Retirement Starts Today

Have you been feeling the pull to retire? This feeling isn’t constrained to those nearing retirement age; many people have been feeling the desire to quit their jobs lately. So many workers are considering a job change that this wave of people has begun what is called “The Great Resignation.” I read about this phenomenon on The Guardian website in an article written by Elle Hunt. Elle considers 17 questions that you should ask yourself before you make the leap into the unknown. If you have been contemplating retirement or a job change you won’t want to miss this episode. Outline of This Episode [2:02] 17 questions to ask yourself if you are ready to quit your job [4:53] What do you actually want to do? [8:08] What could you gain by quitting your job? [12:55] You can’t bootstrap your mortgage Attitudes surrounding employment are changing A recent survey indicated that over 40% of people have considered a job change this year. This trend could be a byproduct of stress brought on by the pandemic, but it could be due to a global shift in mindset which has led to a changing shift in employment priorities.  Have you considered retiring early or leaving your current job? If so, you’ll want to make sure that you ask yourself these questions before making any rash decisions. 17 questions to consider if you are ready to quit your job What are your frustrations? Before you up and quit, you’ll want to ask yourself why you really want to quit. What are the underlying causes of your dissatisfaction? Make sure to go deep in your thinking since your first thought is rarely the true reason for your unhappiness. To explore this question further write down every thought and feeling you have surrounding your job for 10 days.  How did you get to where you are now? Reflect on what led you to your current job and what brought you to it in the first place How long have you been feeling this way? Were you unhappy before the pandemic or is the feeling more recent? Consider whether your feelings are pandemic related. If so, this could mean you are actually seeking more control over your life. You may simply feel burned out and need some time off. What do you actually want to do? How do you want to live your life? Who do you want to be? These questions cut to the core and ensure that you explore your values. You may find that your unhappiness runs deeper than your career choice. How would your perfect day be different than it is now? Coming up with your perfect day can also help you explore whether you are ready to eliminate all work-related activities. If so, you may be ready to retire.  What do your friends and family say? Use your support system as a sounding board for your thoughts. What would you be giving up by quitting? If you are thinking of retiring early, think about the costs of healthcare before Medicare and other stabilizing factors that your job brings.  What would you gain by quitting? Try to steer clear of revenge retirement. It may lead you to a situation that you can’t come back from. Your negative feelings might pass, so don’t box yourself into a corner.  Have you explored every option with your employer? Try negotiating. You may be able to work out reduced hours, higher pay, or other changes in your workplace. Should you wait until you’re back in the office to make a decision? Be clear with your own needs and desires when considering this question. Should you quit due to a toxic boss? It can be challenging to see a toxic relationship while you are in the thick of the situation. A toxic work environment could mean that it is time for a change. When should you quit over stress? Is stress causing you to lose sleep, enjoy time with your family, or negatively affect your downtime? If your job adversely affects your life and health then you’ll want to assess why you feel stress. Are your expectations realistic? Can you actually leave your job? Can you afford to cover your expenses? If you can’t, then you may need to stick it out a bit longer. Could caring less help? Try setting boundaries in your workday. Define your values and step away from work when needed. and define values.  Is now the right time? You can empower yourself by filling in the gaps. Why can’t you make a decision? Set a decision date so that you don’t let your indecisiveness drag on. Resources & People Mentioned Boomer Benefits Ready to Quit Your Job from the Guardian Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

In retirement, you have all the time in the world, but are you using your time wisely? I recently read an op-ed article from CNBC about the power of delegation and it got me thinking about the way we spend our time.  On this episode of Retirement Starts today, we’ll explore that op-ed article, I'll share what I learned about inherited IRAs this week, and I’ll answer a listener question about retirement planning beyond the 4% rule.  Outline of This Episode [2:22] What I learned in my office this week [5:24] An inherited IRA example [6:35] The value of paying others to do services for you [10:55] A question about episode 193 [14:52] Check out my retirement guardrails video What is the highest use of your time? Are you planning to live your best life in retirement? If so, you may want to consider delegating various tasks that could be better handled by someone else. Even if you have lived a life of frugality you should ask yourself if doing certain tasks is the best use of your time. You may receive a better return on investment and return on your health by hiring someone else to do certain services for you. Use your time to enjoy life rather than by doing menial tasks.  