Retirement Answer Man Show: Retirement Planning That's Fun

Why would you ever add bonds to your portfolio if their return is so low? This is the second episode in the April bond series. This month we are learning all about bonds. On this episode, we delve into the question: why do we even have bonds in our asset allocation? I really get into the science behind why bonds are in our portfolios. If you are planning on retiring soon your role as an investor is changing and you may want to have more bonds than you think. Find out why you need bonds in your mix and what bonds add to your portfolio by listening to this episode of Retirement Answer Man. What is the difference in investing when you’re younger vs when you’re older? When you’re younger you have a lot of time for your investments to work for you. When you’re in the wealth accumulation mode of youth you’re on autopilot, socking away money each month without even paying attention. This strategy no longer serves you when you are preparing to retire and you stop accumulating wealth. Now your role is changing, soon you will start tapping your wealth. So when the markets dip you will actually feel it in your portfolio. Psychologically you will feel more vulnerable because the market volatility becomes pretty scary. This changes the way you think about markets and investing. Listen to this episode to understand how your role as an investor has shifted with age. What can bonds add to your investment cocktail? Bonds add more than you think to your portfolio. Soon you will stop adding to your portfolio and you will be taking money out of it. Now that you don’t have as much time to play the markets, the security that bonds bring to your investments will provide peace of mind. And a healthy mix of bonds in your asset allocation can actually bring about good returns while also providing stability and less risk. It may be time to start thinking about managing your assets differently. Listen to this episode to understand how bonds can lead to the perfect investment cocktail. What is the science behind asset allocation? Let’s get to the science behind why we have different asset classes and what their benefits are. The modern portfolio theory is considered the best practice in portfolio management. This theory states that for a given level of return you will try to minimize as many risks as possible. And that for a given level of risk you will try to optimize returns and get the most bang for your buck. We measure this by using standard deviation. Is this bringing on flashbacks from college? Listen to me explain standard deviation in a way that you can finally understand, I promise there won’t be a pop quiz at the end! What does modern portfolio theory mean for your assets? Modern portfolio theory is great for helping to measure your risk tolerance. And this is the whole reason that your financial planner asks you to fill out risk tolerance questionnaires. The problem with all this science is that once you reach your 50’s and 60’s everything changes. You should no longer be measuring your maximum amount of risk tolerance, but how to live the life that you really want to. This episode will help you to understand how much science and how much art you should apply when managing your money, so grab your favorite pair of headphones and listen in. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN * [1:22] What can bonds add to your investment cocktail? HOT TOPIC SEGMENT * [4:00] What happens when you accumulate assets when you’re younger? PRACTICAL PLANNING SEGMENT * [11:02] What role do bonds have in your investment cocktail? * [12:25] Let’s understand the science behind different asset classes * [17:28] Why are risk tolerance questionnaires are so important? THE HAPPY LAB SEGMENT

April is Bond Month on the Retirement Answer Man podcast. Over the next four weeks, we will be discussing all things bonds. This is the first episode in the bond series in which we will discuss what exactly a bond is and why we all love them. You’ll want to listen to this series to find out what a good bond is and how to get one. Start learning about bonds by listening to this episode to find out exactly what a good bond is, how to buy them, and what the future holds for bonds. Is our love affair with bonds coming to an end? We have had a love affair with bonds for the last 30 years, but is the love affair with bonds coming to an end? The reason we have had such a good run with bonds is that they have had great returns while at the same time being a pretty low risk. Over the past 37 years, bonds have yielded an average of 8% a year. The worst year in bonds has brought -10% profit. Let's compare bonds with the stock market during the same period. The stock market yield has averaged 10.4%, not much higher than bonds. But the stock market low was -50%! Listen to this episode of Retirement Answer Man to find out if the stability and high rate of return of the bond market are at the beginning of the end. What do interest rates have to do with bonds? Interest rates may end up spoiling our love of bonds. Interest rates and bonds have always had an inverse relationship. As interest rates have dropped, bond returns have increased. Over the past 37 years, interest rates have dropped steadily, but it looks like that time has come to an end. According to Barclays, interest rates may continue to increase. These rising interest rates can be scary for the bond market. Listen to this episode of Retirement Answer Man to learn how rising interest rates may affect the bond market. What is a bond? A bond is basically a loan to someone else. Different bonds have different ratings depending on the borrower’s credit rating. The coupon rate is the amount of interest that the borrower pays depending on their credit rating. The maturity date is the length of time that the money is borrowed for. There are many different types of bonds including treasury bonds, corporate bonds, municipal bonds, and international bonds. All of these different types have various characteristics. If you want to learn all about bonds you need to listen to this episode of Retirement Answer Man. How do you buy a good bond? There are a couple of different ways that you can go about buying good bonds. You can research the kinds of bonds that you are interested in and have your broker find them for you. The pricing of bonds is a bit shady and not as straightforward as with stocks and it’s hard to tell whether you are getting a good deal. Make sure to diversify your bond portfolio. Mutual funds and exchange-traded funds are ways to diversify. By buying mutual funds your portfolio never really matures like with buying individual bonds. But they make it easy to reinvest the interest payments. Listen to this episode of Retirement Answer Man to hear about the various ways to buy good bonds so that you can decide what’s right for you. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN * [0:52] This month we explore bonds HOT TOPIC SEGMENT * [4:01] We have seen a steady decrease in interest rates for 37 years * [6:29] Let's look at bond returns * [9:19] Is the love affair with bonds coming to an end? PRACTICAL PLANNING SEGMENT * [10:40] What is a bond? * [15:23] What are the different types of bonds * [16:57] How do you buy a bond? * [20:06] Next week we discuss what role bonds play in your portfolio THE HAPPY LAB SEGMENT * [21:05] What is your favorite James Bond theme song or soundtrack? TODAY’S SMART SPRINT SEGMENT

