Retirement Answer Man Show: Retirement Planning That's Fun

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 behavior 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 changing * The impacts of being responsible for your own retirement savings * More than half of Americans are on track to have their standard of living decrease during retirement * The benefits of working longer * The benefits of taking Social Security later * Retirement: a Good State of Mind * The danger of consumerism during retirement * Stark Differences in U.S. Cost of Living * How to better plan for retirement Retirement Toolbox: Retiring to a Different State If your family is considering retiring to a different stat...

If you’re in your 40s or 50s you’ve probably started to wonder when you can retire and what your retirement lifestyle might look like.  You’re ready to be free from the set schedule of work and have more control over how you send your days. You’re ready to spend more time with your family and travel more. Maybe you’ve even played around with online calculators to see what your retirement might look like. So why do you avoid putting together a plan to work towards the retirement you’ve dreamed about? Let me guess: * You feel you haven’t saved enough and are afraid of what type of retirement is truly possible. * You have a awesome concept of what you want retirement to look like but you’re not sure how to put it all together. * You want help, but you’re not sure where to turn or who to trust. * It’s on your to do list, but somehow it never gets treated as a priority. Busy people (like you and me) can easily get trapped in the urgent demands of day to day life. When we do have time to plan for our future, it’s easy to seek out quick, simple solutions rather than being intentional about creating a great retirement. In my experience, I’ve found four major myths embedded in “simple” retirement plans are to blame for many people sacrificing too many of their retirement dreams. I’m going to debunk those myths for you and show you how to work towards a better life in retirement. Myth #1:  Your Retirement is a Number True. You need to save for retirement, but it’s not as simple a specific amount of money. You don’t have a retirement “number.” Saving and investing is just part of the process of creating a great retirement..  If you make it your only focus,  you're placing the success of your retirement on things you can't control or predict (the markets). In short, finding your retirement number may feel good in the moment but does little in helping you create a great retirement. How to Avoid A truly effective retirement planning process involves implementing strategies in 6 areas: * Setting meaningful priorities (needs, wants, and wishes). * Planning lifestyle expenses in retirement (see myth #2). * Planning future income sources (see myth #3). * Managing your balance sheet (assets and debts) not just your investments. * Having the right “little conversations” to manage the uncertainties in your life and in the world. * Investing in your health and relationships. Myth #2 You’ll Spend a Consistent Amount Throughout Retirement In reality, spending in retirement typically goes through 3 stages. * In the “go go” years of retirement, your spending may be at its peak. This is the time for travel, activities, adventures and family. * in the  “slow go” years, your spending may slow as you become more settled. * In the “no go” years, you may spend even less as you settle in even more. Absent, unforeseen health issues, these stages are becoming more the norm. A “simple” retirement plan, just assumes you spend the same amount each year, adjusting for inflation. This seemingly reasonable assumption can drastically overestimate how much money you’ll need during retirement potentially forcing you to work longer or lower your lifestyle during retirement. How to Avoid Start by having a realistic discussion of how you'd like each phase of retirement to look like. Then put reasonable estimates of what each phase would cost on an annual basis. Some questions to ask yourself are: * Do you want to front load your travel why you're healthy? * Do you want to extend the time in your home before downsizing?

