Retirement Answer Man

Have you ever rented a vacation home for a large family gathering? Or have you invited friends to come to visit you while you’re in a vacation rental? That is what my wife and I have decided to do next summer. On this episode of Retirement Answer Man, I give tips for finding and renting a vacation home. During the practical planning segment, I answer several listener questions since this is the last episode of the 5-week You Asked series. Listen to episode 236 to hear the answers to thoughtful listener questions as well as tips for renting a vacation home.

What kind of experiences have you created with your loved ones?

When all is said and done and you have left this earth, what will your loved ones remember of you? We would all like to leave something behind for our children to enjoy, but nothing can be as important as wonderful memories. If you know that you will be able to leave your children a bit of inheritance, why not take some of that money and create beautiful experiences with them. One way to do that is by taking trips as a family or setting up a way to enjoy your loved ones in a fun setting. My wife and I have recently booked a vacation home for rent in Colorado next summer. Listen to this episode to hear how we did it and the experiences that we are trying to create.

Tips for finding a vacation home to rent

Finding a vacation home to rent is much easier than it used to be. There are many different websites that you can use to find a vacation rental. Look at as many different resources as you can, like HomeAway, Airbnb, and VRBO. Make sure you book in advance to ensure availability during the time you would like. One way to save money is to plan your vacation just before or just after the peak season. This way you can usually still enjoy the great weather and activities that a place has without the crowds and the hefty price tag. Another thing you may want to consider is the logistics of travel. How easy is this place to get to? Will your family be able to come? Listen to this episode to hear these tips and more for renting a vacation home.

What do you do if there is a market correction right before you decide to retire?

One listener asks how they can prepare for a market correction that may occur right as they get ready to retire. This is where agile retirement management plays a big role. With agile retirement planning, you are always testing your retirement plan. Another way to prepare for this scenario is to have plenty of cash reserves built up before you reach the time of retirement. Another way to be prepared is to become increasingly conservative with your investments during this time of change. This will help to ease your worries in case anything should happen. Listen to this episode to hear more ways to prepare for any eventuality during your transition to retirement.

What can you do when you inherit a large sum of money?

If you inherit or receive a large sum of money it is important to think tactically. Using a process strategy leads to tactics that you can use to plan what to do with the money. First, you should think about where are you in your life and what you want to accomplish in the next 3-5 years. What does your net worth statement look like? After thinking about these things then you really only have 5 choices. You can spend it, put it in cash savings, pay down debt, give the money away, or invest it. Any time a client receives a lump sum I walk them through this process to help them move forward. Listen to this episode to hear how I help clients strategize what to do with their money.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

  • [2:23] A great way to spend time with loved ones is by creating experiences
  • [7:00] Tips for finding a vacation home to rent

PRACTICAL PLANNING SEGMENT

  • [14:36] What tax strategies can one use to lessen the burden of taking 2 RMDs?
  • [16:50] Confidence ratio is good but then there is a market correction
  • [20:14] What can you plan for when you inherit a large sum of money?
  • [23:50] What is Roger’s take on annuities?

THE HAPPY LAB SEGMENT

  • [27:30] Let’s think about our first cars

TODAY’S SMART SPRINT SEGMENT

  • [30:22] Know what your realized capital gains are in your taxable accounts

Resources Mentioned In This Episode

Roger’s YouTube Channel - Roger That

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: RAM236.mp3
Category:general -- posted at: 6:00am CST

On Episode 235 of Retirement Answer Man, I share helpful tips on adulting. Some of us in our 50s and 60s may not have everything in life figured out quite as much as we thought we would by now. I discuss an article that I read recently that has adulting tips that actually include great advice and I add in some (expert) advice of my own. This episode is the third episode in the You Asked series and our listeners continue to ask fantastic, intelligent questions. To hear the answers to these interesting listener questions as well as hearing some great life tips, listen to this episode now.

Adulting tips

You would think that by the time we are in our 50s and 60s we would have this life thing all figured out. Well, sometimes I do feel that way and sometimes I don’t. It’s great to be reminded of what we can do to make the most out of the one life we have. Number one on the list is: what you do every day is more important than what you do once in a while. What are you doing every day to improve your life? Listen to this episode to hear more tips like how every medicine can become poison, why you should play your own game, and how you will find what you seek.

