Retirement Answer Man

So, we’re not in a recession yet, but these are definitely challenging times. Now is a great time to learn how to navigate a recession in retirement. A recession is a temporary economic decline with a fall in the gross domestic product over successive quarters. Although we technically aren’t in a recession right now, we can stay agile by preparing ourselves for what is to come. Join me today to learn how you can navigate a recession in retirement. You’ll learn 6 areas in which you can play offense or defense to help you be prepared for what may lie ahead. 6 areas of defense or offense to prepare yourself for a recession in retirement Maintain a mental edge - What do you do to stay mentally agile? Self-care is so important during challenging times. Exercise and journaling are 2 great ways to practice self-care. Find a healthy way to vent if you need to let off steam. It’s also important to limit the news you watch and avoid the bait of commercials and sales pitches. Be careful with those sales pitches, everyone is trying to take advantage of the situation to make a buck. Evaluate what is important to you - Right now we are experiencing unprecedented times where we have an opportunity to really think about what is important to us. So give it some thought. What are your life goals? What is important to your life? Consider your cash flow - Another opportunity presents itself to stress test your retirement plan. Review your liquidity. Do you have enough laid out in cash reserves? Take this time to evaluate the sustainability of your retirement plan. Build a cash floor, moderate your wants and wishesLook for opportunities - Since interest rates are at an all-time low, consider refinancing your mortgage. Now is also a great time to find flexible travel deals look for travel deals. Examine your portfolio - This is a good time to simplify your investments in a tax-efficient way. Examine your asset allocation. Is your portfolio doing what you expected? You don’t need to take action right now if you want to change, just make a note of it for better times. Examine your risk tolerance. We’re used to riding risk while accumulating assets, not while we’re in the decumulation stage of life. You also have an opportunity to do some tax planning this year. You may be able to take advantage of tax loss harvesting. Also consider whether it makes sense to do some Roth conversions. Help the family - Now is a great time to gift shares of stock or cash. Many people are experiencing challenging times with job losses. Remember you can gift $15,000 per person. You could also consider making an interfamily loan to someone who just needs help weathering this storm. These loans have no requirements other than you must charge a minimum applicable interest rate which is low right now. How will you stay agile? You may never be 100% prepared for a recession in retirement, but you can be agile. Think about the ways you can maneuver and look for opportunities. Although it is important to consider how to defend your assets it’s also important to stay on your toes and be proactive. So what will you do to stay agile in the coming weeks and months? OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN WHAT DOES THAT MEAN? [2:00] What is a recession?PRACTICAL PLANNING SEGMENT [3:22] 6 areas to help you navigate a recession THE Q&A SEGMENT [24:30] Where should you invest a chunk of money?[28:40] Evaluate the things you own[31:55] How to best utilize tax brackets[34:33] No one knows how to file for unemployment as a contract workerTODAY’S SMART SPRINT SEGMENT [38:00] Do something to manage your stress and anxietyResources Mentioned In This Episode Rock Retirement ClubRoger’s YouTube Channel - Roger ThatBOOK - Rock Retirement  by Roger WhitneyWork with RogerRoger’s Retirement Learning Center

If you are nearing retirement you may be hyper-aware of the corona disruption. With all this extra time on your hands, you may want to spend more time planning your retirement. But don’t overthink this. Listen to this episode to hear my take on 6 years of Retirement Answer Man plus hear the answers to several listener questions. 6 lessons from 6 years of Retirement Answer Man Thanks for 6 years of Retirement Answer Man! Last week I entitled the episode 6 Retirement Lessons from 6 Years of Retirement Answer Man and then I forgot to mention the lessons or the fact that 6 years have gone by. So here are 6 of my takeaways after 6 years of producing the show.It’s all about the money. Many think of retirement as being a math problem, but it’s not. There are too many unknowns for retirement to be as easy as a math problem. Retirement is the problem that cannot be solved that easily. Going from accumulation to decumulation is hard. After saving your whole life, switching gears is a challenge. Not only are you no longer earning, but so much else in your life is changing as well. Your social networks, your purpose, your relationship are just some of the things that change alongside transitioning from being an earner to living off your savings. Your attitude is critical to your success. Attitude is everything. You can have the attitude: what does this make possible? Or, why is this happening to me? Don’t let the circumstance determine the attitude, let the attitude interpret the circumstance. The traditional system of retirement planning is broken. This system is based on sales of products and investment portfolios. Financial planning is evolving thoughLittle actions are critical. What can you do next? Create the momentum to take advantage of opportunities and mitigate risk. Agile financial planning is a journey. Trust that everything will be ok. Take action, but understand that your path will be revealed. What retirement lessons have you learned on your journey? Let me know! How to time the bottom of the market One listener writes in with a question about timing the bottom of the market. He had the foresight to pull out when the virus hit China. But now he wants to get back in near the bottom. He is worried that he might miss the upswing. Planning the bottom of the market is pretty challenging. I am not a market timer. I prefer to have a process and strategy where I develop my tactics. Without a process, our choices are fueled by emotion rather than logic. Do you have an investment process? Listen in to this episode to hear more listener questions OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [2:45] 6 lessons from 6 years of Retirement Answer ManPRACTICAL PLANNING SEGMENT [13:43] Recommendations on buying gold[19:12] How to time the bottom[23:40] How to build a fixed income source for your pie cakeTODAY’S SMART SPRINT SEGMENT [28:02] What are you going to learn over the next 7 days?Resources Mentioned In This Episode Rock Retirement ClubRoger’s YouTube Channel - Roger ThatBOOK - Rock Retirement  by Roger WhitneyWork with RogerRoger’s Retirement Learning Center

