my plans for the show moving forward.
  • [1:19] My 2nd annual listener survey - would you help me create better content?

WHAT DOES THAT MEAN? SEGMENT

  • [3:34] What is the Forex market?

HOT TOPIC SEGMENT

  • [5:27] The 13 year HIGH the U.S. Dollar is on right now.
  • [6:45] How President-elect Trump’s policies are stimulating this change.
  • [7:52] The impact of a high priced U.S. Dollar, worldwide.

PRACTICAL PLANNING SEGMENT

  • [9:48] Mike asks, “We are concerned about John Hancock’s future when it comes to our long-term care insurance. Can you help us understand what might happen?”
  • [12:49] John asks, “How do I know the best way to manage my cash reserves and investments in bad markets?”
  • [15:42] Eric asks, “Since market downturns usually average out over time why not invest entirely in equities?”
  • [29:39] Why are bonds typically included in investment portfolios?

TODAY’S SMART SPRINT SEGMENT

  • [33:54] Two steps this week: #1 - Complete my survey in the 6 Shot Saturday email. #2 - Look for the ebook in 6 Shot Saturday, take a look at it.

THE HAPPY LAB SEGMENT

  • [35:20] Take some time to interact with family this holiday instead of getting stuck in front of the football games.

RESOURCES MENTIONED IN THIS EPISODE

Sign up for 6 Shot Saturday - text “SixShot” to “33444”

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

Direct download: RAM146.mp3
Category:general -- posted at: 6:00am CST

It’s almost time for that year end tax planning. 2017 is going to be here before you know it! Over the past few weeks, I’ve been talking with quite a few of my clients about their year end financial planning and realized that the things I’ve been talking about week after week these days could also be of help to YOU! So on this episode, I’m going to walk you through some of the most common things I suggest to my clients at the end of the year that can put them in a better tax and financial position as the end of the year approaches. I hope you find it helpful!

The year ends with some BIG NEWS from John Hancock insurance.

Did you hear the latest news from John Hancock insurance? The company announced just this month that they will no longer be offering long-term care insurance. That may not sound like such a big deal to you but with the rising cost of healthcare, and especially the type of care that’s often needed in the later years of life, this is a big deal - because John Hancock is one of the biggest players in the insurance industry. Does this indicate a move that other insurance carriers will be making in the future? You can hear my thoughts on the subject on this episode of The Retirement Answer Man.

Are embedded capital gains going to mess up your year end financial planning?

You have those investments that you never think about - they’re often part of a retirement or investment package that you have in your company plan. Part of the perk you get from those kinds of investments is that they accrue investment profits (hopefully) without you even having to give them a second thought. BUT, when it comes to your year end planning and trying to offset your tax liability you can often get a bite from those plans because the gains you've accrued through them are more than you expect - or you forget about them altogether. On this episode, I explain what embedded capital gains are and how you can take them into account for better year end planning.

Don’t forget about managing your gains and losses to minimize your liability.

It happens every year. I see it again and again. Someone comes to me eager to reduce their tax liability just before taxes are due and they did nothing before the previous year ended to effectively manage their losses and gains to offset their tax liability. Folks, you’ve got to start thinking about those things now, before the year ends to ensure you’ll be able to do the smartest things you can before you have to pay your taxes. That’s just one example of a handful of things you can keep in mind as you do your planning for the next year. Be sure to listen, I share the most common ways you can make better year end decisions, on this episode.

Do you have a flexible savings account with cash in it? Use it up before you lose it!

Many people don’t realize that flexible savings accounts - though a great financial tool to use - are typically set up in a way that you have to use the cash in it before the calendar year ends. So if you don’t use it - that’s right - you lose it! On this episode, I give you some suggestions (not advice mind you) about the kinds of things you could do to make the best use of those funds before your time runs out.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

  • [0:34] My welcome to this episode!

HOT TOPIC SEGMENT

  • [3:36] Big economic news: John Hancock will no longer be selling traditional long term care insurance.
  • [6:15] The rise of hybrid policies and what it means for you and me.
  • [7:31] Why traditional policies have plummeted in popularity.
  • [9:45] How I typically deal with long term care issues with clients in my practice.

WHAT DOES THAT MEAN? SEGMENT

  • [11:26] Today’s term: Embedded Capital Gains

PRACTICAL PLANNING SEGMENT

  • [13:52] Items you should think about when you do year-end planning.
  • [14:30] Charity giving before the end of the year.
  • [15:40] Managing gains and losses to reduce your capital portfolio.
  • [17:00] Required Minimum Distributions and inherited IRA issues.
  • [18 :05] Giving to individuals is a significant way to reduce tax liability.
  • [20:53] Prepaying items you’ll need to pay eventually anyway.
  • [20:53] You might want to use up your flexible savings account cash.
  • [21:51] Health savings account contributions can be a big deal.
  • [22:52] Reviewing your 401 K and considering an increased contribution amount.
  • [23:32] How would a Roth IRA transfer impact your situation?

