#157 - Mitigating Retirement Risks as You Plan For Your Future (Retirement Plan Live Session 3)

Feb 15, 2017

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Well, here we are - at session number three of Kim and Joe’s 2017 Retirement Plan LIVE experience. Today we reach the topic nobody enjoys talking about but that we HAVE to talk about anyway: Retirement Risks. There are many things we need to consider on this episode of the Retirement Answer Man in order to think about retirement realistically and Kim does an amazing job of thinking soberly about the risks that she and Joe will face when they reach retirement. Our goal is to assess them and then address them in their retirement plan. Want to hear how we do it? You can, on this episode. It’s wise to address retirement risks - but they don’t stay addressed.

One of the problems with trying to predict what could happen in the future is that the picture keeps changing. You can address things the way it makes sense today but if the markets change (and they will) or if your financial or health situation changes (and they could), you’re going to have to reassess and re-address the risks you’ve identified. Heck, there could even be new risks by the time you get there. So what do you do? You keep working at it. There’s really no other option. On this episode, I chat with Kim about the risks she sees ahead when it comes to her retirement and we make some tentative plans for the ways those risks might be addressed. I’ll reveal my full suggestions in the upcoming RPL webinar, which you can get in on. Find out how, on this episode. Duct tape solutions to the retirement risks you see are not the best answer.

Do you know what a duct tape solution is? It’s a solution that seems effective at the time but by nature of what it is, it won’t last very long. It’s like putting duct tape on a hose in your car that has sprung a leak. It may get you to the next town but it’s not going to last for a cross country trip. On this episode, Kim and I talk about the possible solutions to some of her retirement risks and discover that some of the things typically used to address those risks may not be the best options. You’re going to enjoy thinking through these issues, so be sure to listen. One of the biggest retirement fears is that you’ll outlive your money.

Almost everyone I talk with about retirement planning has one risk in mind far above all the others when it comes to their retirement: They are afraid that they might outlive the money they have to live on. It’s a very real concern since the longevity rate in our day continues to rise. Are there ways to address this concern other than saying, “Set aside more money?” Kim and I discuss that on this episode as we walk through her Retirement Plan LIVE session today, so be sure you take the time to listen. What if you need expensive medical care, die, and leave your spouse broke?

There is a very real and tragic scenario that happens over and over in modern day America. A married couple plans for their retirement, retires, and is enjoying the fruits of their many years of employment or work, and then one of them is struck with a very expensive disease or medical condition. They use up all their hard-earned money on medical care, and then the ailing spouse dies, leaving the surviving spouse almost penniless. What can be done to mitigate THAT kind of risk? Kim and I talk about the possibility on this episode of the show. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

[0:23] My introduction to this “Step 3” of this year’s Retirement Plan Live.

HOT TOPIC SEGMENT

[4:14] Why retirement is riskier than ever before.
[6:00] How income helps us mitigate risks for now. And how it changes in retirement.
[7:26] Watch out for duct tape solutions.

PRACTICAL PLANNING SEGMENT

[12:04] This conversation about the scary stuff: retirement risks.
[13:43] The issue of market risks and how Kim and Joe have typically handled them.
[16:20] Kim’s current mix of stocks VS bonds - and looking toward retirement.
[18:33] Should retirees live on the income of their investments?
[21:17] Fears about inflation and market instability.
[23:25] Is Social Security going to be there for Kim and Joe?
[25:39] What if one spouse dies earlier than expected?
[30:20] The fears of long term care and a surviving spouse’s needs.

TODAY’S SMART SPRINT SEGMENT

[32:09] Your assignment: Clarify how to access your digital life.

THE HAPPY LAB SEGMENT

[35:44] Unaddressed risks can make you unhappy, but a repeatable process to address them regularly can give you peace of mind.

RESOURCES MENTIONED IN THIS EPISODE
LastPass
1Password
Roger(at)wwkwealth.com
Contact Roger: http://www.rogerwhitney.com/retirementanswers/
Roger’s retirement learning center: www.RogerWhitney.com/learn
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