Retirement Answer Man

Hey, hey - it’s great to have you along for another episode of The Retirement Answer Man. I’m Roger Whitney and I am THE Retirement Answer Man. This episode of the show is all about how the habit of binary thinking can derail your retirement planning goals. What is binary thinking? I’m glad you asked! On this episode, I’m going to walk you through a couple of examples of binary thinking, including one I experienced with a friend of mine in years past, to show you exactly what it is and how it can be detrimental to your life - and your retirement planning. And… I’m going to answer some listener questions about this year’s Retirement Plan LIVE. I hope you’ll make the time to listen. You’ll want to hear this one!

What is binary thinking and how can it negatively impact your retirement planning?

On. Off. On. Off. That’s essentially what binary thinking is. It’s thinking in terms of one thing, or another - and nothing else. When you get into the habit of thinking in a binary sort of way, you can miss a whole world full of options that might otherwise be open to you. I hope you can see how bad that can be when it comes to the way you approach retirement planning. This episode, I’m going to give you some example of how you can avoid binary thinking.

Is retirement preparation only about saving and investing? Nope. That’s too binary.

On this episode of The Retirement Answer Man, I highlight some good news that comes from the latest stats about retirement savings. Fidelity says that the average household savings rate has gone up to 8%. Wooohoooo! That’s always a good thing. BUT, it’s not the only thing that matters. You can’t ONLY save and invest and expect that you’re going to be all set for retirement. You need to think more broadly, less binary. That way you can make the most of every option you have. On this episode, I’m going to highlight some of the ways you can do that, so be sure you hear these great tips.

What are the old stories you need to stop telling yourself?

All of us have, what a colleague of mine calls, “old stories.” They are the things about ourselves that perhaps USED to be true but are no longer true - but we continue to talk (and think) as if they are still true. For example, you’ve heard me talk on the show about how I almost ruined my marriage because of the self-centered way I was living. If I continue to think of myself in those terms even though I’ve changed, I could sabotage my own ability to move my life forward. When it comes to our ability to build a great retirement, those old stories can be especially damaging. On this episode, we’re going to dive into what you can do to avoid living according to your version of those old stories. You’ll want to hear this one.

Don’t miss this year’s Retirement Plan LIVE webinar. Here’s how you can get in on it!

We’ve wrapped up the podcast episodes of this year’s Retirement Plan LIVE, and like we do every year, we’ll be summarizing and revealing the actual retirement plan for this year’s participants (Joe and Kim) in a LIVE webinar. It’s a fun way to wrap up and for you to see how retirement planning is actually done. You can get in on it via personal invitation. How do you get one of those golden tickets? Listen to this episode to find out!

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

  • [0:29] The story of Ralph - and the trap of binary thinking.
  • [2:47] The solution to the retirement crisis is somewhere in between the extremes.

HOT TOPIC SEGMENT

  • [4:51] Retirement savings are at an all time high (according to Fidelity)!
  • [6:15] Savings and investing are only part of the retirement equation.

PRACTICAL PLANNING SEGMENT

  • [8:52] Q & A about Kim and Joe’s case study from Retirement Plan LIVE.
  • [11:01] One listener’s concerns about Kim and Joe’s retirement situation.
  • [13:35] Will Social Security really increase like Kim expected it to?
  • [17:10] Would it be best for Joe and Kim to knock out their mortgage before retirement?
  • [20:08] Is it possible to live off $24K a year as one financial guru suggests?
  • [24:00] How you can get access to the LIVE webinar of this years Retirement Plan LIVE.

TODAY’S SMART SPRINT SEGMENT

  • [24:54] Continue to organize your online passwords - and are the password managers really that safe?

THE HAPPY LAB SEGMENT

  • [27:21] A group call experience I had… and woman who says she’s too gruff with others.
  • [28:47] The old stories we tell about ourselves and why we need to STOP.

RESOURCES MENTIONED IN THIS EPISODE

www.RogerWhitney.com/blog - find my core values as shared on this episode.

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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: RAM158.mp3
Category:general -- posted at: 6:00am CST

Well, here we are - at session number three of Kim and Joe’s 2017 Retirement Plan LIVE experience. Today we reach the topic nobody enjoys talking about but that we HAVE to talk about anyway: Retirement Risks. There are many things we need to consider on this episode of the Retirement Answer Man in order to think about retirement realistically and Kim does an amazing job of thinking soberly about the risks that she and Joe will face when they reach retirement. Our goal is to assess them and then address them in their retirement plan. Want to hear how we do it? You can, on this episode.

It’s wise to address retirement risks - but they don’t stay addressed.

One of the problems with trying to predict what could happen in the future is that the picture keeps changing. You can address things the way it makes sense today but if the markets change (and they will) or if your financial or health situation changes (and they could), you’re going to have to reassess and re-address the risks you’ve identified. Heck, there could even be new risks by the time you get there. So what do you do? You keep working at it. There’s really no other option. On this episode, I chat with Kim about the risks she sees ahead when it comes to her retirement and we make some tentative plans for the ways those risks might be addressed. I’ll reveal my full suggestions in the upcoming RPL webinar, which you can get in on. Find out how, on this episode.