THE HAPPY LAB SEGMENT

  • [24:06] The mean video my wife sent me.

TODAY’S SMART SPRINT SEGMENT

  • [25:24] Determine which of the things I’ve mentioned apply to you and get started with your year end planning.

RESOURCES MENTIONED IN THIS EPISODE

www.Morningstar.com

Text “6 shot” to “33444” to get the listener submitted reading list.

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

Direct download: RAM145.mp3
Category:general -- posted at: 6:00am CST

The power of reading is something you shouldn’t underestimate. Even if you don’t enjoy reading. That’s because there’s no other resource in the world where you can spend $20 and get a potential return of thousands of dollars, increased happiness, greater success, and a whole lot more. I’ve been thinking about this a lot lately because I’m discovering that the older I get the more I appreciate books. On this episode, I’m going to let you listen in on a conversation I had with Jeff Brown, the guy behind the Read to Lead podcast. He’s got some great insights into the power of reading, what it can do for you, and even gives us some tips on how to get more out of our reading. I hope you take the time to listen.

42% of college graduates will never read a book after graduation.

Can you believe that? It’s really a shocking statistic but apparently, it’s how the world is going these days. I think it’s a tragic sign of the passive way people are going about life in the modern era. People appear to be losing their motivation to make something of their lives - and it may seem strange that I’m making that conclusion based on stats about the decline of reading, but it’s really common sense. Reading is one of the primary ways anyone can increase their knowledge and improve their life without having to depend on anyone else. But it requires initiative, doesn’t it? On this episode I hope to challenge you to pick up a book and get busy learning, growing, and making more of yourself. It doesn’t matter if you’re retired or not, you can always learn something and make your life happier by reading a book.

You’ve heard it said that leaders are readers, right? It turns out it’s true.

Every successful person you can think of is a purposeful reader. Warren Buffett, Bill Gates, Mark Zuckerberg, Elon Musk, Jeff Bezos, Mark Cuban, and many other highly successful people have openly shared that they read significant amounts every day. In fact, when Elon Musk was asked how he learned to build rockets his answer was, “I read books.” On this episode my guest, Jeff Brown is going to share what he’s discovered about the importance of reading on his path to entrepreneurship after years in the corporate work world. He says it's imperative that you be a reader if you are going to develop the new mindsets you need in order to make a change for the better in your life. And we all want to see “better” happen in our lives, right?

Would you like to know how you can better tap into the power of reading?

On this episode of The Retirement Answer Man, my goal is to challenge you to increase your happiness and quality of life both before and after your retirement by becoming a more effective reader. Toward that end, I’ve invited Jeff Brown on the show to share some insights from his experience in reading great books and interviewing the people who have written them. You’re going to find yourself not only challenged but also inspired by what Jeff has to share. He’s got some great tips for how you can get even more out of your reading. I hope you’ll take up his challenge to be more intentional about the way you read.

My listener recommended book list is ready for you! Here’s how you can get it.

For the past few months, I’ve been compiling a list of book recommendations that listeners to my podcast have submitted. The books on the list cover all sorts of topics, from financial planning to personal development and growth. If you’d like to see the top books that my very intelligent and world-changing listeners recommend, you can get them free of charge. All you need to do is sign up for my “6 Shot Saturday” emails - and you can find out how to do that by listening to this episode where I chat with Jeff Brown from the Read to Lead podcast.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

  • [0:22] The impact of my discussion with Dr. Andrew Scott a few weeks ago.
  • [2:12] A peek into this episode with Jeff Brown from “Read To Lead.”

HOT TOPIC SEGMENT

  • [3:10] Stats about reading in the United States.
  • [4:22] How does reading connect to success?

WHAT DOES THAT MEAN? SEGMENT

  • [6:24] The word for today: APPLICATION

PRACTICAL PLANNING SEGMENT

  • [9:49] My introduction to Jeff Brown and his podcast, “Read to Lead.”
  • [10:55] Why Jeff began his podcast, Read to Lead.
  • [15:15] New books VS old books - is there a difference?
  • [18:27] How reading helped Jeff build the entrepreneurial life he enjoys now.
  • [21:46] Research proves a powerful way to extract more from books: take notes.
  • [25:50] How Jeff journals through books (taking notes).
  • [28:15] Three books Jeff found helpful as he transitioned to his entrepreneurial life.

THE HAPPY LAB SEGMENT

  • [30:10] Some stuff I’ve recently learned about state of mind, happiness, and confidence.

TODAY’S SMART SPRINT SEGMENT

  • [32:05] A challenge for you to highlight 10 books you’ll read next year.

