Retirement Answer Man

What are you filling your head with? The "Facebook effect" or "social media effect" can lead us to be mentally consuming more junk than we would like. That’s why now it is even more important than ever to be intentional about what you read. Each year I buy dozens of books to line my bookshelves. This year I have compiled a list of books that I would like to read over the year. I'm sure I will read more than just these books, but I created this list of books as a way to ensure that I will get to them. If you have ever wondered what is on my bookshelf, then listen to this episode to hear my book list for this year.

Upgrade your beliefs by changing what you read

You are what you eat. We’ve all heard that expression our whole lives, but the more accurate description is that we are what we read. My intentional book list for this year covers a variety of genres, one is finance related, one is about growing my business, another is a cookbook, one will help me practice agile thinking. I also have a few books that I have enjoyed so much that I reread them each year. Are you curious to hear about what I am reading? Listen to this episode to hear which books are on my nightstand and then you can create your own intentional reading list.

What is a melt-up and do you need to worry about one?

In the news recently there has been a hubbub of an impending melt-up. Have you heard this worrisome term being thrown around on various media outlets? Are you curious about what it actually means? One listener heard about a melt-up that happened in Japan and is concerned that the same thing could happen here in the U.S. A melt-up is a dramatic and unexpected improvement in the performance of an asset class driven by a stampede of investors.  Listen to this episode to hear if a melt-up is something that you may need to worry about.

Social security can leave us with a lot of questions - here’s one from a listener

One listener asks about social security, his spouse isn’t eligible to draw on social security as a survivor, so should he go ahead and draw on it early? The government never makes these questions easy to answer; you can’t just do the math and simply figure it out. While mathematically you can figure out the break-even point, there are other considerations to take into account like what are your other income sources in early retirement. What do you need the income for? Listen to this episode to hear all of the questions you should ask yourself when considering this question.

Choose what you read

Live life more intentionally by choosing a personal reading list this year. I’ve chosen to live my life more intentionally by removing social media from my constant attention and in doing so I have been able to consume content that I have deliberately chosen. This book list will give me a broad range of reading material that may even help me better myself. If you would like to find out what’s on my book list and why then listen to this episode to hear the full reading list, you’ll even get to hear what Nichole is reading too!

 

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

  • [1:22] What are you filling your head with?

HOT TOPIC SEGMENT

  • [2:02] Some new books that I am going to read this year
  • [10:21] Books that I reread every year

PRACTICAL PLANNING SEGMENT

  • [13:54] What’s on Nichole’s book list
  • [15:29] What is a melt-up?
  • [21:33] A social security question
  • [26:34] How can you tithe from investments

THE HAPPY LAB SEGMENT

  • [29:07] What happened when I deleted social media from my phone?

TODAY’S SMART SPRINT SEGMENT

  • [31:22] Create an intentional reading list for the year

Resources Mentioned In This Episode

BOOK - Washington: A Life by Ron Chernow

BOOK - The Daily Stoic by Ryan Holiday

BOOK - The One Thing by Gary Keller and Jay Papasan

BOOK - Essentialism by Greg McKeown

BOOK - Necessary Endings by Henry Cloud

BOOK - Your Best Year Ever by Michael Hyatt

BOOK - The Advisor Playbook by Duncan MacPherson

BOOK - The Back of the Napkin by Dan Roam

BOOK - The Mind Diet by Maggie Moon

BOOK - QBQ! by John G. Miller

BOOK - Great by Choice by Jim Collins

BOOK - Checklist for My Family by Sally Balch Hurme

BOOK - The Automatic Millionaire by David Bach

BOOK - Rock Retirement  by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Direct download: RAM206.mp3
Category:general -- posted at: 6:00am CST

Sometimes people use retirement as a reason to stop planning. This is a bad idea. The purpose of my retirement planning services is not simply to manage your money. My goal is to give my clients the best retirement that they can have. But without planning this can’t be done. Planning helps people make great things happen. Without a plan people often find themselves drifting through life without anything meaningful to work towards. This episode of Retirement Answer Man is your gentle reminder that you need a plan. Listen to this episode to hear why you don’t ever want to stop planning and making goals.

Don’t just wait for your retirement to happen

Hopefully, this podcast has helped you understand that you can’t just sit back and expect to live a perfect retirement without proper planning. You should have a good vision of the meaningful life that you want to work towards.  If you don’t start planning for your retirement and stay on top of your financial goals there’s no way you will be able to make your retirement the best that you can. When you plan on the best you can achieve the best. Listen to this episode to hear how proper planning can help you achieve your retirement goals.

