Retirement Answer Man

Today as we close out the long term care planning month, Steve Cain returns to the show to discuss hybrid long-term care insurance policies. On the previous episode (#313), Steve Cain gave us the key facts about traditional long-term care insurance and today we explore some alternatives to the traditional long-term care insurance route. This episode will help you understand different options in the long-term care insurance realm. I’ll also answer some listener questions and have our retirement coach, B.W.,  The subject of long-term care can be a tough one to address This entire month we have discussed how to cope with long-term care risk. While this is not the most exciting or even upbeat topic to learn about it is something to consider. It’s important to address potential risks while we are still of sound mind rather than while we are dealing with them. Examining your options now will lead to better decision making and peace of mind. Listen to this conversation with Steve Cain to arm yourself with knowledge so that you can better weigh your options when it comes to long-term care.  Hybrid long-term care insurance policies manage risk from a different angle  The long term care insurance industry has had a lot of trouble in the past and they don’t have the best reputation. But the hybrid long-term care insurance policies are an alternative to the traditional long-term care insurance policies. These policies don’t really have a proper name and can be called a number of things like; hybrid, life with long-term care, asset-based long-term care, or combination long-term care. Even though they don’t have a decent name in place they are an exciting change from traditional long-term care insurance. These policies are life insurance-based products with long-term care riders or additions. Unlike traditional long-term care policies, with these, you are more likely to get something in return for your money.  There are different types of options in hybrid long-term care There are many different types of hybrid long-term care options on the market. One is a long-term care solution that is actually rolled into a life insurance policy. Essentially it is whole term life insurance with a separate long-term care component. This insurance has separate buckets of money designated for different purposes. It is a bit more expensive than a traditional long-term care insurance policy but the benefits are guaranteed. Listen in to hear more about this type of hybrid long term care insurance policy and a few others.  Who needs long-term care insurance? Long-term care insurance isn’t for everybody. There are some who are affluent enough to be able to self-insure, many more won’t be able to afford this type of insurance. But there are plenty in between those extremes that can consider this type of insurance. There are many different types of insurance and ways to plan for your potential long-term care needs. The key is to have a plan. Be sure to include your family in this discussion, since long-term care is an issue that affects the whole family.  OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT [3:05] Hybrid policies approach long-term care insurance from a different angle [6:30] The long-term care solution atop a life insurance policy  [16:38] What is the return to the premium option? [19:22] Can you repurpose your traditional life insurance policy? [24:35] Who needs long-term care? COACHES CORNER [27:25] What to do when you are thrown into the role of caregiver LISTENER QUESTIONS [36:00] A question about annuities [44:10] How to handle holding onto stuff in retirement [49:44] How to evaluate a portfolio manager TODAY’S SMART SPRINT [60:03] Think about your potential long-term care needs  Resources Mentioned In This Episode BOOK - Winning the Losers Game by Charles Ellis To check out the annuity series start here Steve Cain Steve Cain on Twitter@SteveCainLTC Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

You may know that I am not a fan of traditional long-term care insurance. But that is why we are exploring this topic together. It is important for me to reexamine my biases periodically to see how they hold up. On this episode of Retirement Answer Man, Steve Cain, from LTCI joins me to examine traditional long-term care insurance. I have plenty of questions for him so that we can learn how traditional long-term care insurance works and examine our own risks. Join me by listening to this conversation to learn more about long-term care insurance so that you’ll have the tools to determine if it is right for you.  How to plan for risk  There are 5 basic strategies to address a risk and shockingly, ignoring the risk is not one of them. No one likes to think about long-term care, but instead of burying our heads in the sand we need to think about how we will confront this risk. These are the 5 strategies that risk management professionals consider.  