Retirement Answer Man

You may die tomorrow. You may get sick. There's no way to predict it and there's nothing you can do about it. Yeah, It sucks, I know. I've got the same deal. As important as planning for retirement is, its just as important...no, more important....you make the most of the only life you have. The one that's happening right now!The frailty of life is so easy to forget. We're so busy planning, worrying and doing we can miss enjoying the here and now. Lately, I've had lots of reminders of how important enjoying today is. Last year, my sister passed and aunt passed away, my grandmother (age 96) is in hospice and a old neighbor was just diagnosed with MS. I think of events like these as taps on the shoulder. God reminding me, that I was created to live NOW.Don't just plan a great retirement. Not at the expense of living today. To create a great life, you need to find that balance between living well today AND planning for tomorrow. I know, it's a hard balance to achieve. It might be impossible. You still need to try though. And don't wait, as many do, for a health issue to force your hand. Start today to:Dream up, plan out and begin living an amazing life.In this week's episode, we here Amy's journey to retirement and how health issues helped bring into focus the need to find better balance between living today and planning for retirement? Lessons Learned From Amy's Story Don’t postpone living. Tomorrow is promised to no one. Health issues can hit at any time.Resist the urge to inflate your lifestyle as your income rises. Society has trained us to be consumers and it can rob us of our financial security.Even after financial ruin, you can have a great life.Who is Amy? 46 married 15 yearsTwo children, 19 and 20Owned our own business, CPATeaches part time at a local universityShares the same financial philosophy as her spouseVery debt adverseWhat Does Retirement Means to You? “I enjoy working. I consider being a professor being retired from being a CPA.”“I don’t see us every not doing anything.”“We envision traveling and work camping to help pay expenses.”“I am disabled and my mobility has gotten worse as I’ve gotten older.” What Are You Most Excited About Retirement? “Not having to worry about the money”“Being able to travel”“Retirement means being able to go do what I want to do.” What Are You Most Worried About Retirement? “My health.”“It (health issues) kinda opens your eyes that you’re not promised tomorrow.” How Do You Think You’re Doing? “My grandparents were always a good role model.”“Being a CPA and seeing a lot of people struggle. I didn’t want to structure.” What’s the Worst Financial Decision You’ve Ever Made? “One thing we both regret, as the careers were lifting off…you always think you’re supposed to have that next big thing. The Cars the boats, the house…So we traded in this really nice house for this big mammoth..house. We got into it thinking that is what we were supposed to have.” What has been the Hardest Thing to Deal with Personally in Managing Your Finances? “I think telling myself that we have enough….because we had nothing and I never we want to go back there.”“For the past 40 years we’ve been accumulating and accumulating. It’s hard now to decompress and flip that switch.” What Resources Have Had the Most Impact in Your Life? It comes from your multitude of experiences.Mr. Money MustacheFinancial blogsHow Do You Want to Be Remembered? “Just a good mother, wife and someone that gave back.”“I just want to be happy and for my family to be happy. That’s how I want to be remembered.” I Need Your Help Many of you have asked questions about Social Security benefits. Smart move. Your Social Security benefit may be the most important retirement assets you have. I'm in the process of creating educational materials on how to maximize your Social Security benefits. What are the 3 things you'd like to learn about taking your Social Security benefit?Click here and let me know.

If you're working to build a great retirement, stop listening to weekend investment talk radio. The economics of these local shows encourage the sale of investment product rather than offering sound investment advice. In this week's episode, I answer listener questions and talk about the difference between investment and investment product and why too much worry will rob you of your life. Brenda asks: "What do you think about those weekend radio shows where they talk about "no risk investing" and how their clients "never lose money"? Are they legit?" In my answer I discuss: The economics of weekend investment talk radio.Why you should be careful in responding to messages playing off your fear or greed.The differences between investments and investment products.How to make smarter investment decisions.Janie Asks: Question: My husband and I are both self-employed. (I am 35, he is 40). I am paralyzed with stress about retirement. We save about $20,000 per year, max out Roth, remainder in mutual funds. In addition. we also save for college funds (3 kids) and paying $350/month extra towards 30yr fixed mortgage. (Really have only been able to save like this for past 5 years--prior to that paying off student loans, building business etc.) We have no credit card debt and no car payments. What stresses me out, is that I don't have a traditional 401K so I don't know what is "normal" amount saved. I guess my question is. . . . . is 20% the right amount? Is it WAY low? Way high? Frankly, I want to be safe. I had a very uncertain, unstable childhood. I've built a great life for myself but I find myself not being able to enjoy my efforts because I'm constantly worried about the what ifs. (Are you a financial planner and a shrink. . lol). In my answer I discuss: Why Janie needs to STOP worrying and start living more (I say it with love).Why Janie and her husband should be PROUD of their progress.The dangers of constant financial worry.How a having sound plan can help lessen financial worries.How a good financial planner might bring needed perspective and structure to their financial life.Want to Make Smarter Financial Decisions? Get free access to resources to help you:Create a net worth statementManage cash flow if you hate to budgetUnderstand the basics of Social SecurityClick here and get access to these and over 30 other retirement resources.

Have you noticed how these Journey to Retirement stories have little to do with money? Each listener story has focused on freedom and experiences. Favorite Quote From This Week's Story "It (retirement) means the freedom to do what we want, when we want and where we want.” Lessons Learned It’s important to think about what financial situation your spouse will be in when you pass.Pay attention to fees and make sure the fees pay are adding value to your financial life.Brake the habit of using consumer debt. It can be a major drag on building wealth.Who is Harold Age 56Retired Air ForceCurrent civil servantMarried 23 yearsGoal to retire in 6 yearsWhat Does Retirement Means to You? "It means the freedom to do what we want, when we want and where we want.” "Our big hold up is not having the time to do the things we love."“Our time is limited and everything we want to do feels rushed.” What Are You Most Excited About Retirement? “I’m excited about…well, see above answer.”“Traveling is our big thing.” What Are You Most Worried About Retirement? “My main worry is...if something happens to me that she is taken care of.”“I used to assist widows and widowers upon the death of their spouse. I saw so many times when the main breadwinner died and they were in horrible financial straights. I want to assure my wife is not in the same boat.”“I want to make sure she knows where everything is because I don’t want her to feel paralyzed if something happens to me.” How Do You Think Your Doing? “I’m feeling very good.” Who Do You Use in Your Life to Help Make Smart Financial Decisions? “I have not and I’ve come close on three different occasions.” What Has Been Your Worst Financial Decision? “I really don’t have a big financial mistake, but I have several small ones.”“Prior to my wife coming into my life, I was not at all bothered by carrying debt. After she came into my life, she put a stop to that quickly.”“I never used to pay attention to fees on the mutual funds I would get into.” What has been the Hardest Thing to Deal with Personally in Managing Your Finances? “The 2001-2002 and 2007-2008 markets were very hard to watch the bottom fail out of the market.”“Putting money in is easy to me. Taking money out (in retirement) I think will be mentally a little more difficult.” What Resources Have Had the Most Impact in Your Life? “The Truth About Money” by Ric Edelman“Buckets of Money” by Ray Lucia How Do You Want to Be Remembered? “Well Roger, I’d like to think of myself as a loyal, kind family man.”

Ask anyone and they'll most likely say they want to have a great retirement. But looking at the day to day financial decisions of most people might tell a different story. What you do speaks so loud that I cannot hear what you say.Ralph Waldo EmersonIt's not enough to want a great retirement. You need to decide what it will look like, create a plan to work towards it and execute your plan day by day. In short, you need to live an intention life.This was the message I heard loud and clear from this week's listener story. Favorite Quote From This Week's Story "To this day, when I want something, I think through it and make sure I want it" Lessons Learned From Ken, Jr. Intentional decision making helps you think ahead and avoid rash decisions.Don't overthink investing. Patience is a key to success.Parent's play a big role in shaping how kids think about moneyNot letting your lifestyle creep up as your income grows is essential to wealth creationWho is Ken Jr. Ken, Jr. was a Corporate computer guy for almost 20 yearsMarried 20 yearsNo KidsAverage age late 40’sBoth retiredWhat Does Retirement Means to You? “I think mostly the freedom to set my own schedule. To enjoy anything I want to do."“I do computer consulting on the side.”“I do volunteer presentations at senior centers on technology.”“I loved my day job, its just I wanted all of my own schedule."The truth is, I feel much busier now that I can’t catch up with all the things I saved up wanting to do.” What Are You Most Excited About Retirement? “Actually, part of it is the challenge of planning money over time.”“I just like doing whatever we want to do that week we’ve planned.” What Are You Most Worried About Retirement? “The usual three things, investment return income, expenses and inflation and longevity.” Who Do You Use in Your Life to Help Make Smart Financial Decisions? “It’s been on my list to do”. I planned aggressively for retirement 8 years before I retired.”“I need to…to give me a checkpoint, an alternative view and to help me check in every year or two.”"Mine wasn’t how to get to retire, it’s how to manage the puzzle into the future.” What Has Been Your Worst Financial Decision? “Was not knowing about Total Market Indexes, 20 years ago.” What has been the Hardest Thing to Deal with Personally in Managing Your Finances? “It has been the fine tuning and optimizing…” What Resources Have Had the Most Impact in Your Life? ”My parents led by example. They lived below their means. They lived on one salary. They tracked their spending every day.”"My parents taught me patience.""Clarke Howard" How Do You Want to Be Remembered? “As a whole, I just want to be a good, helpful person.”

"The younger generation is ruining this country!" This was said about the baby boomers. Now it's said about the millennials. The fact is, each new generation brings a fresh perspective that helps our society and country renew itself. Recently I spoke with a "millennial" who, like you and I did, is working to raise a family and save for the future. Want to Learn How to Draw From Your Savings During Retirement? I'll show you the system I use with clients during a free webinar on May 26th at 2:00 pm CST. A free replay will be available to all that register.CLICK HERE to register Favorite Quote "My goal is to get compound interest on my side as quickly as possible." Lessons Learned From Jordan's Journey Millennials are rejecting debt and working hardThere's a big difference between being frugal and cheap. It's important not to rush into big purchases. How important it is for couples to walk together as they manage their finances.About Jordan 27 years oldMarried, one child and one on the wayVery cheap or frugalSchool teacherLoves working with kidsWhat Does Retirement Means to You? The idea if being a millionaire really struck meThat idea of being wealthy sounds goodThe idea of traveling a lot is wonderful What Are You Most Excited About Retirement? What Are You Most Worried About Retirement?Health, obviouslyI think my biggest worry right now is will I have enough money. I think that’s what drives me to save.The other thing that scares me….is the idea of inflation. What inflation will be like in 30, 40, 50 years.My goal is to get compound interest on my side as quickly as possible. How Do You Think You’re Doing? “Based on where most people are, I’d give myself an A” Do You Use a Financial Planner? “I do but probably not as well as I should.” What has Been Your Worst Financial Mistake? Being cheap rather than frugal when buying their home. What Do You Struggle With When Managing Your Finance? She (my wife) just wishes we could spend a little more money and I ‘m just more on the frugal side.…I wish I was a little bit less frugal, but then again I wouldn’t be in the situation I’m in now.” What Resources Have Had the Most Impact on Your Life? Dave RamseyRick Edelman Podcast How Do You Want to Be Remembered? The most important thing to me is to be a good father and husband