Making the choice to retire and actually stepping away from the comfort of your long-time career can be so difficult. It takes a lot of courage to make that leap. On this episode of Retirement Answer Man, we’ll be analyzing how you can create a strategy to step off that train and get started on your retirement. Listen in to hear how to start planning for the retirement that you know you want. But first, let’s talk about this stimulus package. What does the CARES Act mean for you? In a landmark piece of legislation, the CARES Act was recently signed into law. Roughly 90% of the population will be receiving a direct deposit into their bank account courtesy of Uncle Sam. The qualifications will be based upon your most recent tax return. If you are married and made less than $150,000 then you will qualify. Another perk of the CARES Act is that in 2020 there will be no required minimum distributions. Listen in to hear about 401K loans and hardship distributions which were also covered in the bill. It can be hard to retire Sure retirement sounds exciting, but actually stepping away from a longheld career and living off your savings can feel like jumping off a cliff. At this point in your life, you are probably at the top of your game. You are probably making more money than ever before. You are the captain of your universe. How can you step off that money-making train and into the unknown? Some strategies to help you prepare to retire So how do you garner the courage to give up your income, live off your savings, and step into this unknown world? There are some tactical strategies that you can use to help you prepare for this change in life. Set a deadline for retirement - not just in general, set a specific date to pull the plug.Create a compelling vision of where you want to go - Use process strategy tactics to prepare and organize your resources.Pretire - set yourself up to make a little bit of income. Now is a great time to prove to your employer that you can work remotely. Pretirement can be a great way to gain time freedom without giving up all of your incomeFlock with birds of the same feather - get to know people that are walking the same path but a bit ahead of you in their journey. The Rock Retirement Club is a great way to share ideas and conversation with people in the same boat. Now more than ever it is important to remain agile in your retirement planning. Listen in to hear listener questions and to find out how you can prepare to retire. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN WHAT DOES THAT MEAN? [1:18] What does the CAREs Act mean for you?PRACTICAL PLANNING SEGMENT [7:41] It can be hard to retire[13:43] Some tactical strategiesLISTENER QUESTIONS [17:10] This whole month is dedicated to your questions[18:00] Will the stimulus package end up causing inflation?[21:54] How to rebalance at this timeTODAY’S SMART SPRINT SEGMENT [28:35] This is the perfect time to get readyResources Mentioned In This Episode Rock Retirement ClubRoger’s YouTube Channel - Roger ThatBOOK - Rock Retirement  by Roger WhitneyWork with RogerRoger’s Retirement Learning Center

We chat with Fritz Gilbert, founder of the Retirement Manifesto blog and author of Keys to a Successful Retirement, Staying Happy, Active and Productive in Your Retirement Years.