Retain the risk - this means dealing with it yourself Avoid the risk - not really a possibility in this situation Mitigate the risk - lower the odds of the risk Share the risk - use insurance to help to share the risk Transfer the risk by using insurance to own all of the risk. Keep these strategies in mind as you listen to the show so that you can begin to consider which one you’ll want to use to consider long-term care. Is traditional long-term care insurance right for you? Deciding whether to use traditional long-term care insurance is a difficult decision. The long-term care insurance industry is still in its infancy and there are many factors to consider as a consumer. The industry doesn’t have the best reputation, but Steve Cain is here to help us consider whether traditional long-term care insurance is the best option for our potential long-term care needs Will the long-term care insurance company be around when we really need it? We’ve all seen the headlines, long-term care insurance companies raising their rates, or even worse, companies going out of business. How do we know if the insurance company is going to be around when we really need it? Despite the history of problems in the industry, Steve Cain feels that the newer generation of long-term care insurance policies are more stable than the first generations. He feels that the industry has evolved and adapted by learning from the mistakes of the past. Find out why Steve feels the newer insurance policies are more stable than those of the past.  How are the policies structured? To get a long-term care insurance policy you’ll have to go through several steps. The companies want to ensure that you won’t need long-term care for a number of years, so they do check your medical history. There are many factors to consider when choosing your policy. The amount you can afford is an important factor. But you’ll also want to consider your lifetime maximum benefit, the maximum benefit amount per month, and you’ll also want to factor for inflation. Find out what else you should consider before you think about getting long-term care insurance.  OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN WHAT DOES THAT MEAN SEGMENT [3:00] Lifetime maximum benefit PRACTICAL PLANNING SEGMENT [7:53] The long term care insurance industry is in its infancy [14:40] What happens to a policy when the company becomes insolvent? [20:30] How does a long-term care policy get crafted? [29:17] The elimination period used to be bigger than it is now [37:14] What is the average premium? LISTENER QUESTIONS SEGMENT [40:44] Tax diversification in retirement [47:44] A sequence of return risk question TODAY’S SMART SPRINT SEGMENT [51:30] Consider your long-term care risk Resources Mentioned In This Episode Steve Cain Steve Cain on Twitter @SteveCainLTC Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

There is a 50% chance that you’ll need long-term care at some point in your future so let’s learn how to mitigate your long-term care risk. Sure, you can always try the long-term care insurance route, but with it being an emerging industry, the underwriting doesn’t have enough data to provide the insurance that you need at a consistent cost you can afford. Long-term care insurance policies still aren’t as robust as home owner’s insurance policies. If you plan to self-insure against long-term care you’ll need to know the risk factors and what your personal risk of needing this type of costly care will be How to determine your long-term care risk and build a financial framework One of the scary parts about needing long-term care is that your resources are finite. At that point in life, you won’t be able to fill the gap by working if something happens to you. When self-insuring for long-term care you’ll need to start with the worst-case scenario. The worst-case scenario in a long-term care situation generally means dementia or Alzheimer’s.  Alzheimer’s care can cost up to $350,000. So this worst-case scenario is how we’ll start to build our framework to self-insure. Next, you need to consider your risk factors to determine the likelihood of the worst-case scenario happening to you. After that, you’ll want to build a plan and stress-test it. Listen in to hear how I simulate financial plans and stress test them.  What is the difference between dementia and Alzheimer’s?  For years, Alzheimer’s and dementia were terms that were used interchangeably, but finally, we have gotten to the point where we clarify them. When discussing dementia, we are describing symptoms. But there are more than 200 diseases that can cause symptoms of dementia. Alzheimer’s is a specific disease that presents with symptoms of dementia.  How to lower your risk for Alzheimer’s Everyone wants to know what they can do to minimize their risks for Alzheimer’s. The good news is that dementia and memory loss doesn’t happen overnight. Since it is a long, slow process there are little changes we can make to combat the risks. Unfortunately, no one knows what to believe since there is so much fake science on the internet. That’s why Dr. Marc Milstein has joined me today. He is here to give us some actionable items that we can implement to lower our risk for Alzheimer’s.  5 keys to lower your risk for Alzheimer’s Sleep is an essential piece of the puzzle. Without proper sleep, our brains build up a type of trash. Proper sleep washes away that trash build up each night. But constant disruption impedes the brain’s ability to get a good cleaning.  Learn difficult things. Any learning is great, but when you learn something difficult your brain really gets a workout. Challenge your brain in a different way: try learning a foreign language, a new sport, or a new instrument. Train your brain the way you would your muscles at the gym.  