We all screw up along the way to retirement. We blow all our earnings. We accumulate a pile of debt. We dig a hole so deep, we wonder if we can every get out and prosper financially.In my 20's I bought a nice BMW and my wife and I built a fancy custom home. Both of us were earning good money and our prospects for future increases were great. I thought this adult career thing was easy. Projecting "normal" wage increases on our income, meant that we would be on easy street. I mean my income could never go down could it?Lets just say I spent my 30's learning hard lessons and cleaning up the mess I made in our 20's. Jen's Journey to Retirement In this week's journey to retirement story, we here from a smart lady that screwed up with debt, dug herself out of her hole and is now prospering.If you're feeling like you're in a financial hole, listen to her story. She dug out and so can you. About Jen Native CalifornianDivorcedMid-40’s (aka 29)No childrenWorks in middle managementWhat Does Retirement Mean to You? “I do believe that as we’re exposed to new ideas…our values shift”“I didn’t realize how much debt could be shackles to your future”“Retirement is freedom for me. Freedom in terms of my determining where I want to spend my time”“Maybe for me it’s not really retirement, it’s financial freedom and independence” What Are You Most Excited About Retirement? “That ability to make spur of the moment decisions” How Would You Have Changed Your 20’s? “I would not have lived what I thought a typical american lifestyle was. I would not have lived beyond my means.” What Are You Most Worried About Retirement? “That I’m not going to make it and if I do my health won’t be there.”“What am I missing now since I’m deferring so much for this date in the future.”“The fact that maybe it’s too late. That I won’t be able to make that catch up date.”“Retirement is the language I grew up hearing. We all work until we’re 65 and then we collect Social Security”.“I don’t want to be that person that I have to augment my retirement.”“You can’t bank on the fact that you have good health in retirement and that you’ll be able to work” How Do You Think You’re Doing? “I would love it if someone could look into their crystal ball and say I’m okay.” Do You Use a Financial Planner? “I’m afraid I’m going to choose someone that is inexperienced or has dealt with a situation similar to mine” What is the Worst Financial Decision You’ve Ever Made? “Oh there are SO many”The decision to be a self employed individual and I was ill prepared with what that meant”.“I got into something like $40,000 of credit card debt”."“I understand depression. When you wake up and there’s nothing and there is nothing I can do to get out of this mess.” What Has been the Hardest Thing to Deal With Personally in Managing Your Finances? “There’s a fear that any moment now my good fortune could disappear.” What Resources Have Had the Most Impact on Your Life? The Little Engine That CouldYoung, Fabulous and Broke, by Suzi OrmanWhy you need FU money, Jlcollinsnh.comMr. Money MustacheHow Do You Want to Be Remembered? “I’m hoping who ever I meet…that I impact them positively.”

Despite what the media and some financial advisors tell us, preparing for retirement isn't about fancy strategies or the best investment. This week listener "Rick" shares his story of how he became a 401(k) millionaire by using a simple but powerful strategy."Rick" was the first listener to share his story. Rick isn't his real name and in order to present you a better image of who he is, I asked him what his financial "spirit animal" was. After an awkward pause he replied tortoise and after hearing his story, I thought it was perfect!As you listen to Rick's story, you may feel like I did...a little jealous. Rick grew up with a sound financial basis from his parents. As you heard last week, I didn't. In fact, I think most of us didn't. If you're like me, don't worry. Regardless of where you are, you can begin a journey towards financial independence. About "Rick" Age 59Has worked for the same company for 30 yearsMarried 30 yearsSame House 30 years3 grown kidsShares hobbies with spouseWhat Does Retirement Means to You? “I found it a little bit frightening"“I love my work…though I;m caught between the parts I like and the parts I don’t like”“I’ve always had a big lazy streak…work has so much structure and so many demands that it keeps me going”. What Are You Most Excited About Retirement? “The lack of stress!""That I’ll have time to do the things I like to do”. What Are You Most Worried About Retirement? “I think it would be health issues”.“I’ve seen a lot of healthy people get hit with significant deseases out of the blue.”“Nobody lives for every but I’d love to have 20-30 years of health left in my life.” How Do You Think Your Doing? “We probably have saved 20% of more of my pay since day 1.”“Even in the early years when my income wasn’t anything special we saved.”“We’re 401k millionaire now.”“Money doesn’t come into our lives just so we can get as many toys as possible, it’s there to help people.”“If you don’t save it, it doesn’t matter what your rate of return is, you’ll never have much.” What Has Been Your Worst Financial Decision? “I didn’t make many money mistakes because my parents were kinda Dave Ramsey people, long before Dave was born.”"When we first got enough money to afford cars, we bought new cars”. What has been the Hardest Thing to Deal with Personally in Managing Your Finances? “I really don’t know an answer to this one.” What Resources Have Had the Most Impact in Your Life? How to Win Friends and Influence People. "That ability to communicate and sell my ideas had as much to do with my intellect when it came to the success of my career.”What Do You Want to Be Remembered By? “I think really all I really want is my kids to remember me a certain the way, like I remember my parents.”“Someone that is honest, generous and was a loving father.” Want to Share Your Story? Tell me below. I'll send you the questions and details on how it will work.As a thank you for contributing to the community, you'll receive a free 30 minute consultation to address any financial planning issue you want.

There are plenty of people around today that will offer their services as a “life coach” or “business coach.” Few have the demonstrated history of success as businessman, family man and friend to man as Aaron Walker. Register for May 26th's Webinar: How to Manage Cash Flow in Retirement Click Here to RegisterIn this episode, Aaron shares his Journey Towards Retirement. Below are some notable quotes from our talk. Aaron Walker's Journey to Retirement What Does Retirement Means to You? “I won’t ever retire. I may slow down but I love building…” “Retirement means, I just want to be safe because I may not be able to work”“I don’t want to quit, but I do believe we should have common sense” What Are You Most Excited About Retirement? “I’m excited I’m able to help ordinary men become extraordinary….pouring knowledge and whatever little bit of wisdom I have into others” What Are You Most Worried About Retirement? “What creeps up sometimes is the fear of not being healthy”“Recently I started paying attention to my health…I’ve lost 40 lbs since November 1st” How Do You Think You're Doing? “I’m a big real estate guy, 75% of my retirement is in real estate”“I wish I’d saved a little more cash”“I worry sometimes if I’m balanced properly”Who Do You Use in Your Life to Help Make Smart Financial Decisions? “For the most part, I’ve done it for myself, that’s the reason I’m not as balanced as I should be” What Has Been Your Worst Financial Decision? “I’ve never blown money, I work to hard to make it”“Its simultaneous with one of my biggest successes. It was when I was 27 years old and I sold my business”“Looking back now, I think I probably could have parlayed that into something larger”.“I didn’t know I was going to get bored as fast as I did”“I came from a very poor family…when to opportunity came along, it was the most money I could ever imagine” What has been the Hardest Thing to Deal with Personally in Managing Your Finances? “In managing my finances, I’m self reliant and I probably should have been looking outward more and seeking more expert advice” What Resources Have Had the Most Impact in Your Life? Essentialism: The Disciplined Pursuit of Doing LessHow to Win Friends and Influence PeopleThe BibleTED TalksMastermind groups “absolutely a game changer for me” What Do You Want to Be Remembered for? “I want to be remembered as the guy that helped other achieve their goals and dreams”‘I want to be remembered as the guy that stops waiting to talk and fully engages” Free Resources From Aaron Walker to Help you Find Meaning Click Here to Get Aaron's Free ResourcesA Personal AssessmentWhat Do I Want?Steps to a Productive Day

At the end of day, all that matters is what retirement means to you. Forget what the commercials say. Forget what the brochures say. Forget much of what your advisor may say. You don't have a "number", you have a life that you get to define and live. This week, I'm starting a new series called Retirement to Me, where you, the listener, get to share the lessons you've learned along your journey and what retirement means to you. Your Story is Important. Each of you have unique experiences, knowledge and perspective about money and retirement. By sharing your story, you can have a positive impact on other's journey and help them view retirement from a fresh perspective. My guess is, by telling your story you'll learn more about yourself as well. Here's How it Works I'll interview willing listeners for approximately 20 minutes about their money and retirement story.Our conversation will be just that: an informal conversation (no fancy interview structure).I'll ask the same 10 questions (see below).You'll get the exact questions beforehand.Our talk will be prerecorded to allow for review and editing before publishing on the podcast.You can share as much or as little as you're comfortable with. In order to protect your identity, you can change your name and/or elements of your story.As a thank you, any participant whose talk is aired will receive a 30 minute planning call with me to address any financial issue they'd like to discuss.Interested? Let me know here (remember to include your e-mail!) I'll Go First To start things off, here is my money and retirement story.

If you want to retire and are looking for guidance don't just find someone smart. There are plenty of smart advisors with plenty of smart ideas. It's been my experience that smart by itself, isn't enough. If you want to retire successfully, it's better to seek out wisdom."It ain't what you don't know that gets you into trouble. It's what you know that just ain't so."In this episode, I discuss some of the value a wise advisor can bring to your financial life. Including:Finding blindspots in your retirement planBring perspective learned from walking the journey with others on the same pathCreative solutions to your unique lifeManage emotions that can derail the best laid plan to retireDiligence to help you address the right issues,Consistent communication to assure the right conversations happen in the right frequency so you can make adjustments as your life unfoldsListener Question One question I had is if the Monte Carlo model factors in the different investment bucket assumptions. My assumption is it assumes the regular draw out amounts occurs evenly between the buckets in good times and bad. If this is the case then not drawing on the equity bucket during bad time will help to increase the likelihood of not running out of money in retirement. Please clarify. Thanks, MonteGreat observation Monte. How you manage drawing from your assets during retirement is critical. Do it wrong and you could seriously handicap your chances of maintaining your lifestyle. In this episode, I answer your question directly.How to manage drawing from your assets during retirement is one of the most common questions I get. To help you understand, it will be the focus of my next webinar. How to Manage Cash Flow in Retirement Webinar During the webinar I'll show you how to:Draw from your assets for incomeSet up and manage your cash flow reserve bucketsManage cash flow during down marketsevaluate the best strategy for youWhen: Tuesday, May 26thTime: 2:00 CSTClick Here to register

If you work for a company you're a cog in the machine. You're a replaceable part, easily eliminated or replaced if it suits the needs of the company. Sorry to be so blunt. I'm not trying to hurt your feelings. It's just important you accept this if you're going to thrive in the years ahead.Marc Miller is the founder of Career Pivot, which helps Baby Boomers design careers they can grow into for the next 30 years. Miller authored the book “Repurpose Your Career: A Practical Guide for Baby Boomers.” You can follow Miller on Twitter or Facebook. In this episode we discuss: What to do when you're offered a buyoutWhat is negotiableHow to evaluate a buyout packageHow to maintain your professional networkThe loss of the "social contract" How to succeed in the freelance economyWhy everyone is an entrepreneur