Make this year your best year ever

Have you ever found that if you sit back on your heels and just let life happen then you are not at your best? Being intentional and setting an action plan helps you move forward and keeps you happy and connected. I’m reading a great book that has helped me reconnect and reassess my life. This is a great time to think about how you can continue to move forward in your life by reassessing your goals and finding something meaningful to work towards.

Listen to this episode to hear some great tips on how to set goals and to plan for the best year ever. If you sign up for 6 Shot Saturday you will even get a worksheet to help you assess your life and see where you can make some improvements.

How to upgrade your belief system

Part of reassessing life and making future plans can include reassessing your old belief systems. I went through a process of upgrading my beliefs and making myself a better man a few years ago. This completely changed my life and made me the man that I am today. I had to shed my limiting beliefs about the world, other people and about myself. I have since surrounded myself with people that help support a growth mindset and because I did all this I am more connected, happy, and my life has a purpose. How are your current beliefs limiting the way you think? Listen to this episode and sign up for 6 Shot Saturday to hear how upgrading your belief system can help you change your mindset.

Some fantastic listener questions

My listeners have some great questions, and unfortunately, those questions have backed up over the past months. I examine a few listener questions on this episode of Retirement Answer Man. One question covers how much you can put into a Roth IRA without penalties. Another listener is curious to find out if his cash reserves could be put into short-term bond funds. Another asks about passive investments. Listen to the practical planning segment to hear the answers to questions about Roth IRAs, cash reserves, and passive investments.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

  • [1:18] To have the best retirement you have to be intentional

HOT TOPIC SEGMENT

  • [3:13] Make this your best year ever
  • [6:33] A quick book recommendation
  • [9:13] Upgrade your belief system

PRACTICAL PLANNING SEGMENT

  • [14:55] Backdoor Roth IRA
  • [16:52] Cash reserves vs. short-term bond funds
  • [22:55] What do I mean by passive or side investments

THE HAPPY LAB SEGMENT

  • [26:35] Find something meaningful to look forward to

TODAY’S SMART SPRINT SEGMENT

  • [28:53] Sign up for 6 Shot Saturday to get the wheel of life worksheet

Resources Mentioned In This Episode

BOOK - Your Best Year Ever by Michael Hyatt

BOOK - Rock Retirement by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover 

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Direct download: RAM205.mp3
Category:general -- posted at: 6:00am CST

The cost of financial advisors vary greatly, but so does the value that they provide. On this episode of Retirement Answer Man, I address the question, is a financial advisor worth the cost? This is a tough question to answer, especially since I am a financial advisor myself! In this episode, you will learn about an important tool to measure the overall cost of your financial advisor and some ways that your advisor may be helping you. These areas will help you see if he or she is providing the best value for your investment management. Listen in to the episode so that you can fully understand how to measure their worth.

The financial advising world is changing

The world of financial advising is changing from investment management to client lifestyle planning. A financial advisor no longer simply invests your money. Good advisors bring the whole package to the equation. They are able to advise you on spending, risk management, forecasting, retirement planning and much more. The question remains, are advisors really worth their value? Is a financial advisor worth the money spent on them? Different advisors provide different values for their services and either they are a colossal waste of money or the best money you’ve ever spent. Listen to this episode of Retirement Answer Man to learn how to determine the qualities of a great financial advisor so that you can make the most of your money.

How can you quantify the value of a financial advisor

How do you determine whether an advisor's services are worth the investment and whether it is cost-effective to utilize their services? Determining the value of a financial advisor's service can be a challenge, but luckily Vanguard provides a process in which the layperson can help determine this value. Vanguard's Advisor Alpha Study actually breaks down the value of a financial advisor into six different areas. During this episode, I describe each of the six steps and how the Vanguard index can help you to measure your financial advisor’s worth. You probably have not thought of all of these points when considering whether or not to hire a financial advisor. Listen to this episode of Retirement Answer Man to hear all the different indexes that the Vanguard Advisor Alpha Study uses to measure the cost of a financial advisor. You will learn how you can assess whether your financial advisor is providing the optimum value that they should.