Hearing is important too. If someone is not hearing they are not learning and they are not engaged. Over time the person becomes isolated without even realizing it. Hearing loss is easily treatable with a hearing aid. It helps you stay engaged.  Stay engaged. Social interaction is good for the brain.  Treat inflammation. Inflammation is like a fire in the body. Many of us experience inflammation due to poor diet or autoimmune conditions. This inflammation can cause the brain to become inflamed and damaged as well. If you have an autoimmune condition then do whatever you can to lessen the inflammation.  Listen to this fascinating interview with Dr. Marc Milstein to hear more about what you can do to lessen your chances of getting Alzheimer’s. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN WHAT DOES THAT MEAN SEGMENT [1:30] What is underwriting? PRACTICAL PLANNING SEGMENT [3:33] Let’s build a framework [8:45] Long-term care insurance is still an emerging industry [12:43] How powerful is the Alzheimer’s gene? [15:33] What is dementia? [19:00] What can you do to take action to lower our risk of dementia and Alzheimer’s [31:25] What is a good implementation plan? Resources Mentioned In This Episode DrMarcMilstein.com Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement

Long-term care is an issue that is really hard to grapple with and talk about. Yet it is an important one that we all need to think about. You may have dealt with it with your own parents or you may be dealing with it now. On this episode, Christine Benz, director of finance with Morningstar and author of 30 Minute Money Solutions, joins me to discuss long-term care, long-term care insurance, and what’s in store for the baby boomers who are now living longer than anyone in history.  What are ADLs? When discussing long-term care and long-term care insurance you may hear the term ADL thrown around. Checking someone’s ADLs is a great way to assess if someone is really up to independent living or if it is time to seek assisted living. ADL means activities of daily living. They include tasks such as; personal hygiene, dressing, eating and preparing food, maintaining continence, and mobility. Not only are these indicators an important way to decide if you or a loved one needs long-term care, but they are also used by insurance companies in the same capacity.  What is a long-term care event? Often when we think about long-term care we may immediately jump to thinking about dementia, but the reality is that long-term care is needed by people in many different situations. Since the daily care of an ailing elderly male is often shouldered by his spouse, women tend to have more need for long-term care than men. We also tend to think of a long-term care event as being a sudden thing, but more often than not, people graduate up through different levels of care.  Let’s talk long-term care insurance The obvious answer to the exorbitant costs of long-term care is to purchase insurance. But the reality is that it’s a broken marketplace. Long-term care insurance holders can suddenly find their rates increasing by 30%-50% or more after paying in for many years. Long-term care insurance is still a relatively new product and the insurers discovered that they initially underpriced their product. Learn about what the future of long-term care insurance may look like and some long-term care insurance alternatives by listening to this interview with Christine Benz.  Long-term care is scary Yes, the thought of needing long-term care is scary on many levels. The thought of becoming vulnerable and losing control of your functions at the end of life scares the wits out of us all. But the financial ramifications can be just as scary as well. One way to help ease your mind into this fearsome territory is to plan for it in advance. Listen to this series on long-term care to help you prepare for any eventuality.  OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN WHAT DOES THAT MEAN? [2:45] What are ADL’s? PRACTICAL PLANNING SEGMENT [5:44] Christine Benz joins me to discuss long-term care [8:07] What is a long-term care event? [16:35] Let’s talk long-term care insurance [19:40] We’re at the beginning of the wave of baby boomers LISTENER QUESTIONS SEGMENT [26:45] How can Charlotte minimize health insurance costs before Medicare kicks in? [29:21] Can the inherited IRA RMD amounts over 10 years be different or do they have to be the same over that stretch of time? TODAY’S SMART SPRINT SEGMENT [31:56] Check out the link in 6-Shot Saturday that contains all the data that Christine Benz refers to Resources Mentioned In This Episode Healthcare Before Medicare (If you have questions about this topic, start here!) BOOK - 30 Minute Money Solutions by Christine Benz Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