Choosing where to live in retirement can seem daunting to some and exhilarating to others. On this final episode of the Where to Live in Retirement series, we hope to teach you how to take steps to navigate a transition to create the retirement and the life that you really want. If you listen to this show that means that you are preparing to rock retirement. Listen in to this episode to hear how to take intentional action to plan where you really want to be in retirement. Let’s acknowledge the crazy things going on We can’t begin this episode without acknowledging the crazy life-changing events that are happening all around us as we live through this Coronavirus disruption. I have talked to so many worried people in the past few weeks; clients, Rock Retirement Club members, and listeners who are all concerned about the effects of the Coronavirus. They want to know what they can do to mitigate the financial damage. To address everyone’s concerns, share tips, and answer questions, I’m hosting a town hall tomorrow 3/26 at 7 pm central. You can sign up for this webinar at my website: rogerwhitney.com just click the ad at the top of the page to register. How to avoid bad decisions during the Coronavirus disruption Stop! Don’t do that! It’s important that you don’t make large, rash decisions in the middle of a crisis. Unfortunately, the Coronavirus has disrupted many aspects of our lives. Although you shouldn’t make big decisions at this time, you can take small actions. Cut some discretionary expenses, have a positive attitude, bring in some extra income. Most importantly, ask yourself what does this make possible? Find out what is possible during this challenging time and lean into it. Open your mind to the possibilities of where to live in retirement How to begin to decide where to live in retirement? First of all, you need to open your mind to the myriad possibilities. The world is your oyster. Where can you envision yourself living? Try this exercise separately from your spouse. Have a seat and write down 3 places to live or even styles of living that you would enjoy. List the pros and cons of living in each place. Then each of you can present them to each other. This is an exercise in healthy communication. How can you have the best of both worlds? You and your spouse may not have the same lifestyles or places written on your list of places to live. Think about how you can have the best of both worlds. Could you rent a place a few months out of the year? Buy a second home? It’s important that both of you make your voice heard. Think about the creative ways that you can live your ideal retirement. Listen in to hear how you can navigate the transition into retirement and decide where to live. You’ll also hear listener questions that could help you up your retirement game. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN COACHES CORNER [3:30] Open your mind to possibilities[7:45] How to avoid bad decisionsQ&A SEGMENT [12:10] How to verify expense ratios?[15:24] Should he track information in a spreadsheet?[19:35] Cash value or pension?[20:34] An unusual retirement planTODAY’S SMART SPRINT SEGMENT [28:58] Realize you have choices to create the type of environment you wantResources Mentioned In This Episode Dan CrosbyRock Retirement ClubRoger’s YouTube Channel - Roger ThatBOOK - Rock Retirement  by Roger WhitneyWork with RogerRoger’s Retirement Learning Center

Over the past several episodes we have been discussing how to decide where to live in retirement. After listening to the previous episodes in this series, you have been able to acknowledge your own status quo and build a framework to decide the kind of place that you want to live in retirement. Now is the time to experiment and decide what makes the most sense for you and your situation. Listen in to hear different ways you can experiment and choose the right place to retire. Is the grass really greener somewhere else? All this talk of packing up and moving can get you ready to pack your bags and drive across the country to start a new life. But before you do that, think about if that is what you really want. Our thought experiment is really meant to get you thinking. So now examine where you are right now. What would happen if you decluttered the house or even remodeled it? Would it feel more liveable? What if you reexplored your own city? Check out the museums, parks, and trail systems. You may find there is more to love than you thought. How to experiment and decide where to live in retirement How do you know where to even begin? Deciding the right place to retire can seem like a daunting task, but just like any other research project, you can start with the internet. Think about the aspects of a place that are important to you to get a profile of what you are looking for. Country or city? Beach or mountains? North or south? You’ll also want to think about factors such as affordability, proximity to airports and family. Keep your ear to the ground Once you find a place that intrigues you start chatting with friends and colleagues about that location. Keep your ears open and you’ll hear plenty about that place. Another way to investigate places to live in retirement is to test the waters. Use your vacations to explore the places you are thinking of. Instead of buying a new place right away consider renting for a year to see if it’s somewhere that really suits your needs. Test the waters Remember the whole point of this exercise is to have you analyze your status quo to see if it will still fit your desires in retirement. After doing this you may find that you are exactly where you want to be. So build your framework and put it to the test. Test the waters to see what may work for you. Continue to flush out your living profile to research and experiment on where you are thinking of settling. Try booking a vacation there or testing the waters. This will help you decide what is right for you. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN WHAT DOES THAT MEAN? [2:00] What is huzzah?PRACTICAL PLANNING SEGMENT [3:00] Is the grass really greener somewhere else?[7:44] How do you research and explore[11:45] How these decisions are made in my homeQ&A SEGMENT [17:45] How to evaluate when you will be ready to retire[25:35] Should you hold onto a stock?[30:55] How to protect yourself against identity theft when working with a planner?TODAY’S SMART SPRINT SEGMENT [38:15] Continue to flush out your profile to research and experimentResources Mentioned In This Episode Rock Retirement ClubRoger’s YouTube Channel - Roger ThatBOOK - Rock Retirement  by Roger WhitneyWork with RogerRoger’s Retirement Learning Center