Tasks that may be best done by others If you can afford it, consider hiring someone to complete these tasks for you.  Hire a lawn care service - Not only will having someone else care for your lawn save you time, but it could also save your energy, and maybe even save you from heatstroke, or worse. Use a travel agent for vacation planning - A professional travel agent can help keep your vacation costs down and save you time on research. A travel agent can also assist you with problems during your trip which can be extremely valuable when traveling abroad. Grocery pick-up, delivery, and ready-made meals - Many of us discovered the magic of grocery pick-up or delivery services during the pandemic. Choosing a grocery pick-up or delivery service can help save you time on meal prep and also alleviate any COVID-19 related fears associated with shopping in person. Hire a business coach - A business coach can help you overcome hurdles that stand in the way of your personal and professional goals. They can also help you navigate career options and even reduce stress.  Quit doing your own taxes - Leaving the tax prep and planning to a professional can save you time and money.  Which of these services would best serve you? How will you spend your time in retirement? Even though you will have more time on your hands in retirement, it still makes sense to use your time wisely. Think about the highest and best use of your time. What could this extra time mean to you? Would it bring an improvement in your quality of life? Could you plan your bucket list or how to leave your legacy? Retirement is all about the what if, so what if you could take some of these tasks off your plate?  Make sure to listen to hear what I learned this week about inherited IRAs and you won’t want to miss a listener question about using retirement guardrails. This episode is packed full of information so press play now to get started.  Resources & People Mentioned Boomer Benefits My Retirement Guardrails Video Op-Ed article from CNBC Ed Slott’s IRAHelp.com Episode 193 - Improving the 4% Rule Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

Since travel is on many soon-to-be retirees' must-do lists I have created this summer travel series with various travel experts. Danielle Desir from the Thought Card podcast joins me today to discuss how to travel to any destination on a budget. Recognized by Flight Network as one of the best travel hackers in the world, Danielle has figured out how to travel to bucket-list destinations on a dime. Are you ready to learn how to plan your next big trip on any budget? Listen in to discover how. Outline of This Episode [1:22] Danielle’s journey to bucket list budget travel [3:23] Identify the things that you value [7:21] Take an individual approach  [10:53] Danielle’s top destinations [12:32] How to choose to repeat a destination [15:41] Jet lag tips [20:47] Where to learn more about travel hacking with Danielle If you’re on a budget, don’t settle for inexpensive destinations, think big! Many people think that if they are on a budget they can only travel to budget-friendly places, but Danielle Desir takes a different approach. As a travel hacker, Danielle has learned how to make travel to bucket-list destinations more affordable. She describes using an abundance mentality as a way to make affordable travel work. She recommends getting creative when planning, “take what you have and make it work.” Identify what matters to you The first step in becoming a financially savvy traveler is to identify what you value in travel. Is it important to you to be comfortable on a flight? Do you like to eat out and try the best local cuisine? Do you want to see everything you can in one location? Do you prefer luxury accommodations?  Once you have identified what the most important aspects of travel are to you then you will understand where you can be flexible in your spending. If eating out isn’t important to you then you can save money by packing a sack lunch each day. If a fancy hotel room isn’t important then you could save money by staying in a hostel or an inexpensive Airbnb or motel.  Understanding what you value in travel will help you save money and ensure that you have an amazing time on your trip.  Make a game of saving money Another way to save money is to gamify your planning experience. By making a game of saving money you can compete with yourself to see how much money you can save each time you travel. You can cut costs in a variety of ways by looking for inexpensive accommodation, saving on flights, or by using travel points. Gamifying your travel costs allows you to get creative and save more.  Communication is key when it comes to couples’ travel When traveling with your significant other it is important to take into account what they value as well. Make sure to communicate with them so that you are both on the same page. They may value different things about travel so it is important not to skimp in the areas that matter to them.  You should also be understanding of your partner's travel experience. There may be one partner that is more travel savvy than the other. That means that the travel-savvy partner needs to be patient and explain the importance of the things that you do to save money when traveling.  It is also important to remember that traveling in retirement will be much different than traveling for work. You are out there to have fun. Listen to this episode with travel expert Danielle Desir to hear how you can travel to any destination affordably.  Resources & People Mentioned Boomer Benefits Connect with Danielle Desir Thought Card Podcast How To Save Money In Iceland How Much Does A Four Day Trip To Iceland Cost Iceland: Nature, Nurture and Adventure Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

