Retirement Starts Today

Our chances of death are 100%, so that means at some point in your life you will probably experience the death of a loved one, and you’ll need to prepare for your own passing. Choosing the right executor can make a traumatic time more bearable. The role of executor is not an easy one, which is why it is important to choose wisely.  In this episode of Retirement Starts Today, you’ll hear an interview with executor expert, David Edey. David has recently written a book titled How to Pick an Executor and Avoid Family Fights. After listening to this interview you’ll be able to choose and become an exemplary executor.  Outline of This Episode [2:32] How to prepare your executor [4:37] Should you hire a 3rd party or ask a family member [10:15] How to be the world’s best executor [15:34] More about David’s book What you can do to prepare your executor David learned how to be a rock star executor from his own challenging family experience. It took him 7 years, 10 court appearances, and $50,000 in lawyers’ fees to settle his parents' estate and they both had a will! Everyone seems to know someone with an executor horror story which is why he decided to write his book. David wants to teach others how they can choose or be a fantastic executor. If you ask someone to become your executor, you must ensure that they have all the tools they need to perform their duty. Make sure to have an up-to-date will in place. Talk with your beneficiaries so that they know what to expect when the time comes. Your digital assets and files should be organized and easily accessible. No one wants to be looking around for missing paperwork when they are dealing with the loss of a loved one. Make it as easy as possible for the executor to get the job done.  How to choose an executor Families can fall apart when it’s time to settle an estate which is why it is important to carefully choose an executor. You could choose a family member, a friend, or a third party. If you choose to hire a third party there will be many fees involved. If you choose one of your children over another it is important to communicate with both the chosen executor and the other children to ensure that you help to keep the family harmony after you pass.  There is no one right way to choose an executor, but you should consider the health and age of the chosen executor. It is important to choose someone who can keep the dynamic that you want to set for the estate and that can get the job done.  How to be a fantastic executor If you have been chosen to be an executor you need to ask plenty of questions. It is important to understand where important documents, passwords, and information are. Insist that the will is up to date and that everything is labeled in an easy-to-find location. David’s book has a wealth of resources that can walk you through the process of being an executor. He explains the protocols for shutting down social media, bank accounts, and other online accounts. You can also check out David’s Executor Help podcast.  Family dynamics can fall apart when a loved one passes. Doing the proper preparations for your passing may be challenging now, but it will pay off in the long run. Doing so will ensure that you leave a legacy and not a mess.  Connect with David Edey How to Pick an Executor and Avoid Family Fights Executor Help podcast Executor Help on Facebook @DavidEEdey on Twitter 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

If you are like many Americans who watch the news, inflation is probably on your mind. Since the Covid 19 pandemic began costs have been rising. We are still facing the effects of the supply chain breakdowns brought on by the pandemic in addition to extreme worldwide weather events.  These events have led to an increase in the price of goods on everything from fuel to food to lumber. This type of inflation can be stressful for the average working family but even more worrisome for those on the cusp of retirement.  Listen in to hear the latest Social Security news and learn how you can combat rising costs. Make sure to scroll down to the bottom of the show notes to access all the links mentioned in this episode.  Outline of This Episode [2:52] Good news about Social Security [4:26] How COLA is calculated [5:40] COLA may not be enough to keep up with inflation [9:28] What can we do to hedge for inflation? Recipients of Social Security are getting a raise If you are already retired and receiving your Social Security benefits, I have good news! The annual cost of living adjustment (COLA) will increase by 5.9% in 2022 which will boost the individual income of recipients by about $92. This is the largest increase in Social Security benefits since the 7.4% augmentation in 1983.  Over the past decade, the rise in COLA has been negligible, only averaging 1.65%. This minimal increase is due to the way COLA is calculated. This calculation is based on the change in prices of a market basket of goods as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPIW).  Even with next year’s close to record-breaking increase, COLA may not be enough to truly combat inflation.  Are yearly inflation adjustments to Social Security enough to truly keep up with inflation? Despite yearly inflation adjustments, Social Security benefits have decreased their buying power by 32%. Even though COLA has increased benefits by 55% since 2000, senior citizens’ expenses have actually increased by 104.8% over this same timeframe.  