Retirement Answer Man

If you are married, chances are you or your spouse will have to suffer through widowhood. The Widowed in Retirement series aims to help you navigate this difficult transition as best you can. Today, Mark Trautman joins me again to discuss how to work through the huge financial changes that result from losing a spouse. There are myriad financial considerations to be aware of during this change, so this may be an episode that you want to bookmark to refer back to later or send to a friend in need. Press play to listen. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT [3:26] A common myth of widowhood[5:11] What changes occur when you go from two to one[9:27] Expenses don’t change[16:44] Creating a new financial plan[20:20] Tax planning[25:25] Social Security benefitsLISTENER QUESTIONS [36:55] A 59 ½ IRA withdrawal rule question[38:52] How to calculate the 5-year rule for a Roth IRA[40:27] How to handle the cash bucket in a down market [45:03] Healthcare before MedicareBRING IT ON WITH MARK ROSS [49:11] What is passion?[51:23] How to explore your passions[55:15] Building boundaries around your passions so they don’t become workTODAY’S SMART SPRINT SEGMENT [58:45] Put dabble on your calendarResources Mentioned In This Episode BOOK - After the Death of Your Spouse by Mike PiperBOOK - Taking Stock by Jordan GrumetBOOK - AARP Checklist for My Family by Sally Balche HurmeBOOK - So Good They Can’t Ignore You by Cal NewportBOOK - How to Think Like Leonardo Da Vinci by Michael GelbEverplansEpisode 477 - Navigating Life ChangesRock Retirement ClubRoger’s YouTube Channel - Roger ThatBOOK - Rock Retirement by Roger WhitneyRoger’s Retirement Learning Center 

Even though it is difficult to think about it, at some point, those of us who are married will have to think about one of you transitioning from two to one. This week we’re exploring the nonfinancial impacts of this transition with someone who has walked this journey. Rock Retirement Club member, Mark Trautman shares his personal journey through his life-changing experience. Mark shares the challenges and the tools that have helped him get through this heartbreaking part of his life so that he can move forward and rock retirement on his own. After the main segment, you’ll hear our listener questions and then we’ll Bring It On with Dr. Bobby Dubois. Dr. Bobby will help us understand why sleep is so important and what we can do to improve the quality of our sleep. Don’t miss out on this important episode. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT [3:27] The more open you are the more you can deal[7:58] What you lose when you lose a spouse[11:38] Redefining goals after widowhood[16:23] Dealing with grief[21:33] Building community LISTENER QUESTIONS [31:20] My response to a scathing review on Retirement Plan Live[34:54] Another Retirement Plan Live review[37:28] How to replenish funds [44:48] A question about Rosie’s HELOC loan[46:31] Insight on huzzah!BRING IT ON WITH DR. BOBBY DUBOIS [48:41] Why is sleep so important[51:52] How to improve sleep[58:33] How to get to sleep[1:04:30] Dealing with chronic pain and sleepTODAY’S SMART SPRINT SEGMENT [1:14:59] Use Bobby’s tips to experiment with your sleepResources Mentioned In This Episode Examine.comBOOK - Why We Sleep by Matthew Walker Leeds sleep evaluation questionnaireBOOK - Taking Stock by Jordan GrumetRock Retirement ClubRoger’s YouTube Channel - Roger ThatBOOK - Rock Retirement by Roger WhitneyRoger’s Retirement Learning Center

If you have been listening to this show for a while, chances are you already know how to rock your retirement. However, this can all change with the loss of a spouse. All of your best-laid plans change in an instant. That’s why this month we are focusing on going from two to one. Learn how to navigate your mindset–transition from this sucks, to how I will work through this, to having a great life. Press play to listen. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT [5:47] Announcements[6:44] Books I read in FebruaryLISTENER QUESTIONS [11:46] Roth conversions and taxes[17:31] Roth conversions or capital gains?[23:10] How to create a paycheck between ages 62-72BRING IT ON WITH KEVIN LYLES [29:12] Finding meaning and purpose in retirement [38:52] Create a mission statementTODAY’S SMART SPRINT SEGMENT [41:05] Think about your mindsetResources Mentioned In This Episode Episode 310 - The Pie CakeAndy PankoBOOK - Traction by Gino WickmanBOOK - Be 2.0 by Jim CollinsBOOK - Rethinking Positive Thinking by Gabrielle OettingenTV SERIES - SAS Rogue Heroes on MGM streamingTV SERIES - Shrinking on Apple TVRock Retirement ClubRoger’s YouTube Channel - Roger ThatBOOK - Rock Retirement by Roger WhitneyRoger’s Retirement Learning Center

Life is what happens to us when we are busy making other plans. This is especially true during transitions. As I transition to adding a new segment to this show, it’s gotten a bit messy. It’s been a bumpy road and not everything has gone according to plan.Listen in to hear how this applies to retirement planning. While you’re at it you’ll hear how to decide whether to rebalance a portfolio and how to nurture relationships. Press play so that you can start rocking retirement. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT [0:39] Life is happening nowLISTENER QUESTIONS [5:35] Should I rebalance now?[11:52] Selling rental properties[16:13] Do I take the pension or the lump sum?BRING IT ON WITH NICK KENNEDY [21:28] The 4 quadrants of relational nutrients[29:29] Take action and be presentTODAY’S SMART SPRINT SEGMENT [31:50] Get the relational nutrient card and practice itResources Mentioned In This Episode Pension or Lump Sum on YouTubeBOOK - People Fuel by John TownsendRock Retirement ClubRoger’s YouTube Channel - Roger ThatBOOK - Rock Retirement by Roger WhitneyRoger’s Retirement Learning Center

Do you ever feel like a curmudgeon when you hear about new technology? Listen in to find out what has me putting on my sourpuss hat this week.We have a variety of interesting listener questions this week. Listen in to learn about purchasing brokerage CDs and CDs on the secondary market, how to decide whether to take the pension or the lump sum, and how to determine whether to become a 1099 contractor rather than a W2 employee.In the Bring It On segment you’ll hear about what work looks like in retirement from Mark Ross. Spoiler alert: you can work in retirement! OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN LISTENER QUESTIONS [4:06] Brokerage CDs and CDs on the secondary market[9:34] How to decide to take the pension or the lump sum[14:38] What does huzzah mean?[15:18] How to determine whether to become a 1099 contractor rather than a W2 employeeBRING IT ON WITH MARK ROSS [22:31] What work looks like in retirement[24:45] How to determine whether you should work in retirement[28:49] 3 categories of work[31:00] What you can do to help you determine your work in retirementTODAY’S SMART SPRINT SEGMENT [31:53] Download the Relational Nutrient CardResources Mentioned In This Episode Rock Retirement ClubRoger’s YouTube Channel - Roger ThatBOOK - Rock Retirement by Roger WhitneyRoger’s Retirement Learning Center

Recently, we had the finale of the Retirement Plan Live series, so I want to share my observations on what we can all learn from Rosie’s experience. There was a lot to unpack from Rosie’s plan. Before we get to the Listener Questions segment, I’ll share my thoughts with you. Make sure to stick around after the listener questions to hear the Bring It On segment with Dr. Bobby Dubois. You’ll hear about building energy in retirement through your emotional, cognitive, and social well-being. Learn how to use these powerful ways to live longer and stay healthier in retirement. My observations on the latest Retirement Plan LIve with Rosie Rosie recently shared her retirement plan with all of us in our Retirement Plan Live series. This is a very public way to plan for retirement, so she was brave to put herself out there to share her situation openly. Unfortunately, Rosie’s current trajectory is not feasible and she and her husband are on track to run out of money within ten years. Coming to this understanding while live in front of 1000+ people is incredibly difficult, but now she can correct course to get back on track. This wasn’t only a learning experience for Rosie, it was for me as well. Here are a few of my takeaways from this experience. A plan must be feasible and resilient Rosie retired in mid-2021 in the middle of a bull market when interest rates were zero. She was working with a financial planner, so there were projections that showed her plan was feasible. However, there was nothing done to make that plan resilient in the face of challenging circumstances. Her withdrawal rate did not match up with the assets they have and nothing was done to compensate when the sequence of return risk reared its ugly head. Without resiliency designed into the plan, it fell apart quickly. They are now in a position where they have to make some tough decisions.A feasible plan is like a lit candle. It can burn; however, a gentle breeze will blow it out. Having a resilient plan is like having a fire. When a wind comes by it won’t go out–it may even gain more strength with the added fuel. An accumulation investment strategy doesn’t work in retirement Going into retirement Rosie and Dwayne were invested in 75% equities. Since they were already constrained as they approached retirement, they needed to be a bit more conservative. Their monthly systematic withdrawals came directly from selling those equities and they had no decumulation strategy. The result is that they are now underfunded. There is a difference between a financial advisor and a retirement planner Even though Rosie and Dwayne were using a certified financial planner, they still got blown off course. A financial advisor is similar to a general practitioner in medicine. They are not retirement specialists, so they may not understand how to build resiliency into a retirement plan. A retirement planner goes deeper on how to create a decumulation plan that has resiliency built in. They also understand that selling equities to meet withdrawals doesn’t work in a constrained retirement situation. Communication is crucial It was clear that there were communication issues between Rosie and her advisor. She assumed there was safe money set aside somewhere while there wasn’t. This incongruence between what she thought and what her advisor understood has also contributed to their current situation. While Rosie had conversations with her advisor, they were surface-level, and she didn’t pose follow-up questions to help improve her understanding of the situation. She didn’t understand the decumulation plan to create her retirement paycheck. This vital detail was missing. One year into retirement and her retirement plan fell apart. They didn’t analyze the opportunities to increase their social capital  Both Rosie and Dwayne took Social Security early so that they could try and preserve their assets as long as possible. This was always what they had planned, so they never considered anything else. Had they carefully considered a different strategy for filing for Social Security, it may have made a difference in their trajectory. Have you listened to the latest Retirement Plan Live series? Did you attend the results webinar? If you missed it check out the replay. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT [2:05] My observations from the Retirement Plan Live webinarLISTENER QUESTIONS [11:40] Is deferred compensation considered earned income during the distribution period?[14:17] When can someone collect Social Security survivor benefits?[17:13] On setting aside a 5-year fund as the basis to building the pie cake[25:51] On spending psychology during the go-go yearsBRING IT ON  [30:43] On building energy in retirement through emotional, cognitive, and social well being[32:15] Your sleep, social, mind-body connection, and exposure to extreme climate can greatly affect your well-being in retirement[35:55] Why is sleep so important?[39:10] How social interaction affects your health[42:02] What do we mean by mind-body connection?[43:03] How does exposure help improve energy?TODAY’S SMART SPRINT SEGMENT [47:33] Choose one thing to start doing to improve your energyResources Mentioned In This Episode The Retirement Plan Live replayRock Retirement ClubRoger’s YouTube Channel - Roger ThatBOOK - Rock Retirement by Roger WhitneyRoger’s Retirement Learning Center

I’m excited about our newest segment, Bring It On with Kevin Lyles. The Bring It On segment will discuss mindset and other non-financial aspects of retirement. In addition to our newest segment, today you’ll hear about the books I read in January and listener questions. Learn how to calculate a decreased benefit when retiring early, which accounts to draw from to minimize taxes, how to manage 401Ks through a company transition, and what to consider when choosing a financial advisor. Join me for this episode of Retirement Answer Man to explore the latest issues in retirement and beyond so that you can get ready to rock retirement. The latest books I’ve been reading In January I had the opportunity to finish reading four books. Most are nonfiction, but I threw a fiction book in for good measure.How to Think Like a Roman Emperor by Donald Robertson - This book is on stoicism and discusses the qualms we have when contemplating our own death and aging. The fear of death and aging can make us fearful, so by bringing that touchy subject out of the shadows, we can embrace the inevitable and live more fully in the moment.Never Finished by David Goggins - Since this book was written by a Navy SEAL, it has some salty language. However, David is a living example of what you people can endure and do. We have capabilities far beyond what we can imagine.The Boys from Biloxi by John Grisham - John Grisham writes formulaic legal thrillers, but his formula works. I enjoyed the history and background that he included of Biloxi, Mississippi.The Comfort Crisis by Michael Easter - This is another book about getting outside your comfort zone. Michael Easter completed a monthlong hunt in the Arctic–far outside of his comfort zone. This book was my favorite this month–it will challenge your thinking. Michael explores the idea of stretching yourself by doing something you think may not be possible. If you have any book recommendations for me reply to the 6-Shot Saturday newsletter. Why mindset is so important Mindset is the attitude that you bring to your life and retirement. It drives how you respond to the challenges you face when you’re transitioning and living your life. The mindset you bring to those challenges will make all the difference in the world.There is now more data regarding mindset with the science of positive psychology. Science shows that mindset matters and affects not only how you feel but outcomes. People who seek out the bad see more bad things, those who look for the good in the world see things in a more positive light. What to expect from the Bring It On segment In our newest nonfinancial segment, we’ll discuss several nonfinancial issues related to retirement: dealing with boredom, losing status, mindset, attitude, aging, identity, gratitude and so much more. Think about your own attitude about retirement and aging. What are the top five words that come to your mind? Discuss your thoughts with your loved ones. Could your thoughts be improved? Do you need to change your mindset? OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT [1:06] The books I’ve been readingLISTENER QUESTIONS [7:42] Addressing feedback on the show[9:32] Feedback from the past Retirement Plan Live[10:36] How to calculate a decreased benefit when retiring early[15:04] Which accounts to draw from to minimize taxes[20:42] How to manage 401Ks through a company transition[22:03] What to think about when choosing a financial advisorBRING IT ON WITH KEVIN LYLES [27:15] Why mindset is so important[32:04] How important a social network isTODAY’S SMART SPRINT SEGMENT [35:50] Write down what comes to mind when you think of aging and deathResources Mentioned In This Episode BOOK - Flourish by Martin SeligmanBOOK - How to Think Like a Roman Emperor by Donald RobertsonBOOK - Never Finished by David GogginsBOOK - The Boys from Biloxi by John GrishamBOOK - The Comfort Crisis by Michael EasterGoRuck.comSocial Security Detailed CalculatorRock Retirement ClubRoger’s YouTube Channel - Roger ThatBOOK - Rock Retirement by Roger WhitneyRoger’s Retirement Learning Center

Retirement can be tricky. There are so many unknowns, so preparing yourself mentally can be a challenge. Mental toughness is the ability to remain positive and proactive in the most adverse situations. Our Retirement Plan Live volunteer, Rosie, is having to rely on mental toughness to stay on target through an extra challenging early retirement.Join Rosie and me today as we discuss the impact that the bear market had on her finances at the start of her retirement. Rosie is trying to get her retirement back on track Rosie and her husband Dwayne didn’t retire in the best circumstances. Inflation and market fluctuations haven’t been on their side. This sequence of returns at the beginning of their retirement is not faring well for their portfolio. Now they are trying to assess whether they are on a feasible path or whether they’ll need to make some adjustments. Simply by walking through this process they are already being proactive. They are assessing the damage and seeing how they can shape a plan for the future to get back on track. It’s challenging to enjoy the go-go years without a safety net While Rosie is more risk-averse, her husband Dwayne enjoys researching and investing in individual stocks. He uses about 10% of their total savings to play around in the market investing in his favorite publicly traded companies. Rosie estimates that about 75% of their total portfolio is in stocks and this makes her feel a bit anxious especially since their portfolio is down about 20% from last year. She would like to be enjoying her go-go years, however, without a healthy cash reserve in place, or a long-term care plan, she doesn’t have the security in place to let loose and rock retirement.Without a cash bucket set up, their $8,500 per month is coming from a systematic selling of their investments, but she’s not sure where they should go from here. Don’t miss the culmination of the past four episodes If your retirement isn’t going to plan, it is important to acknowledge where you are now so that you can mitigate the damages and reset your course. You can’t simply ignore the situation and wait for someone to tell you that everything is going to be okay. You’ll need to understand the nuances of your financial situation to determine the best way forward. Join us on February 2 at 7 pm CST for the grand finale of this year’s Retirement Plan Live. I’ll walk Rosie through her retirement plan and we’ll determine whether or not it is feasible. Then we’ll look for risks and opportunities. As a participant, you’ll have the opportunity to ask questions and see how the process plays out. After the live meetup, consider joining the Rock Retirement Club. The Club was created to give new retirees a solid framework and trusted tools to use to build a feasible, resilient retirement plan that will give members the confidence to rock retirement. In addition, RRC members have created an amazing, inviting community filled with people on the same journey. Learn more by joining the live meetup. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN RETIREMENT PLAN LIVE [4:47] Rosie’s questions[7:12] Understanding Rosie’s annuity[16:52] Understanding the software we use[18:32] Understanding the sequence of returns risk[27:07] Rosie’s experience with advisorsLISTENER QUESTIONS [36:36] Do you calculate using tax-deferred dollars to create a paycheck in retirement?[44:32] Using a draw-down strategy for a 401K[47:57] How to get a better interest rate from cashTODAY’S SMART SPRINT SEGMENT [50:40] Reassess your trajectory to achieving your goalsResources Mentioned In This Episode Join the live meetup on February 2 at LiveWithRoger.comMoney Guide Pro Elite retirement toolNew Retirement CalculatorRock Retirement ClubRoger’s YouTube Channel - Roger ThatBOOK - Rock Retirement by Roger WhitneyRoger’s Retirement Learning Center

Take a breath, check yourself, and then observe where things are at. That’s what Rosie and I are doing on this episode of Retirement Plan Live.After the last episode in which Rosie planned out all her hopes and dreams for retirement, today we’re taking a look at her financial picture. We’ll walk through the sources of her social, human, and financial capital to see where she and her husband stand financially. Listen in and create your own plan as we go. Make sure to sign up for 6-Shot Saturday to ensure that you get all the worksheets to work through your own retirement plan with me and Rosie. Sign up for the grand finale on Feb 2, 2023 Have you signed up for the live webinar on February 2? This will be the grand finale to this year’s Retirement Plan Live. We’ll see if Rosie’s dream retirement is feasible with her resources. We’ll also identify potential risks and opportunities that she should watch out for. Head on over to LiveWithRoger to register. How will Rosie pay for those retirement dreams? We can never know anything for certain, about our financial future, but we can build a solid framework to build up our confidence in our plan. Last week, Rosie laid out her retirement goals and as she did so she tied those into her values. Our goals are really just a representation of our values. As we walk through Rosie’s finances we analyze three different types of capital: social, human, and financial. Social capital includes guaranteed payment sources. The most familiar example of social capital is Social Security. Rosie and Dwayne don’t have any pensions, but Rosie is collecting $2200 per month from Social Security. Soon Dwayne will also receive $1800 per month from Social Security as well. In about six years they will begin to receive a small annuity payment. Dwayne is the one providing human capital with his flexible part-time work online. This work contributes between $15-20,000 per year. He plans to continue working part-time for about six more years. Their financial capital includes $30,000 in after-tax assets, $680,000 in pre-tax assets, and $55,000 in tax-free assets. Build your net worth statement as you listen Listen in to hear what other kinds of assets Rosie and Dwayne have as we walk through building a net worth statement. When was the last time you updated your net worth statement? January is a great time to observe where you are financially so that you can marshall your resources to ensure that you can achieve your goals. As Rosie and I build her net worth statement you can too. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN RETIREMENT PLAN LIVE [4:20] Their social capital[6:30] Their human capital[7:35] Their financial capital[9:02] Their other assetsLISTENER QUESTIONS [15:54] A Social Security error - who to call?[19:36] What can Sarah do to get closer to retirement under less than ideal circumstances?[24:00] How to know if benefits will continue to increaseTODAY’S SMART SPRINT SEGMENT [26:56] Update your net worth statementResources Mentioned In This Episode SSA.gov - overpaymentSocial Security episodes 228, 229, 230, 231, 232Rock Retirement ClubRoger’s YouTube Channel - Roger ThatBOOK - Rock Retirement by Roger WhitneyRoger’s Retirement Learning Center 

Setting big goals is great, but they have to be the right goals or else they could become a trap. Rosie joins us again today to set her retirement goals. In this episode, you’ll hear her financial goals for her needs, wants, and wishes. We’ll discuss her financial expectations for each of these categories and how her goals fit into her values. Don’t miss out on this second episode of Retirement Plan Live. When you finish listening, head on over to LiveWithRoger.com to register for the live meet-up on February 2 where we will break down Rosie’s plan in detail and decide whether or not she’ll be able to live out her retirement dreams. Goals must be driven by values In the previous episode, you met Rosie and learned about her situation and her values. We start each Retirement Plan Live series with values because values are what drive our goals. If you set your goals up too rigidly or shoot for the wrong goals then you are working toward something without really desiring it.Goals are important to have because they framework of what you are trying to achieve. Listen in to learn how Rosie uses her values to drive her goals. What makes a base great life?  What does it take to build a base great life? The base great life is the line in the sand that you can’t cross. It is what you need to have in place to secure a basic life worth living. Rosie estimates that it would take about $5000 per month (excluding healthcare costs) to live her base great life. Listen in to hear what she includes in her base great life and why this doesn’t mean eating rice and beans every day. Rosie’s wants and wishes Rosie values travel and would love to spend about $24,000 per year for the next 5 years on travel expenses. After that, she estimates that she would continue to travel but would slow down on spending but still spend around $15,000 per year for the following 8 years. Other discretionary expenses would include $10,000 per year on eating out more frequently and spending on loved ones. Adding in these extra wants and wishes would take Rosie and her husband about $117,000 per year. Follow along and create your own agile retirement plan  This week, I encourage you to look at your retirement goals with fresh eyes so as not to limit your thinking. Really hone in on what it takes to build your base great life, then add in the layers that build up your wants and wishes. Shed away your inhibitions as you consider your wishes category.As you listen to Rosie’s journey, why not follow along for yourself? Make sure you are signed up for the 6-Shot Saturday newsletter to receive the corresponding worksheets for each episode. Every week during the Retirement Plan Live series we’ll send out a worksheet to help you work through each stage in the agile retirement planning process. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN RETIREMENT PLAN LIVE [4:03] What is a base great life?[10:45] Discretionary spendingLISTENER QUESTIONS [25:33] Can Tim’s wife retire?[32:37] Can Crimaud collect Social Security without a green card?[35:25] How to work in tithing in retirementTODAY’S SMART SPRINT SEGMENT [40:38] Revisit your needs, wants, and wishesResources Mentioned In This Episode Collecting Social Security in CanadaRock Retirement ClubRoger’s YouTube Channel - Roger ThatBOOK - Rock Retirement by Roger WhitneyRoger’s Retirement Learning Center