This is the fourth and final episode of the Healthcare Before Medicare series. On this episode, we discuss two more options to consider when thinking about healthcare before Medicare: taking on a part-time job for the insurance benefits and COBRA. We also answer some listener questions and comments in the practical planning segment of the show. Learn more about which companies are the best for part-timers to receive healthcare benefits as well as whether COBRA may be a good option for your healthcare coverage needs listen in to gain more knowledge about how to maneuver our complex medical insurance system. Have you thought about pretirement? Will you take a pretirement phase of retirement? Would you enjoy finding low-key meaningful work to ease yourself into full-blown retirement? I often refer to this option as pretirement. A part-time job can be a fun way to work your way into retirement and it could also provide you with insurance benefits. You could find something fun that you enjoy doing as a part-timer. One example of this is if you enjoy handy work you might enjoy a part-time position at Home Depot. You’ll definitely want to factor in your physical limitations and you certainly don’t want to go back to the grind of full-time employment. Listen to this episode to find out which companies offer benefits to part-time employees. Would COBRA work for you? You can maintain COBRA coverage for up to 18 months after leaving your work so if you are close to Medicare age you may want to consider COBRA. COBRA is also a good option if you don’t qualify for ACA subsidies. The good news is that you have 60 days to notify the insurance company that you would like to elect COBRA coverage. COBRA is probably the closest you will come to your current healthcare coverage, so if you have many healthcare needs you may want to consider this option. There are a lot of great benefits when choosing COBRA, listen to this episode to hear them all. How do you decide what the right choice is for you? Are you curious to find out which healthcare option I will choose? This entire series has come at a great time for me since my wife recently left her job and we are seeking alternative healthcare options. The ACA is a nonstarter for my family due to the exorbitant costs for us without a subsidy. We have narrowed our choices down to Medishare and COBRA. Planning for every eventuality is challenging, especially since no one wants to think about a catastrophic medical event happening to them, but that is the point of having medical insurance. Listen to this episode as I walk through my thought process in making this decision for myself and my family. Who knows, maybe my process may help you with a difficult decision of your own. Who do you turn to help you figure out health insurance? As usual, my listeners have some fantastic questions and comments. One listener asks, who can help you figure insurance out? An insurance broker, a financial planner, a tax consultant? That’s a tricky question! Listen to the answer to this question and a few others during the practical planning segment. There are so many different factors to consider when choosing the right healthcare option for you before Medicare kicks in, be sure to listen to the whole 4-part series to help you make your healthcare before Medicare decision. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN * [1:22] April’s theme will be all about bonds HOT TOPIC SEGMENT * [3:55] Will you take a pretirement phase of retirement? * [5:12} What kind of work might you enjoy? * [9:12] Would COBRA work for you? * [12:24] What are my options? * [22:21] How do you decide? PRACTICAL PLANNING SEGMENT * [24:46] A listener comment from a health insurance broker

Over the past few weeks on the Healthcare Before Medicare series, we have been exploring the different ways to solve the question of how to pay for medical insurance before you reach Medicare age. On this week’s episode, we are getting creative. We are thinking outside the box of regular insurance and we are exploring medishare arrangements. Medishare is not typical insurance, so we will learn what the difference is between these programs and traditional medical insurance. I continue my discussion with Keith and Linda to hear more about their research into healthcare and I also have Michael Gardner from Christian Healthcare Ministries on to get the details on this medishare program. If you are thinking of retiring before retirement age or simply interested in insurance alternatives you will want to see if this is a good option for you. Listen to this episode as we explore all the options on how to get healthcare before Medicare. What is medishare? Medishare is an alternative to traditional health insurance. Medishare is a medical cost-sharing program, an arrangement between a group of people to share medical expenses. Although it is not traditional health insurance, there are some similarities between the two. There is a monthly fee similar to a health insurance premium and there is a yearly out of pocket portion that your family is expected to reach before asking the medishare community for help. Listen to this episode to hear about the medishare option when researching healthcare before Medicare. Medishare is not insurance, it’s a community The biggest difference between health insurance and a medishare ministry is that the money you pay each month goes to help another member of your community. When you pay your monthly share amount this money goes directly to another member who needs care. Healthcare sharing companies are nonprofit Christian based cost-sharing programs. Being part of this community is just one benefit of the medishare model. Listen to this episode to hear Michael Gardner discuss all of the benefits of joining the Christian Healthcare Ministries community. What about the ACA? If this isn’t insurance, how do people stay in compliance with the ACA? Medishare communities are insurance alternatives that have been around for about 30 years. Being as such, there is a provision in the ACA for these health sharing communities. Since these organizations are faith-based they can get around the religious loophole in the law that was put in place. These faith-based organizations require a statement of faith that must be signed as well as certain agreements to live a healthy lifestyle. Listen to this episode of Retirement Answer Man to hear all the details about medishare programs and how they can help in your search for healthcare before Medicare. Why would you not want to participate in a medishare community? During the Practical Planning segment, I continue my discussion with Keith and Linda. They were on the show last week to discuss their research into the ACA. This week Keith shares all that he has learned about medishare communities in his research into the subject of healthcare before Medicare. Keith discovered many great reasons to use a medishare community, but he also encountered some downfalls. I know you’ll want to hear why they decided not to go with this option, so listen to the show to discover the lowdown on medishare communities.   OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT * [2:32] Alternative to health insurance * [6:06] Michael Gardner shares the basics of what medishare is * [9:09] What are some distinctions between the Christian Care ministry and insurance * [15:52] How efficient is the system? * [22:28] Extra perks from medishare PRACTICAL PLANNING SEGMENT