Duct tape solutions to the retirement risks you see are not the best answer.

Do you know what a duct tape solution is? It’s a solution that seems effective at the time but by nature of what it is, it won’t last very long. It’s like putting duct tape on a hose in your car that has sprung a leak. It may get you to the next town but it’s not going to last for a cross country trip. On this episode, Kim and I talk about the possible solutions to some of her retirement risks and discover that some of the things typically used to address those risks may not be the best options. You’re going to enjoy thinking through these issues, so be sure to listen.

One of the biggest retirement fears is that you’ll outlive your money.

Almost everyone I talk with about retirement planning has one risk in mind far above all the others when it comes to their retirement: They are afraid that they might outlive the money they have to live on. It’s a very real concern since the longevity rate in our day continues to rise. Are there ways to address this concern other than saying, “Set aside more money?” Kim and I discuss that on this episode as we walk through her Retirement Plan LIVE session today, so be sure you take the time to listen.

What if you need expensive medical care, die, and leave your spouse broke?

There is a very real and tragic scenario that happens over and over in modern day America. A married couple plans for their retirement, retires, and is enjoying the fruits of their many years of employment or work, and then one of them is struck with a very expensive disease or medical condition. They use up all their hard-earned money on medical care, and then the ailing spouse dies, leaving the surviving spouse almost penniless. What can be done to mitigate THAT kind of risk? Kim and I talk about the possibility on this episode of the show.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

  • [0:23] My introduction to this “Step 3” of this year’s Retirement Plan Live.

HOT TOPIC SEGMENT

  • [4:14] Why retirement is riskier than ever before.
  • [6:00] How income helps us mitigate risks for now. And how it changes in retirement.
  • [7:26] Watch out for duct tape solutions.

PRACTICAL PLANNING SEGMENT

  • [12:04] This conversation about the scary stuff: retirement risks.
  • [13:43] The issue of market risks and how Kim and Joe have typically handled them.
  • [16:20] Kim’s current mix of stocks VS bonds - and looking toward retirement.
  • [18:33] Should retirees live on the income of their investments?
  • [21:17] Fears about inflation and market instability.
  • [23:25] Is Social Security going to be there for Kim and Joe?
  • [25:39] What if one spouse dies earlier than expected?
  • [30:20] The fears of long term care and a surviving spouse’s needs.

TODAY’S SMART SPRINT SEGMENT

  • [32:09] Your assignment: Clarify how to access your digital life.

THE HAPPY LAB SEGMENT

  • [35:44] Unaddressed risks can make you unhappy, but a repeatable process to address them regularly can give you peace of mind.

RESOURCES MENTIONED IN THIS EPISODE

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Roger(at)wwkwealth.com

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: RAM157.mp3
Category:general -- posted at: 6:00am CST

Planning for retirement will be next to impossible if you don’t have some sort of barometer of your financial situation - and that’s why I always create a personal net worth statement with my clients to have a starting point for retirement planning. On this episode - the 2nd in the 2017 Retirement Plan LIVE sessions - I’m talking with Kim about her and her husband’s financial status, and you’ll hear us go item by item through their financial situation to build their net worth statement. It’s the first step, and one you can take easily enough on your own. Find out how on this episode of The Retirement Answer Man.

What the HECK is a personal net worth statement?

Your net worth statement is a document that will provide you a quick look at your financial situation at any point in time. By calculating your net worth you’re able to see what all the work you’ve done in your life has provided for you - as well as what you’ve spent so far. But tracking your net worth over time gives you even more insight into your financial picture. On this episode, I’m talking with Kim about the current assets and expenses she and her husband have right now, a few years before retirement. This will enable them to know where they are starting from as they begin to set retirement goals. You’ll see how applicable the net worth statement is to retirement planning, on this episode.

Here’s the simple way to create your own net worth statement.

You can calculate your own net worth statement pretty simply with very little effort. The hardest part is assembling all the facts and figures that go into a simple subtraction problem. Here’s how you do it: Total up all your assets (things you actually own that have value, including cash accounts at the bank), total up all your liabilities (the things you owe money on) and then subtract your liabilities FROM your assets. That will give you a net worth figure. Now that you have it, how do you use it to plan for retirement? I’m glad you asked because that’s what I’m covering with Kim, on this episode.

How can you use a net worth statement to plan for retirement?

When you’re planning for retirement you have to do more than just dream up fancy things in regard to your future without knowing how those fancy things are going to be funded. Your personal net worth statement will enable you to know what resources you have available to build upon in order to fund your retirement plans. Think of it as a starting place, the dot on the map where you are now. Once you understand that figure you’ll be able to see how far you are from the ideal retirement you’ve imagined.