Most of the personal finance blogs you read focus on how to be more frugal. How to cut costs so you can safe and invest for retirement. it's important to be frugal but frugal only goes so far.I've invited Paula Pant from Afford Anything to chat about frugality and what might be a better place to focus your time if you're saving for retirement.Paula, is a thirtysomething that has chosen a unique path for her life. She's rejected the "normal" work path baby boomers learned and has embraced the opportunities of the growing freelance economy. Us "old folks" can learn from this sharp lady.Show Topics Include:The diminishing returns of frugalityThe opportunities to earn incomeA different way to approach retirementUnderstanding the new freelance economyWhat side hustle isHow to find income opportunitiesHer article Flex Your Hustle MusclePLUS Listener Questions & Webinar Feedback What are the actual mechanics of drawing money from my accounts during retirement?Can you explain return sequence risk?Is iCloud storage save for my In Case of Emergency plan?How do distributions work from an inherited IRA

Just because Bill & Sally can't achieve their ideal retirement, doesn't mean they can have a great retirement. In this episode, we'll discuss: Why it's okay to not be able to achieve an ideal retirementCommon ways to adjust your retirement planUncommon ways to adjust your planHow to gauge how much investment risk to take during retirementPreview tomorrow's webinar results showHow to Access Tomorrow's Free Webinar If you've signed up to plan alongside Bill and Sally, you'll receive an e-mail with all the details.Thursday, March 26 at 7:00 pm CSTWebinar replay available to those that registerIf you haven't and want to attend...Click Here

Yeah, you read that right. Bill and Sally cannot achieve their ideal retirement. That really sucks....or does it???Remember in episode 55, when I outlined Bill and Sally's ideal retirement? I said "too many people are being too reasonable when setting their retirement goals" and challenged you to think BIG about yours. Well, that's what Bill and Sally did. The fact that they can't achieve their ideal demonstrates that they did it right. They thought BIG about what their life could be. Now that they realize that "ideal" isn't reasonable, they can begin the work of prioritizing what matters most to them. That's an awesome accomplishment. Only by thinking BIG first were they able to identify everything they might want. Now they can choose the most important things.In this episode, I review their ideal retirement goals, financial resources and the results of their ideal retirement analysis. Here Are Your Action Items for the Week: Listen to the episode and think creatively about how we can build a plan for their retirementReview the ideal retirement analysis, are we missing anything?Answer the challenging questions. This is important because YOUR input will be used in our live webinar on March 26th. Help Create Their Retirement Plan What possible changes can they can make?What changes would have the most impact?What are some "outside-the-box solutions you've seen?If they are unwilling to take more investment risk, what is the impact on their life goals?Go Here and submit your answers and I'll work to incorporate them into next week's webinar. Bill & Sally Want to Retire Webinar, March 26th at 7:00 CST If you're not already signed up to plan along side Bill and Sallysign up for the webinar here.

If you asked me what was the most important item you should do to track your financial health I would tell you to track your net worth. A net worth statement is the most powerful tool you can use to track your financial progress over time. This simple one page document represents the sum of all your financial decisions over time. There's no hiding with good intentions on a net worth statement. Ultimately, I think, it reflects what you value most. Organizing Your Financial Resources Now that Bill and Sally have dreamed big and identified their needs, wants and wishes for retirement, it's time to see what resources they have to work with.This week, we review their cash flow (income sources and expenses) and create a net worth statement to see their assets and debts.If you've signed up to plan alongside Bill and Sally, here are your action items for the week. (Haven't signed up yet? see the bottom of this post) Here’s Your Action Items for This Week: Make sure to listen to the episode. I review your comments and walk through Bill and Sally's financial situation.Review Bill and Sally’s cash flow summary and net worth statement. This will give you a snapshot of what the end result can look like.Watch the short video. I walk you each step of identifying your income sources and creating your net worth statement.Complete these worksheets. It might take a little homework to get the estimated value of your social security, pension, assets and liabilities. It’s worth the effort. Your net worth statement will be the key document you use to track your financial life.Estimate future retirement income sourcesBuild your net worth statementManage your current lifestyle and cash flowChallenging Questions of the Week Should they pay off their car loans? Why or why not?Should they contribute to ROTH IRAs? Why or why not?Are they saving enough? Why or why not?Respond with your answers here. It's Not Too Late Get All the Free Resources and Access to the Webinar on March 26th Click Here to Sign Up

Too many people are being too reasonable when setting their retirement goals. STOP! When you start your planning for retirement it is critical that you think big. There's time enough later to be reasonable. Right now, focus on what your ideal life would look like....what would your life be if you could "have it all"? I know, thinking big about your future, is much harder than it seems, especially when it comes to retirement. That okay, I'll help you snap out of it. Dream Up Your Ideal Retirement In this first step of planning with Bill and Sally, I personally challenge you to suspend our reasonableness. Sit down with your spouse and a glass of your favorite beverage (for these talks, this is mine) and dream big. Your Action Items for This Week: (For those of you that signed up to plan along)Listen to this episode. You'll learn what their ideal retirement looks like and some issues they face.Review Bill & Sally's Ideal Retirement Summary (If your not signed to receive it go here).Watch the short video. In it I give quick tips on how to think BIG about your retirement.Complete your own IDEAL retirement worksheet. Start off with your needs, dream a little and jot down some wants and then dream a lot more and add your wishes. DON'T BE REASONABLE, just put down needs, wants and wishes that would truly be meaningful to you.Ask questions. Having trouble dreaming big about your retirement? Shoot me an e-mail. I’ll do my best to answer your question. Send me an e-mail or go here. Challenging Questions of the Week How should Bill and Sally address their personality differences?How have you dealt with a similar issue?What other potential issues do you see in their ideal retirement?Send me an e-mail or go here to give my your answers. It's Not Too Late to Get All the Free Resources to Plan Too Just Click Here

Want to retire a year earlier? Maybe have a bigger lifestyle budget for travel? You might be able to if you change your relationship with your car. "According to Edmunds.com, the average monthly payment on a new vehicle is $479. Considering your existing car is trouble-free, saving that $479 per month means an annual savings of $5,748 by postponing the purchase of a new vehicle" (bankrate.com).In this episode I talk with James Kinson from Cash Car Convert. James is on a mission to change how people think about and buy cars. What to look for when you're buying a used car.The value of buying usedThe dangers of long car loansHow to buy a used carThe value of buying a used car from a new car dealerHow long a car can last (and still look great)Why you should do all the schedule maintenanceIn the Market for a Car? Connect with James and learn how to do it rightThe Cash Car Convert blogThe Cash Car Convert podcastBill and Sally Want to Retire Based on your feedback from January's Can Carl Retire series, I've created a case study for us to work through in the month of March. Meet Bill and Sally :Bill is 58 years old. Sally is 59They've been married for 13 years (their 2nd marriage)Both work outside the homeEach has an adult child from a previous marriageNeither has a pensionBoth started saving later in life (early 40's)Bill is very worried about the markets and world economySign up and plan alongside Bill and Sally and get access to an exclusive retirement planning webinarrogerwhitney.com/billsally

Okay, you're planning for retirement, but what exactly are you planning for? I don't think most of us think about this. We work and save and work and save, but spend little time figuring out what we'll actually do when we retire. In this episode, I interview Tom Schwab of Goodbye Crutches and Inbound for eCommerce. Tom is a great example of someone that overcame a potentially devastating business set back to build a build a business that he can enjoy well into retirement. There are a lot of great lessons we can learn from his story. Such as:How your lifestyle choices can set the tone for your entire lifeWhy we're created to serveThe importance of focusing on people and experience rather than thingsHow to organize your life to stay engaged well into "retirement"How to think intentionally about your career

I'm still amazed at the level of engagement and transparency "Carl" has had throughout the process of creating his retirement plan on the show. I'm just as amazed at how much the series has resonated with you, the listener. Your questions, comments, suggestions and thank you's made the series better.In this episode, you'll get to hear directly from Carl and Jane as we discuss the Can Carl series, retirement, planning, investing and where they go from here. Recently, while on a business trip, I had the privilege of spending an evening with Carl and Jane at their home. After a great dinner (thank you Jane), we sat together and I recorded our conversation. Lots of pearls of wisdom here, so it's worth a listen. A Personal Reflection on “Can Carl Retire”…. On September 5th, 2014 a listener to The Retirement Answer Man wrote the following email to Roger:Roger, New to you, impressed. Spent 30 mins in your library today - well done. Wondered if you'd be interested in doing a "deep profile" as a blog? I could share all my detail, you could use as a case study for a blog (keeping me anonymous, preferably?). I'm 51, manage my own $, have ~ $1.8 M net worth and pension, looking to sell house to downsize to cabin (2nd home at the moment), have a detailed tracking of actually spending by month. Question: Out by 54, 55, or 56? How much "cushion" is worth the extra time being a corporate rat vs pursuing our dream of RV'ing and working seasonal jobs in National Parks. I could share any level of detail you'd ask for to build an interesting case study. Interested?That listener was me, who you all now know as Carl.Three nights ago I had the wonderful experience of sharing dinner in my home with Roger and my wife (who you know as Jane), and found it to be a perfect celebration of success. Success via an innovative podcast series which grew from that seed of an idea first planted in that email 5 months ago. It’s personally very rewarding to have conceived of an original idea and participated as the idea grew to a beneficial fruition, and I’d challenge all of you to seek similar opportunities. So…..……What worked?Beneficial: To me (free retirement review), The Retirement Answer Man (interesting podcast fodder) and The Listener (education and free resources). Find something that brings value to folks beyond yourself.Mentally Stimulating: The podcast recording sessions with Roger were a blast. I’ve been 100% “Self Studied” until now, having the opportunity to banter with a pro was stimulating. Find something that stimulates your mind.Assuring: Having a professional review of this critical question (Can You Retire?) goes a long way in steading nerves as you approach perhaps the most important decision in your working career. Find something that answers that “nagging question” in your life.Relationships: They’re important, and a new relationship was built between Carl and Roger that I am confident will continue for years to come. Find ways to build relationships.To close: Carl didn’t do anything extraordinary. He came up with an idea (case study), identified the right platform (podcast), then approached the right person for the concept (The Retirement Answer Man). Any of you can do the same, and I hope this series encourages you to try. Your Feedback [feature_box style="2" only_advanced="There%20are%20no%20title%20options%20for%20the%20choosen%20style" alignment="center"]From Dave "After living through the dot com downturn in 2000-2001, I never really recovered in my ability to deal with the market volatility and staying the course in downturns. As a result, I have generally stayed out of the market for many years. I know that inflation risk is an issue so I am slowly getting back into the markets. I would like to see you cover a case study or set of recommendations / strategies that would address these issues."From Kevin"I’ve been enjoying your blog & podcast for the last three months, your content is interesting especially for finance geeks like me. I would be interested in either another real world example or case study of a plan you've previously worked on that does not include a large pension."From Ken"I really enjoyed the podcast series with Carl.......I would like for you to do another with someone that isn't perhaps as well off financially and much closer to retirement... I think this would prove beneficial to all age groups." You Get to Help Me Answer: Can Bill and Sally Retire? Starting March 4th, I'll start a new series with a fact set based on your feedback. And the best part is, this time, YOU GET TO HELP. Just like last time, you'll have the chance to sign up to plan along side Bill and Sally and attend a live webinar at the end of the month.Unlike last time, this will be a pure case study (no live subject) and you'll get to help build the plan for Bill and Sally. Each week, as we walk through each step of process, I'll ask you to brainstorm solutions to help Bill and Sally get close to their IDEAL retirement. I'm st