If you’re in your 40s or 50s you’ve probably started to wonder when you can retire and what your retirement lifestyle might look like.  You’re ready to be free from the set schedule of work and have more control over how you send your days. You’re ready to spend more time with your family and travel more. Maybe you’ve even played around with online calculators to see what your retirement might look like. So why do you avoid putting together a plan to work towards the retirement you’ve dreamed about? Let me guess: * You feel you haven’t saved enough and are afraid of what type of retirement is truly possible. * You have a awesome concept of what you want retirement to look like but you’re not sure how to put it all together. * You want help, but you’re not sure where to turn or who to trust. * It’s on your to do list, but somehow it never gets treated as a priority. Busy people (like you and me) can easily get trapped in the urgent demands of day to day life. When we do have time to plan for our future, it’s easy to seek out quick, simple solutions rather than being intentional about creating a great retirement. In my experience, I’ve found four major myths embedded in “simple” retirement plans are to blame for many people sacrificing too many of their retirement dreams. I’m going to debunk those myths for you and show you how to work towards a better life in retirement. Myth #1:  Your Retirement is a Number True. You need to save for retirement, but it’s not as simple a specific amount of money. You don’t have a retirement “number.” Saving and investing is just part of the process of creating a great retirement..  If you make it your only focus,  you're placing the success of your retirement on things you can't control or predict (the markets). In short, finding your retirement number may feel good in the moment but does little in helping you create a great retirement. How to Avoid A truly effective retirement planning process involves implementing strategies in 6 areas: * Setting meaningful priorities (needs, wants, and wishes). * Planning lifestyle expenses in retirement (see myth #2). * Planning future income sources (see myth #3). * Managing your balance sheet (assets and debts) not just your investments. * Having the right “little conversations” to manage the uncertainties in your life and in the world. * Investing in your health and relationships. Myth #2 You’ll Spend a Consistent Amount Throughout Retirement In reality, spending in retirement typically goes through 3 stages. * In the “go go” years of retirement, your spending may be at its peak. This is the time for travel, activities, adventures and family. * in the  “slow go” years, your spending may slow as you become more settled. * In the “no go” years, you may spend even less as you settle in even more. Absent, unforeseen health issues, these stages are becoming more the norm. A “simple” retirement plan, just assumes you spend the same amount each year, adjusting for inflation. This seemingly reasonable assumption can drastically overestimate how much money you’ll need during retirement potentially forcing you to work longer or lower your lifestyle during retirement. How to Avoid Start by having a realistic discussion of how you'd like each phase of retirement to look like. Then put reasonable estimates of what each phase would cost on an annual basis. Some questions to ask yourself are: * Do you want to front load your travel why you're healthy? * Do you want to extend the time in your home before downsizing?

If you’re in your 40s or 50s you’ve probably started to wonder when you can retire and what your retirement lifestyle might look like.  You’re ready to be free from the set schedule of work and have more control over how you send your days. You’re ready to spend more time with your family and travel more. Maybe you’ve even played around with online calculators to see what your retirement might look like. So why do you avoid putting together a plan to work towards the retirement you’ve dreamed about? Let me guess: * You feel you haven’t saved enough and are afraid of what type of retirement is truly possible. * You have a awesome concept of what you want retirement to look like but you’re not sure how to put it all together. * You want help, but you’re not sure where to turn or who to trust. * It’s on your to do list, but somehow it never gets treated as a priority. Busy people (like you and me) can easily get trapped in the urgent demands of day to day life. When we do have time to plan for our future, it’s easy to seek out quick, simple solutions rather than being intentional about creating a great retirement. In my experience, I’ve found four major myths embedded in “simple” retirement plans are to blame for many people sacrificing too many of their retirement dreams. I’m going to debunk those myths for you and show you how to work towards a better life in retirement. Myth #1:  Your Retirement is a Number True. You need to save for retirement, but it’s not as simple a specific amount of money. You don’t have a retirement “number.” Saving and investing is just part of the process of creating a great retirement..  If you make it your only focus,  you're placing the success of your retirement on things you can't control or predict (the markets). In short, finding your retirement number may feel good in the moment but does little in helping you create a great retirement. How to Avoid A truly effective retirement planning process involves implementing strategies in 6 areas: * Setting meaningful priorities (needs, wants, and wishes). * Planning lifestyle expenses in retirement (see myth #2). * Planning future income sources (see myth #3). * Managing your balance sheet (assets and debts) not just your investments. * Having the right “little conversations” to manage the uncertainties in your life and in the world. * Investing in your health and relationships. Myth #2 You’ll Spend a Consistent Amount Throughout Retirement In reality, spending in retirement typically goes through 3 stages. * In the “go go” years of retirement, your spending may be at its peak. This is the time for travel, activities, adventures and family. * in the  “slow go” years, your spending may slow as you become more settled. * In the “no go” years, you may spend even less as you settle in even more. Absent, unforeseen health issues, these stages are becoming more the norm. A “simple” retirement plan, just assumes you spend the same amount each year, adjusting for inflation. This seemingly reasonable assumption can drastically overestimate how much money you’ll need during retirement potentially forcing you to work longer or lower your lifestyle during retirement. How to Avoid Start by having a realistic discussion of how you'd like each phase of retirement to look like. Then put reasonable estimates of what each phase would cost on an annual basis. Some questions to ask yourself are: * Do you want to front load your travel why you're healthy? * Do you want to extend the time in your home before downsizing? * Do you want to create experiences with your kids and ...