John Leland is a New York Times columnist and best-selling author of Happiness is a Choice You Make. He spent a life-changing year talking to six really old people. John thought that the year would be somewhat depressing, but it turned out to be quite different than he expected. He gained a lot of insight from his interactions with his subjects. Each person was quite different and they came from all walks of life. But even though they were such different people they shared the knowledge that they defined themselves by the choices they made. He learned so much in writing his book, mostly he learned how to live in the present moment and not worry about the future. His book is a fascinating insight into the wisdom of people that have so much life experience. You’ll want to hear this interview with John as he discusses some of the more memorable subjects in his book. Listen to this great interview to hear wonderful tips on happiness from those who know how to enjoy life. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN * [1:22] On this special bonus episode I chat with John Leland * [3:25] What was it like hanging out with really old people? * [5:44] John discusses one of his subjects, John * [10:42] Lessons from Ping, who worked hard her whole life * [13:48] Lessons from Fred who really chose happiness * [16:48] Jonas was a fascinating case filled with wisdom * [19:10] Some commonalities between the subjects in the book * [21:12] John used this experience to make a choice to be happy Resources Mentioned In This Episode BOOK - Happiness is a Choice You Make by John Leland BOOK - Rock Retirement  by Roger Whitney Ask Roger a question Work with Roger 3-video Series: 5 Minute Retirement Makeover Roger’s Retirement Learning Center The Retirement Answer Man Facebook Page Intro music by bensound.com

This is the second episode in our Healthcare Before Medicare series and one you will not want to miss! This episode covers ACA and COBRA and we have a lot of ground to cover. The whole point of this series is to help you guys (and myself) figure out how to afford medical insurance before Medicare kicks in. If you have ever considered early retirement this is an important series for you to listen to since the healthcare system in the United States can be extremely confusing. So grab your headphones and a pen and paper to take notes because you’ll want to take in all the information you can in this important episode on the ACA and COBRA. The ACA is a mess! But is it a mess that you need to consider? The Affordable Care Act or Obamacare is a mess. I mean a political mess, no one knows what the next year, or 2, or 5 will bring for this attempt at healthcare reform. Even with the political turmoil that surrounds it, the website is actually quite good and the support staff is very well trained. The ACA is set up differently in each state. All the plans have gold, silver, and bronze categories. Obamacare covers young adult kids up to age 26 and chronically ill people or those with pre-existing conditions can’t be denied. The cost of premiums depends on a person’s modified adjusted gross income, or MAGI. Listen to this episode to hear how your MAGI drastically affects your premiums when dealing with the ACA. How does the ACA work? The ACA was created to help people that couldn’t afford health insurance be able to afford it. This is why 85% of ACA users have some sort of subsidy or advanced premium tax credit. The amount a person pays for coverage depends on how much they make. Take for example a random couple aged 55 that lives in Texas and makes $100k annually would pay $1660 per month, reduce that income to $75k and they would pay $1440 per month, but if you reduce that income to $50k then the couple would pay only $350 per month! The trick here for retirees is all about where your money is coming from. Listen to this episode to hear the details about how where you should be taking money from to fully benefit from the ACA tax credits. Have you considered balancing self-insuring some things to help keep costs down? My guests Keith and Linda have been down this road recently. They are aged 53 and 58 and recently retired. Keith started researching the ACA two years ago and has learned a lot. As an engineer, it was only natural that he tried to break down this decision into a spreadsheet, but he soon realized that part of this health care decision is emotional and doesn’t simply come down to numbers. He and his wife had to decide how important it was to them to keep all of their beloved doctors. Keith also considered the costs in self-insuring some procedures since convenience and familiarity come at a high cost with the ACA. Listen to this episode to hear Keith’s insight after two years of painstaking research into the ACA and COBRA. What do you need to consider when checking into the ACA? After all his research Keith feels that spending lots of time on the ACA website really helped him find clarity in the muddy pool of the U.S. healthcare system. What Keith realized is that there is no one size fits all solution to the healthcare system. The biggest factors in premium costs are your income, whether you’re rural or urban, and which state you live in. If you want to get the best deal that works for your family it will take a lot of diligent research. Listen to this episode to get started in your research into the ACA and COBRA and hear about all the things you need to consider. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN * [1:22] I want to make sure that you can afford healthcare before you get to Medicare age HOT TOPIC SEGMENT * [3:22] The ACA is a mess!