WOW, your response to the Can Carl Retire? series in January and last Friday's results webinar were off the charts. I received so many kind comment and sharp questions from you. In today's episode, I'll answer a portion of your questions and will work to get to the rest of them in next week's episode. Please keep them coming. If you're wondering, no doubt thousands of others are too. Want to Watch the Webinar Replay? The webinar replay will remain available until Sunday, February 8th (11:59 pm). You can watch it by clicking below.rogerwhitney.com/webinar Listener Questions Answered in This Episode From Ken "I didn't see you mention an emergency fund, why is that?"From Ken "What provision is made to pay for taxes on his 401(k) plan when required minimum distributions are required since most of his wealth is in tax-deferred plans?"From Randy "Quicken sells software, called "WillMaker Plus", to create "a Will, Health Care Directive, Durable Power of Attorney for Finances and other essential documents". Do you have an opinion on the value of such software?"From Joe. "I appreciate the webinar yesterday; helps me in thinking thru retirement planning. The question came up around pensions and taking a lump sum vs. taking annuity payments. You said something to the effect of "99% of the time it's better to take the annuity." That's one of my central planning questions, as I have a company pension that I will eventually be drawing from.From Ken. (Ken was getting into this) "I just listened to the replay and thought it was very informative and provided a nice example of the process. As you mentioned during the webinar, given Carl is lucky enough to have a healthy pension which is rare these days, it would be interesting to know what the equivalent lump sum in current investable assets would need to be to get him to the same answer if he did not have the pension."From Dave. Good podcast and interesting information about Carl's situation. I am wondering whether your estimated returns for Carl were too aggressive. Where the estimated returns (8+%) that you were showing after tax returns? It just seems, while the portfolio would be a nice blend, that the return estimates were higher than I have been estimating in my personal returns. Regards, DaveQuestion for You: What do you want next? The Can Carl Retire? series really resonated with most of you. It's been exciting to see you participating and asking question.What would you like me to focus on next:Another real world example?Case studies of plans I've worked through (good and bad)What to do if you're behind on savings?More webinars? If so, on what? Social Security Maximization, goal planning or understanding market returns are some topics that come to mindClick here and let me know

Don't Skip This Step! Sign Up for Friday's Webniar HereOne of the most heartbreaking things I've seen over 24 years advising families is a surviving spouse or family member dealing with an unorganized estate. Not having your affairs in order, puts a huge burden on your family and compounds the stress of there loss.According to a recent survey, 61% of people don't have a will. Even those that have a will, have failed to organize their financial information to make it easy for their loved ones to act. Don't be one of them.Leaving a big mess of your affairs and estate plan will make life suck for your family when you die. A messy estate can take major financial and emotional tolls on your family.Take the simple steps outlined this week and give a beautiful gift to those you leave behind.Here Are Your Action Items for the WeekListen to episode 50. We discuss, the basics of organizing your estate.Review these worksheets. These 3 worksheets will give you the basics to make things easier for your heirs: 9 Important Estate Planning StepsWhat Your Survivors Need to KnowWhat to Do When A Loved One DiesCompete these to give your spouse or family the gift of an organized estate. Organizing Your Financial LifeCreate an I.C.E. PlanFamily Love LetterAsk questions. If you're stuck or unclear about something, shoot me an e-mail. I'll do my best to answer your question. Simply click here and ask your questions.Don't Miss Friday's WebinarDon't forget to tune in to the Can Carl Retire? Results Webinar this Friday at 3:00 CST.You'll watch live as Carl finds out whether he can achieve his ideal retirement.Plus, you see live as I stress test Carl's plan against the most common worries in retirement:Bad market returnsHigh inflationLong-term care costsOutliving his assets

Risks can rob you from living a great life. Focus too much on them and you can miss out on a full life. Ignore risks and you can destroy your family's financial security. If you've started planning for retirement, you're probably overwhelmed with all the things you should worry about. This week, we'll address, head on, some of the biggest risks during retirement and help you assess how to handle them. Important Note: If you haven't listened to step 1 or 2 of Carl's Plan you'll want to start there:Step 1 Imagine Your Ideal RetirementStep 2 Identify and Organize Your Financial ResourcesThis week, you'll focus on identifying and managing some of the big risks we all face during retirement.Longevity risk--Will you live to 100? Here's a calculator to estimate our chancesInflation risk--What could the cost of living be 15 years from now? Find out hereMarket riskTax riskHealth care riskLong-term care riskHere's Your Action Items for This Week Make sure to listen to the episode. I discuss each one of these retirement risks and provide some insights into how you can plan for them.Review Carl's health care cost estimates. This will give you some insight into what you can expect.Review worksheets. Review the Facing the Complexities of Medicare and Choosing Long-Term Care Insurance worksheets. These will give you the basics on how to address each area.Complete the Will I Live to 100? calculator. The odds might be greater than you think.Complete the Retirement Health Care Cost Estimator (optional). If you submit it, you'll receive a free personalized estimate of your retirement health care costs to help you plan for the future.Finally, ask questions. If you're stuck or unclear about something, shoot me an e-mail. I'll do my best to answer your question. Simply click here and ask your questions.In week 4, we'll discuss how to organize your affairs and set a gifting strategy for those you love. Want Access to the Free Resources to Plan Along Side Carl? It's Not Too Late to Create Your Ideal RetirementSign up (rogerwhitney.com) and you'll receive:All the retirement planning resources from week 1 and 2This week's resourcesAccess to next week's webinar to find whether Carl is positioned to achieve his ideal retirement.

Well, Were You Able to Dream Up Your Ideal Retirement? It can be hard to think big. Hopefully, you stretched yourself. No worries, if you're not finished. Your life is always a work in progress.Important Note: Sign up late? If you'd like the resources from week one, replay and let me know.This week, you'll focus on identifying and organizing your financial resources. In this step you'll create a clear snapshot of your current financial situation. This is a critical step. Don't get bogged down in getting every number right. You can fine tune things later on. Just focus on getting a read on your current financial picture.For some, this can be hard to look at. If that's you, please relax. We've all walked a similar road (including me!). If you've made mistakes (maybe BIG mistakes), forgive yourself. The fact that you're receiving this e-mail proves, you are working to create the best life you can. Here's Your Action Items for This Week (To get assess to these resources sign up at rogerwhitney.com) Make sure to listen to the episode. There are a number of subtle points made that will help you as you plan. For example, Carl made an important statement early in our talk. He said "Retirement planning should be about running to something, rather than running away from something."Review Carl's cash flow summary and net worth statement. This will give you a snapshot of what the end result can look like.Watch the short video. In it I give quick tips on how to think BIG about your retirement.Complete these worksheets. It might take a little homework to get the estimated value of your social security, pension, assets and liabilities. It's worth the effort. Your net worth statement will be the key document you use to track your financial life.Estimate future retirement income sourcesBuild your net worth statementManage your current lifestyle and cash flowFinally, ask questions. If you're stuck or unclear about something, shoot me an e-mail. I'll do my best to answer your question. In week 3, we'll discuss some of the financial risks during retirement and ways to decide what to do about them. It's Not Too Late to Create Your Ideal Retirement Sign up (rogerwhitney.com) and receive weekly e-mails with all the resources we've covered.

Are you ready to dream up your IDEAL retirement? This is week one of the Can Carl Retire? virtual retirement planning event. If you signed up for the free resources, you should an e-mail with all the items you need to complete this first important step. Haven't signed up yet??? No worries, there's still time. Click here and learn how you can plan along with us. Dream Up Your Ideal Retirement In this episode, you'll listen is as I help Carl clearly defines his IDEAL retirement. This is the week you get to think BIG about your future too. Don't worry about getting it all right. Your goals will change countless times. Focus on identifying what you care about right now. We'll discuss a process later, on how to adjust them as your life unfolds. Your Action Items for This Week Make sure to listen to the episode. There are a number of subtle points made that will help you as you plan. For example, Carl made an important statement early in our talk. He said "Retirement planning should be about running to something, rather than running away from something."Review Carl's Ideal Retirement Summary. This will give you a snapshot of what the end result can look like.Think BIG. Not thinking big enough could rob you of your dreams. Suspend your reasonable attitude and focus on what "having it all" might look like. There will be time later to see what is actually possible. For now, focus on creating your IDEAL.Watch the short video. In it I give quick tips on how to think BIG about your retirement.If you're married, include your spouse. Each of us have our own dreams of the future. You're spouse's may be similar but different. Now is the time to hear each others dreams and to create dreams together. This way, the two of you will be in harmony about the future. This is crucial to a great marriage and a great retirement.Complete the worksheet. Start off using scratch paper and go crazy with your dreaming. No filters here. Then, identify the goals that truly mean something to you. Don't forget to rate them as described in the worksheet. This will be important later on.Finally, ask questions. If you're stuck or unclear about something, shoot me an e-mail. I'll do my best to answer your question. Simply hit reply to the e-mail I sent you with the resources.It's Not to Late to Plan Alongside Carl Click here

It's New Year's Eve and I've got two important items to help you create a great year in 2015. So let's get to it. Item 1 Get Your Retirement On Track Starting January 7th, I'll be creating a retirement plan for a listener, "Carl", of the Retirement Answer Man Podcast ON THE SHOW. The best part is, you can plan along with Carl and I!!! Click here to find out all the details. Item 2 Start Making Your Dream a Reality (with Lady J) Tonight a special lady, Jevonnah Ellison, is hosting her book launching party. On January 19th, her book, You Have What It Takes: How to Finally Start Making Your Dreams a Reality, hits book stores. If you're feeling stuck and want to jumpstart your 2015, please listen to our talk and consider buying her book. She has an amazing message and spirit that just might start you on your journey.You can visit her blog and get a free worksheet to help you discover your purpose here. THANK YOU A big thank you, for all your e-mails, phone calls and messages. You're encouragement and content suggestions are great. I've got a lot of cool stuff planned for 2015 to help you find that balance between living well today and securing a great tomorrow.