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 me. * Stop chasing rainbows. Turn off all financial news 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 control. * Revisit 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 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 works * Insurance options before you're eligible for Medicare * Individual insurance plans (Bronze, Silver & Gold) * How to structure your individual policy * Should you go on your spouse's plan * Insurance 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: [spoiler] The Retirement Answer Man Episode #34 Welcome! Welcome to the Retirement Answer Man Show. My name is Roger Whitney. Thank you so much for joining me today. This is the show dedicated to helping you achieve that balance between living well today without sacrificing your tomorrow. Now, can you imagine that? Can you imagine being confident in your financial future? Feeling comfortable enough to live well today and confident enough that you’re not sacrificing your tomorrow and that you’re actually on a good path? I really worry whether many people can have that confidence so they can achieve that balance of living well today and still feeling comfortable about tomorrow. There is so much uncertainty in the world and there always is but there’s so much uncertainty amplified – whether it’s healthcare costs, living too long, ISIS, the world economy,

Not living a healthier life can be costly as you age. USA Today recently reported that the top retirement concern for people over age 50 is healthcare costs. In fact 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 (in detail)  his 5 steps to living a healthier life. We discuss: * How to approach your journey to living healthier * Why it's important to get out in front of your health issues * How to simply evaluate your current health condition (beyond physical fitness) * The value of making small incremental changes * His 5 steps to living healthier today (and the science behind it) * Mineralized water * Green juice * Sleep * Probiotics * Magnesium How to learn more: * Corbin's Podcast * His book Up Your Health Game PLAN WELL:   How does working affect Social Security Survivor Benefits? Last week a listener e-mailed me this question. Here are the facts about Social Security Survivor Benefits that we discuss in this episode: The Social Security Administration's resource on the topic. If 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 table. Once you reach FRA, your survivor benefit will not be reduced. A 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 benefit. A surviving spouse of any age with children 16 or under can receive 75% of the worker's benefit. Question: What steps are you taking to invest in your health? Tweet to @roger_whitney [spoiler] The Retirement Answer Man Episode #33   Well, welcome! This is Roger Whitney. I am the Retirement Answer Man and this is the show dedicated to helping you live well today without sacrificing your tomorrow, and I think that’s a balance we’re all trying to achieve. Each week, I bring a Plan Well and Invest Wisely segment to help you make smarter financial decisions in your life.   Today, we’re going to talk about, well, in our Plan Well segment, we’re going to answer a listener question. I received a question about widow benefits, or widower benefits, on Social Security and what happens if you work. Are those benefits affected? So, I’m going to answer that question.   And then, in our Invest Wisely segment, I talk with Corbin Links at corbinlinks.com. Now, Corbin and I have gotten to know each other over the last six or seven months or so....

