Retirement Answer Man

Have you ever considered that it might be advantageous to retire overseas? Where your home will be when you retire can dramatically change what the landscape might look like financially. There is a growing trend of Americans retiring outside of the country. Should you be one of them? That’s the topic of today’s episode and interview with Keith & Tina Paul, who are retired and living in Cuenca, Ecuador. Listen in to get a glimpse of what it is like to retire overseas and find out how you can begin exploring the idea.

The top ten countries for retirement living

There can be some huge advantages from a financial perspective if you have the spirit to do something like retiring in another country. On this episode, we’ll talk about those advantages and I’ll tell you the current top ten countries for retirement and give examples of how much it costs per month to live there. If you think, even for a moment, that you might like to retire overseas, then this episode of the Retirement Answer Man podcast is for you!

A window into overseas retirement living

What would it be like to retire in another country? How would you go about finding a place? Keith and Tina Paul, of RetireEarlyandTravel.com, are retired and enjoying life in Cuenca, Ecuador. On today’s episode, they share their story of how they planned, researched, and found their new home and what it is like for them to live there. Listen in and enjoy this glimpse into what it is like to retire overseas, and then take my Smart Sprint challenge to dream a little!

I’d like to retire overseas, but what about . . . ?

If you are thinking about retiring outside of the US, you likely have a number of questions and concerns. What about health care? Would I feel isolated? Is it safe? These questions and more are addressed in today’s podcast interview with Keith and Tina Paul. Listen in to find out why they think the health care is even better, their experiences in connecting with people, and what the crime rate is like where they live. If you have questions about the wisdom of a decision to retire overseas, you will love this episode of the Retirement Answer Man!

Home is where the heart is

Do you feel that a different house in a different location will never feel like home? I know exactly what that is like. On today’s Happy Lab segment of The Retirement Answer Man podcast, I’ll tell you my story and how I found out that home really isn’t a house. It’s where your heart is. And your heart can change locations. If you’re feeling concern about moving to a different home or a different country, today’s episode just may give you the encouragement that you need.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

  • [0:24] Choosing to live somewhere less expensive can buy you retiring 3-4 years earlier.
  • [3:25] Have you watched the 5-minute makeover videos yet?

HOT TOPIC SEGMENT

  • [4:16] There is a growing trend of Americans retiring outside of the country.
  • [5:08] The top ten places to retire overseas.
  • [06:30] Use your vacation to explore places you might like to live.

PRACTICAL PLANNING SEGMENT

  • [08:15] Introduction to Keith and Tina, bloggers of RetireEarlyandTravel.com.
  • [9:14] How did two American professionals end up moving internationally?
  • [11:01] Keith and Tina’s criteria, research, and visit to find a place to retire overseas. [15:27] If you retire overseas, what about health care?
  • [17:04] Does retiring in another country make you feel isolated?
  • [20:27] Do you feel a lack of purpose because of the overseas retirement lifestyle?
  • [22:23] The financial aspects of overseas retirement.
  • [23:34] What to look for when considering retirement outside of the US.
  • [25:11] Is it safe to retire overseas?
  • [26:30] You need a bit of a sense of adventure.
  • [27:45] Do I need to know the language?
  • [29:29] What about 15-20 years later, when you are starting to slow down?
  • [30:58] To do this, you don’t actually have to retire.

THE HAPPY LAB SEGMENT

  • [32:03] Home is where the heart is.

THE SMART SPRINT SEGMENT

  • [34:22] 7-Day Challenge: “What if?” questions to get you started talking.

RESOURCES MENTIONED IN THIS EPISODE

3-Video Series: 5 Minute Retirement Makeover

Keith & Tina’s Blog: Retire Early and Travel

International Living - Short list of best countries to retire in.

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

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook page

Direct download: RAM180.mp3
Category:general -- posted at: 6:00am CST

Do you want to have a great retirement? Make sure you value the right things. It is possible to make a million dollars and feel poor, or to make $60K and live a rich and full life. On today’s episode, Jason Parker joins me to talk about how to calculate your retirement spending and make wise choices that will benefit you long-term in your retirement years. Listen in to learn about the new software tool that Jason has developed that helps with this process and to find out how you can get started on counting the cost of retirement.

The empty-nester lifestyle can be wonderful . . . and dangerous

As empty-nesters, there are many opportunities for us to spruce up our homes and enjoy some time freedom that we have not had in years. But there is a danger with the spending increase that can come along with this life phase as well. On today’s hot topic segment, I’ll explain what I mean by this danger, and how you can avoid falling into it. Listen in to learn to count the cost and prepare well for retirement spending.

Understanding your spending is key to your retirement cash flow plan

Did you know that the more income people have, the worse they are at understanding what they are spending? As Jason Parker says in this episode, one of the most important pieces of a good retirement cash flow plan is understanding your spending. Listen to today’s interview to find out why you need to count the cost on your lifestyle, how you can get a clearer picture of your spending, and where to find a great software tool that will help simplify the process.