This ThinkAdvisor article has a photo slideshow that illustrates 10 costs that older Americans have seen risen over the past 20 years. The article cites The Senior Citizens League (TSCL), an advocacy group, which is trying to change the way COLA is calculated. While TSCL supports legislation that could modestly increase COLA, you won’t want to wait for Congress to ensure that you can maintain buying power in retirement.  What can we do to hedge for inflation in retirement? Buying (and holding) stocks in the best companies in the world is the best way to hedge for inflation. The best companies in the world will hire the best employees in the world, and together they will figure out how to find efficiencies and raise prices which will provide you with positive returns and an increasing long-term share price, regardless of inflation. An allocation to 50-70% stocks should be plenty to keep your portfolio growing, which will grow your account balances over the long term and allow you to increase your monthly distributions. With this kind of diversified portfolio, you’ll be able to use your cash and bonds to weather the storms and ride out bumpy markets.  How are you planning to combat inflation in your retirement plan? Resources & People Mentioned 10 Fastest-Rising Costs for Older Americans Since 2000 Our November 2020 Medicare series Boomer Benefits AARP Social Security Increase article Basket of Goods definition The Senior Citizens League 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

The end of the year is coming up right around the corner, and you know what that means: it’s time for end-of-the-year tax planning! However, this year’s tax planning may look a bit different with new tax legislation making its way down the congressional pipeline. Many wealthy individuals are nervous about what the current regime has in store for them. This is why when I saw the headline Tax Moves Advisors Should Be Making Before Year's End in Financial Advisor Magazine I knew I had to share it with my audience. If the news of the tax legislation has you worried, you won’t want to miss this episode.  Outline of This Episode [2:22] It’s time for year-end tax planning [8:53] Why you should donate to charity this year [12:44] How to offset future inherited income taxes [18:08] How a qualified charitable distribution could help with taxes Do you have tax-change proposal fatigue? Keeping up with all the changes in tax legislation over the past few years can be exhausting. It seems like once in a generation tax law changes happen every couple of years.  One of the most troubling things about new tax legislation is wondering when it will take effect. Will the new law come into play at the end of the year, or will the changes be retroactive? While this can cause a bit of worry there is no sense in speculating. There is only so much that you can do to prepare.  Realize more income now to be proactive about the potential tax law changes While we have no idea what the future might hold, we can still have the presence of mind to plan ahead. One way to combat a hefty tax bill next year is to accelerate your income now.  For instance, if companies typically give bonuses at the beginning of the next year, they could pay those bonuses out in December instead.  Another way to realize more income sooner rather than later is to close any business sales before the end of the year to lock those earnings in under the current tax law.  Enter into deduction mode if you are close to retirement If you are nearing retirement and you know your income will drop once you retire, you should be in deduction mode. Take advantage of HSAs and 401Ks rather than Roth IRAs to reduce your income and maximize your contributions between now and the end of the year  If your income decreases once you retire then you can start Roth conversions to mitigate the tax deductions you took when you had a higher income.  Year-end tax tips If you file the standard deduction, don’t miss out on the charitable deduction of $300 for singles and $600 for married couples.  If you are able to itemize your deductions and you are charitably minded, consider funding future years' charitable contributions through a donor-advised fund (DAF). If you have highly appreciated stock then you could use it to contribute to charity while also realizing a valuable tax deduction.  Another way to finish out the year is to anticipate your year’s earnings so that you can fill up your tax bracket with Roth conversions. This is a great way to take advantage of the historically low tax rates.  Worrying about future changes won’t help at all, instead, do what you can to take advantage of this year’s low tax rates to prepare for an uncertain future. Resources & People Mentioned Tax Moves Advisors Should Be Making Before Year's End 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 wish that you could have a mulligan when it comes to taking your Social Security benefit? Once you file for Social Security, it seems like your decision is set in stone. But what if I told you that you have options to reverse your decision?  