This is it, the long-awaited beginning of the Healthcare Before Medicare series!! I’ve been meaning to cover this topic on the show for awhile and the timing couldn’t be better because I’m now deep in the search for my own insurance. So as I dive in to research this topic for all of you I will be looking to cover my wife and I as well. I think together we can get this insurance quandary all figured out. I am no insurance expert so you’ll have to take everything I tell you with a grain of salt. If you are one of the 67% of Americans that retire before the age of 66, or even if you are part of the 100% of Americans that are confused about the insurance system then you will want to listen to this episode and the whole series to come about insurance before Medicare.   What are all the health insurance options? Searching for insurance can be so confusing! So, what are the options that are out there for those of us looking for medical insurance before we reach Medicare age? Basically, there are 4 options for people that haven’t reached Medicare age and need to find insurance solutions. We will be delving into some of these options in greater detail over the next few weeks. The ACA or ‘Obamacare’ is the first option. There are also alternative Medishare programs out there as well. Another option is to work part-time for a large company primarily for the health insurance. The fourth option isn’t much of one, but some people choose it, and it’s simply being uninsured. Listen to this episode and the rest of the episodes in this series to hear greater details about all of the healthcare options that you have available to you before you reach retirement age.   Are you one of the 67% of Americans that will need alternative insurance solutions? Health insurance is a big issue for so many people. 67% of the American population retires before the Medicare retirement age of 66, so that means that 67% of Americans will need alternative insurance solutions at one time or another. The ACA can be a quagmire for just about anyone, but thankfully the website is much improved from the early days. There is actually some great information on there that can be very helpful. When choosing to go the ACA route there are many considerations. Listen to this episode to hear about what you need to think about when considering the ACA.   What are some of the challenges facing the ACA? The ACA is a challenge to plan for since no one knows what the future of the health exchanges will look like. This brings up so many questions when one tries to plan for the future. There are plenty of ways to improve the program, but unfortunately, no one knows what the politicians and insurance companies will choose to do with the program.The different health insurance companies involved in ACA either drop off or raise their rates sky high each year. There is no clarity as to the future of the program, and no one is quite sure as to what will happen in the next year or two. The average cost of an ACA premium is a staggering $1000 or more a month. Listen to this episode as we discuss the ups and downs of the health insurance beast.   What types of insurance are there for  nomads? Our listener questions are all about health insurance. The first one is about what type of health insurance is available to retirees without a permanent address. More and more retirees are hitting the road and choosing to enjoy the nomadic life for a while after retiring. Is there any sort of insurance available to those who wander? Another listener wonders if there will be a multi-state health exchange in the future. If you have any questions of your own or perhaps some helpful experience to share make sure to leave a comment on our website so that we can address it during this month as we explore healthcare before Medicare.  

Many of my listeners have remarked about how I am always giving advice for married couples, they feel that some of my information may not be directed toward them. But what about those of you who are single? I have plenty of listeners that are single, widowed or divorced. Are you wondering what you need to consider to retire as a single person? On this episode, we will discuss special considerations for single people; the costs, networks, and networking as a single retiree. Retired singles, this episode is just for you! Listen to this episode to hear how to rock being single in retirement. There may be some extra considerations that retired singles may not have thought of Did you know that half of the women over 65 are likely to be single? Way more women than men are single in their retirement years. Being single in retirement is not a negative and there is so much freedom to be enjoyed. But being single means there is more pressure on you to build your resources to support yourself during retirement. Just because you are single doesn’t mean that your cost of living is half as much as a married couple. There are many things to consider as a single retiree such as life insurance, long-term care, and medical decisions. Listen to this episode to hear all of the considerations that you may not have thought of as a single retiree. What kind of network do you have in place to help you? Being single is great for the freedom to drop everything and fly off to Rome at a moment’s notice, but what about the dog? As a single retiree, it is even more important to have a strong network to support you. Whether it’s a handyman, a driver, a pet sitter, or just an ear to talk to, you will need to have a support system in place as you get older. Having a network of friends and confidants can help you make difficult decisions and support you during challenging times. Listen to this episode to hear how to build your support network to help you in your golden years. How to rock being at being retired and single You can rock being a retired single person, but it takes planning. You will need to be extra diligent when planning your income streams to ensure that you have a consistent cash flow to sustain you throughout your retirement years. Without a spouse, you will need to have an emergency plan and trusted proxy in place for whatever emergency may arise. You won’t have the need for life insurance but you may need to consider long-term care insurance. Long-term care can be an important consideration for single retirees. Listen to this episode to hear how to plan your retirement well so that you can rock being a single retiree. How do you find a financial advisor? During the Practical Planning segment, a listener asks how to find a financial advisor. This can be tricky since financial advisors like myself cannot ask for testimonials from clients. Many people choose their advisors through a referral from a friend. This is a great way to find someone, but you need to make sure to use due diligence. When choosing a financial advisor it is important to be armed with the right questions. You can get the Retirement Answer Man advisor interview worksheet in the Learning Center. These questions will give you a framework to find someone to serve you the way that you need. One benefit of living in the modern age is that you have a huge selection. You can hire someone anywhere in the country and meet with them virtually. Listen to the Practical Planning segment to hear more fantastic advice on how to find a financial advisor that best suits your needs. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN * [0:22] What are some considerations to being single and retired? * [1:34] Are you single and interested in becoming the next case study for Retirement Plan Live?