 Do you have bond funds in your portfolio? Many people understand the way that bonds work, but they may not know how bond funds work. El has written in to ask this question which I will answer in the listener questions segment.  Before we get to that retirement question, we’ll take a look at a MarketWatch article titled Are You in Retirement Hell? It was such a catchy title that I had to check it out.  The article expresses the author’s struggle with finding challenge and meaning in retirement. You won’t want to miss the ways that you can avoid your own retirement hell.  Outline of This Episode [2:32] Are you in retirement hell? [5:38] How to prevent retirement hell [6:56] How do bond funds work? [12:53] What are alternative options to bond funds? [16:52] Does John have enough money to retire? Are you in retirement hell? Retirement is a time of fun and relaxation. You no longer have exhausting work schedules, long commutes, or alarm clocks waking you up every morning. Every day is yours to do as you wish.  Passing the days pursuing leisurely activities like playing golf or visiting the grandkids may be just perfect for some laid-back retirees, but for those looking for more challenging pursuits, these carefree days could quickly turn into retirement hell.  You can recognize if you are in retirement hell if you are feeling lost and vulnerable. You may even sink into a depression as the activities that you once enjoyed feel empty and meaningless.  How to fix (or prevent) retirement hell In the article, the author mentions that he didn’t break out of retirement hell until he finally sat down and defined his concept of fine.  Contentment is an important part of retirement, it’s so important that I even discussed it once in a previous episode with Fritz Gilbert. When you’re done listening to this episode, pop back over to that one and have a listen.  I always like to say that you shouldn’t be retiring away from something, instead retire to something. It’s important to consider what you will do with those extra 40 hours a week that you now have at your disposal.  You don’t want to wait until you are in the thick of retirement hell to figure this out. Try creating a practice retirement with some of your vacation time. Take a couple of weeks off and don’t go anywhere or do anything exciting. Instead, try passing the days as you would like to when you retire.  How do bond funds work? A bond fund is similar to a mortgage, but you have a group of investors and a company instead of the mortgage lender and home buyer.  Bonds can be purchased individually and held to maturity or they can be traded. Bonds are similar to stocks in that they can go up or down in value but they have different interest rates and different rates of maturity.  To spread out the risk of buying individual bonds, most investors choose to invest in a basket of bonds or a bond mutual fund. The risk is spread in the same way that you spread out the risk in your stock portfolio.  What are alternative options to bond funds? If you aren’t happy with the bond funds that you have now try Googling portfolio immunization. Portfolio immunization means that you match your retirement liabilities with your retirement assets.  The way to do this is to purchase a bond in advance so that it matures the year that you need the cash flow. The specific benefit of this strategy is holding the bond until maturity. By holding the bond until it matures you remove the interest rate risk.  Make sure to stay tuned until the very end where I answer John’s question about whether he has enough money to retire. You may be surprised by my recommendation.  Resources & People Mentioned Boomer Benefits MarketWatch - Are You in Retirement Hell? Episode 146 with Fritz Gilbert Contentment episode with Fritz Gilbert Retirement Manifesto The infamous mullet episode Guyton’s Guardrails episodes 153, 149, and 93 Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

Are you preparing for a successful retirement? If you are, you’ll need to consider more than just your finances because 80% of a successful retirement has nothing to do with money. However, when people focus on retirement planning, money is often the only thing they focus on. In the retirement headlines segment this week, we’ll check out an article from Financial Advisor Magazine titled Right Way Retirement. This article takes a look at the non-financial aspects of retirement that many financial advisors miss when it comes to retirement planning.  In the listener questions segment, I answer a question from Majid about working while collecting Social Security. Make sure to tune in until the end to hear how to complete the earnings test so that you will understand how much you can earn and how to avoid Social Security penalties. Outline of This Episode [2:12] To plan for retirement you need to stay ahead of the curve [4:00] 6 items to focus on in retirement planning [8:03] Will income from a part-time job affect the amount of Social Security I receive? Retirement isn’t only about the money Robert Laura recently published an article in Financial Advisor Magazine about doing what it takes to create a successful retirement. The author noticed that most financial advisors that help people get ready for retirement focus solely on the financial aspect of this life change. However, retirement isn’t all about the money. He has noticed that advisors often have a blind spot for the areas of retirement that aren’t financially related. To truly prepare for retirement, people need to take a more holistic approach.  