In this episode of Retirement Starts Today, we’ll explore an Investment News article written by one of my favorite Investment News contributors, Mary Beth Franklin. This article provides options for those who have remorse about the timing of their Social Security claim. In the listener questions segment, we’ll discuss Jerry’s question about his health insurance premiums under the Affordable Care Act and how they are affected by the 8.5% rule. This episode is jam-packed with helpful retirement information, so press play now to continue your retirement education. Outline of This Episode [3:02] 3 Social Security do-over options [8:25] Check out the Retirement Repair Shop podcast [9:24] Jerry’s ACA insurance premium questions [13:50] Clarification on the ACA 8.5% rule  There are 3 ways that you could reverse your Social Security timing Have you found yourself regretting the timing of your Social Security benefits claim? Maybe you wish that you had waited longer to receive a larger benefit or maybe your retirement timeline has changed based on the pandemic or other factors. If so, I have good news for you. There are 3 ways that you could reverse your decision.  There are many people that wish they could go back and change the timing of their Social Security claim, so if you are one of them make sure to listen to this episode to learn which choice might best fit your needs.  Withdraw your application You may not realize this, but you can withdraw your Social Security benefits application. Use form 521 to do so, but keep in mind that there’s a catch.  You’ll have to repay any earnings you or your dependents have received. Withdrawing your application can only be done once, but doing so will allow you to apply again later when your monthly check would be higher.  You’ll also want to consider whether you are already enrolled in Medicare. If you withdraw your application, your Medicare premiums will no longer be automatically deducted from your Social Security benefit, so you’ll have to find another way to pay.  Suspend your benefits If repaying your Social Security benefits isn’t feasible, then you might want to consider suspending your benefits. This way you don’t have to repay anything, however, keep in mind that not only will your benefits stop, but also this action will stop any benefits to a dependent family member. Your benefits would then start again at age 70. Listen in to discover why this may be a good strategy for married couples.  Request a lump sum payout Requesting a lump sum payout works only for individuals who have reached full retirement age. They can request a lump-sum payout of up to 6 months of retroactive benefits. This option would best be used by someone who has an urgent need for cash or for people who waited until after their full retirement age to claim either spousal or survivor benefits. After receiving a lump-sum payment, that person could then voluntarily suspend benefits and earn delayed retirement credits up to age 70 which would boost future monthly benefits.  Claiming Social Security seems like such a permanent decision so if life comes along and changes your plans it’s good to know that you have these alternatives to consider.  Resources & People Mentioned November 2020 Medicare series with Danielle from Boomer Benefits Boomer Benefits Retirement Repair Shop podcast with Mary Beth Franklin 3 Social Security Do-Over Options article Retirement Answer Man podcast Stay Wealthy podcast Financial Symmetry podcast Market Watch article on the ACA subsidy cliff KFF.org - resources for the ACA and other health matters 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 annuities give retirees a different attitude towards spending in retirement? In this week’s retirement headlines, we’ll examine an article that discusses the psychological benefits that retirees who shift their assets from savings to lifetime income enjoy. This group of retirees has more of a license to spend attitude and ends up gaining more enjoyment from their retirement savings.  Make sure to stick around until the end of this episode to hear my thoughts on the article. You’ll also hear me compare the advantages and disadvantages of using Cobra instead of the ACA before Medicare.  Outline of This Episode [2:42] 3 need to know bullet points about annuities [6:52] What do I think about using annuities? [12:12] Cobra or the ACA? Are you spending less than you should in retirement? Are you having a hard time loosening the purse strings in retirement? If so, you are not alone. Many retirees find it challenging to shift from a savings mindset to a spending mindset, so they find it difficult to spend their hard-earned savings even on the things they most enjoy. As a result, many retirees end up spending far less in retirement than they could. David Blanchett and Michael Finke at ThinkAdvisor.com recently wrote an article about the shift in mindset that annuities can provide.  Why do people purchase annuities? The biggest question in retirement is how much you can safely spend. Retirees are always at the risk of outliving their savings if they spend too much or they end up living a less enjoyable life if they spend too cautiously. For this reason, many decide to transfer the risk of an unknown lifespan to an insurance company that provides guaranteed income.  Do annuities provide a shift in the spending mindset? The authors of the article reference a study that discovered that people don’t spend more simply because they are wealthier, instead they spend more based on the form of wealth that they hold.  Households that hold more of their wealth in guaranteed income end up spending significantly more each year than those which hold a greater share of their wealth in investments. Retirees end up spending twice as much each year when they have guaranteed income. Every dollar of assets converted to guaranteed income results in twice the equivalent spending compared to the money that is left invested in an investment portfolio.  Are annuities the only way to shift your spending mindset? However, you don’t necessarily need an annuity to change your spending mindset. Behavior management and accountability are the most important aspects of retirement planning. If you can hold yourself accountable and adjust your spending habits when necessary you can come up with a successful retirement plan.  To achieve that, you need a plan that you can have confidence in. If you can create a financial plan in retirement that you feel confident in then you will be able to spend with confidence. One way to increase your confidence in your retirement income is to defer Social Security for as long as possible. By waiting until age 70 you can increase your benefit amount by 32%. What are you doing to create a successful retirement plan? Listening to this podcast can help you gain the knowledge and confidence you need to successfully plan your retirement. Resources & People Mentioned Boomer Benefits - Don’t miss out on the FREE 5 Easily Avoidable Medicare Mistakes download Boomer Benefits on Facebook Boomer Benefits on YouTube Think Advisor article on annuities Health and Retirement Study Guyton and Klinger original article 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

 The annual Social Security beneficiary report was recently released and just like every other year that they release it, it has caused people to worry about their future. Social Security is a crucial, foundational element of most retirement income plans, so when you read headlines that it will run out soon how should you react?  Should you go about changing your retirement plans altogether? Should you file for Social Security early to ensure you get the most out of your benefit? We’ll explore these questions in this episode of Retirement Starts Today. Outline of This Episode [1:52] Will Social Security run out in 12 years? [4:44] How to fix the Social Security math problem [11:20] What you should do to prepare for a Social Security pay cut Covid has exacerbated the Social Security funding crisis The recent report released by the government was unsurprising to anyone who has been paying attention. This year’s statement revealed that the Social Security trust fund will ‘run out of money’ in 12 years which is one year sooner than previously anticipated. The time frame has been accelerated due to the Covid pandemic.  The issue of ‘running out of money’ is caused by a math problem. There are insufficient people entering the workforce to support the increasing number of baby boomers that collect Social Security each month. The record unemployment rates during the pandemic resulted in even fewer people contributing to the Social Security fund.  There is a myth that there are fewer people in the generations succeeding the baby boomers than there are in the baby boomer generation, but this myth isn’t true. There are actually more people in each of the generations that follow the Baby Boomers. So, the problem isn’t due to a lack of work-age people. It is due to a lack of funding. How to fix the lack of Social Security funding Before I continue, I need to address the wording that everyone uses surrounding the shortage in Social Security funding. It is commonly stated that Social Security will run out of money. However, Social Security cannot run out of money while workers continue to pay into it. The issue is that there won’t be enough income coming in to support the money going out to the beneficiaries. This means that there will be a reduction in benefits rather than a complete lack of funds. There are two ways that Congress could alleviate the Social Security funding problem. They could increase payroll taxes beyond the current $142,800 cap or they could increase the percentage of the 12.4% payroll tax that comes from each worker.  What you should do to prepare for a Social Security pay cut Hopefully, now you aren’t worried about the complete elimination of the Social Security program, but you may still be concerned about getting a Social Security pay cut in retirement. Many people feel pulled to file early so that they can get into the program as soon as possible. However, if there is a reduction in Social Security benefits those people will be taking a cut on an already reduced benefit.  If you wait until age 70 to collect your Social Security payment you will receive 132% of your original benefit. So if there does end up being a reduction in the Social Security program, then you will end up taking a cut on an increased amount.  What would you prefer--taking a cut on a cut or a cut on a larger amount? Don’t let sensationalist headlines dictate your retirement plans. Create your retirement plan based on your own unique needs. By maintaining a long-term focus you could end up saving hundreds of thousands of dollars in opportunity costs.  Resources & People Mentioned Boomer Benefits Boomer Benefits Youtube channel Boomer Benefits Facebook Group CNBC article on Social Security US News article on Social Security 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

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