We need to have a social network in retirement. A good network of friends can help you live your life to its fullest and expand the quality of your life. Retirees with the most robust network of friends are happier, healthier and more engaged than those who are lonely. Your social network doesn’t have to be a huge group of friends. Making new friends will also help you figure out who you are as you enter this new phase of your life. Listen to this episode to hear how to find some great ways to embark on new friendships. Making new friends can help you define who you are Who are you? It is easy to label yourself in your younger years. You are what you do, right? When you hit retirement the previous label you gave to yourself no longer applies. So you need to base your answer on what your interests are and exactly who you really are. Think about how you will spend your time in retirement. These thoughts can help you discover how and where to look for a new circle of friends. Making new friends will help you figure out who you are and who you want to be in this next phase of your life. Listen to this episode of Retirement Answer Man to get an idea of how you can start defining yourself and finding new friends in retirement. Don’t be left lonely On a previous episode, I touched on loneliness and how vulnerable the elderly are to loneliness. Our circle of friends can shrink as we get older as people move away or pass away. Sometimes if our spouse passes away then we can be left even more lonely. Our circles of friends get even smaller as we age and become more sedentary. This is why making a solid friend base early on in your retirement years is vital to combating loneliness as you age. I give some fantastic tips for combating loneliness in your retirement years on this episode of Retirement Answer Man so listen to the full episode to hear them all. How do we make friends in retirement? Sometimes it’s harder to make friends when you’re older. If you’re not in school or working where do you even begin to make friends? One way is to follow your passion. What do you like to do? Passion brings a commonality. If you’re a knitter, join a knitting group. If you’re a reader, join a book club, If you enjoy yoga, hang out after class and get to know other yogis. Get outside. Become a joiner. Make acquaintances first and see if they turn into friendship.People crave human connection and are often looking for new friendships. Build friendships with those that are younger than you and this will support you in the years that lie ahead. Listen to this episode of Retirement Answer Man to hear how you can get out there and make some friends. What can you do in pre-tirement? On the Practical Planning segment, we discuss pre-tirement. Pretirement is that sweet spot when you are still working but maybe not full time. It’s like a dimmer switch, where you plan your life to slowly move from full-time work to part-time work to full-time retirement. The time to think about pre-tirement is while you're still working. Do some research to discover what you might like to do. Research who you want to serve and what problem they are trying to solve and help them solve it. Listen to this episode to find out if pre-tirement is right for you.   OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN [1:22] What is an introvert? HOT TOPIC SEGMENT [4:46] Our circle of friends can shrink as we get older [6:25] How do we make friends during retirement? PRACTICAL PLANNING SEGMENT [14:02] What are some ideas for pre-tirement? [20:58] Can you earn money and defer it to retirement accounts while not having your social security benefits reduced? THE HAPPY LAB SEGMENT [26:29] We define who we are by what we do