One of the most common comments I get from readers is how hard it is to get straight answers to their most important retirement planning questions. "When can I retire?" "What lifestyle can I expect?" "Will I run out of money?" What am I missing???"Starting January 7th, I'll answer these questions for a fellow reader (Carl). You'll get to listen in as we create his retirement plan each week, culminating in a LIVE webinar where you (and Carl) will hear the results for the first time.NOTE: check out the bottom of this post for an opportunity to plan alongside CarlWho is Carl?51 years oldMarried 27 years with a 19 year old child29 year corporate executiveWhat He Wants From the Plan:When can I get out?Will I run out of money?How do I plan for worst case scenarios?How do I handle healthcare?During the webinar, you and Carl will watch LIVE as I stress test Carl's plan against the most common retirement worries:Bad market returnsHigh inflationLong-term care costsOutliving his assetsHere's the Schedule January 7th Defining Carl's ideal retirementJanuary 14th Reviewing Carl's financial resourcesJanuary 21st Identiflying risks to Carl's planJanuary 28th Reviewing Carl's estate and giving wishesJanuary 30th LIVE webinar presentation giving Carl his resultsRegister now and create your plan alongside Carl You'll get: Weekly summaries of Carl's planFree worksheets and checklists to plan alongside CarlFree video tutorials to help you in each step of the processRegistration to the LIVE webinar on January 30thGo to www.rogerwhitney.com/rpl

"Why won't someone give me a straight answer?" This is the comment I get most from listeners trying to find answers to their most pressing retirement planning questions. In 2015, I'm stepping up my game to help you find the answers to your most pressing retirement planning questions. Announcing Retirement Plan Live Want to find the answers to the most common retirement planning questions?Can I retire?What the risk is that I'll run out of money?What lifestyle can I expect during retirement?What risks could blow up my plan?Starting January 7th, you'll get the chance to listen in as I work with a fellow listener, "Carl" , to answer these very questions as we create his retirement plan.You'll listen in, as I walk Carl through each stage of the planning process culminating with a LIVE webinar in which I present the results of Carl's plan.Who is Carl? Carl is a listener to the show. He reached out to me earlier this year with a fantastic idea. He said, "What if, you work with me to create a retirement plan and recorded the whole process so listeners can hear how it works?" "BRILLIANT", I said, "I don't think it's ever been done". So we did it.Carl and I have never met and have only interacted for this project. Each week, we'll play our meeting for each stage of the planning process. On January 30th, we'll have a LIVE webinar where you can watch and listen as I present the results of Carl's plan. Frankly, I haven't done the analysis yet, so even I don't know the results.This is your chance to get a demonstration of the retirement planning process and hopefully see how your most important retirement questions can be answered. Want to Create Your Plan Along with "Carl"? Sign up for weekly e-mail updates and launch yourself towards a great retirement. Each week during the month of January you'll receive a worksheet along with an instructional video to walk you through each step of the process. How to Launch Yourself to a Great Retirement with Stacking Benjamins My favorite financial podcast (besides my own ;-) ) is Joe Saul-Sehy's Stacking Benjamins. It's informative, fun and often times just goofy. To quote his site, " In a world of hard-hitting, deep-thought financial stories, SB’s goal is lighter, more relaxed entertainment about money."In this episode, Joe and I discuss his recent white paper, "Why You Shouldn’t Follow Dave Ramsey, Suze Orman or the Motley Fool".Joe doesn't argue that you shouldn't follow a money guru, just that it's important you follow the right one. The right one depends on what stage you're your at in your money journey.He says there are three stages of your financial journey and an appropriate guru for each stage.Stage One (Launch) Getting off the groundStage Two (Orbit) Achieving financial freedomStage Three (You could die) Build serious wealth. Create an awesome legacyTo get a copy of his free white paper click here.

Seriously, does watching the market and comparing your investment performance to some benchmark help you create a great life??? Of course it doesn't. So stop. Stop worrying about "keeping up with the market" and get down to the important work of creating a great life. INVEST WISELY Segment If you are investing without trying to achieve some greater goal, you're setting yourself up for disappointment.Comparative investing is a losers game. It can:create a never good enough mindsetcause you to over trade and chase investmentsmake you susceptible to product sales pitchescause you to take too much investment risk (for no reason)increase your stresscause you to become disillusioned with investingLast week, I asked a recently retired couple what they wanted. Did they want to keep up with the market or have confidence that they could maintain their lifestyle? You guessed it, they didn't care about the market, they cared about their life. Smart ones, they are. PLAN WELL Segment During working years a lot of our purpose comes from our job, but once we stop working nothing will automatically replace them. Unless we are intentional and planful, retirement can feel like a big let down.John Knowlton, CFP just launched beerandpeanuts.net to help you avoid this big letdown. He's created resources in 3 areas that research has shown are critical to a healthy retirement:Purpose (a reason to get out of bed)Meaning (what if leisure isn't enough?)Social contact (people to connect with)Listen to our great conversation for key insights into how to create your own fulfilling retirement. Want to Learn to Retire with Confidence? Get ready for a special never before seen event coming in January. Get Ready for Retirement Plan LIVE. Sign up at rogerwhitney.com for free updates on this special month long event.

Yeah, there are lots of articles this time of year talking about year-end tasks to complete, but mine are Super Simple ones. Okay...maybe it's just my way of trying to sound different. Still, these ARE 7 relatively simple tasks that could make a big difference in your financial life (so indulge me). Invest Wisely When Should I Rebalance My Portfolio? Today I read an article on market watch titled "The Hidden Truth About Rebalancing Your Portfolio" on marketwatch. The article discussed a recent study that argues that rebalance can actually increase the risk in your portfolio. In this episode, I discuss my observations on their conclusions and my "best practices" for rebalancing a portfolio during retirement. Plan Well 7 Super Simple Tasks to Complete Before You Rock in the New Year Pay your real estate tax bill, before year-end if you want to deduct it on your 2014 taxes.Get your RMD done. If you are over 70 1/2 or have inherited an IRA you need to do this before year-end to avoid a huge IRS penalty. Click here to learn more.Identify opportunities to harvest tax losses. If you have realized gains for the year, look for current positions with losses that you can use to offset your gains. I discuss a few strategies for doing this.Conduct an annual beneficiary review. Even if you know the primary beneficiary is correct, you still need to make sure you have contingent beneficiaries. There is a worksheet to do this in the Retirement ToolboxConsider year-end giving. You can give $14,000 to any individual without tax consequence. If you have charitable intent, consider making charitable gifts before yearend.Change your important passwords. Changing your passwords is like locking your door at night. It's just common sense. This is so important and almost no one does it. The holidays are a perfect time to do this. I use a password manager (1Password) to create and track complex passwords. Consider diversifying your tax liabilities. The pressure to save on taxes each year can cause you to save too much in tax-deferred accounts. It's important that you have assets in taxable, tax-deferred and tax-free account. When you retire, you'll have more flexibility to manage your cash flow and tax bracket. If all you do is save in tax-deferred account (like most people), you could end up staying in a high tax bracket during retirement

You'd think that with all the great information and tools available today that making smart money choices would be easy. The fact is, it's harder than ever before. We live in a world designed to get us to "buy now" or "avoid that". These messages are designed by savvy marketers to get us to take action. Take action, when most of the time, doing nothing is the best course to take. Recently I fell pray to one of these "buy now" messages and made a really poor money choice. Two weeks ago, I was in Charlotte working on a project when a e-mail arrived announcing the closing of registration for a $2,000 training program. It was a program I really wanted to take (I'm a sucker for learning) but I'd already determined I didn't have the time or the budget this year. The e-mail offer included extra valuable resources if I registered before the deadline. I fell for it. In the middle of my meeting, while focused on the task at hand, I clicked on the link and bought it. What a sucker. Later that night, as I was driving home from the airport literally pulled over on the freeway and requested a refund. In this episode, I outline 3 habits that will help you (and me!!!) make smarter money choices. They are simple and organized around the acronym R.A.W. Think R.A.W. Plan Well Segment “We no longer live life. We consume it.” Vicki RobinThe next time you feel the pull of a marketing message remember R.A.W.Remember to review your 1 year financial priorities every week. this will keep your "why" top of mind.Avoid marketing messages. Don't browse in stores or online, unsubscribe from sales e-mails. Work your plan. Have a plan for how you make money decisions and stick to it. It can save you.Invest Wisely Segment Economist Paul Samuelson reminds us, “investing should be more like watching paint dry or grass grow. If you want excitement, take $800 and go to Las Vegas” or Wall Street."The next time you feel the urge to react to market news remember, R.A.W.Remember why you are investing. Your purpose for investing should drive your decisions.Avoid market messages. Financial media does not help you invest wisely. Avoid it.Work your investment plan. Have an investment plan based on facts and stick to it. It can save youWant Free Checklists to Help You Make Smarter Money Choices? Click Here

Working towards retirement can feel like rafting a river full of dangerous rapids. As you flow down the river of your life, your constantly having to navigate events that threaten to turn your life upside down. Unemployment, death, divorce, college costs, healthcare, recessions, corrections, inflation and countless others can put you on the rocks. This week, I discuss how to "self rescue" if the rapids of life put you into the water.INVEST WISELY The Folklore of Finance: Beliefs That Contribute to Investors’ FailureLast week I read article in the New York Times discussing the release of a study by the State Street Center for Applied Research. It's titled:The Folklore of Finance: Beliefs That Contribute to Investors’ FailureThe 2 year study tried to answer the question: "What does true investment success look like?"Interestingly, according to the article, instead, they found "that the way individual and professional investors made investment decisions was so skewed that achieving both high returns and long-term objectives was nearly impossible."In the Podcast I discuss some of their findings, includingOverconfident in abilitiesUnable to stay focused on long term objectivesShort term noiseInvestors want to invest with a long time horizon yet react to short-term swings that derail the strategyCome to distrust their advisorsFocus on the noiseFocus on short term resultsA Culture of “beating the markets”The study found that financial services firms spent 60 percent of their capital expenditures on resources to help generate short-term high performance. 60 Percent!! As a veteran of a major financial firm, I can attest that the value proposition of most major firs is that they can predict markets and guide you through them. I've always found this funny...having a value proposition based on predicting the future.Better, I think, to accept the uncertainties of the world, have a prudent process and focus having lots of little conversations so you can adjust as life unfolds. PLAN WELL How to Ride the Rapids Towards Retirement If you've every been on a rafting trip you're probably familiar with the term "self rescue". How to self rescue is a talk given by your rafting guide before you venture onto the river. The Guide makes it very clear. If you get thrown into the what, do NOT wait to be rescued. It is YOUR responsibility to rescue yourself.Self rescue involve 4 steps that you can use to rescue your financial future:Get to the SurfaceStabilize your cash flowSelf assess your financial health (skills, assets, debts)Clearly define your 1 year objectiveTake a deep breath (you may be pulled down again)Build some cash reservescreate margin in your cash flow (increase income/cut expenses)Float down riverTake a little time to reflect.Set clear 1, 3, and 5 years objectivesIdentify initial action stepsStart to SwimLearn from others Seek out fellow travelers that you can emulateLearn from online resources and booksFind a guide to help you navigate the rapidsBeing thrown into the rapids by life can be scary. It's okay. You can self rescue. I know you can. What Rapid Are You Most Afraid of? Tweet to @roger_whitney

If you're working towards retirement you know that investing wisely is a key part of reaching your goals. The problem is, investing means putting your money at risk. That's stressful. As a result, many of us tell ourselves lies or believe "trues" that can be dangerous to our financial future. In this episode, I'll discuss 7 lies we tell ourselves about investing and how to avoid them. INVEST WISELY The 7 Lies We Tell Ourselves About Investing There is too much uncertainty right now to invest I'm not wrong, the market is Thinking the current trend will continue I just need to hold a losing investment until I get back to even Past performance can predict future results I just need to find an investment guru Investing alone will make me wealthy How to Avoid Them Come to peace with the fact that the future is unknowable Educate yourself about how investment markets work Use a sound process for investing Diligently monitor and adjust your plan as your life unfolds PLAN WELL Last month I conducted my 1st annual listener survey. A big thank you to all that participated. Here are some interesting facts about you: 100% of you are male (do ladies not take surveys!!!) 73% of you are over 50 (makes sense) 73% of you have been married over 20 years (great job!!) On average you have 3 children 42% of you say you never plan on retiring (I'm with you on this) Top retirement concerns include Investing and the economy Healthcare costs Running out of money Top retirement goals include Spending time with spouse Spending time with family Travel Some of your top questions you need answered are: What's the best way to invest for income? When is a will sufficient (without a trust)? When should I start social security? How do I create passive income? What is the right portfolio mix during the different stages of retirement? Will the popularity of index investing cause more investment bubbles? In future episodes, I'll work to answer each one of these questions. What is the #1 Thing You Struggle with As You Work Towards Retirement? Tell me in the form below and I'll try to help.