Investing in retirement is different than any investing you’ve ever done. The asset allocation that you’ve been doing your whole life won’t cut it in retirement. On this episode, you’ll learn what comes after asset allocation. You’ll also learn how to manage market risk. And BW joins us in the Coaches Corner to discuss how to survive bear markets in retirement. You’ll definitely want to listen in to hear my pie-cake analogy, don’t miss it! What is asset-liability matching? Have you ever heard of the term asset-liability matching? This is a term typically used in the pension management world but we can apply it to our own retirement. Asset liability matching is the process of investing in a pool of assets so that cash is available when you need it to cover consumption. It is when you take a pool of assets to cover the short-term but you also need that pool to cover expenses in the long-term as well. This is a good term to refer to how we must cover our retirement expenses.  Asset allocation is not the only way of investing in retirement You’ve been told your whole life that you need to focus on your asset allocation when investing. Asset allocation is so important to the accumulation stage of retirement planning. But in retirement, asset allocation is not the only thing to consider. Rather than sowing your seeds for growth, in retirement, you are now reaping the rewards from a lifetime of hard work. So now is the time to rethink your asset allocation strategy.  The pie-cake analogy We often refer to asset allocation as a pie. You’ve seen all of those pie charts with different percentages of stocks, bonds, and cash. But instead of a pie, in retirement, what you really need is a cake. One of those big, multi-tiered cakes, like a wedding cake. But the cake you need is actually made of pies. Yep, that’s it! A pie cake! You’ll want to create your cake with 3 or 4 layers and the pies will be made of different things. You really need to listen to hear how amazing this analogy is.  What should your pie-cake look like? So you’re all ready to build your pie-cake, but what should it look like? Sure there are layers, but layers of what? Layer 1 - this bottom layer is full of funds that are to be used in the next 2 years so it needs to be made of cash or cash-like investments Layer 2 - this second tier will be funding years 3-6 You’ll want some stability in this layer, but also some income. It could be made of bonds that will be maturing, stable value funds, and some cash. Layer 3 - this layer will have a very different looking pie than the bottom layers. The time frame of this layer is 6-10 years. There will be growth but it will be moderate growth. The objective here is income. A good mix could include bonds, real estate equities, but also consider growth.  Layer 4 - now we are talking 10-15+ years ahead. This is the pie where you can get aggressive. You’ll want this pie to be growth-oriented with more risk and less bonds and cash.  Listen in to discover how you can build your cake-pie and eat it too! OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN WHAT DOES THAT MEAN SEGMENT [2:12] Asset liability matching PRACTICAL PLANNING SEGMENT [3:55] Why asset allocation is not the only way to invest in retirement [6:46] How to figure your asset-liability matching COACHES CORNER SEGMENT [12:50] How to survive a bear market in retirement [16:26] How we live our life can reflect how we react to a bear market [19:22] What can we do in a bear market? TODAY’S SMART SPRINT SEGMENT [22:00] Relisten to the pie-cake analogy and think about the tiered approach Resources Mentioned In This Episode Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

Protecting your retirement lifestyle is an important part of retirement planning. You want to know that if everything falls apart you’ll still be able to live the life you want. Well, unfortunately, nothing is absolutely certain and there is no way to protect yourself against everything. However, proper planning can help give you peace of mind. If you’re wondering what on earth you’ll do in the event of a bear market or market crash, listen to this episode to help you understand how to set yourself up for success in retirement. Retirement is asymmetrical The 4% rule looks great on paper, but it really isn’t practical when applied to life. Retirement is lumpy and asymmetrical and returns on investment are asymmetrical as well. There are always going to be unexpected expenses. Sometimes expenses will come in the form of opportunities and sometimes the expenses won’t be as much fun. The only thing that is certain is that life is always uncertain. So it is important to prepare for the unexpected. When planning your retirement, you need to remember that life will get in the way.  It’s all about finding balance In retirement, you need to find that balance. On one end of the spectrum, you have that near-term market loss and on the other end, you have a loss of purchasing power.  Let’s learn how to keep the tension between the two of them.  Know what your spending forecast is. Understand your needs, wants, and wishes. Build a model retirement budget and then categorize your spending in those 3 different categories.  Determine your fundedness. Are you underfunded, constrained, or overfunded? Know where you fall on this spectrum. The strategies you take will depend on how funded your retirement savings are. Listen in to hear the different strategies to use based on your fundedness.  The best way to protect your retirement lifestyle How can you protect your retirement lifestyle? Try using your superpower longer. What is your superpower, you ask. Your human capital. The longer you can continue to bring in income the better off you’ll be. Retirement doesn’t have to be like a light switch. You don’t have to simply turn off the work button. Try pretirement to gain time freedom and flexibility while still maintaining a bit of an income. Pretirement is the best strategy you can use to protect yourself from whatever life throws at you.  