Let’s talk marriage! On this episode of Retirement Answer Man, I want to spark a discussion on how to have a happy marriage so that you don’t spend your retirement years alone. People with happy marriages live longer and are healthier than single retirees. Divorce in the retirement years can completely destroy your finances and even your social life. So having a healthy marriage comes with a lot of benefits. Listen to this episode to discover how to help your marriage thrive so that you can make the most of your retirement and your life. The hidden benefits of a healthy marriage Retirement can be an inflection point in a marriage because you are really There with that other person. One of the most common times that divorce happens is when couples hit retirement. But did you know that people with great marriages live longer, have fewer rates of heart disease, stroke, and advanced cancer at diagnosis? Married retirees are generally happier and don’t suffer the same rates of depression as their single counterparts. It turns out that having a healthy marriage leads to a healthy life overall. Listen to this episode of Retirement Answer Man to hear all of the health benefits that having a great relationship can bring you. Are you familiar with the law of familiarity? The law of familiarity states that when you become too familiar with someone you dismiss all their greatness and instead focus on their small annoyances. Because we're so familiar with our spouses over a long-term relationship we take for granted their good stuff. That is the natural battle to fight in the flow of relationships. When was the last time that you noticed something special about your spouse? This episode of Retirement Answer Man can help you learn not to take your spouse for granted, so listen in! What can you do to create a better relationship? Having a great marriage is good for your health, your mental health, and even your finances. So, how can you make the best of your relationship? One way is to learn to have fun together and share some common interests. If you are having trouble in your marriage give pause and appreciate your spouse and all of their good traits. Do you want some great tips to help your marriage not just survive but thrive? If so, you'll want to hear some more of these great ideas to bring back that spark and enjoy each other again. My listeners ask the best questions Once again my listeners have asked some excellent questions. I take some time in the Practical Planning segment to answer two great questions. The first is a very important question about the role of bonds in asset allocation. Here’s the question -- Nobody talks about what kind of bonds you should invest in. They just tell you to invest in bonds. Does it matter what type of bonds you should invest in? Another listener asks about low cost investing and using robo-accounts to manage your asset allocation. Listen to the Practical Planning segment to hear the answers to these interesting listener questions.   OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN * [1:22] What are the danger zones for marriages HOT TOPIC SEGMENT * [4:39] How do you make your marriage thrive? * [6:40] What is the law of familiarity? * [9:25] Intentionally of make a better relationship PRACTICAL PLANNING SEGMENT * [14:01] What type of bonds should you invest in? * [28:33] What is my opinion on robo accounts? * [32:03] I have some general comments on investing THE HAPPY LAB SEGMENT * [38:52] What does your spouse want to receive from you? TODAY’S SMART SPRINT SEGMENT * [40:36] Think about what your spouse needs from you Resources Mentioned In This Episode BOOK -

On this great episode of Retirement Answer Man I touch on the recent developments in the markets, but I'm here to really discuss loneliness. Loneliness can be a limiting factor during the retirement years. It can seriously degrade quality of life and even lead to an untimely demise. Loneliness can be caused by many different reasons and if you don’t begin to take action now you could end up alone at a time of life when you are most vulnerable. Listen to this episode to hear some great ways to begin to combat loneliness right now so that this doesn’t become a problem for you in your retirement years. How not to be lonely in retirement Loneliness may be an aspect of retirement that you haven’t thought of before, but it actually can threaten not only your quality of life but your life itself. Loneliness is a leading cause of death in those over 60. It can cause depression and isolation from the world around you. Loneliness affects the elderly more than any other demographic. If you are looking for some ways to stay active and combat loneliness in your retirement then starting now is key. Listen to this episode of Retirement Answer Man to hear how not to be lonely during your retirement years. What are some causes of loneliness? There are many causes of loneliness in retirement. Work has a built-in social aspect. It gives you a social network to foster relationships, but once you stop working you may lose the network of friends that you once had. Loneliness can also be caused by the loss of a spouse. Oftentimes your entire social realm is created by your marriage and the loss of a spouse can lead to the loss of all of your social outlets. Immobility is another cause of loneliness, as you get older this can lead to loss of physical mobility or the decreased ability to travel by car or plane. Listen to this episode to hear how you can combat loneliness as you age. How to combat loneliness Combating loneliness can be an intimidating endeavor. It might put you out of your comfort zone. The key is finding a way to meet people with similar interests. This can be done by finding a book club, a meetup, taking crafting classes and opening yourself up to meeting new people. Building connections with younger people can guarantee that you are not the last man standing so to say. Another way to combat loneliness is to cultivate your purpose. We often lose our purpose when we stop working. Find out now what gets you out of bed in the morning. Listen to this episode to hear some great ways to cultivate friendships with people either your age or younger Be intentional about fostering relationships As we get older we begin to have more and more limitations that play a factor in our lives. But you can’t control everything that your body does. Instead, you can change what can you control and free yourself from the burden of the things that you can't control. Be intentional about fostering relationships with new and interesting people. If you only see the limitations that you have you will not give yourself an opportunity to create new relationships. Create a happier retirement by learning how to combat loneliness now. Listen to this episode to hear some fantastic tips on how to be proactive about creating a diverse network of friends that will take you into retirement and beyond. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN * [0:22] Let’s talk about the recent markets HOT TOPIC SEGMENT * [4:10] Loneliness can kill you * [10:02] How to combat loneliness PRACTICAL PLANNING SEGMENT * [15:40] I correct an error I made - the best way to track non-deductible contributions * [17:40] Merriman’s ultimate buy-hold allocation * [19:19] Vanguard’s payout fund * [21:21] Some comments on mortgages THE HAPPY LAB SEGMENT