What are other areas where advisors can add value

If you use an advisor the value shouldn’t be in investment management alone. Your financial advisor should also provide the holistic strategizing and wisdom that can help you see your assets through the retirement years. It is also important that your financial advisor gets to know you so that they have a history with you and understand the vision that you see for your life and future. A holistic advisor understands more than just the markets, they understand their clients, and how they desire to live their lives. This type of value is hard to quantify and something that you can’t simply measure with an index or measuring tool. Listen to this episode to see if your financial advisor is providing the type of value that you really need.

Is your financial advisor providing you with a good value?

Weighing the cost and benefits of your financial advisor can be a challenge, but determining whether or not you are benefitting from their services is an important way to stay on top of your investments. Use the knowledge you gain from this episode along with the tools that I give you in this 6 Shot Saturday to decide whether your financial advisor is a good fit for you. Together these tools will give you an excellent reference to check whether you are getting the value you deserve from your financial advisor. Listen to this episode to hear all the details about how you can measure the performance of your financial advisor and whether or not they are worth the investment.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

  • [1:22] How can I justify the cost of a financial advisor

HOT TOPIC SEGMENT

  • [5:46] How to quantify the worth of a financial advisor with Vanguard’s Alpha Study
  • [17:38] What are other areas where advisors can add value?

PRACTICAL PLANNING SEGMENT

  • [21:38] Life distractions, spend time on what is actually important to you
  • [22:47] How to take equity from a house, if needed
  • [33:34] On staying active in later years
  • [36:30] Target date funds

THE HAPPY LAB SEGMENT

  • [39:39] My new favorite app - Sticky

TODAY’S SMART SPRINT SEGMENT

  • [40:55] If you use an advisor, evaluate the value that they add

Resources Mentioned In This Episode

Vanguard’s Advisor Alpha Study

Sticky App

BOOK - Resilience by Eric Grietens

BOOK - Rock Retirement by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

 

Direct download: RAM204.mp3
Category:general -- posted at: 6:00am CST

There are many big questions that don’t get touched on in portfolio management sessions. Instead of asking the important questions, you and your advisor may be solely focused on market performance or market projections during these annual meetings. But what do these things actually have to do with your life and your retirement? On this episode of Retirement Answer Man, we discuss the important questions. We will find out what you should really be asking yourself, your advisor, and your money! Grab a pencil and listen to this episode to get the answers to the questions that you really should be asking.

Don’t become distracted by the details

When dealing with investments and money managers it is easy to get distracted by the details. Investment managers tend to overcomplicate money matters and rather than advising you on the things that really make sense, they focus on the small details of the markets, market performance, and market projections. Their talk can be a distraction from what you should be thinking about. This can be overly complicated and without the answers you are actually looking for. This doesn’t add any value to your situation and the conversations become too technical. Keep the main thing the main thing. The main thing is how can you live your best life now and in retirement. Listen to this episode to hear what you should be talking about with your investment manager, or the questions you should be asking yourself if you manage your own investments.

What is the purpose of your investments?

Often advisors want to become portfolio managers. While attempting to do so they often begin diversifying assets. But over-diversification can be a distraction. This adds no value to the situation and can be intimidating. And you should never feel intimidated when discussing your money. Investment managers often get focused on pulling all the strings, being the manager, instead of the purpose of your investments. Portfolio management will not save you and advisors can’t portfolio manage your life. Think about what the purpose of your retirement investment is. On this episode of Retirement Answer Man, we discuss the questions that you should be asking, like when can I retire? If you’d like to hear all the questions you should be focusing on with your retirement investments, listen in to hear.

What kind of investment questions should you be focused on? 

On the practical planning segment of this show, I answer some listener questions. One listener asks about using the Sortino ratio vs. using the Sharp ratio to measure returns. He asks what these are and which he should use to measure his returns. While this is a great question which I answer fully, my real advice is to focus on the questions that really matter to your retirement. Try not to get bogged down with overly complicated measures and investment strategies. It is easy to get distracted from the business of living your fullest life now and in retirement when you get overloaded with the heavy questions of the investment industry. Listen to the full episode to hear all the listener questions that I answer.