RESOURCES MENTIONED IN THIS EPISODE

BOOK: The 100 Year Life

Jeff Brown’s “Read To Lead” podcast.

www.StatisticBrain.com

BOOK: Rich Habits

BOOK: Essentialism

BOOK: Purple Cow

BOOK: The 5 Dysfunctions of a Team

BOOK: Good to Great

Michael Hyatt’s blog

BOOK: Linchpin

BOOK: 48 Days to the Work You Love

BOOK: Die Empty

BOOK: Louder Than Words

BOOK: The Art of Work

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

Direct download: RAM144.mp3
Category:general -- posted at: 6:00am CST

Do you understand the concept of sunk cost? It refers to anything you’ve invested time or money in and afterward discover that the thing is not going to play out the way you thought. It could be an investment, a hobby, a project of some kind, a purchase, even a political candidate. The tendency we have when this happens is to stick with the unproductive thing simply because we’ve sunk so much into it already (the sunk cost). In the long run, it may be better to cut those losses and move on. On this episode of The Retirement Answer Man, I’m going to walk you through a number of areas where you might be your biggest retirement obstacle because of a bias you have regarding sunk costs. Intrigued? I hope so. Let’s do it!

Sunk cost bias can keep you stuck when you don’t need to be.

There are many reasons we won’t give up on things that are clearly not taking us in the direction we desire, but one of the most prevalent is what is called “sunk cost bias.” It’s when we have invested so much in the direction of a failing effort that we’re unwilling to give up all that investment. In reality, that’s probably the very best thing we could do because it will enable us to move on to more profitable things. If you’re unwilling to admit it you might be holding yourself back from the opportunity to make a bad situation into a better one. This episode is full of examples of how sunk cost bias can cost us and includes a couple of tips to help you get past the losses and move ahead to your goals.

Do you need to cut a loser investment out of your portfolio?

Sometimes sunk cost bias can be an issue when it comes to investing. Maybe it’s a particular stock or opportunity that we spent a lot of time researching or examining and then finally took the plunge to invest in. But over time it’s become apparent that the investment we thought was going to be such a great opportunity has turned out to be a real loser. It’s hard to cut that investment loose because it reminds us that we misjudged it in the first place - and to cut it loose would be an admission of failure. But hey, we all make mistakes, right? Maybe it’s time to cut it loose, get out of your own way, and start using the funds you have left to build something better?

Are you being loyal to your company or are you holding yourself back?

Many people stay at the company they’ve been at for years simply because they have invested a good deal of their life in it. I understand that, but when you do so - no matter how you’re treated, no matter what changes have come to the company in terms of compensation, benefits, leadership, training, and more - you may be sticking around because it’s easier to stay than it is to go - and that’s a form of what is called “sunk cost bias.” I think you deserve more than that so on this episode I’m going to give you some ideas of how you can get past those kinds of SCB obstacles to move yourself, your career, and your life forward.

To overcome sunk cost bias, get yourself some clear goals.

Nothing helps you unpack the baggage that comes with sunk cost bias (the belief that you’ve put too much into something to give up on it now) than having clearly defined goals. Once you’re able to say exactly what you’re shooting for you’ll be able to look at the things that pertain to that category and evaluate whether they are serving your goal or keeping you from it. You’ll be surprised how the simple act of setting clear goals can help you clarify what’s holding you back so you can get rid of it. Sunk cost bias is my topic on this episode of The Retirement Answer Man.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

  • [0:28] A personal example of why you are your biggest obstacle to a successful retirement.

WHAT DOES THAT MEAN? SEGMENT

  • [4:46] What are “sunk costs?”
  • [6:13] An example of sunk cost.

HOT TOPIC SEGMENT

  • [9:07] The sunk cost issue even impacts the current Presidential election.

PRACTICAL PLANNING SEGMENT

  • [10:32] What is sunk cost bias and what can you do about it?
  • [13:46] How sunk cost bias can impact the realm of investing.
  • [19:19] Career choices can be impacted by SCB as well.
  • [20:34] Your lifestyle decisions can also be negatively impacted by sunk cost bias.
  • [22:20] The power of goals in overcoming sunk cost bias.
  • [23:37] Accepting your own mistakes and proneness toward them is powerfully important.
  • [24:15] Discover your perfect picture of what you want to happen so you can build a plan based on possibility.

TODAY’S SMART SPRINT SEGMENT

  • [27:03] In the next 7 days identify something you’ve avoided that no longer fits where you are headed.

THE HAPPY LAB SEGMENT

  • [28:18] Dealing with your SCB can make you internally happier, step at a time!

RESOURCES MENTIONED IN THIS EPISODE

Test “6 shot” to “33444” to get the “6 Shot Saturday” email series.

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

Direct download: RAM143.mp3
Category:general -- posted at: 6:00am CST

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