What are you filling your head with? The "Facebook effect" or "social media effect" can lead us to be mentally consuming more junk than we would like. That’s why now it is even more important than ever to be intentional about what you read. Each year I buy dozens of books to line my bookshelves. This year I have compiled a list of books that I would like to read over the year. I'm sure I will read more than just these books, but I created this list of books as a way to ensure that I will get to them. If you have ever wondered what is on my bookshelf, then listen to this episode to hear my book list for this year. Upgrade your beliefs by changing what you read You are what you eat. We’ve all heard that expression our whole lives, but the more accurate description is that we are what we read. My intentional book list for this year covers a variety of genres, one is finance related, one is about growing my business, another is a cookbook, one will help me practice agile thinking. I also have a few books that I have enjoyed so much that I reread them each year. Are you curious to hear about what I am reading? Listen to this episode to hear which books are on my nightstand and then you can create your own intentional reading list. What is a melt-up and do you need to worry about one? In the news recently there has been a hubbub of an impending melt-up. Have you heard this worrisome term being thrown around on various media outlets? Are you curious about what it actually means? One listener heard about a melt-up that happened in Japan and is concerned that the same thing could happen here in the U.S. A melt-up is a dramatic and unexpected improvement in the performance of an asset class driven by a stampede of investors.  Listen to this episode to hear if a melt-up is something that you may need to worry about. Social security can leave us with a lot of questions - here’s one from a listener One listener asks about social security, his spouse isn’t eligible to draw on social security as a survivor, so should he go ahead and draw on it early? The government never makes these questions easy to answer; you can’t just do the math and simply figure it out. While mathematically you can figure out the break-even point, there are other considerations to take into account like what are your other income sources in early retirement. What do you need the income for? Listen to this episode to hear all of the questions you should ask yourself when considering this question. Choose what you read Live life more intentionally by choosing a personal reading list this year. I’ve chosen to live my life more intentionally by removing social media from my constant attention and in doing so I have been able to consume content that I have deliberately chosen. This book list will give me a broad range of reading material that may even help me better myself. If you would like to find out what’s on my book list and why then listen to this episode to hear the full reading list, you’ll even get to hear what Nichole is reading too! OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN [1:22] What are you filling your head with? HOT TOPIC SEGMENT [2:02] Some new books that I am going to read this year [10:21] Books that I reread every year PRACTICAL PLANNING SEGMENT [13:54] What’s on Nichole’s book list [15:29] What is a melt-up? [21:33] A social security question [26:34] How can you tithe from investments THE HAPPY LAB SEGMENT [29:07] What happened when I deleted social media from my phone? TODAY’S SMART SPRINT SEGMENT [31:22] Create an intentional reading list for the year Resources Mentioned In This Episode BOOK - 

Sometimes people use retirement as a reason to stop planning. This is a bad idea. The purpose of my retirement planning services is not simply to manage your money. My goal is to give my clients the best retirement that they can have. But without planning this can’t be done. Planning helps people make great things happen. Without a plan people often find themselves drifting through life without anything meaningful to work towards. This episode of Retirement Answer Man is your gentle reminder that you need a plan. Listen to this episode to hear why you don’t ever want to stop planning and making goals. Don’t just wait for your retirement to happen Hopefully, this podcast has helped you understand that you can’t just sit back and expect to live a perfect retirement without proper planning. You should have a good vision of the meaningful life that you want to work towards.  If you don’t start planning for your retirement and stay on top of your financial goals there’s no way you will be able to make your retirement the best that you can. When you plan on the best you can achieve the best. Listen to this episode to hear how proper planning can help you achieve your retirement goals. Make this year your best year ever Have you ever found that if you sit back on your heels and just let life happen then you are not at your best? Being intentional and setting an action plan helps you move forward and keeps you happy and connected. I’m reading a great book that has helped me reconnect and reassess my life. This is a great time to think about how you can continue to move forward in your life by reassessing your goals and finding something meaningful to work towards. Listen to this episode to hear some great tips on how to set goals and to plan for the best year ever. If you sign up for 6 Shot Saturday you will even get a worksheet to help you assess your life and see where you can make some improvements. How to upgrade your belief system Part of reassessing life and making future plans can include reassessing your old belief systems. I went through a process of upgrading my beliefs and making myself a better man a few years ago. This completely changed my life and made me the man that I am today. I had to shed my limiting beliefs about the world, other people and about myself. I have since surrounded myself with people that help support a growth mindset and because I did all this I am more connected, happy, and my life has a purpose. How are your current beliefs limiting the way you think? Listen to this episode and sign up for 6 Shot Saturday to hear how upgrading your belief system can help you change your mindset. Some fantastic listener questions My listeners have some great questions, and unfortunately, those questions have backed up over the past months. I examine a few listener questions on this episode of Retirement Answer Man. One question covers how much you can put into a Roth IRA without penalties. Another listener is curious to find out if his cash reserves could be put into short-term bond funds. Another asks about passive investments. Listen to the practical planning segment to hear the answers to questions about Roth IRAs, cash reserves, and passive investments. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN [1:18] To have the best retirement you have to be intentional HOT TOPIC SEGMENT [3:13] Make this your best year ever [6:33] A quick book recommendation [9:13] Upgrade your belief system PRACTICAL PLANNING SEGMENT [14:55] Backdoor Roth IRA [16:52] Cash reserves vs. short-term bond funds [22:55] What do I mean by passive or side investments THE HAPPY LAB SEGMENT [26:35] Find something meaningful to look forward to TODAY’S SMART SPRINT SEGMENT