6 ways to create a successful retirement  Replace your work identity. Many retirees feel like they lose a significant piece of their identity when they leave the workforce. To combat this sense of loss, identify the specific areas of your career that you get fulfillment from. Then think of ways that you can parlay that area of fulfillment into your life in retirement. A couple of ways that retirees choose to carry on their former work identity in retirement is through mentoring or consulting. Fill your time with meaningful tasks. Once you retire you’ll have a 40-50 hour space to fill in your week. Creating a retirement routine can help combat boredom. Try filling the gap with an active and healthy lifestyle. This will not only leave you fulfilled but healthier as well.  Stay relevant and connected. When you leave work behind you also leave much of your social network. Retirement can be an opportunity to re-establish old connections and create new ones. Keep mentally and physically active. You can do this by creating healthy routines. Express your spiritual beliefs. Not everyone is religious, so if you're not, you could work on improving your mindset by cultivating a gratitude practice.  Feel financially secure. If you’ve been listening to this show for a while, hopefully, you are well on your way to meet this goal.  Create a plan to gain the most fulfillment from your retirement Creating a retirement plan that addresses all 6 of these areas can help you create a greater sense of satisfaction with your life in retirement. You don’t want to get into the thick of retirement and discover that there is something missing from your life. Start a more holistic approach to retirement planning now so that you can create a meaningful life in retirement.  Make sure to tune into the listener questions segment to hear about receiving Social Security while you are still working. You’ll learn just how important it is to know your full retirement age and how the Social Security Earnings test can help you keep the most from your benefit.  Resources & People Mentioned Boomer Benefits Full Retirement Age from SSA.gov Exempt Amounts for 2021 Right Way Retirement from Financial Advisor Magazine Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

Do you have a case of frugality syndrome? Many of us are so used to saving and living frugally that we have a hard time pivoting from the accumulation stage of retirement planning into the distribution stage.  A recent retirement headline from Advisor Perspectives titled Overcoming the Frugality Syndrome caught my eye. This article discusses the difficulty that some retirees have in switching from saving to spending. I wanted to share this with you all since so many of you are diligent savers. After the retirement headlines, we move on to our listener questions segment. Wendell is concerned about having all his eggs in one custodian’s basket and Stella would like to learn about rolling a 401K into a Vanguard target-date fund.  Outline of This Episode [1:22] What is frugality syndrome? [4:18] 3 tips for overcoming frugality [8:55] A question about target-date funds [14:49] Should you consolidate accounts into one financial firm? Can too much frugality be a bad thing? Rick Kahler at Advisor Perspectives recently wrote an article about the problems that can arise from too much frugality. He uses one particular example to make his point: the FI/RE movement. FI/RE stands for financial independence/retire early and those that try to achieve this goal often do so by becoming exceedingly frugal.  Many of you have been amazing savers over the years which is why you are on track to achieve your retirement goals. However, while your frugality can help you achieve your retirement goals, a long-term focus on constantly saving can make it hard to stop being thrifty and start spending.  Over the long-term, frugality becomes a habit and thriftiness becomes ingrained in one's being. This mindset makes the act of switching to the distribution stage of retirement a challenge for many people. Rick offers 3 tips on shifting gears from accumulation to decumulation. 3 ways to shift gears from accumulation mode to distribution mode Recognize that frugality syndrome is normal. First, it is important to congratulate yourself on your financial achievement. Once you do so, then you can give yourself the grace and understanding that the transition from saving to spending will be a challenge.  Create a spending plan. A spending plan with set limits can help you overcome any anxiety that you may feel about overspending your carefully saved money. This will also help to ensure that your money will last and that you aren’t squandering away your financial future.  Get a financial checkup. Consider consulting a fiduciary financial planner a year or so before your target retirement date. You may also look into seeing a Certified Financial Therapist or Certified Financial Transitionist. These financial professionals can help prepare you for the mindset shift that comes with this monumental life change.  Creating a retirement plan can help you spend confidently Don’t think of frugality as a light switch that you can turn on and off. It will end up being a mindset that you have to ease out of.  Early planning can help with the emotional aspects of shifting your financial mindset. Creating a thorough retirement plan can help you to spend confidently. I like to set retirement guardrails that help to safeguard a person from market risk. These set limits protect against sequence of return risk as well as helping with one’s financial mindset.  Resources & People Mentioned Advisor Perspectives article Episode 94 - Set It and Forget It  Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