I'm convinced that the most stressful part of planning for and living in retirement is that we don't know how to balance living well today, while not sacrificing tomorrow. As a result, most of us live out of balance. Some of us are so worried about tomorrow that they sacrifice their current life in order to be "prudent". Others "live for the day", assuming without a thought for their future. both are wrong. In this episode, I talk about my #1 retirement planning tool to help other find this delicate balance. Invest Wisely--Investing Potholes in November and December If you're planning on making large investments in your taxable accounts be careful. In December, most pooled investments, like mutual funds, distribute to shareholders the capital gains and dividends they've accumulated throughout the year. If you buy one of these products in a taxable account before this distribution, you could have a tax liability for capital gains that were realized before you even owned the fund. In this episode, I discuss how this works and some things you can do to avoid a potential nasty tax surprise. Plan Well--My #1 Retirement Planning Tool to Help People Find Balance Can I afford to retire a year earlier?Do I need to change my spending plan after this market correction?Can I save less now and still retire comfortably?Do I need to take so much investment risk?These are some of the frustrating questions that people struggle with every day as they plan for retirement. About 16 years ago, I discovered a tool to help me help people answer these questions and confidently live a more balanced life.It's called Monte Carlo engine. Today, I've integrated it into my Plan Well process to help other make smarter financial decisions and find some balance between living well today without sacrificing their tomorrow.Like most tools, some are better than others and much of it's usefulness is dependent upon the skill of the user.In this episode, I use a planning example to demonstrate how I use it and some of it's advantages and drawback. Note: Normally just read these show notes, it's best to listen to this one. Just click on the audio play at the bottom of this post. Here is the Fact Set for John Smith Age 55Retirement goal 60Investment assets $2,000,000Retirement lifestyle goal, $100,000 annual Retirement lifestyle goal #2, $70,000 RV at age 60Life expectancy, age 90Target Portfolio, balanced IITo see the full report that I discuss, click here. How Not to Use It It's not a one time evaluation tool (you can't set it and forget it)It does not determine or predict resultsIt can't overcome bad inputs or assumptionsHow to Use It As a important part of your annual financial reviewAs a tool to help you prioritize competing goalsAs a tool to help you evaluate tradeoffs between competing priorities Spending/SavingWorking/RetiringRisk/RewardCollege/RetirementGiving/InvestingAs compass to help evaluate and correct course as your life unfoldsAs a guide an warning system to help you know when your plan may be unsustainableTo provide more color on the long-term impact of today's financial choicesThere is no tool that will solve for all the uncertainty in your life or the world. The best we can do is acknowledge what we don't know (can't know) and use a sound compass to help guide our life's journey. "He who is enslaved to his compass, will enjoy the freedom of the seas" Ken Davis Are You Confident in Your Compass?

Is your soul on fire? Too many of us live in a prison within our mind. We are trapped by our past choices, not realizing that today, right now, we can start a new journey. If you feel stuck, you can create a new life. You can ignite your soul and live your own hero's journey. Invest Wisely You'll Never Get the Average One of the biggest roadblocks to setting good expectations about investing is focusing on average returns. We financial planners are the biggest abusers of this. No one get's average returns. By focusing on them, we set unrealistic expectations on what the experience will actually be.Look at the returns of the S&P 500 stock index over the last 15 years. How often did it hit it's average return? In this episode I discuss this and how to develop a better understanding of what to expect (and not expect) from your investment assets. Plan Well How to Live an Intentional Life with Kary OberbrunnerKary Oberbrunner is like you or I. He went to school, got a job, got married and lived a normal life, until something happened inside him. His soul ignited. Today, he is living a more intentional life and is on a mission to help you ignite your soul and do the same.Kary's message really resonates with me. Much of my life, I was blind to the choices I had. I felt imprisoned by my past decisions. I think many of us feel this way. We're not. Our prison is in our mind. If we break free from our past self, we can create the life we desire.Kary and I discuss:The roadmap from Day Job to Dream JobHow to get unstuck from your past stuck selfHow day jobs are killing peopleWhy it's so hard to leave a day jobHow to go from prison, to plan, to payoffHow to design your storyWhy it's important to go through your own hero's journeyHow to change your life in a half hour a dayDream Job Boot Camp Take the assessment and let's compare results on twitter Tweet to @roger_whitney

You don't like to lose money. Nobody does. That's one reason it is so hard to stick to a long-term investment plan when we feel like we're getting punched in the face by the markets. Just like a boxer, it's natural to want step back and protect ourselves. This natural reaction, however, has caused most investors to underperform the very assets they invest in. In this episode, I discuss 7 steps to help you fight through a normal market correction. Invest Wisely: 7 Steps to Fighting Through a Market Correction A 2014 Dalbar Study once again showed that average investors drastically underperform the very assets they invest in. Over the last 10 years the average investors, investing in a mix of stocks and bonds, had an average annual return of 2.6%. Over that same period, the S&P 500 had an average return of 7.4% and fixed income averaged 4.6%.One of the biggest contributors to this is our natural reaction to run from pain. It's a strong instinct that I struggle with during every market downturn.In this episode, I introduce 7 steps you can take to help fight through a market correction so you can invest wisely for retirement.STOP listening to financial media and market "experts." They only magnify your fearLearn the nature of the markets you invest in. Develop a clear understanding of how they workDetermine your appetite and need for market risk. How much volatility can you stomach? How much market risk do you need to achieve your goals?Set a portfolio allocation that fits your needs.Rebalance it religiously to manage your risk and potential return goalsMaintain enough cash reserves. This will help your long-term assets be focused on long-term objectivesRevisit steps 1 thru 7 religiously to adjust as your life unfold.Not sure how? Find someone to help.Investing wisely is easy to understand. The hard part is sticking to a well thought out plan when you get punched in the face by a market correction. Plan Well: Budgets That Work With Jim Munchbach Recently I had the pleasure of talking with Jim Munchbach from imakeyourmoneycount.com about how to find a budget that works for you. Jim is a Certified Financial Planner, State Farm agent and instructor of Introduction to Personal Finance at the University of Houston.Here are some of the topics we cover:Why it's important to track your spendingFinding the truth about your financial behaviorA budget that works, if you hate to budgetHow a budget helps you create free cash flow in order to saveThe value in learning to track your spendingIt's not the tool that is important, its the goalHow to manager your cash flow like a businessThe law of spending and savingRetirement Toolbox: Retirement Planning Worksheet This worksheet may help you determine if your current retirement savings effort is on course or if you need to chart a new direction to help reach the retirement destination that you desire. To help you, I’ve added a new worksheet to the Retirement Toolbox titled Retirement Planning Worksheet. Click Here to Access

It's natural to fear a market correction. Losing money (even if on paper) sucks. News reports, act as if market corrections are bad. That's not true. The economy and the markets don't function well without corrections. Just as there are benefits to a forest fire, a market correction is an essential element of a strong economy and market. Invest Wisely 4 Benefits of a Forest Fire and Market Correction Are we headed for a market correction? Last week the S&P 500 was down 3.4%. It's been over 34 months since we've had a correction in the S&P 500 of over 10%. Normally we experience one every 18 months. I've always likened market corrections to forest fires. Both cause some short term pain but are essential to the long-term health of the forest (or market). I've used this analogy for years. Sure enough, if you read the Benefits of Fire from the California Department of Forestry and Fire Protection, the 4 benefits of forest fires parallel to the benefits of a market correction.In this podcast I explore these 4 benefits of forest fires and market corrections:Cleans the Forest Floor "Fire clears the weaker trees and debris and returns health to the forest"Provides for More Habitat "When fire removes a thick stand of shrubs, the water supply is increased. With fewer plants absorbing water, streams are fuller, benefiting other types of plants and animals."Kills Disease "Fire kills diseases and insects that prey on trees and provides valuable nutrients that enrich the soil. Fire kills pests and keeps the forest healthy."Provide Room for New Generations "Without fire, these trees and plants would eventually succumb to old age with no new generations to carry on their legacy."Plan Well Kim Blanton From the Center for Retirement Research at Boston College Recently I had the pleasure of talking about the retirement landscape with Kim Blanton. Kim works with the Center for Retirement Research at Boston College and writes their Squared Away Blog. Her Blog is about financial fehavior as it relates to working, saving and retiring. Kim and I discuss the changing landscape of retirement and how we can plan for it.How retirement is changingThe impacts of being responsible for your own retirement savingsMore than half of Americans are on track to have their standard of living decrease during retirementThe benefits of working longerThe benefits of taking Social Security laterRetirement: a Good State of MindThe danger of consumerism during retirementStark Differences in U.S. Cost of LivingHow to better plan for retirementRetirement Toolbox: Retiring to a Different State If your family is considering retiring to a different state, there are some important planning items to consider. To help you, I’ve added a new worksheet to the Retirement Toolbox titled Retiring to a Different State. www.rogerwhitney.com

Medicare eligibility starts at at 65. If you're blessed to be able leave your career earlier, you'll need to evaluate your healthcare options until then. This week I talk with health insurance guru, Misty Kimbrough about your healthcare options before age 65. Invest Wisely 3 things you can do to ignore the voices in your head I'm starting to hear voices in my head. Maybe you are too. They're asking "Should I move to the sidelines? Should I wait to invest?" Certainly we've heard these voices on our beloved financial media outlets. Over the last 3 weeks or so, equity markets have had some big down days and it's making people nervous.Don't base your investment strategy off of intuition, regardless of how well reasoned you think it is. The fact is professional investors struggle with timing markets. Even those that have great "market calls" can't do it consistently enough to be of much use to you or I.Stop chasing rainbows. Turn off all financial that peddles predictions, forecasts, etc. Don't fall for the siren sound of predicting the future. It's hard to tune out. We all want certainty. We crave it. It's uncomfortable to sit with not knowing. You must though if you are going to focus on the things you can controlRevisit your cash reserves. Having enough cash so your long-term investments can be long-term. Selling at the wrong time because you need the money can be a disastrous to your portfolio.. Initially target 3 months lifestyle expenses and increase it if your income is less certain. For retirees, we target 18 months of expected lifestyle expenses.Rebalance your portfolio. If you haven't rebalanced your portfolio to your target risk/return profile, do it. Part of investing wisely is consistently rebalancing to your targeted risk/return profile.Plan Well Health Insurance Options Before Age 65 This week I talk again with Misty Kimbrough from Red Apple Insurance. She and I discuss the insurance landscape if you've been blessed to retire early. We discuss:How COBRA coverage worksInsurance options before you're eligible for MedicareIndividual insurance plans (Bronze, Silver & Gold)How to structure your individual policyShould you go on your spouse's planInsurance add on options.Retirement Answers How Do I Choose Long Term Care Insurance This week I added a 2 page fact sheet to give you the basics on long term care insurance. You can access it for free by clicking the cool button below