What questions do I wish a prospective client would ask?

We have a list of questions on our resources page that you can use to ask potential advisors in your interviews with them. But one listener asks what I would like a prospective client to ask me in our initial interview. Truthfully, I would like potential clients to listen more than ask. Listen to your advisor's worldview. Do their views line up with your own? Are they talking gloom and doom or rainbows and butterflies? You also need to find out how they view retirement. Are they speaking purely in numbers, or do they take a holistic view in retirement planning? Listen to this episode to hear how to listen to your potential financial advisor.

What steps should someone put in place for late retirement years?

One listener asks an important question in regards to late retirement years especially as cognitive control may diminish. They ask how one can plan for decreased cognitive function in later years. What can we do to prepare our finances and our well being? This is a great question that I would like to explore deeper in a separate series. There are some things that you can do in advance to prepare for this eventuality. You can start by researching your healthcare network, touring care facilities before you need them, and finding a trusted third party to become involved in financial decisions. Listen to this episode to hear the full answer to this important question.

Where should you invest when stocks and bonds are questionable?

Nothing is certain about investing. This is why it is so important to diversify. One listener is worried about investing in stocks and bonds and would like to know where else they can invest. It is important to remember to always think about your balance sheet and not simply about asset allocation. First ask these questions, how much cash reserves do you need? How much money do you need to pay yourself? How much extra do you need? What are your long-term assets and how do you allocate them? Then you can look at how well you are diversified. There are different classes of stocks and bonds that can give you a large variety. If stocks and bonds still worry you then you can look into real estate. Listen to this episode to hear the answer to all the different layers that there really are to diversification.

 

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

  • [2:42] Tips for being a better adult

PRACTICAL PLANNING SEGMENT

  • [11:55] What questions does Roger wish a prospective client would ask?
  • [15:03] What steps should someone put in place for late retirement years?
  • [20:17] Where to invest when stocks and bonds are questionable?
  • [25:33] Some social security calculators you can use

THE HAPPY LAB SEGMENT

  • [27:22] Get outside and socialize and get dirty

TODAY’S SMART SPRINT SEGMENT

  • [28:33] Get the social security calculator from 6 Shot Saturday to help you calculate your Social Security benefit

Resources Mentioned In This Episode

Roger’s YouTube Channel - Roger That

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: RAM235.mp3
Category:general -- posted at: 6:00am CST

August is listener question month on Retirement Answer Man. The You Asked series devotes the entire 5 weeks to answering listener questions. During the hot topic segment, I discuss an interesting article that I read recently about the stats of alcohol abuse in retirement. You may be surprised to find out that over 3 million older adults abuse alcohol. You may even know someone that abuses alcohol yourself. Alcohol abuse is a concern for many retirees, listen now to hear many fantastic listener questions and to hear the main reasons that older adults abuse alcohol.

The main reasons for alcohol abuse among retirees

3 million Americans over age 65 abuse alcohol. There are many different reasons that may contribute to alcohol abuse among retirees. Studies have found that involuntary retirement leads to excess drinking. If you weren’t ready to retire or forced out of your job, you may be apt to drink too much. Another reason for alcohol abuse is your social network. If you live a party lifestyle then your friends may drink more and lead you to drink more. There are many retirement communities that enjoy that party atmosphere. Listen to this episode to hear the other reasons that may contribute to the high stats of alcohol abuse among retirees.

What is the best way to buy a home in cash?

One listener asks how to buy a home in cash when using the assets of the house he is in. He is trying to not be limited by the time frame from the sale of his house. There are a few ways around this. One way is to sell your home first and then live with relatives or find a rental. Another way is to take out a bridge loan. If you have a relationship with your bank or credit union this may be a good choice. Another way is to obtain a line of credit on your current home. Listen to this episode to hear if the last way is the right way for you.

How do you make your 401k and IRA into an income stream?

Be careful when thinking of creating an income stream from your 401k or IRA. Creating an income stream is traditionally how we think about getting income from a portfolio. But that is a dangerous way for baby boomers to think about retirement income because it can lead to investments that may have a lot of yields but have their own risks associated with them But on the other hand, if you just start taking funds out of the IRA or 401k the money could eventually run out. The core investments in your portfolio need to be about total return rather than income investments. This will help you grow your assets. Listen to this episode to hear how to take a more holistic approach to your retirement spending.

What are the pros and/or cons of setting up a gift annuity for charitable giving?

Just what is a charitable annuity? A charitable annuity is usually created after someone receives a large, highly-appreciated, taxable asset. One way to give to a favorite charity and get more from a tax perspective is to gift the asset to a charity and in turn, receive an annuity for the expected duration of your life. This is really a legacy issue and could be considered if you have the desire and wherewithal to do it. The annuity is taxed in different ways, but you would get a sizeable deduction for a portion of the gift. Listen to this episode to hear more about annuities and a lengthy answer to a tricky bond question.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

  • [2:17] What are the main reasons for alcohol abuse in retirement?
  • [7:55] Almost half of Americans shop online while drunk

PRACTICAL PLANNING SEGMENT

  • [10:24] What is the best way to buy a home in cash without having to wait for the sale of the other home?
  • [13:34] A social security clarification
  • [14:49] How do you make your 401k and IRA into an income stream?
  • [18:18] What are the pros and/or cons of setting up a gift annuity for charitable giving?
  • [22:02] A bond question

THE HAPPY LAB SEGMENT

  • [29:54] Treat people the way you want to be treated

TODAY’S SMART SPRINT SEGMENT

  • [31:20] How can you practice self-control?

Resources Mentioned In This Episode

Retirement and Alcohol Abuse article

Roger’s YouTube Channel - Roger That

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: RAM234.mp3
Category:general -- posted at: 6:00am CST

Episode 233 is the second episode in the You Asked series. During the entire month of August, I answer listener questions. In the hot topic segment, I confront the constant precursor that begins every financial conversation - “Given this market.” What does this phrase really mean? Why are people suddenly concerned with the markets now, should they be, and just what markets are they talking about? During the practical planning segment, I get the opportunity to answer several interesting listener questions. You won’t want to miss this episode. Listen now to learn about ‘this market’ and investing for retirement.

Given this market . . .

People think there’s something special about the markets right now, but the truth is, there has always been something going on with ‘this market.’ We had inflation in the 80s. The early 90s presented us with massive corporate layoffs. In the late 90s, we had the tech boom. Real estate was down, then it was up, then it was way up, then down again. We will always feel worried about the things that we can’t control. The most important way to combat ‘this market’ is by diversifying and managing your balance sheet, not just your investments. Listen to this episode to learn why you should be mindful of ‘this market’ all the time and to hear what you should be doing to help you in ‘this market.’

What market are you talking about?

When you preface the investment question with ‘given this market,’ just which market are you talking about? The market is not just the S&P 500. There are so many different markets out there. If you have a well-diversified portfolio then you should have investments in a range of markets. Yes the S&P 500 has had an average rate of return of over 10% over the past 10 years. It has been a nice long run. But this only includes U.S. stocks. The global market has only had an average rate of return of over 2.8%. It is important to know where your money is invested and just how diversified your balance sheet really is. Listen to this episode to hear why it is so important to have an agile approach when investing for retirement.

Why is it so important to have an agile investment practice?

The first thing to consider when investing for retirement is to know what kind of life you want to live in retirement. Next, you need to be agile. Your investment practice should be agile enough so that you can move with ease and without worry when one market gets a bit hairy. Lastly, you must pay attention. Paying attention to what is going on with your balance sheet will allow you to make little adjustments along the way. Investing for retirement is not a sure thing which is why it is so important to diversify and to stay on top of what is happening in ‘this market.’ Listen now to find out how to keep your retirement investment practice an agile one.

My listeners ask the best questions

Are you curious about 401k’s or Roth IRA’s? Do you know about the backdoor Roth IRA? One listener asks about the best way he should be investing for retirement. Have you ever considered buying a small home overseas to use for part of the year? Is this a good idea? When is it a good time to take social security early? What should you do if you get laid off at age 60? I answer all of these questions and much more on the practical planning segment. Listen now to hear my best answers to interesting listener questions.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

  • [2:39] Why do we always preface our investment questions with ‘given this market’?
  • [4:14] What market are you talking about?
  • [7:18] Why is it so important to have an agile investment practice?

PRACTICAL PLANNING SEGMENT

  • [12:15] Should we put more into Roth than 401K?
  • [16:59] How to invest a large lump sum for retirement?
  • [19:33] How to purchase a small apartment overseas
  • [22:08] When is it a good time to take social security early?

THE HAPPY LAB SEGMENT

  • [25:38] Think about what does this make possible?

TODAY’S SMART SPRINT SEGMENT

  • [27:54] Respond to our email so we can work to serve you better

Resources Mentioned In This Episode

Episode 231 on Maximizing Social Security

Roger’s YouTube Channel - Roger That

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: RAM233.mp3
Category:general -- posted at: 6:00am CST

This month on Retirement Answer Man we are focusing on you! We will be answering listener questions all month long. Since we just finished the Maximizing Social Security series I will answer some social security questions on this episode while the information is still fresh in our minds. If you had any more questions after listening to the Maximizing Social Security series then you will definitely want to listen to this episode to hear some excellent listener questions that I answer to the best of my abilities. Listen now to learn more about social security benefits.

Why should you have an agile retirement plan?

Have you ever wondered how are you doing relative to your peers? We all want to know how we are doing in comparison to our peers. When it comes to retirement savings sometimes it can be hard not to compare ourselves to others. But the truth is other people are on a completely different journey in life. It is important to be agile in your retirement planning so that you are ready for whatever obstacles may arise. Almost half of people end up leaving the workforce earlier than they had planned. This can be due to disability or a layoff from a decline in their field. Listen to hear some interesting facts about retirement to help you understand that it is important to have an agile retirement plan in place.

How do you calculate opportunity costs?

When trying to plan your retirement one challenge is factoring in when to claim social security and when to begin drawing on your own investments. One listener would like to know how to calculate these costs. No one can predict exactly what the market will do, but you need to look at specifically where the money is coming from. The first thing you should think about is: is the money coming from pretax assets or is it taxable? Another factor is whether you are married or not since this will bring spousal benefits into play. Listen to this episode to hear what else you should consider when calculating opportunity costs.

When is the best time to take survivor benefits?

A listener whose husband passed early on asks about survivor benefits. She is only 50 and wonders when the best time to draw survivor benefits is. The answer is different in each situation. Survivor benefits can start at age 60, but it may be a good idea to wait and claim it until full retirement age. You could claim your own benefits at age 62 and then wait until 66 to get the survivor benefits. Or you could do the reverse, you could claim survivor benefits starting at age 60 and then wait up until age 70 to claim your own benefits. One thing to remember is that you cannot double dip. Listen to this episode to hear more about social security benefits.

Can my husband file for social security and then suspend?

One listener asks about the file and suspend strategy for social security that has been used in the past. The social security administration has closed many of the loopholes that were once in play. File and suspend was one of these, so this strategy is no longer an option. Now your spouse must wait until you claim your benefits to receive spousal benefits. Another listener asks about inflation. Inflation is calculated into social security, but I’m not sure exactly how. Listen to hear the answers to all of these excellent listener questions and more on this episode of Retirement Answer Man.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

HOT TOPIC SEGMENT

  • [2:06] How are you doing relative to your peers?
  • [8:02] Almost half of people leave the workforce earlier than they planned

PRACTICAL PLANNING SEGMENT

  • [12:00] If I defer my social security benefit until full retirement age can my wife claim half at 62?
  • [13:23] Is your social security income adjusted for inflation?
  • [14:58] How do you compare taking social security early as to withdrawing from investments?
  • [19:37] Can my husband file for his benefit early and then suspend it after I start receiving spousal benefits?
  • [21:32] A question about survivor benefits

THE HAPPY LAB SEGMENT

  • [24:35] If you want to live a happy sometimes you have to laugh at yourself

TODAY’S SMART SPRINT SEGMENT

  • [27:00] There is always someone that needs a little more grace, give it to them!

Resources Mentioned In This Episode

20 Retirement Stats That Will Blow You Away article

Roger’s YouTube Channel - Roger That

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: RAM232.mp3
Category:general -- posted at: 6:00am CST

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