How’s this for a headline? I’m 62, unemployed, living off my savings, and waiting on Social Security — ‘Can I go fishing for the next 25 years and forget about work? It naturally caught my eye since there was fishing in the title! Today we’ll check out this MarketWatch article and answer the headline’s question as well as explore the additional recommendations the article mentions on ways to make retirement savings last. In the listener questions segment, I’ll answer a complex question about borrowing against your home for a gift for a child. Once you’re done listening please head on over to our annual listener survey to make sure you voice your opinions on the trajectory of the show.  Outline of This Episode [1:22] Can I go fishing for the next 25 years? [4:58] Financial advisors weigh in on this question [14:20] Should I take out $150,000 of my IRA to help my family buy a house? [19:35] Make your voice heard--go check out our listener survey! Is it time to forget work and go fishing? A recent Market Watch article caught my eye since it had fishing in the headline. The article opens with a question from a reader about his decision to quit his job early and go fishing for the rest of his life. The recent retiree did a great job saving for retirement and the MarketWatch author and I agree--he is absolutely ready to go fishing for the rest of his life. I enjoyed reading this article since it included other experts’ responses, so I thought I would dig in and explore them a bit further and add my own 2 cents.  The dangers of leaving ‘moldy money’ lying around One commenter pointed out that the writer had a substantial amount of money in a savings account. He warned of the dangers of inflation by leaving that money in a low-yielding savings account.  I agree with these concerns. Unless there is a specific reason, you need to be wary of leaving ‘moldy money’ lying around in low-yielding accounts. This money will end up losing purchasing power over time due to inflation.  If you do have a substantial amount of money that isn’t invested consider converting a portion of that savings into a Roth IRA. Listen in to hear how I disagree with one advisor’s approach to investing for retirement.  Why the bucket approach works Another advisor suggested the bucket approach for asset allocation. This approach requires you to divide your assets into categories based on your withdrawal timeline.  The super-conservative category is the first bucket you’ll dip into. The less conservative bucket has a longer time horizon, and the aggressive bucket won’t be touched for a long time.  The bucket approach is a great idea and allows you to visualize your near-term assets and distinguish them from your longer, more volatile investments.  Recognizing the difference between the boring short-term assets from the more exciting long-term assets will help you keep your sanity when the market starts misbehaving.  To delay Social Security or not The next area that the article discusses is Social Security. The letter writer plans to wait until full retirement age in order to receive 100% of his Social Security benefit, but there is the possibility of delaying even longer until the age of 70.  Generally, my suggestion is to wait until age 70 to receive the maximum benefit, however, in this case, I don’t think it is as important. Listen in to hear why.    1IVllfsq61rslNucXcD7  Resources & People Mentioned Boomer Benefits IRS page on gift taxes MarketWatch article  Annual Listener Survey Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

What do you think about senior living communities? Would you want to move to one? According to a recent WSJ article, occupancy in senior housing is on the decline despite the fact that baby boomers are aging and more of these communities are springing up all over the country. In the retirement headlines segment, we’ll take a look at the reasons for this phenomenon. But before we get to the retirement headlines I also want to share a conversation I had with a client about how to plan sales of his company stock. Make sure to listen in if you have a significant amount of stock in your company. You’ll want to hear what you should consider before selling.  Outline of This Episode [1:22] Identify you pain threshold when selling company stock [5:58] Boomers want to stay home [10:38] Who will win? [11:40] How does long-term care insurance play into this equation? [13:03] Don’t forget to answer our annual listener survey! Boomers want to stay home It may not be a surprise to you that seniors want to stay in their homes for as long as possible. A recent WSJ article investigates these low occupancy rates in senior housing developments. People born during the Depression and World War II are moving into senior housing, but baby boomers plan to stay in their homes longer. Even though boomers would like to age in place, the oldest of this generation will start reaching their mid-80s within the next decade which is the age when many people start moving into senior housing.  