If you’d like to build your net worth statement with a little help from a retirement planner, here’s your chance.

One of the things I love about what I do is that I’m able to help people accomplish financial goals through the creation and use of simple tools that are truly helpful. One of those is my “Build Your Net Worth Statement” worksheet - which is yours for free if you want it. If you’d like to get your own copy and find out how to get started with your own net worth calculations you can find it on my learning center page.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

  • [0:30] My introduction to this “part 2” episode of the Retirement Plan LIVE.

HOT TOPIC SEGMENT

  • [2:43] What IS your net worth and how is it calculated?

PRACTICAL PLANNING SEGMENT

  • [12:30] Looking at Kim and Joe’s personal net worth statement to plan for retirement.

TODAY’S SMART SPRINT SEGMENT

  • [42:39] Identify the location of all your important documents and write down those locations for your loved ones.

THE HAPPY LAB SEGMENT

  • [44:20] Mishandling stress is a bad way to build happiness in relationships.

RESOURCES MENTIONED IN THIS EPISODE

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

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Direct download: RAM156.mp3
Category:general -- posted at: 6:00am CST

What are your retirement wishes? Do you have any? This episode of The Retirement Answer Man is all about retirement wishes - dreaming up the kind of retirement you really want to live (forget about what seems practical for now). I’m walking through an initial retirement planning conversation with Kim and Joe - this year’s participants in my Retirement Plan LIVE event. In this conversation, you’ll hear how I help clients think through retirement needs and wishes and in coming episodes we’ll begin planning for how to accomplish them. It’s a hands-on conversation, so jump in to hear how we do it.

Can you think a little bigger about your retirement? What are your wishes?

For many people, the word “wishes” equates with the word “unrealistic.” But that’s not what we’re shooting for on this episode. In this conversation with Kim and Joe I’m trying to dig deep - to find out what they really want to be able to do during their retirement years so that we can create a plan that makes it possible once they get there. It’s a practical and exciting process and I hope you learn from this example so that you can start creating YOUR version of an ideal retirement in the future.

Learning to dream bigger is not all that easy, but we need to do it.

Most of us have a hard time envisioning what it’s going to be like during our retirement years. We hope for the best but often don’t know how to plan for it. Part of that struggle is that we have a difficult time knowing how to dream bigger, how to think of the things we really WANT to do during retirement instead of being limited by what we think will be realistic. On this episode of The Retirement Answer Man, I’m helping Kim expand her thinking when it comes to her retirement plan so that we can figure out now how to make her retirement wishes come true. Are you interested? It’s a great conversation.

It’s impossible to forecast every retirement need, but you still need to do it.

None of us know the future so it’s reasonable to think that retirement planning is a hopeless cause. Afterall, you can’t predict every expense you’re going to have, right? Well, sort of. On this episode of the show, you’re going to hear how I help Kim think through the needs she and her husband might have during retirement and establish a baseline budget that they will be able to live on but will also afford them some of the finer things in life. And we take into account many of the “unforeseen” issues as well. You’ll need to hear it in order to totally grasp it, and you can do that by listening to this episode.

Your retirement dreams need some “placeholders” in your retirement plan.

None of us truly knows what retirement is going to hold. Are we going to be healthy or are we going to face a health crisis? Are we going to be able to travel or will we feel like we want to be a homebody? But you can’t let the lack of certainty keep you from planning for the retirement wishes you have. That’s why you need to plan on some of the fun things you think you may want to be in your retirement by adding “placeholders” for those expenses. On this episode, I help Kim create some placeholders - and it will serve as a great example of how you can do the same.



OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

  • [0:28] My welcome to this first conversation of the 2017 Retirement Plan LIVE!
  • [1:10] Learning to dream bigger is not all that easy - but we need to do it!
  • [2:50] How you can get your summary of the Retirement Plan LIVE sessions.

PRACTICAL PLANNING SEGMENT

  • [4:07] Getting the lay of the land in Kim and Joe’s situation - when will they retire?
  • [7:18] What will be Kim’s purpose after they retire?
  • [11:00] Dealing with a long retirement timeline from a financial perspective.
  • [16:50] The conversations Kim and Joe have around finances.
  • [19:30] Adding the spice of life to retirement (and planning for it).
  • [24:57] The importance of adding “placeholders” to your future retirement expenses.
  • [27:08] The possibility of caring for aging parents - and major purchase possibilities.
  • [35:42] The struggle to get the big dreams down on paper.

TODAY’S SMART SPRINT SEGMENT

  • [40:31] The 2nd part of your I.C.E. Plan: Record the passwords and codes for all devices.

THE HAPPY LAB SEGMENT

  • [43:05] Getting back into my exercise program and how it’s impacting my happiness.

RESOURCES MENTIONED IN THIS EPISODE

LastPass

OnePassword

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: RAM155.mp3
Category:general -- posted at: 6:00am CST

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