How much is enough? A listener writes in with a question, how will he know when he has enough to retire? This is such an important question and one that we all struggle with, but it’s not only an external question of how much you have in the bank. You need to go through a process to determine the retirement that’s right for you. Here are some steps you can follow to help: Determine how much the retirement lifestyle you want will cost. Create a model retirement budget based on your needs, wants and wishes. Know what your resources are and strategize from there.  OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [1:06] Retirement is asymmetrical [3:03] How do we balance near term market loss on one end with loss of purchasing power on the other end? [10:28] Tips to protect yourself LISTENER QUESTIONS SEGMENT [13:44] BC is wondering whether he should pay off his mortgage [16:50] How much is enough? [24:02] Should gold be a part of your portfolio? TODAY’S SMART SPRINT SEGMENT [28:05] Revisit your premise that retirement is binary Resources Mentioned In This Episode BOOK - Stillness is the Key by Ryan Holiday Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

Market crashes are black swans. No, not those black swans, unpredictable events beyond what is normally expected with potentially severe consequences. You can probably name all of the market crashes in the past 100 years since they have had an impact on the way we invest. On this episode of Retirement Answer Man, we’re learning about market crashes and the lasting impact they can leave on our psyches.  Market crashes can leave you with emotional scars Even though market crashes are not as important to worry about in retirement as bear markets. The real problem with market crashes is the effects they leave behind. Whereas bear markets are long and drawn out, market crashes are sudden and devastating. Similar to a car crash, a market crash can leave emotional scars. We haven’t had many market crashes in recent history, but the ones we have had have left an imprint on our collective memory.  Market crashes are certainly memorable You may have seen the long-lasting effects of the 1929 market crash on your parents or grandparents. It changed the way people thought and behaved. The ‘Black Monday’ crash of 1987 drove the market down by 23% in one day. The NASDAQ fell from 5000 to 1000 during the bursting of the dot com bubble in 2001-2002. And of course, more recently, there was 2008 of which many of us still haven’t recovered.  In retirement, market crashes can be even more traumatic Does your retirement plan prepare you for a market crash? In retirement, we need to build a system to where a market crash won’t derail our lives. That system should give us enough emotional currency to help us understand that we will be okay no matter what. You don’t want to let a market crash derail your decision making. Does your financial plan account for market crashes? How would I design a high school finance course? One listener who is a high school teacher asks, how I would design a financial literacy course for high schoolers. This was a fun question to answer. I hope that financial literacy becomes a course that every high schooler can take. There are several fabulous resources out there that teens can enjoy and learn from. I don’t necessarily think that teaching stock market training is as important as building healthy financial habits. Find out which resources I recommend by listening to the Listener Questions segment of this episode. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN WHAT DOES THAT MEAN? [2:20] What is a black swan? HOT TOPIC SEGMENT [3:30] Let’s talk about market crashes [9:37] In retirement market crashes can be even more traumatic LISTENER QUESTIONS SEGMENT [11:10] A listener correction about Social Security and COLA [13:08] A question about all Roth contributions [16:20] How would Roger design a high school course? SMART SPRINT SEGMENT [21:40] Increase your savings rate (or lessen your spending rate) by 5% Resources Mentioned In This Episode BOOK - Atomic Habits by James Clear BOOK - The Richest Man in Babylon by George Clason BOOK - The Black Swan by Nassim Nicholas Taleb Episode 306 Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

The thought of bear markets in retirement can be so scary, but they can be a bit less frightening if you have a plan. That’s why we’re taking this month to discuss market downturns and how they affect retirement plans. Every couple of years there will be a 10% correction in the market but this isn’t a bear market. A bear market is at least a 20% decline in the markets. The more you learn the more you’ll be prepared for any eventuality in retirement. Listen in to learn more about bear markets and how they could affect your retirement investments.  What is a bear market?  You may have heard the term bear market thrown around loosely, so before we dive in to discuss how they’ll affect you we need to define what a bear market really is. A bear market is a condition or period of time when securities fall 20% or more from recent highs. There is usually a lot of negative sentiment surrounding bear markets. The stock market is usually what we’re talking about when we discuss bear markets but we could be discussing any kind of securities.  