A simple tool to estimate retirement spending

Jason Parker, host of the Sound Retirement Planning podcast, has developed a software tool that can help you understand your current spending and help you plan for retirement spending. On this episode, Jason talks with me about how this new tool came about, how it works, how it is different from other budgeting tools, and where you can get it. My listeners will get 50% off, so be sure to listen to the podcast and get the coupon code.

It’s never too soon to start planning for retirement costs

Whether you are retiring next month or in 20 years, getting a clear understanding of your spending is an important part of your overall financial well-being. On this episode, Jason Parker and I talk about the importance of calculating your spending and your retirement costs and explain how to do it. We cover how to account for costs that don’t fall into your monthly expenses and how to balance your money so that you don’t run out too soon. Listen in and then take my seven-day challenge to begin getting a clear picture of your spending.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

  • [0:24] Make sure you value the right things. Don’t build a financial cage that gives you no options in life. You can make a million and feel poor and scared, and make 60,000 and live one of the richest lives. Conversation on spending and counting the cost for retirement. Jason Parker
  • [3:13] Disclaimer
  • [3:53] Traditional retirement planning doesn’t work. Doesn’t give you much confidence about the future. Just completed a 3 video series called the 5-minute retirement makeover. Go to fiveminuteretirementmakeover.com.



HOT TOPIC SEGMENT

  • [5:09] How empty nester lifestyle creep can mess up your retirement. Kids are leaving, you’re making more money than you ever have, starting to define your life without kids. Can also be dangerous. You have more time freedom. Can explore other activities. Can update the house, etc. Re-nesting as an empty nester. But, when you increase your lifestyle, it’s always hard to scale back again. You can expand your lifestyle in your 50’s and then it’s hard to maintain when you retire.

 

PRACTICAL PLANNING SEGMENT

  • [09:49] How do you count the cost on your lifestyle?
  • [10:57] How accurate are you when it comes to what you think you spend?
  • [14:49] How to account for costs that are not included in your monthly spending.
  • [19:34] Can you afford “Go-Go” years?
  • [20:21] The Retirement Budget Calculator is different from other budgeting tools.
  • [23:53] How you can approach using the budget calculator without being overwhelmed.
  • [25:05] When should someone start counting the cost for expenses in retirement?
  • [27:39] How safe is the data on the Retirement Budget Calculator software?

 

TODAY’S SMART SPRINT SEGMENT

  • [30:23] 7-day goal: Get a clear picture of your monthly spending.

 

THE HAPPY LAB SEGMENT

  • [31:31] Get excited about your purpose instead of your things.

 

RESOURCES MENTIONED IN THIS EPISODE

Sound Retirement Planning podcast

RetirementBudgetCalculator.com (50% discount with coupon code “Roger”)

Roger’s Five Minute Retirement Makeover videos

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: RAM179.mp3
Category:general -- posted at: 6:00am CST

There is a lot of weird science out there when it comes to investment management. But if we’re going to be successful in investing for retirement, we need sound science. Last time we talked about asset allocation for the flexible portion of your portfolio. Today we’re going to talk about the science behind the fixed portion. Index-based investing is currently the popular way to manage this side of your investments. But remember, you want to “know what you own and know why you own it” (Peter Lynch). Listen to this episode and follow through with the 7-day goal to gain a better understanding of what you own and why!

What is an investment index?

Index-based investing is taking over the world. But what, exactly, is an index? It is not something you can invest in directly. It is a mathematical model that represents a broad swath of the US equity markets. Index-based investment products try to mimic the model. On this episode, we’ll use the S&P 500 index as an example and explain how it works. Listen in to learn more about what the index is and how it affects asset allocation in your portfolio.

Following an index when allocating assets might boost your retirement

Index-based investing has a few distinct advantages, one of them being lower cost. As I explain the science behind an index, using the S&P 500 as an example, I will describe the factors that reduce costs for index-based investments and make them more efficient. Listen in to learn how index-based asset allocation can benefit your portfolio.

Your retirement might suffer if you follow the S&P 500

When looking at index-based investments, there are nuances to consider that may be disadvantages. On today’s episode, I will explain how the S&P 500 index works, and why it can be great when huge companies are doing well, but concerning if they are not. I’ll also describe how the changes made annually to the index can result in inefficient trading and higher prices. Listen in to learn about index-based asset allocation so that you can know what you own and why you own it.

Are there options other than an index-based product for the fixed portion of your portfolio?

It is important to carefully consider your options when investing. While index-based products are the popular “go-to” for the fixed portion of your portfolio, there are other options out there. On this episode, I’ll talk about these options, which for some people may be a smarter way of investing. Listen in to learn about index-based asset allocation, other options, and what you can do in the next seven days to get a better understanding of what you own.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

  • [0:25] There is a lot of weird science when it comes to investment management.
  • [1:04] How do you go about thinking about the fixed allocation to index-based portfolios?

HOT TOPIC SEGMENT

  • [2:22] Index-based investing is taking over the world.