The cost of financial advisors vary greatly, but so does the value that they provide. On this episode of Retirement Answer Man, I address the question, is a financial advisor worth the cost? This is a tough question to answer, especially since I am a financial advisor myself! In this episode, you will learn about an important tool to measure the overall cost of your financial advisor and some ways that your advisor may be helping you. These areas will help you see if he or she is providing the best value for your investment management. Listen in to the episode so that you can fully understand how to measure their worth. The financial advising world is changing The world of financial advising is changing from investment management to client lifestyle planning. A financial advisor no longer simply invests your money. Good advisors bring the whole package to the equation. They are able to advise you on spending, risk management, forecasting, retirement planning and much more. The question remains, are advisors really worth their value? Is a financial advisor worth the money spent on them? Different advisors provide different values for their services and either they are a colossal waste of money or the best money you’ve ever spent. Listen to this episode of Retirement Answer Man to learn how to determine the qualities of a great financial advisor so that you can make the most of your money. How can you quantify the value of a financial advisor? How do you determine whether an advisor's services are worth the investment and whether it is cost-effective to utilize their services? Determining the value of a financial advisor's service can be a challenge, but luckily Vanguard provides a process in which the layperson can help determine this value. Vanguard's Advisor Alpha Study actually breaks down the value of a financial advisor into six different areas. During this episode, I describe each of the six steps and how the Vanguard index can help you to measure your financial advisor’s worth. You probably have not thought of all of these points when considering whether or not to hire a financial advisor. Listen to this episode of Retirement Answer Man to hear all the different indexes that the Vanguard Advisor Alpha Study uses to measure the cost of a financial advisor. You will learn how you can assess whether your financial advisor is providing the optimum value that they should. What are other areas where advisors can add value? If you use an advisor the value shouldn’t be in investment management alone. Your financial advisor should also provide the holistic strategizing and wisdom that can help you see your assets through the retirement years. It is also important that your financial advisor gets to know you so that they have a history with you and understand the vision that you see for your life and future. A holistic advisor understands more than just the markets, they understand their clients, and how they desire to live their lives. This type of value is hard to quantify and something that you can’t simply measure with an index or measuring tool. Listen to this episode to see if your financial advisor is providing the type of value that you really need. Is your financial advisor providing you with a good value? Weighing the cost and benefits of your financial advisor can be a challenge, but determining whether or not you are benefitting from their services is an important way to stay on top of your investments. Use the knowledge you gain from this episode along with the tools that I give you in this 6 Shot Saturday to decide whether your financial advisor is a good fit for you. Together these tools will give you an excellent reference to check whether you are getting the value you deserve from your financial advisor. Listen to this episode to hear all the details about how you can measure the performance of your financial advisor and whether or ...

There are many big questions that don’t get touched on in portfolio management sessions. Instead of asking the important questions, you and your advisor may be solely focused on market performance or market projections during these annual meetings. But what do these things actually have to do with your life and your retirement? On this episode of Retirement Answer Man, we discuss the important questions. We will find out what you should really be asking yourself, your advisor, and your money! Grab a pencil and listen to this episode to get the answers to the questions that you really should be asking. Don’t become distracted by the details When dealing with investments and money managers it is easy to get distracted by the details. Investment managers tend to overcomplicate money matters and rather than advising you on the things that really make sense, they focus on the small details of the markets, market performance, and market projections. Their talk can be a distraction from what you should be thinking about. This can be overly complicated and without the answers you are actually looking for. This doesn’t add any value to your situation and the conversations become too technical. Keep the main thing the main thing. The main thing is how can you live your best life now and in retirement. Listen to this episode to hear what you should be talking about with your investment manager, or the questions you should be asking yourself if you manage your own investments. What is the purpose of your investments? Often advisors want to become portfolio managers. While attempting to do so they often begin diversifying assets. But over-diversification can be a distraction. This adds no value to the situation and can be intimidating. And you should never feel intimidated when discussing your money. Investment managers often get focused on pulling all the strings, being the manager, instead of the purpose of your investments. Portfolio management will not save you and advisors can’t portfolio manage your life. Think about what the purpose of your retirement investment is. On this episode of Retirement Answer Man, we discuss the questions that you should be asking, like when can I retire? If you’d like to hear all the questions you should be focusing on with your retirement investments, listen in to hear. What kind of investment questions should you be focused on? On the practical planning segment of this show, I answer some listener questions. One listener asks about using the Sortino ratio vs. using the Sharp ratio to measure returns. He asks what these are and which he should use to measure his returns. While this is a great question which I answer fully, my real advice is to focus on the questions that really matter to your retirement. Try not to get bogged down with overly complicated measures and investment strategies. It is easy to get distracted from the business of living your fullest life now and in retirement when you get overloaded with the heavy questions of the investment industry. Listen to the full episode to hear all the listener questions that I answer. Focus on living your best life The purpose of your retirement investments is to create a process for having a great life now and a great life later. Don’t lose focus on the real questions which are: when can I retire, how can I live now and how can I live better in retirement? By focusing on these questions during every strategy session you can stick to what really matters rather than the minutiae of typical strategy sessions with financial advisors. This keeps both you and your advisor focused on the real goal, which is living your best life. Listen to this episode of Retirement Answer Man to find out more questions that you should be asking yourself and your financial advisor to keep you and your money both focused on living your best life.