There are 2 types of bear markets that we usually talk about. The cyclical bear market is the more common type. This signifies a short term downturn. There is also a secular bear market which refers to a long-term timeframe of below-average returns.  A history of bear markets We have had 12 bear markets since 1945. The average drop was 33%. The most famous bear market was during the great depression and suffered an 86% decline over a 34 month period. The most recent bear market is still fresh for many of us. The 2008 crash lasted 17 months and saw a 56% decline in values. Unfortunately, bear markets don’t all perform the same since past performance is not an indicator of future results. But there are some things we can learn by looking back at history. Listen in to find out what you can learn by looking at bear markets throughout history.  Bear markets and investing for retirement The 4% rule is talked about all the time as a retirement strategy. It’s popular because it works very well in a spreadsheet. On this episode, I’ll compare how the 4% rule holds up throughout different bear markets throughout history. Listen in to learn how the 4% rule holds up through various historical models. You’ll learn what you can do to reduce your risk and lessen the impact of a bear market in retirement.  When to dial back risk Cathy has an audio question for me. She has enough assets to cover her retirement expenses already, so she wants to know when is the right time to dial back her risk. Obviously, this is a matter of personal opinion and risk tolerance. But there are some things you can consider to gauge how much is enough. First, you should consider if you really have enough. Enough for what? Think about how you could live your best life. Next, you should isolate the excess. During the listener questions segment, you’ll hear the full answer to Cathy’s question as well as 2 more listener questions. Discover whether you should pay off the house or do a Roth conversion and how to assess when it’s time to consider a long term care facility.  OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN WHAT DOES THAT MEAN SEGMENT [2:20] What is a bear market? PRACTICAL PLANNING SEGMENT [4:20] A history of bear markets  [8:02] what does this mean for you in retirement? [15:50] what lessons can you learn from history? THE LISTENER QUESTION SEGMENT [17:41] When to dial back risk [25:14] Pay off the house or do a Roth conversion? [29:35] Bill asks how to assess when to enter a long-term care facility TODAY’S SMART SPRINT SEGMENT [32:33] What is your asset allocation? Resources Mentioned In This Episode Morning Star’s Instant X-Ray tool WealthOfCommonSense.com Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

The way you invest changes in retirement. Rather than being in the accumulation stage of life, now it’s time for the decumulation stage. But how do you flip that switch? How should your investment strategy change to reflect this new period in your life? During this monthlong series, we’ll be learning how to deal with bear markets and crashes in retirement. You may be thinking, why should I worry about bear markets when 2019 was so hot? Well, that is precisely why you should begin to consider how you would handle a bear market or a crash in retirement. Learn to be prepared for any eventuality by listening to this episode of Retirement Answer Man now.  Are you trying to fit a square peg into a round hole? Certain decisions are larger and more important than others. Retirement is one of those high stakes decisions. You’ve got a lot to learn if you are going to get it right.  Investment strategy is typically built on the idea of accumulating wealth. That’s what you’ve been trying to do your whole life, right? But investing in retirement is quite different than any other kind of investing. When investing in retirement people often try to fit a square peg into a round hole. Listen in to learn why investing the same way you have for your entire adult life won’t work in retirement.  5 ways that investing in retirement is different than any investing you’ve ever done The math changes. You have had plenty of time to invest which has allowed you to outperform by investing your money consistently. Unfortunately, retirement turns the tables. Now, instead of investing systematically, you are taking money out of the market systematically.  You have lost your superpower. You no longer have the ability to earn income. This can really affect you psychologically. When you were working you could simply earn your way out of many financial missteps.  Fear of missing out. Do you feel like you're missing out on the next best thing? Statistics are good at lying. We tend to think in statistics, but unfortunately, statistics aren’t very good for decision making. You only get one shot at this. Unlike the accumulation phase of life, there are no do-overs.  