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 50s and this fits you, it's not too late to begin to pivot your 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 investing? * If you're gambling, treat it as such and make sure you are only using excess funds that you can afford to 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.com Marc and I discuss: The origins of the “retirement” concept and why it’s outdated How Baby Boomers' view of themselves is changing the concept of retirement The importance of having a purpose during retirement How the social contract has changed between employers and employees How to pivot your career even in if you’re in your 50s The difference between skills and talents How to make the transition from doing what you’re trained for to doing what you love The importance of relationships in your career pivot The value of simplifying your life as you pivot You can connect with Marc at careerpivot.com Question: If you're in your 50s, do you plan to work during retirement? Let me know on Twitter. Tweet to @roger_whitney [spoiler] The Retirement Answer Man Episode #32 Well, hello there! This is Roger Whitney. I am the Retirement Answer Man and this is the show dedicated to helping you live well today without sacrificing your tomorrow as you walk that journey into retirement. What a great thing that would be to find that balance. To help you along the way, we have two great segments today. In our Plan Well segment, I talk with Marc Miller. Now, Marc is from careerpivot.com and a 22-year IBM veteran. He counsels Baby Boomers on how to find that vocation, that job, that business, that second or third or fourth career that they can work on their own terms throughout retirement, earn a good living, and stay intellectually engaged, and what a cool thing that would be if you can find that. So,

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 the lessons you and I can learn from the research. Take a listen and learn: * Where you can get your free book * How to use the research to plan well for your retirement * How the research was conducted * What the biggest surprises were * How you have more control over your retirement than you may think * The wisdom learned from those surveyed No theory here, just practical insights into the Retiree Next Door. [spoiler] The Retirement Answer Man Episode #31   What You Can Learn From the Retiree Next Door   Hello! Hello, this is Roger Whitney. I am the Retirement Answer Man. Why are we having this special Thursday edition of the show? Ah, now I remember! That’s a great reason. You’re going to be happy you tuned in for this special edition.   Welcome to the show. This is the show dedicated to helping you find that balance between living well today without sacrificing your tomorrow. The reason we’re having this special Thursday edition is because today is the introduction of the book, The Retiree Next Door which is a book based off of research of interviews with over 500 happy retirees, being launched today at a conference called FinCon which is the National Conference for Financial Media, and I wanted to make sure I supported this and I also wanted to let you have access to this book for free by going to the show notes, and I’ll have a link to that.   I’m going to talk with Michael Dubrow from moneytips.com who is behind all of this research and the introduction of this book about what the research was, why they did it, what they hoped to get from it, what some of the great results were and pearls of wisdom that you and I can use to plan well and invest wisely in our lives.   So, that’s why we’re having the special Thursday edition. I think that’s a good reason.   Well, you can find me at rogerwhitney.com – that is the home of the Retirement Answer man and that’s also the home of the Retirement Answer Library which is a library of over 20 checklists and worksheets that I use in my practice that you can download for free to make smarter decisions in your financial life. If you’d like access to this library, just go to rogerwhitney.com, register, and you can have free access to the Retirement Answer Library.   All right. So, before we get talking to Michael about The Retiree Next Door, we’ve got to make sure – and we turn that music down – we always do this, just make sure we have that all-important disclosure.   That is, only you know your entire financial situation so you need to look at this and, really, anything you read or hear on the internet as helpful hints and education. Before you make any decisions in your life, make sure you consult the people that know you best, and that can be your financial advisor, your tax advisor, you legal advisor.