Focus on living your best life 

The purpose of your retirement investments is to create a process for having a great life now and a great life later. Don’t lose focus on the real questions which are: when can I retire, how can I live now and how can I live better in retirement? By focusing on these questions during every strategy session you can stick to what really matters rather than the minutiae of typical strategy sessions with financial advisors. This keeps both you and your advisor focused on the real goal, which is living your best life. Listen to this episode of Retirement Answer Man to find out more questions that you should be asking yourself and your financial advisor to keep you and your money both focused on living your best life.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

  • [1:22] Time for an annual review - what are the questions you should be asking in your review

HOT TOPIC SEGMENT

  • [7:49] Don’t become distracted by the details
  • [10:05] When your investment advisor tries to become a portfolio manager

PRACTICAL PLANNING SEGMENT

  • [15:55] Geeky question time
  • [16:32] What do Sortino ratio and Shark ratio mean, and which should you use?
  • [21:10] What are the pros and cons of QLAC
  • [25:53] Is eating healthy really more expensive?

THE HAPPY LAB SEGMENT

  • [26:35] Celebrate, my word for 2018 - what is your word that guides you this year?

TODAY’S SMART SPRINT SEGMENT

Resources Mentioned In This Episode

BOOK - Rock Retirement by Roger Whitney

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Direct download: RAM203.mp3
Category:general -- posted at: 6:00am CST

This is the third episode in the Market Correction Fire Drill series. On this episode, we discuss how much cash you need to have on hand to be prepared for the inevitable market correction. When investing for retirement it is imperative to keep thinking about your long-term goals. It can be easy to lose sight of this if and when the markets take a tumble. One way to always focus on the long-term is by making sure that you have liquidity on your balance sheet to get you through the short-term. This ensures that your investment strategy has the time to make a recovery in the event of a market correction. My goal today is to ensure that you have enough cash reserves on hand in your retirement investments to help you ride out a market correction with grace. If you’re curious to hear how much cash you need to have on hand, then you’ll need to listen to the full episode.

What is the magic number you need to have in liquid assets?

How much cash reserves do you really need to have on hand? The basic rule of thumb is that you need to have 3-6 months of cash on hand for an emergency. This money is specifically for an emergency. The exact number really depends on the stability of your income and employer. In the next bucket of cash, you’ll need the extraordinary cash reserves that will be needed within the next year. For instance, a child going off to college or a new roof for your house. Listen to the full episode to learn how to calculate just how much liquid assets you need to have to be prepared for any eventuality.

You can’t use short-term thinking for long-term assets

By having cash reserves, you can appropriate your long-term investments exactly how long-term investments need to be managed. If you constantly have to worry about the next eventuality, you won’t have the piece of mind to manage your investments the way that they need to be. By having a reserve set aside for the short term you’ll be able to concentrate on getting the most out of your retirement investments. Remember that you can’t use long-term assets in the short term. Learn how to make the most out of your retirement investments on this episode of Retirement Answer Man.

The real return on cash reserves

The ROI of cash on hand doesn’t come from the cash itself obviously. The real return comes from the power of not having to sell investments that are down or not having to pay extra taxes or capital gains because you weren't prepared. The real return on having cash on hand is having emotional resilience and flexibility in financial decision making. Life is not a simple math problem and neither are your investments. You must be able to position yourself to create the kind of lifestyle that you really want in your retirement. If you want to be able to invest your long-term assets in a way that is free of worry then you’ll need to hear about the real return on investment of having cash reserves in this episode.

Achieving a happy balance with your investments

Thinking about a market correction can be a daunting thought when planning for retirement, but being well prepared mitigates the risk. Just because the S&P is at all time highs does not mean that you should get comfortable. If your investments are going well and have been over the past few years, that’s great! But, having enough cash on hand to see you through everything that may pop up at you over the next couple of years will ensure that you will be able to make the most of your long-term investments. If you want to invest your long-term assets in a way that is free of worry then you’ll need to hear how to achieve the balance that I lay out in this episode.

 

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

  • [3:31] When investing for retirement keep the long term in the long-term
  • [5:13] The first line of defense
  • [7:00] The next line of expenses
  • [11:18] What is the ROI for cash reserves?

PRACTICAL PLANNING SEGMENT

  • [16:02] How to repurpose a nondeductible contribution to an IRA?
  • [18:32] What are the risks of the lump sum vs. single life annuity?
  • [20:33] What is the best vehicle to save when you have a pension?
  • [22:25] When you should consider purchasing earthquake insurance

THE HAPPY LAB SEGMENT

  • [24:18] What can you reflect on with pride from the past year

Resources Mentioned In This Episode

Ask Roger a question

Work with Roger

3-video Series: 5 Minute Retirement Makeover

Roger’s Retirement Learning Center

The Retirement Answer Man Facebook Page

Direct download: RAM202.mp3
Category:general -- posted at: 6:00am CST

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