The Secure Act passed! In a rare act of unity Congress actually got something done! We’ve discussed what the Secure Act might mean for you in previous episodes, but now it has officially become law. This means that there are changes coming to a retirement near you. This bill has changed RMD’s, IRA limits, 401K’s, and done away with Stretch IRA’s. Find out what the Secure Act could mean for your retirement by listening to this episode of Retirement Answer Man. What does sequence of return risk mean? When researching retirement you may have heard the term sequence of return risk thrown around. But do you really know what that means? You may plan on getting 5% returns, but steady returns on investment rarely happen. You could get 0% one year and 12% the next. Find out how bad returns at the beginning of your retirement can impact the viability of your overall retirement plans. Make sure you’re signed up for 6-Shot Saturday to see plenty of examples of sequence of return risk.  OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [4:28] 5 ways that investing in retirement is different than before  PRACTICAL PLANNING SEGMENT [18:05] Our words for the year [23:06] The Secure Act passed! LISTENER QUESTIONS [27:48] How to maintain a balanced portfolio in a bear market WHAT DOES THAT MEAN? [34:43] Sequence of return risk SMART SPRINT SEGMENT [37:25] What is your word for the year? Resources Mentioned In This Episode Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

This is the episode to listen to if you are looking for hacks to save money on travel. You’ll hear my personal travel tips, as well as tips from the Rock Retirement Club, and international travel hacks. BW also joins in for the Coach’s Corner segment to enlighten us on his own views on how travel can benefit your retirement. You won’t want to miss this episode. Make sure to take notes on these travel hacks that will save you money.  Hacks to save money on your retirement travel Where will you go in your retirement? Have you already started planning your retirement trips? Planning the logistics of travel can be tricky but I like to use Google Flights to help me search for the best prices. Google Flights can be dynamic and your flexibility can really save you money. Use the alert function to set price alerts for places you want to go.  I also use my network of friends and acquaintances to get tips on where to go and what to do when I’m planning a trip somewhere. The people you know can really enhance your travel experiences. You never know who has been to the places you want to go.  Travel tips from the Rock Retirement Club The Rock Retirement Club is an amazing hive of knowledge. I love tapping into this invaluable resource. The members of this club have some great tips to share with you. Here are a few.  Utilize Costco Travel, Scott’s Cheap Flights, or your favorite airline’s credit card. If you visit a place annually make a checklist to make it easy to remember things you want to do or places you love to go. Sign up for TSA Precheck or Global Entry to fly through those lines Plan ahead, especially for popular national parks Don’t overschedule your time. You need downtime and flexibility. Learn how to improve your travel experience in retirement by listening to this episode to hear all our collective travel tips.  Hacks for international travel Retirement is a great time to finally experience the world. But planning international travel can be daunting. You’ll be in a foreign place where you don’t understand the language or customs. Some of these travel tips can ease your worries about international travel.  Purchase travel insurance. You never know when you’ll need to use it. Get your cell phone service in order. Listen in to find out how I ended up with a $1000 phone bill after one international trip! Sign up for the Smart Traveler Enrollment Program through the U.S Embassy. Check the CDC for vaccine information and health risks if you plan to go to some exotic locales. Get a medical pack from your doctor to be prepared for any situation This episode is chocked full of travel hacks and you’ve got to listen to hear them all. What will the Secure Act mean for you? It looks like the Secure Act will pass and become the law before the end of the year. This will mean significant changes are coming to retirement planning. This Act contains 29 provisions, some of which will be big changes, but others won’t have much of an impact. Here are a few changes you might see in the coming year.  Required Minimum Distributions will move from age 70 ½ to 72.  The RMD life expectancy table will change as well.  The Secure Act will repeal the maximum age to contribute to an IRA The new law will get rid of the Stretch IRA. Find out what that means for you and your heirs by listening in!  I’m so excited that it will be easier for small businesses to offer 401Ks to their employees.  You’ll have to listen in to hear the rest of the ways that the Secure Act will change saving for retirement. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [2:33] Tips on how to save money on travel  [7:45] Why it is important to tell your network of your travel plans [9:23] Tips from the RRC [14:30] International travel tips WHAT DOES THAT MEAN SEGMENT [19:40] What will the Secure Act mean for you? COACH’S CORNER SEGMENT [27:00] The anticipation of travel can be a lot of fun TODAY’S SMART SPRINT SEGMENT [35:15] Think about the person you want to become next year Resources Mentioned In This Episode Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center