Have you ever felt distant from your wife? I 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. just make life hectic at times. We eventually learned to be intentional about nurturing our marriage. Jackie Bledsoe has had the same experience. In this episode, we discuss how to best invest in your marriage. Jackie Bledsoe and his family Here's my family and I (can't help but share) 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 a meaningful influence on their kids. We discuss: How to be the leader you want to be Husband as a servant leader The G.E.T. strategy: Give, Encourage, Teach How to control your inner voice The importance of having a date night with your wife The top ten dates to improve communication How to have date nights that fit your time and budget Lessons he learned from his parent's 50-year marriage Why you need to know the  7 Rings of Marriage Want to be a better husband and father? Check out Jackie's great resources: His blog at jackiebledsoe.com Date Night in a Box The 7 Rings of Marriage Invest 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." Right now the potential boogie men are: * Russia and the Ukraine * ISIS * Syria * Terrorist threats * China Should you worry about these as you invest for your future? It sure seems so. This week, I take a look at how markets acted after some of the biggest "big bad events" over the last 75 years. It's easy to act emotionally when investing.  Our emotions drive most decisions. Fear (and greed) are powerful feelings that can cause us to make poor 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 decisions. Here's a table to give you some perspective on how a diversified portfolio responded to past "big bad events": Read the Full Transcript Here [spoiler] The Retirement Answer Man Episode #30 Holy cow! I can’t believe that we are on the 30th week of the Retirement Answer Man Show and I am so grateful that you are here with me today. My name is Roger Whitney; I am the Retirement Answer Man and our mission here is to help you live will today without sacrificing your tomorrow, to help find that balance in life when you’re making financial decisions so you can secure a great retirement but still live well today. To help you on that journey today, we have two great topics. In our Investing Corner, we’re going to talk about event risk and geopolitical risk. Should you worry about the next big bad thing that’s going to happen in the world and what that will do to the markets? And give you some historical perspective there. In our Retirement Tip of the Week – still trying to figure out what to rename that segment so, if you have an idea, shoot me an email at rogerwhitney.com – we’re going to have a conversation with Jackie Bledsoe. Jackie is a wonderful man. He is a father, he is a husband, he is a leader, and we’re going to talk about relationships with our spouse – investing in our relationships.

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 of 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 index * The favorable tax treatment dividends can receive * How dividends can be a good hedge against inflation * Why dividends can help you control risk in your portfolio * What are the attributes of most companies that pay dividends Retirement Tip of the Week During my conversation with Ed Slott, we cover: * Best places to save for retirement * The benefit of contributing to a ROTH IRA * Ed's "Forever Tax to Never Tax" strategy using a ROTH IRA * The importance of understanding the ROTH IRA conversion rules * When it doesn't make sense to use a ROTH IRA * How to use ROTH IRAs as an estate planning vehicle * The types of people that should consider converting to a ROTH IRA * The order to draw from your taxable, IRA & ROTH IRA accounts during retirement * The benefits of drawing from your IRA in order to delay Social Security during retirement * Biggest mistakes people make with IRAs Have you considered converting to a ROTH IRA? If you have a question, ask me here and I'll respond. Read the Full Transcript [spoiler] The Retirement Answer Man Episode #29 Well, hi there! Good morning or good evening or good afternoon, whatever time of day you’re listening to this. My name is Roger Whitney and welcome to The Retirement Answer Man. This is the show dedicated to helping you live well today without sacrificing your tomorrow. Financially speaking, I think that’s what we’re all trying to do ultimately. I know that’s what I work towards in my life. I’m excited that you’re here with me today. We have two great topics that will help you along that journey. In our Investing Corner, we’re going to talk about dividends and the importance – historically – dividends have had to the total return of an investment portfolio and why dividends might be an important part of any investment strategy, not just when you’re closer to retirement. And then, in our Retirement Tip of the Week – and I think I need to rename that so, if you have any suggestions, shoot me an email at roger@wwkllc.com with a name. I don’t like the “Retirement Tip of the Week” anymore since it’s a regular segment. But, anyway, I talk with Ed Slott. Ed is the IRA expert, educator extraordinaire on the rules and strategies surrounding IRAs and ROTH IRAs and retirement planning in general. Ed has a wealth of knowledge and we had a great conversation about a lot of these rules and strategies that I think you’ll find really helpful. You can find me, Roger Whitney, at my home on the internet at rogerwhitney.com – that is the home of The Retirement Answer Man and that is also the ...