In this episode, I share some perspective to help you navigate this crazy market

Creating an ideal living profile will help you build a vision of your retirement. On the Where to Live in Retirement series, we’re not giving you a list of top places to retire, instead, you will learn how to build a framework to help you understand where is the right place for you. On this episode, you’ll consider questions to ask yourself and your spouse to create the ideal living profile for your retirement. Listen in to learn how to build a vision of what you want your retirement environment to look like. Would you move across the country if it meant you could retire 2 years early?  Moving can often lead to a completely different lifestyle. If you live somewhere with a high cost of living then moving to a state with a lower cost of living could completely change when and how you retire. Some people are completely happy with where they live and even identify with that place, and if that is you, then great! But for those that may be considering a change, make your decision intentionally. Don’t base your choices on the status quo. Consider your right answer.  How to create your retirement living profile How do you feel about your living environment? Our living environment sets us up for success and happiness. To create an ideal living profile there are many things that you can consider. Consider the climate. Do you like consistency or do you like change? Are you someone that wants to see the seasons change or would you prefer warmer weather all year long? Would you prefer to live in the city, suburbia, or out in the country? Would you enjoy the conveniences of a planned community? What kind of amenities do you like to be near? Listen in to hear what you should consider when creating your ideal living profile.  What tools can you use to create your ideal living profile for retirement? Now that you know what kind of questions to ask yourself, it’s time to actually build your living profile. There are many different ways that you can do this. One way is to create a vision board. A vision board is a way to use pictures, words, and ideas and arrange them in a visual way. You could also use a mind map to help you create your retirement living profile. I use a mind mapping app called Mind Node that helps me create mind maps. Make sure you’re signed up for 6 Shot Saturday to receive a mind map example.  Create a conversation When considering where to live in retirement it is important to check your status quo at the door. As you work through this exercise of creating your living profile make sure to do it separately from your spouse. Define what is important to you individually. After you have both created your living profiles you can use them to spark an ongoing conversation. You want to make sure that both of you express your feelings. Use this exercise as your Smart Sprint this week and start the conversation with your spouse. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN WHAT DOES THAT MEAN? [1:40] What is a bond ladder? PRACTICAL PLANNING SEGMENT [3:38] Would you move across the country if it meant you could retire 2 years early? [7:07] How to create a living profile [15:44] What are some tools you can use to create your living profile? [19:42] Next week: how do you experiment with your decision? Q&A SEGMENT [21:50] Roth conversions and making use of your tax brackets [27:15] What are the pros and cons of using a bond fund vs. using a bond ladder? [31:15] Target-date funds TODAY’S SMART SPRINT SEGMENT [35:06] Start thinking about the environment where you want to retire  Resources Mentioned In This Episode The Pie Cake episode Mind Node Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

Retirement is one of those life changes that gives you the opportunity to reevaluate and set yourself up for the next stage of life. On this monthlong Retirement Answer Man Series, we’re going to think about how to decide where to live in retirement. This will not be a list of the top ten places to go, but instead, I want to help you build a framework to weigh your decisions. In this episode, we’ll get you thinking about your own status quo so you can evaluate whether it’s right for you. Listen in with an open mind and really think about whether your in the right place or if you’re just comfortable.  The Coronavirus and market corrections I can’t sit by and ignore the recent market correction due to the Coronavirus. The whole situation can seem scary, While I can’t assess the health risk of the illness, I can discuss the market risks. Nobody knows how this event will slow down our economic system overall or how it will affect the profits, growth, and earnings of individual stocks. What you can do is consider whether you have the right structure in place. If you have done your planning then you need to sit down and remember that the money you have in the market right now won’t be touched for 5+ years. Relax and remember that this too shall pass.  Are you getting trapped by what is? The status quo can be quite comfortable. But instead of sitting back and letting life pass you by you can use the status quo as a baseline to help you consider what could be. How did you come to live where you do? Think about what that journey was like. Have you lived there long? What ties you there now? Retirement is a unique time in life where you don’t have the ties of work or kids to influence where you should live. Acknowledge your status quo but don’t simply accept that life must remain the same. Consider whether a change would improve your life.  What are the pros and cons of selling stock by specific shares? I recently got a great question about selling individual stocks by specific shares to manage one’s tax bracket. If you are looking to manage your tax bracket when selling stocks that were bought at different periods of time then it’s a good idea to do multi-year tax projections. Think about what your spending will be like and what your income will be. Where will you obtain that income? What will your tax bracket be? Map it out and model it. Listen in to hear the full explanation of how you should handle selling stocks by specific shares.  What can average people do about long-term care? Another listener sees long-term care insurance as a luxury since prices range from $3000-$7000 per year. He is wondering what people with average incomes can do to help with long-term care. Unfortunately, there is no good answer. First off you need to really consider if it is a luxury for you. Can you exchange a different expense like life insurance for long-term care insurance? Is there a way you can mitigate the odds and make some lifestyle changes? You’ll also need to begin discussing this issue with your family. Find out why having this discussion sooner rather than later is important by listening to this episode of Retirement Answer Man.  OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [2:53] The Coronavirus and the markets WHAT DOES THAT MEAN SEGMENT [10:00] What is status quo bias PRACTICAL PLANNING SEGMENT [11:02] How did you come to live where you do? THE Q & A SEGMENT [17:08] What are the pros and cons of selling stock by specific shares? [23:50] Buying long-term care is a luxury, what can average people do? [27:55] The goal is to not use long-term care insurance TODAY’S SMART SPRINT SEGMENT [29:44] Start having this conversation about where to live with your spouse Resources Mentioned In This Episode Ask me a question! - RogerWhitney.com/AskRoger Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center