PRACTICAL PLANNING SEGMENT

  • [6:28] How do we choose managers to invest the passive/fixed part of a portfolio?
  • [8:08] What is an index?
  • [9:42] What are the advantages of following an index like the S&P 500?
  • [11:09] What are the potential disadvantages of following an index like the S&P 500?
  • [18:29] Are there other options out there?
  • [20:09] Focus on the things you can control.
  • [21:21] Please send me your questions about this topic or series.

TODAY’S SMART SPRINT SEGMENT

  • [21:58] Get a better understanding of what you own by looking at the fact sheets.

THE HAPPY LAB SEGMENT

  • [23:06] Take some time to appreciate someone else and to acknowledge appreciation you receive.

RESOURCES MENTIONED IN THIS EPISODE

The Five-Minute Retirement Makeover

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: RAM178.mp3
Category:general -- posted at: 6:00am CST

David Booth once said, ““The important thing about an investment philosophy is that you have one.” But how many people who are actively planning for their retirement actually DO have one? You’d probably be surprised to know that much of the planning side of “retirement planning” is pretty haphazard. Even among investment advisors. But I've learned that it’s vital to know what your goals are and WHY you invest in certain types of investments so that you can know if what you’re investing in will get you to your goals. Does that make sense? On this episode of The Retirement Answer Man, I’m going to walk you through “5 Ps” of a good investment philosophy that you need to consider in order to make the best choice for reaching your goals.

When it comes to investment philosophy, all we care about is repeatability.

When you assess the investment opportunities before you, there’s really only one thing you should care about in the long run. That’s what I call “repeatability.” Will the investment you’re considering continue to perform at the rate and along the line of what it’s done in the past? That’s a pretty difficult question to answer when you get right down to it. That’s why I have decided to publish this episode of the show, to walk you through the things I consider when doing my “due diligence” part of helping a client determine their investment philosophy. It takes some time, but it’s worth it to ensure that what you’re investing your money in is actually going to give you the outcome you want.

To assess an investment philosophy, look at People, Parent, Process, Performance, and Product.

When it comes to the analysis of a potential investment you need to look deeper than the returns it’s currently getting. There are a number of factors that impact that return and looking deeper will provide you the opportunity to see patterns in a number of areas that will indicate whether that return is normal, will continue or can be expected to taper off. So what should you look at to make your decision? I call them “5 Ps” - People, Parent, Process, Performance, and Product. You can hear what I mean by each of those and even how I go about assessing them, on this episode of The Retirement Answer Man.

Why it’s important to know something about the people behind an investment fund.

One of the things most investors don’t think about when it comes to assessing an investment fund is that they need to keep abreast of the goings on within the company that is managing their investment. That means knowing something about the individuals who manage the fund and make the decisions about how it will be run. If you’re able to see patterns in the behavior and decisions of those individuals, or if you see that personnel changes have taken place within the investment firm, you’re able to pay closer attention to see how or if that change is going to impact your investments. But if you aren’t paying attention in the first place, you could experience outcomes you weren’t expecting. Find out more about how to assess the people behind your investments, on this episode.

I don’t consider any investment that has less than 10 years of track record.

Your investment philosophy needs to be built on a solid set of data, clear numbers that indicate why the investment choices you make are good choices for your goals. One of the things I have made a rule of thumb for myself (and therefore my clients) is that I won’t even consider an investment possibility that has a track record of fewer than 10 years. Why? Because there’s simply no way I can tell how the investment will perform. Any recommendation I make to a client in that scenario is nothing more than a guess.... And my clients deserve better than that. On this episode, you can hear how I go about assessing an investment’s track record to help my clients attain their retirement goals.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

  • [0:31] My decision to get on the “smart thermostat” bandwagon!
  • [4:30] Considering your investment philosophy decisions in the same way: not always the best approach.

HOT TOPIC SEGMENT

  • [7:53] The 2017 Mutual Fund Landscape Report - the highlights.
  • [12:37] Taking a look at the winners in the report and how they did the next year.

PRACTICAL PLANNING SEGMENT

  • [16:15] How DO you actually choose the right strategy for your “flexible” investments?
  • [19:30] Things to be aware of when it comes to making your decision.
  • [22:00] Most advisors don’t have a detailed “due diligence” process they use to assess investment options.
  • [23:56] Learn about the people behind the investment.
  • [26:11] It’s vital to know something about the “parent” company behind the investment.
  • [27:52] What type of process is used to manage the portfolio?
  • [32:10] What role does performance play in assessing an investment philosophy?
  • [35:04] What is the specific product you’re looking at?
  • [36:16] An example from the 1990s to show you why these things are important.

TODAY’S SMART SPRINT SEGMENT

  • [38:35] Look at your holdings and write out why they make sense: Are they helping you achieve your goals?

THE HAPPY LAB SEGMENT

  • [39:08] Two friends who experienced abrubt changes in their lives and how they reacted postively.

RESOURCES MENTIONED IN THIS EPISODE

Nest Thermostat

EcoBee Thermostat

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: RAM177.mp3
Category:general -- posted at: 10:29am CST

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