Stressed about planning for retirement??? You're not alone.  Most of us (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 Asks, "My 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 its own allocation: * Large aggressive portfolio * Small moderately conservative portfolio * Explore portfolio (where he invests based on his economic views) Hidden risks might include: * You are 55, and close to the danger zone, a time of 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 accomplish * Not 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 retirement Retirement 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 retirement * Only 28% of current retirees have over $100k in savings and investments 4 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 decisions * Think creatively about your future What Stresses You About Planning for Retirement? Tell me on Twitter. Tweet to @roger_whitney Read the Full Transcript Here The Retirement Answer Man Episode #28 Welcome! This is Roger Whitney. I am The Retirement Answer Man and this is the podcast dedicated to helping you live well today without sacrificing your tomorrow. That’s what we all want to do, right? Today, we’ve got two great topics. In our Investing Corner, which is a new weekly segment, I am going to answer a listener question about what are some of the hidden risks if you choose to have multiple portfolios, each with its own different allocation. So, what are some of the risks there? And then, in our Retirement Tip of the Week, we’re going to talk about four action steps you can take when you start to get stressed out and start to feel unprepared for retirement. I think we all feel stressed out and unprepared for retirement, especially when we see a lot of the statistics on long-term care planning and health care planning and what it’s going to cost in retirement. It’s easy just to say, “Man, I’m never going to achieve that!” and stick our head in the sand. I’m going to give your four action steps to help you feel more empowered in your life. I want to thank everybody that left a review in iTunes last week. It means so much to me. It gives me great feedback so I can serve you better, and that’s exactly what I’m trying to do here and it also increases the visibility of the podcast in iTunes so we can build a Plan Well community and have more questions so we can all help each other.

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 Fire Recently 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 room * Narrate, describing items (brands, models, amounts) * Specifically document valuables (jewelry and artwork) * Don't forget the garage * Keep copy of video outside the home * Update annually Back Up Important Documents * Tax returns * Photos * Contracts * Estate plan * Financial information * Keep back up offsite (loved one's safe or safe deposit box) * Update Annually Understand Your Home Fire Coverage * Full replacement cost coverage * Market value coverage * Personal property coverage * Valuables rider for expensive items such as jewelry, etc. After the Fire * Contact insurance agent immediately * Ask for advance on your claim to cover short-term costs * Secure your property * File claim right away * Keep track of all living expenses (with receipts) * Don't stop paying your homeowners insurance premium * Don't close your claim out too fast * Get grief counseling Feature 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 then 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 setting * Why we don't stick with retirement goals * How you might be limiting your future * How you might be limiting your current life * The importance of priorities * How to turn your financial priorities into actions * How to negotiate with yourself * The six areas you need to set priorities for * How to live a more balanced life QUESTION:  Do you have retirement goals? * If so, are they meaningful? * If not, why? Let me know via Twitter Tweet to @roger_whitney Get the Transcript Here

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, then what * Confront the brutal facts (yet never lose faith) * Fire bullets, then cannonballs Feature Presentation: What You Should Know Before Investing in Real Estate Investing in real estate can be a good thin - as long as 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 business * How to do your homework before you buy your first home * Why passive real estate investing is not really passive * The difference between flipping houses and real estate investing * The importance of having cash reserves * The advantages of being a handyman * The advantages and dangers of using leverage * Why you need to put 20% down when you buy a property * The importance of finding quality tenants * How management companies work Enjoy the Podcast? Help me out and leave a review in iTunes. 

My financial records are a mess. Really, they're horrible. Last week,  it took me 3 days to find a car title. My records are a mess. It's embarrassing. I work so hard to help keep my clients' financial lives in order and neglect my own record keeping. Need to get organized? In this episode, I'll share the framework I'm going to use to get my act together. In fact, I've added an Organize Your Financial Records checklist to the Retirement Answer Library.  So, click here, download it and let's get organized together. Retirement Tip of the Week Ever lend money to a family or friend? In my practice, I see this all the time.  We all want to help the ones we care about and, if you've done well, you'll get asked to invest or lend money by someone close. Unfortunately, helping out with loans or investments can be one of the worst decisions you make. In this episode, I'll show you how to deal with these requests and a framework for lending money to friends and family that may save you a lot of grief.

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 assets * Investment timeframe * Risk/reward target * Target investment allocation * Rebalancing policy * Communication and evaluation schedule 2. 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 reserves: Emergency 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,