If you're planning on living a long life, make investing in your health a priority. USA Today recently reported that the top retirement concern for people over age 50 is healthcare costs. Growing older and being unhealthy can be financially disastrous. It just makes sense, to take a proactive approach to investing in your health. INVEST WISELY: 5 Steps to a Healthier Life with Corbin Links Corbin Links not only talks the talk, he has walked the walk. His 12 year journey to living a healthy lifestyle included tons of research on nutrition, slowly creating healthier habits that helped him lose over 80 lbs. Today, his is a walking encyclopedia of health and nutrition.In this episode we explore his 5 steps to living a healthier life. We discuss:How to approach your journey to living healthierWhy it's important to get out in front of your health issuesHow to simply evaluate your current health condition (beyond physical fitness)The value of making small incremental changesHis 5 steps to living healthier today (and the science behind it) Mineralized waterGreen juiceSleepProbiaticsMagnesiumHow to learn more: Corbin's PodcastHis book Up Your Health GamePLAN WELL: How does working affect Social Security Survivor Benefits? Last week I a listener e-mailed me this question. Here are the facts about Social Security Survivor Benefits that we discuss in this episodeThe Social Security Administration's resource on the topicIf you are under Full Retirement Age (FRA) and receive a survivor benefit it can be reduced based on the income you earn. Here is the current tableOnce you reach FRA, your survivor benefit will not be reducedA spouse survivor can receive 100% of the worker's benefit at Full Retirement Age (FRA)If you are 60 or over but under FRA, you'll receive between 77-99% of the benefitA surviving spouse of any age with children 16 or under can receive 75% of the worker's benefitQuestion: What steps are you taking to invest in your health? Tweet to @roger_whitney

Are you in a career that matches your God given talents? Most of us are in careers that we were trained to do. Not careers that centered on our talents. After college, we start work and our careers generally progress on their own, without much intentional direction from us. If you're in your 50's and this fits you, it's not too late to begin to pivot you're career towards something you have natural talents for. In this episode, Career Pivot's Marc Miller, outlines how to start your pivot. INVEST WISELY: Things to Consider Before You Buy Alibaba Interesting. Over the last few days I've heard more people talking about the blockbuster Alibaba IPO than the new iPhone 6. As a result, I've gotten more than a few inquiries asking whether Alibaba is worth buying. Now, I would not dare to recommend the purchase of any investment on this blog. That would be silly. I know nothing about you or your situation. In fact, please RUN from any site that makes such recommendations.If you are considering buying Alibaba stock, ask (and answer) yourself these questions:Are you gambling or investings?If you're gambling, treat it as such and make sure you are only using excess funds that you can afford and are willing to lose.If you say you are investing, then do your homework and evaluate for yourself: Is Alibaba a well run company?Is it profitable?What is the competitive environment?What is the regulatory environment?Does Alibaba have a solid balance sheet (that can survive growing pains)?Are you paying a discount, premium or fair value for the projected growth?What is your exit strategy?How does this help you Retire Well? PLAN WELL: Doing What You Love: A Conversation with Marc Miller from careerpivot.comMarc and I discuss:The origins of the “retirement” concept and why it’s outdatedHow Baby Boomer’s view of themselves is changing the concept of retirementThe importance of having a purpose during retirementHow the social contract has changed between employers and employeesHow to pivot your career even in if you’re in your 50’sThe difference between skills and talentsHow to make the transition from doing what you’re trained for to doing what you loveThe importance of relationships in your career pivotThe value of simplifying your life as you pivotYou can connect with Marc at careerpivot.com Question: If you're in your 50's, do you plan to work during retirement? Let me know on Twitter Tweet to @roger_whitney

Wouldn't it be great to learn about retirement from those that have retired successfully? Here's your chance. Today at FinCon, the national conference for money media, moneytips.com is releasing the book, The Retiree Next Door. The best part is you can get it for free.Over the last year, the folks at moneytips.com conducted a survey of over 500 successful retirees. Their objective: to identify clear traits and strategies they used to do so. Recently, I spoke with Moneytips.com's Michael Dubrow about the project and some of the lessons learn for those working towards retirement. Take a listen and learn: Where you can get your free bookHow to use the research to plan well for your retirementHow the research was conductedWhat the biggest surprises wereHow you have more control over your retirement then you may thinkThe wisdom learned from those surveyed These projects are great because they help us learn from those that have walked before us. No theory here, just practical incites into the Retiree Next Door.

Have you ever felt distant from your wife? I sure have. In my 23 years of marriage, there were times my wife and I drifted apart. It's easy to do. Work, kids, hobbies, etc. can cause a man and wife to drift apart. We eventually learned we needed to be intentional about nurturing our marriage. Plan Well: Invest in Your Marriage In this week's episode Jackie and I discuss how married men can become the leaders they want to be.Jackie helps husbands and fathers learn how to lead and love their families so they can have lasting, fulfilling marriages and meaningful influence on their kids.How to be the leader you want to beHusband as a servant leaderThe G.E.T. strategy: Give, Encourage, TeachHow to control your inner voiceThe importance of having a date night with your wifeThe top ten dates to improve communicationHow to have date nights that fit your time and budgetLessons he learned from his parents 50 year marriageWhy you need to know the 7 Rings of MarriageWant to be a better husband and father? Check out Jackie's great resources: His blog at jackiebledsoe.comDate Night in a BoxThe 7 Rings of MarriageInvest Wisely: Should I Worry About Big Bad Events? The recent anniversary of the 9/11 terrorist attack reminds us that big bad events can happen in the world. There always seems to be some catastrophic event "just around the corner":Russian and the UkraineISISSyriaTerrorist threatsChinaShould you worry about these as you invest for your future? It sure seems so. This week, I take a look at how markets have acted after some of the biggest "big bad events" over the last 75 years. It's easy to act emotionally with investing. Our emotions drive most decisions. If you are going to Invest Wisely for your future, it's important you focus on facts and process. This will help you make smarter financial decisionsHere's a table to give you some perspective:

Taxes suck. They erode away your income, savings and investments. One strategy to maximize your retirement savings is to convert your IRA to a ROTH IRA. ROTH IRAs are a powerful tool to help you do this but there are lots tax and planning issues to consider first.That's why I turned to Ed Slott, America's IRA expert. He is a nationally recognized IRA-distribution expert, a professional speaker, and the creator of several public television specials, including the most recent, Ed Slott’s Retirement Rescue! Investing Corner--The Importance of Dividends When most people thing of making money in equities, they think of buying low and selling high. That's a great strategy, but it's only part of the story. This week I explore the importance dividends can have in any investment portfolio.I discuss these 5 reasons dividend can be a benefit to any portfolio: How dividends have comprised over 50% of the total return of the S&P 500 indexThe favorable tax treatment dividends can receiveHow dividends can be a good hedge against inflationWhy dividends can help you control risk in your portfolioWhat are the attributes of most companies that pay dividendsRetirement Tip of the Week During my conversation with Ed Slott, we cover: Best places to save for retirementThe benefit of contributing to a ROTH IRAEd's "Forever Tax to Never Tax" strategy using a ROTH IRAThe importance of understanding the ROTH IRA conversion rulesWhen it doesn't make sense to use a ROTH IRAHow to use ROTH IRAs as an estate planning vehicleThe types of people that should consider converting to a ROTH IRAThe order to draw from your taxable, IRA & ROTH IRA accounts during retirementThe benefits of drawing from your IRA in order to delay Social Security during retirementBiggest mistakes people make with IRAsHave you considered converting to a ROTH IRA? If you have a question, ask me at rogerwhitney.com

Stressed about planning for retirement??? Your not alone, most of use (including me) freak out when we look at what it could take to provide for our family in retirement. Don't believe all the statistics, you can take control. Investing Corner Listener Question Wayne AsksMy question is are there hidden risks doing my diversifying on top of diversity that I do not realize, other than my time for managing, and the loss of opportunity of my conservative and explore portfolio $s?Wayne has multiple portfolios, each with it's own allocationLarge aggressive portfolioSmall moderately conservative portfolioExplore portfolio (where he invests based on his economic views)Hidden risks might include:You are 55, and close to the danger zone. A time 5 years before and after retirement when big investing mistakes can have the most impact on your retirement. The retirement danger zone is a time to focus on consistent investment returns.Not having a consistent risk profile of your investments based on what you are trying to accomplishNot having a process for evaluating the value, performance of each bucket. (no bonus points for complicated investments)Chasing returns or safety at the cost of focusing on your lifestyle goals for retirementRetirment Planning Stress: How to take control No Wonder We're Stressed: 60% of all works have less than 25k saving for retirement (USA Today)Only 22% of workers have over 100k saved for retirementOnly 28% of current retirees have over 100k in savings and investments4 Strategies for Beating Retirement Planning Stress: Forgive yourself--We've all made financial mistakes. Stop with the coulda/woulda/shoulda's and own where you are now and focus on the future.Don’t stick your head in the sand--Don't get discouraged by the statistics about retirement. Regardless of your financial situation, you CAN make progress.Take control of your financial decisionsThink creatively about your futurerogerwhitney.com

Setting retirement goals can be a big waste of time. In my 23 years of advising individuals and families, I've rarely found someone that had clear retirement goals. Guess what? They were still able to live a great life and retire comfortably.In this episode I'll explore the problems with setting retirement goals and offer a better way to plan. Retirement Tip of the Week How to Prepare for the Unthinkable: a House FireRecently someone close to me went out for a movie and returned to find their home burnt to the ground. They lost everything, including their dog. In a few short hours they had no home, no clothes, no furniture, no family photos, no records, no nothing.This is the type of thing that can never happen to us, right? It's the type of thing that happens to "other" people. Think again.Here are some simple tips to help you prepare for this unthinkable crisis. Complete a Video Inventory Work room to roomNarrate, describing items (brands, models, amounts)Specifically document valuables (jewelry and artwork)Don't forget the garageKeep copy of video outside the homeUpdate annuallyBack Up Important Documents Tax returnsPhotosContractsEstate planFinancial informationKeep back up offsite (loved one's safe or safe deposit box)Update AnnuallyUnderstand Your Home Fire Coverage Full replacement cost coverageMarket value coveragePersonal property coverageValuables rider for expensive items such as Jewelry, etc.After the Fire contact insurance agent immediatelyAsk for advance on your claim to cover short-term costsSecure your propertyFile claim right awayKeep track of all living expenses (with receipts)Don't stop paying your homeowners insurance premiumDon't close your claim out too fastGet grief counselingFeature Presentation: Screw Retirement Goals, Here's a Better Way Retirement Goals. In my experience, few people set them and even fewer stick to them over the long-term. Retirement goals are something we are told we need to have so we can plan for them. Traditional planning forces them upon you and then shows you all the saving and sacrificing you'll have to do to achieve them. No wonder nobody plans.Recently a mentor of mine, Michael Hyatt, wrote a great blog about the problem with the traditional concept of retirement (Why Retirement is a Dirty Word). I agree with him.If retirement and retirement goals are outdated concepts than how do you plan for the future?In this episode, I'll explore some of the problems with setting retirement goals and show you a more productive way to plan for the the future.I discuss:The problem with traditional retirement goal settingWhy we don't stick with retirement goalsHow you might be limiting your futureHow you might be limiting your current lifeThe importance of prioritiesHow to turn your financial priorities into actionsHow to negotiate with yourselfHow to live a more balanced lifeQUESTION: Do you have retirement goals? If so, are they meaningful? If not, Why? Let me know via Twitter Tweet to @roger_whitney

If you chose to invest in real estate as part of your retirement plan, you better understand what you're signing up for. Most "educational" classes, workshops etc. focus on all the benefits of real estate and gloss over the realities of doing it. Buying, owning and operating rental properties is hard work. This week, I talk with Philip Wetzel about the real work that goes into investing directly in real estate. Retirement Tip of the Week 3 lessons from Jim Collins' books Good to Great and Great By Choice that you can use to make smarter financial decisions. Two of my favorite business books are Great By Choice and Good to Great. Last week, I had the pleasure of hearing the lead author of each, Jim Collins, speak. It was awesome. The lessons learned from his research on what made companies great can easily be applied in managing your financial life. Here are 3 that you should start using today...First who, than whatConfront the brutal facts (yet never lose faith)Fire bullets, then cannonballsFeature Presentation: What You Should Know Before Investing in Real Estate Investing in real estate can be a good thing-as long it fits your situation, you truly understand the risks and work involved and stay diversified.There are plenty of workshops, classes, seminars, infomercials systems, etc. out there to "teach" you how you should do it. Unfortunately, they are typically strong on the benefits and light on all the work needed to position yourself for success. In this episode, I start to give you the rest of the story.Some of the topics we cover are:Why you need to run it like a businessHow to do your homework before you buy your first homeWhy passive real estate investing is not really passiveThe difference between flipping house and real estate investingThe importance of having cash reservesThe advantages of being a handymanThe advantages and dangers of using leverageWhy you need to put 20% down when you buy a propertyThe importance of finding quality tenantsHow management companies work

My financial records are a mess. Are yours?In this episode, I'll outline the framework I'm going to use to get my recording keeping in order. Could you find that important docuement if you needed to?If not, listen and we can get organized together.In the Retirement Tip of the Week, I'll give you a framework for lending money to friends or family so you can help out without ruining the relationship.

Is the stock market correction here? In the last week of July the S&P 500 index lost 2.7%. The worst weekly loss in over two years. It didn't take long for the sensationalist headlines to pop up. Here are two of my favorites. Warning: That plunge in stocks is just the beginning MarketWatch.com 3 market warning signs predict 20% stock tumble Insight: When these indicators flash together, it’s time to sell MarketWatch.com Strategies to Help You Handle Market Corrections I'm all about investing wisely for retirement. If you are a trader, market timer, trend follower, etc. you might want to click away. For the rest of you, here are my suggestions to help you invest wisely and sleep better at night. 1. Have a Plan Sounds simple but most people don't. They invest based on intuition, emotion and trust rather than facts, process and purpose. Your plan doesn't have to be elaborate it just needs to be clear and actionable. It should include:Goal for investment assetsInvestment timeframeRisk/reward targetTarget investment allocationRebalancing policyCommunication and evaluation schedule2. Have adequate cash reserves More than anything, this may the most practical strategy to weather market corrections. One of the biggest mistakes you can make is to sell an investment at the wrong time because you need the money.With interest rates on savings accounts near 0%, it is tempting to put all your money "to work". Don't. Cash reserves give you the flexibility to weather uncertain times in your life as well as the markets. (in episode #17 I discuss cash reserves). Here are the basics of cash reservesEmergency fund (3 months to 2 years living expenses) + Expected expenses within the next 12 months=Less emotional decisions 3. Have at Least a 3 Year Investment Timeframe Anything under a three year time frame is speculating not investing. Investing wisely requires time. 4. Be Well Diversified Every time I say this I feel like the teacher in the Peanuts cartoons...Blah, Blah, Blah. Diversification and asset allocation help you avoid the trap of trying to pick winners and losers. They position you to participate in the economic growth of the world. That is the point of investing. The more you try to game the system, the more likely you'll miss out (Here is a recent episode on investing mistakes).One thing you can do right now is make sure your allocation is rebalanced back to the target you should have set in the beginning. Over the last 4 years, the stock markets have done quite well. If you haven't rebalanced to your target you probably have a lot more equities than you originally intended. This could mean you have more volatility than you bargained for. Studies have shown that rebalancing your portfolio regularly helps you achieve better results. Rebalancing Feels bad, but works good. 5. Understand Market Corrections are Healthy for the Markets and Your Portfolio You've heard it said that investing is like gambling. In a sense that's true. If you invest based on intuition, emotions and the advice of the financial press, you're just one of the suckers walking into the casino. If, however, you invest based on history, research, process and prudence you are more likely to have the odds of the casino over the long-term. That is investing wisely. Retirement Tip of the Week Try it Before You Buy it You need to be very careful when you are in the Retirement Nesting stage of life. Retirement Nesting occurs during the 3 years prior to retirement and the 2 years after you retire. This is the time of retirement lifestyle dreams. AND a time when you are susceptible to marketers selling the retirement dream.The Retirement Nesting stage is a danger zone for poor financial decisions. Don't fall for the emotional urges to buy an R.V., vacation lot, condo or big toy. They can be great but you need to be certain, very certain, that it is something you will truly use. Just recently, I had to help a gentleman unload a beach condo he purchased on a whim 5 years ago. He lost over $100k on the deal (and only used once). Don't be that guy.Here are some tips to avoid the same mistake:Do LOTS of research over a 12 month period before you buyAlways pay cash.Rent the object of your desire for the first 2 years to see how much you actually use it. It is easy to rent anything anywhere nowadays.Test drive vacation homes, R.V.s and resorts over the first 5 years of you retirement. It can be great fun and save you from making a costly mistake.Resources Discussed A Field Guide to Market CorrectionsVacation Rentals By Owner (VRBO)Episode on the Importance of Cash ReservesCommon Investment Mistakes

The cost of a financial misstep in retirement can be devastating. During retirement it is hard to "earn" your way out of poor decisions. Poor planning or a big loss during retirement can ruin your financial security. In this episode I discuss the most common retirement "screw ups" I've seen and how you work to avoid them. 7 Ways to Screw Up Your Retirement Having unrealistic return expectations for your investment assets (too high in 1990s, too low in 2007-08) Crazy as it sounds, in the 1990s people retired thinking they could earn 15%-20% per year and take 10% from their assets for retirement income.Today, we see the opposite extreme. After 2008-07, people aren't so optimistic about retirement. In fact, they are down right pessimistic. Not sticking to a spending plan and reviewing it annually When you retire it is essential that you become more intentional about your spending. In retirement your earnings power diminishes. You'll have less opportunities to earn your way out of poor spending choices.Set a spending plan and review it annually. This will allow out adjust as your situation changes. Falling in love with an investment or investment strategy Real estate; Gold; Rental houses; Tech stocks; Dividend stocks. I've seen it all over the last 23 years. Just because you've had great success with a particular investment or strategy doesn't mean it is the be all end all. Managing assets during your retirement years is more about consistency and protection than stellar returns. The past is littered with "sure thing" investment that have gone bust. Just look at the list above. Financially supporting/enabling adult children I'm not sure where the line is between occasionally helping a child out and enabling them. We've seen retired parents destroy their financial security by bailing out their children from there poor choices. A good litmus test is to ask yourself: Are you preparing your children for the path, or the path for the child? Starting or investing in a small business Starting a business or investing in a new venture is exciting. Be careful. They all sound exciting at the start but most small businesses fail. Retirement is not the time to invest a lot of money in an entrepreneurial dream. Buying expensive lifestyle toys (vacation home, R.V. or land) Go ahead and dream big but be careful about spending big money on your retirement toy. It's very common to see older retirees saddled with debt on an expensive R.V. or vacation lot that isn't used and worth a fraction of the loan amount. Sticking your head in the sand when it comes to your financial life Not being aware and willing to address the financial realities of your retirement is a sure way to screw it up. Retirement Tip of the Week Complete your estate plan. Yeah it's boring and can cause some uncomfortable conversations, but get it done. PleaseTips to getting the estate planning questionnaire done:Don't try to do it at homeSet an appointment with your spouse outside of the house to completeHave your advisor or a trusted friend interview to complete itTips for Keeping it up to date:Review it once a year with your spouse and trusted advisorReview the same time each year (like a holiday or annual family gathering)[button_2 color="red" align="center" href="https://itunes.apple.com/us/podcast/plan-well-invest-wisely/id834314596"]Subscribe in iTunes[/button_2]

This week I speak with Burt White, Chief Investment Officer of LPL Financial. Burt and I discuss LPL's mid-year outlook Titled: The Investor's Almanac. Burt and his team do a great job simply communicating the economic and investing environment. Their Investor's Almanac is a great tool to help us invest wisely. No bold predictions or market calls here, just easy to understand insights you can use to make better informed investing decisions. If you'd like a free copy of their Investor's Almanac you can access it in the Retirement Answer Library. In this episode we discuss:how to use investment outlooks to Invest Wiselywhere the U.S. is in the economic cyclewhere they see potential risks and opportunitieshow international markets are not in sync with U.S. marketswhy you should consider harvesting high quality bondspossible alternatives to traditional fixed incomeplaces to find incomesuper themes that should provide a benefit the U.S. economythe importance of turning off the worry factory of financial mediaRetirement Tip of the Week: Designating a Trust as a Beneficiary of an IRA Last week a client called requesting the beneficiary of his Individual Retirement Account (IRA) be changed to a trust. This planning strategy has become more popular over the last few years. This strategy for IRAs can has some benefits if the ultimate beneficiary is:a minor childsomeone with special needsa spouse from a second marriagea spendthrift with poor financial skillsThe trust can help protect the inherited assets and better control how those funds are used by the beneficiary of the trust.Be careful using this strategy though. Done incorrectly, the strategy could conflict with IRS rules and possibly create big tax problems. It is important the attorney drafting the trust be familiar with certain aspects unique to inherited IRAs. Some things to consider are:Make sure the beneficiaries of the trust are people. They cannot be non-persons (like a charity)Consider adding language specifically prohibiting distributions to non-personsMake sure it is a Conduit Trust. It should include language that requires the distribution from the trust to the beneficiaries of the Required Minimum Distributions coming from the inherited IRA.If there is more than one beneficiary, consider having a separate trust for each. This will also each trust beneficiary to use their own age for required minimum distributions

In this episode, I'll show you how to come to terms with your worry and the uncertainty about retirement. "I worry" I talk to a lot of people about retirement. Not only clients but most everyone I meet over age 50. I'll always ask them what their #1 thought is on retirement. I've learned a lot from this exercise. The most important thing I've learned is that people worry about retirement....alot!.They worry about:all the uncertaintyliving without a paycheckinflationrunning out of moneymaintaining my standard of livingmy health and healthcare costsbeing a burden to my childrenlong-term care costslosing money in the marketsthe economymy countryIn this episode, I'll show you how to come to terms with your worry and the uncertainty about retirement. Once you've done that, you'll be free to build a system to manage through the uncertainty in your life. I discuss:Market uncertaintyEconomic uncertaintyUncertainty in your lifeHow to begin to manage it by:Scheduling "little conversations"Using checklistsMaking lots of little adjustments as your life unfolds during retirementBuilding this structure is really what this blog, the Retirement Answer Library and podcast is all about. Retirement Tip of the Week The importance of tax diversity on your balance sheet as you near retirement. If you're within 5 years from retirement, why it may make sense to significantly lower the amount you save in your 401(k) retirement plan. Resources Discussed The Retirement Answer LibraryTax Deferred vs. Taxable Savings CalculatorEnjoy the Podcast? A big THANK YOU to Dean for sending me your kind note, thanking me for the podcast and Retirement Answer Library. So glad it's been helpful to you. It really means the world to me.[button_2 align="center" href="https://itunes.apple.com/us/podcast/plan-well-invest-wisely/id834314596"]Subscribe in iTunes[/button_2]