Why are senior housing occupancy rates falling? There are a couple of reasons that senior housing occupancy rates are in decline. One reason is that improved health has led to people entering senior housing later in life than in years past. People are not only living longer, but they are also staying healthier longer.  Another reason for the senior residency decline is technology. There are several new technologies that can help the elderly stay in their homes longer than in the past. Seniors can remain independent for an extended period with technologies like Uber, self-driving cars, and grocery delivery services.  The article also mentions more innovative examples of how technology can help the elderly. One example is LifePod Solutions, a voice remote monitoring platform that can identify seniors' needs and send care when needed. An architectural design firm, Gensler is using technology to redesign senior-friendly homes that can adapt to the elderly’s changing needs. Tolent Construction in the U.K. has designed a mixed-use development that includes senior-friendly homes which will allow the elderly to age in place longer. Innovation is responding to demand and creating myriad ways to help the elderly stay in their communities with friends and family for as long as possible.  Who will win? The commercial real estate market has been betting big on the idea that aging baby boomers will be needing senior housing, but improved technology that can help the elderly stay home longer may change this reality. The beauty of capitalism is that competition will drive the best solution. I see a very bright technology-enabled future for our aging population.  How will long-term care insurance play into this equation? With all of these improvements in technology, will our aging populous still need long-term care insurance? Or will long-term care insurance legislation need to change? One way this insurance could adapt is to allow policies to pay for home upgrades that use technology-based solutions that allow elderly homeowners to age in place. Only time will tell how the technology, real estate, and insurance industries will adapt to baby boomers’ needs. Before you go, be sure to chime in on what you think of Retirement Starts Today by filling out our annual listener survey. I produce this show with your needs in mind and want to ensure that I am addressing the issues that you find most important. Any changes in the coming year will be based on the results of this survey, so make sure your voice is heard! Resources & People Mentioned Boomer Benefits - my go-to Medicare planning experts Medicare Basics series - start here to listen to Danielle Roberts walk through the basics of Medicare WSJ article on senior housing LifePod Solutions Gensler Tolent Construction Annual Listener Survey Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

Has the Covid pandemic caused you to reevaluate your life and consider early retirement? If so, you are not alone. Now that we are starting to emerge from the pandemic, many Americans have a new 'life is short' mindset. This, coupled with an upswing in investments and home values is leading many affluent Americans in a rush to retire. Check out the retirement headlines segment where we explore a recent Bloomberg article that explores this topic. Then, stick around for the listener questions where I answer a question from Randy about paying off his mortgage with a Roth IRA and if you stay until the very end you’ll hear the story behind the Retirement Starts Today theme song.  Outline of This Episode [3:22] Affluent Americans Rush to Retire in New ‘Life-Is-Short’ Mindset [7:47] There is a downside to the loss of older workers [9:32] Should we consider paying off our home loan with a Roth IRA? [16:21] The story behind the theme song Participate in our annual listener survey Every year I send out a listener survey to our Every Day Is Saturday newsletter subscribers to give you all the opportunity to guide the content over the next year. In the past, I have made changes based on your answers and I look forward to hearing your thoughts this year. If you haven’t yet subscribed to the newsletter you can do so here. In addition to being able to participate in the survey, the newsletter also contains all the links from the show each week, as well as free book offerings from the authors I interview, and all kinds of useful retirement tips. If you want to complete the survey now, simply click here.  Many affluent Americans are ready to retire One of the most surprising aspects of the pandemic has been the unprecedented surge in the stock market. Investors have enjoyed double-digit returns and this swell in portfolio values has led many to reconsider their retirement plans. This is in stark contrast to those on the opposite end of the spectrum that had little savings and lost their jobs over the past year. Life for affluent Americans is looking good and many are taking advantage of the situation by considering early retirement.  Changes in work environments are another reason for the mass exodus Another reason people may be considering early retirement is the toll that the past year has had on workers. The pandemic has changed the way that many companies do business. Zoom fatigue and stressful work environments are also contributing factors in the rush to retirement. Teachers and healthcare professionals are experiencing record levels of burnout. While this mass exodus is positive for those ready to retire, there could be a downside. As the most experienced and productive workers exit the workforce, businesses are experiencing labor shortages. Older workers have higher productivity, lower absenteeism, and usually train the newcomers so this loss significantly affects companies.  Life is short, enjoy it! I love to see the newfound freedom that many are experiencing post-pandemic. Life is short and we should enjoy it fully. To do so, make sure to have a written retirement plan to help guide you.  I also recommend taking a practice retirement before you actually retire. This can help you get a feel for retirement and help you build retirement routines. This trial run will also show you if you are mentally and emotionally prepared for retirement.  Have you been thinking of retiring early? If so, what have you been doing to prepare? Listen in to hear how a retirement rehearsal could help you prepare for your retirement journey. Resources & People Mentioned Annual Listener Survey Bloomberg article on Americans Rush to Retirement Limbeck Silver Things Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify

Episode 200! I can’t believe I’ve made it to this landmark episode. Thank you all for joining me on this journey and I hope you'll join me for the next 200. I enjoy looking back and reminiscing on previous episodes, but I don’t have to go too far back to find my most recent favorite. Episode 199 is one of my most recent favorites. In it, I interviewed world-renowned Disney expert, Lou Mongello, to discuss multigenerational Disney trips. Check it out if taking the grandkids to Disney is on your bucket list.  In this episode, we’re covering two retirement headlines. The first is from Investment News and it describes how some leading retirement experts question whether advisors should rethink their assumptions about retirement spending when creating financial plans. The 2nd retirement headline is from HumbleDollar.com titled Secret Sauce. This article describes the aspects of work that we want to hang onto, those that we might not, and it outlines six steps to design a successful and ideal retirement. Outline of This Episode [2:22] How we should rethink our assumptions about retirement spending [9:30] How to plan your retirement withdrawal rate [11:20] To have a successful retirement, you need to have an understanding of work People in retirement live differently Mary Beth Franklin recently wrote an article for Investment News about retirement spending. She sourced a study completed by the Employee Benefit Research Institute (EBRI) which analyzed the spending of 2000 retirees. The study found diversity in the way people live in retirement based on financial status, retirement goals, demographics, and spending habits. Mary Beth's article focuses on the results for those that were classified as affluent and comfortable retirees. Not many affluent retirees plan to spend their savings In the article, affluent retirees were defined as those with financial assets exceeding $320,000 and an annual income of $100,000 or more. Most of them were also mortgage-free with zero debt. Their most common sources of income were defined as employer benefit plans, Social Security, and personal savings. They reported that they feel they have saved enough for retirement and only 1 in 3 plans to spend all or a significant portion of their savings.  Comfortable retirees may spend only a small portion of their assets Comfortable retirees had mid-levels of financial assets between $99,000 and $320,000 and an annual retirement income of less than $100,000 a year. Many still had a mortgage and other debts. Most of these people cited workplace retirement savings and Social Security as their major sources of income. Almost 75% of these comfortable retirees said that their retirement savings are sufficient or more than meet their needs, however, more than half of them plan to grow, maintain, or spend only a small portion of their assets.  Why are affluent and comfortable retirees hesitant to spend their retirement savings? The study found that the Baby Boomer generation wishes to retain assets rather than spending them down. So the question is, why don’t these retirees wish to spend their retirement savings? This may be due to the fact that their Social Security income or pension provides enough to meet their expenses, but it could also be due to an inability to switch gears from accumulation to decumulation. Another reason may be that many retirees don't know how to determine a sustainable withdrawal rate that considers future uncertainties, and this lack of knowledge makes them wary to spend their nest eggs.  I think the key to confidently spending and living off your savings is to understand how much it costs for you to live for a year in retirement. Listen in to hear how you can learn how to calculate your spending so that you can determine your sustainable withdrawal rate in retirement.  Resources & People Mentioned Retirement Repair Shop with Mary Beth Franklin Investment News article Secret Sauce from HumbleDollar.com Employee Benefit Research Institute study Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/ Follow Ben on Twitter: https://twitter.com/retiremeasap Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Subscribe to Retirement Starts Today on Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify