Retirement Answer Man

Where will your journeys in retirement take you? Now that you’ve learned about dreaming up your retirement travel plans and how to pay for it all, it’s time to get to work mapping out your journeys. On this episode, I’ll walk you through how to choose where to go for those initial travels in retirement. You’ll also find out why you shouldn’t lump all of your 401K contributions into the first few months of the year. And finally, I answer a listener question on a topic that I thought I covered but hadn’t. We’ve got lot’s of fantastic information for you so grab your headphones and press play! Why does travel always get pushed aside? There is always something more important than travel. Even when we have the time, money, and opportunity we still sometimes miss out on traveling. Sure, we all have good reasons for doing so, but we may not have this window of opportunity again. The beginning of retirement is the ideal time to pursue your travel dreams. This is the perfect time! You have the time, the money, and the opportunity. Go now! Don’t miss out.  How do you prioritize your journeys? Hopefully, after listening to episode 302, you’ve already created your bucket list separately from your spouse. Now it’s time to get together and create a master list and prioritize the trips that you want to do together. The first thing you need to think of is, which places are physically strenuous? You’ll want to put those places at the top of the list since you are as healthy and mobile as you are going to get.  Next, think of creating a list of places that you want to go together with your spouse. Then create another list of places you want to go, but your spouse doesn’t. You can choose to go to those places on your own, with friends, or with other members of your family.  Finally, pick which one you want to do first and book it! Seriously, put the dates on the calendar now. Block out those dates and begin creating a research folder on that location. Listen in to hear why you’ll want to start chatting with your friends immediately about your next trip.  Reflections on our word of the year If you have been a long-time listener, you know that Nichole and I chose a word at the beginning of each year to be our guiding light throughout the year. That word becomes the focus of our energy, and we try to keep it at the forefront of our minds. Now that 2019 is coming to a close we’re taking a moment to reflect on how we did with our words. The word I chose for this year was Embrace. I chose this word so that I could embrace the moment of life that I am in right now. Nichole chose Flow since she wanted to learn how to go with the flow. Did you chose a word this year? Let us know how you did with it, we’d love to hear! Why you should consider Roth conversions A dear listener commented recently on the fact that I didn’t really touch on Roth conversions during the Retirement Tax Management Series. The bad news is: I was wrong in thinking that I had already covered Roth conversions in depth. The good news is: we will have a whole monthlong series on Roth conversions in 2020. But if you can’t wait that long then you’ll want to listen in to find out 2 reasons why you should consider Roth conversions. By listening you’ll also learn how to avoid a costly mistake with your 401K contribution.  OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT  [3:30] There’s always something more important than travel  [7:56] Making connections is important in travel planning LISTENER QUESTIONS [18:30] How did we do with our words of the year? [24:53] It’s not wise to max out your 401K contributions [27:40] I haven’t deeply covered Roth conversions on the show TODAY’S SMART SPRINT SEGMENT [39:25] Decide on your word for 2020 Resources Mentioned In This Episode Michael Kitces Podcast Surfin bird video Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

If you want to travel in retirement then you’ll have to go about creating a budget first. In this episode of Retirement Answer Man, I’ll walk you through the basics of creating a travel budget. You’ll learn how to categorize the types of travel you envision and then you’ll discover how to break down your expenditures. Check out this episode to get into the traveling mindset so that you can travel without the worry that you’re doing something you can’t afford. How can creating a budget for retirement travel allow you to travel without regret? You know you want to travel in retirement, but how much should you spend on travel? One way to begin to budget for travel is to divide your retirement travel into separate categories. First, you have car trips, plane trips, and weekend getaways. Next, come the annual vacations. Then you have your extraordinary trips or bucket list items. Once you have your travel categories laid out then you can take a SWAG (A sophisticated, wild, awesome guess!) at how much they may cost. At this point in time, there is no need to dive too deeply into counting the cost.  Top-down or bottom-up? What is a reasonable amount you can expect to spend over life’s normal expenditures? And just how do you go about budgeting for a trip you have never taken? Well, there are 2 ways you can choose from. The top-down approach is taken when you find an amount that you are comfortable spending and you fit your trip into that financial constraint. The choices you make will be influenced by the amount you decide is right.  If you like a more detailed analysis you may prefer the bottom-up approach to budgeting. This involves estimating your expenses for each individual line item. You consider the costs of transportation, lodging, eating, and entertainment and then build your budget around those factors. The advantage of this method is that it is specific and you will understand how much you spend on each. How do you traditionally budget for vacations? How do you pay for vacations in retirement?  So now that you understand how to create a budget for your retirement travels, how do you actually pay for it? In retirement, the only paycheck you have is the one that comes from your savings. There are a few ways you can go about paying for your trips in retirement. You can add the amount you need for next year’s travel to your cash reserves. Some people opt to do part-time work with their paychecks earmarked for travel. This gives them peace of mind that they aren’t dipping into their nest egg. How will you fund your retirement travel? What do you do if you suddenly come into money? On our new listener questions segment, one listener asks what she should do now that she has suddenly and unexpectedly come into a large amount of money. People are quick to offer advice and want to help you decide what to do if you come into newfound wealth. But my first piece of advice is to take some time and breathe. Just let the money sit in the bank until you are ready to decide what to do. When you’re ready, then you can choose a team to help advise you on taxes and finance. Check out 6-Shot Saturday to find the questions you should be asking when you interview potential candidates. And listen in to find out why you need a fiduciary on your side to help you come up with a financial strategy that matches your goals.  OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [3:12] How do we budget retirement dreams to travel without regret? [14:00] How do you pay for the trip? LISTENER QUESTIONS SEGMENT [21:10] What do you do when you suddenly come into money? [29:11] Fund 401K each year? [30:00] How to determine the value of a pension? WHAT DOES THAT MEAN? [34:45] What is the difference between social capital, human capital, and financial capital? TODAY’S SMART SPRINT SEGMENT [37:00] Start thinking about your ‘word’ for 2020 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

Is there anything more exciting than planning your travel in retirement? During our recent listener survey, we asked you what you were most excited about in retirement. Number one on the list was time freedom and number two was travel. December is the perfect time to plan your travels for the next year which is why we decided to explore travel in retirement over the course of this month-long series. Learn how to dream up your ideal vacation on this episode of Retirement Answer Man.  What is our most precious resource?  Do you think money is your most precious resource? What about time? We always feel like we have an endless supply of time until we get sick or someone around us passes away. When we are young time feels infinite, but as we age we realize that it’s not. Time is something we always feel we don’t have enough of, we can’t store it, rent it, or buy, it. Yet we all seem to waste time in different ways--from watching TV, to browsing social media, or aimlessly searching for distraction. Do you value time over money? Do your choices reflect your values? Would you walk away from a million dollars to gain more time with family? How to create your ideal vision for travel in retirement Sure you know you want to travel more in retirement, but how do you begin to plan what you want to do? First, you need to discover what you want to do. You need to get a good idea of your vision. You can think creatively about what it is you really want to do to create the rich life you envision for yourself in retirement.  There are 2 types of travel people usually think about: the normal yearly vacations and the bucket list travel goals. Learn how to plan both by listening in and learning the questions you should be asking yourself about how you want to travel in retirement. Define your travel goals Think about how you want to travel. Where do you want to go? Do you prefer rural or urban locations? Sun or snow? Beaches or mountains? Do you prefer to travel with a group, alone, or just you and your spouse? Do you need to have everything planned out for you, or do you prefer to just go with the flow? Do you crave leisure, activity, or fitness? You can use these questions to create a vision for where and how you want to travel in retirement. Learn what else you can consider when mapping out your travel goals in retirement.  What tools can you use to help you plan to travel in retirement? Now that you know what to consider when dreaming up your ideal vacation, you need some tools to help you plan. I love my giant NeuYear wall calendar, it helps me quickly see where my vacations fall amidst the rest of my year. One way to begin brainstorming is to create a mindmap. This allows you to take an idea and then expand upon it by adding new layers and ideas. If you are a visual person, you may enjoy creating a vision board. How will you begin to plan your retirement travel? OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [3:02] What is our most precious resource? PRACTICAL PLANNING SEGMENT [8:44] How to create your vision for travel in retirement [11:00] What kind of travel suits you? [23:12] Tools you can use TODAY’S SMART SPRINT SEGMENT [26:50] Start mapping out your retirement travel Resources Mentioned In This Episode MindNode NeuYear Wall Calendar BOOK - The Effective Executive by Peter Drucker Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

After all of the retirement tax management topics over the past few episodes, today we finally get to withdrawal strategies. We are wrapping up our monthlong series on retirement tax management, so make sure you listen to the previous 3 episodes to get the scoop on managing your taxes in retirement. This is a huge topic that we will definitely revisit in the future. But today you can get some great tips on how to manage income in retirement, dangers to look out for, and withdrawal strategies. When you’re done listening, head on over to RogerWhitney.com and take our listener survey to give us your input on the show.  Christmas gift ideas for those that have everything NeuYear Calendar - This is a great idea if you are within 5 years of retirement. I have this huge 5-foot wall calendar. It’s a great way to plan your vacations, your countdown to retirement, or you can use it as a jumpstart to a vision board.  Everplans - This is a $75/year subscription service that is a platform where you can store all of your important documents and passwords together online. The online portal can help you organize everything you need. The beauty of this service is that you can assign delegates to see as much or as little as you choose. Or they can access it only when you pass away. *If you are an annual member of RRC you get a subscription to Everplans included with your membership.  Smart plugs - These are really cool plugs that can connect to your phone via an app and you can control your lights from different locations Away Luggage - Great for all that traveling you have planned in retirement. Airpods Pro - A great gift for Apple enthusiasts. Give’r gloves - Outdoor gloves that last, you can even have them branded for a more personal touch.  Perini Steaks - Who doesn’t love a good Texas steak?! Cutco Knives- Sure, we’ve all heard the sales pitch, but seriously these are fantastic knives! Get them engraved to add a personal touch. Meet BW, our host of the new Coaches Corner segment We’re starting a new once a month segment that includes coaching tips for the theme of the month. These tips aren’t on the financial side of things, but rather the more personal side. BW is a certified retirement coach who is also the head of the education department at the Rock Retirement Club. BW will bring research and coaching tips to help you learn to ease into and then thrive in retirement. Topics may include work reorientation, replacing work functions, life meaning and purpose, family and relationships, how to fill your day in retirement, or health and leisure. Listen to the new Coaches Corner segment to meet BW and hear his tips on tax management in retirement.  Taxes to be aware of in retirement Tax management in retirement is a multi-dimensional puzzle. There is so much to consider, but that’s why you’re planning ahead by listening to this show! Let’s look at some taxes you need to be aware of in retirement: Social Security taxes  IRMAA surcharges - Remember these reflect 2 years in the past.  Income taxes and income tax brackets - Become more familiar with them since you now have more control of your income in retirement. Required minimum distributions - Once it starts it never stops! Withdrawal strategies you can use to help plan your taxes in retirement Even though there are lots of scary new taxes to be aware of in retirement. It’s actually an exciting time, tax-wise, because you have much more control of your taxes than ever before. You are in control of your income and you can time it in ways you never have been able to before. And there are plenty of other strategies you can use to help you manage your taxable income. Consider doing Roth conversions, strategic gifting, and timing your Social Security to help you manage your taxes in retirement. Listen in to learn how to create a dashboard and plan your taxes year by year.  OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [2:30] I am thankful for all of you [4:25] Christmas gift ideas for those that have everything COACHES CORNER [14:00] Meet BW, Retirement Coach Extraordinaire PRACTICAL PLANNING SEGMENT [20:38] Taxes to be aware of in retirement [23:49] Dangers to be aware of  [29:32] The tools we have in our toolbox to battle the tax giant [33:49] Create a dashboard THE THANKFUL LAB SEGMENT [39:43] I’m thankful for the Detroit Lions TODAY’S SMART SPRINT SEGMENT [41:30] Start thinking about your withdrawal strategy Resources Mentioned In This Episode Perini Steaks Give’R gloves EverPlans NeuYear Calendar 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 lot to consider when planning tax management in retirement. You’ve got to think about RMD’s, tax brackets, Medicare, and IRMAA. You may have heard of IRMAA and been wondering just what this mysterious acronym is. On this episode of Retirement Answer Man, you’ll learn about Medicare and IRMAA and how exactly this all fits into your retirement tax management plan. You need to understand all the levers available to make the most of tax management in retirement.  Highlights I’ve learned over the past 300 episodes Consistency is so important. My daily habits keep me on track You all have helped me learn how to define the agile retirement planning process.  My team is amazing! Listeners provide the ultimate feedback loop. We have created a safe place to interact and have discussions surrounding retirement. We have listeners from all over the world! I know my purpose and I’m acting it out each day. Can this exercise help you consider if you are ready for retirement? I recently had a client that didn’t think he was ready for retirement. He thought there would be a huge void in his life. How would he spend his days? So to get an idea about this he decided to make a list. Not a bucket list, but a list of things he wanted to do with his time. Things like: practice playing guitar, learning to play golf, mentoring kids. These were just some of the day to day items he considered. Next, he decided to map out an ideal schedule for an entire month. Find out what he discovered by listening in! Who is this IRMAA, and why is she in my Medicare? In 2007 Congress passed a law allowing a surcharge on part of your Medicare benefit if you make over a certain amount. IRMAA is that surcharge on Medicare Part B and Part D. If you make over $85,000 if you are single or $170,000 if you are married then IRMAA will apply to your Medicare Part B and D. One important aspect about IRMAA is that it considers your income, not from last year, but from 2 years ago. Listen in to find out how much this surcharge is.  What are some tax strategies you can implement to avoid IRMAA? The number one rule of tax management is: don’t let the tax tail wag the dog! You will need to consider if IRMAA is worth all the trouble to avoid. Consider these strategies to see if they can help you avoid the IRMAA surcharge. Be aware of temporary spikes in income, be more thoughtful about how you spend money as you approach Medicare age. Be aware of your required minimum distributions (RMD). You’ll want to be aware, from a tax perspective, but now you can consider IRMAA as well. Use Partial Roth conversions now to try and minimize your RMD later on Multi-year tax planning so important in retirement because you finally have ultimate control over your taxes Start to build some balance in your balance sheet. Consider funding your HSA early on. You can keep the bills for years and create a tax-free slush fund.  If you don’t need the extra income, but have to take it due to RMD, do a qualified charitable distribution to minimize your income. How will IRMAA affect you? Will you jump through hoops to avoid it? OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [3:30] Highlights I’ve learned over the past 5 years [6:12] Do I really want to retire? PRACTICAL PLANNING SEGMENT [9:30] Who is IRMAA? [16:00] How will IRMAA affect you? THE THANKFUL LAB SEGMENT [21:56] I’m thankful for being brave TODAY’S SMART SPRINT SEGMENT [24:02] Take our annual listener survey! 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

Nobody likes taxes, but tax management in retirement doesn’t have to hurt so bad. During this Retirement Tax Management series, you’ll learn about tools and tricks you can use during retirement to lessen your tax burden and make paying taxes as painless as possible. On this episode, we’ll focus on Social Security and how it affects your tax burden. You’ll also hear retirement tax tips from a variety of other professionals. Make sure to listen to the whole series to learn as much as you can and when you’re done be sure to take the listener survey so that we can get your opinions to refine the show to cover topics that interest you.  Tax management tips from a variety of professionals When looking for good advice it helps to crowdsource to hear a variety of tips. Check out these ideas to help you lessen your tax burden in retirement.  CFA, CFP and writer, Peter Lazaroff, focuses his advice on limiting your RMD liability. He encourages listeners to minimize their RMD liability early on, prior to age 70 ½, by doing partial Roth conversions. It’s important to remember all of those pretax dollars will be taxed eventually. Think about it early on so you won’t get stuck with a huge tax bill at age 70 ½.  Julie is currently maxing out her husband’s 401K to save for retirement, In addition, she is funding an HSA with pre-tax money. She is paying cash for her medical bills now and saving those receipts to withdraw from the HSA in retirement. She is using the HSA like a slush fund. Julie also uses a donor-advised fund for charitable giving. Brandon Renfro Ph.D. encourages you to consider your multi-year tax rate. In retirement, income is multi-dimensional and you can manage when you  Michael Hennessy, CFA, CFP, recommends using a qualified charitable distribution if you are charitably inclined. When having to take your RMD, if you don’t need the full amount of money, give it away. This will help with IRMA as well as help you manage your tax brackets.  Michael Molitoris suggests auto-withholding a portion of your IRA distribution for tax purposes. Make sure to also withhold taxes from your Social Security check. This will help save you from filing quarterly taxes and it will further save you from a huge tax bill.  Ashley Daniels use your tax return as a tool to help you think about tax brackets, IRMAA, and Social Security.  What can you do to help you get ready to plan for your Social Security benefit? As you are sitting here thinking about Social Security and retirement, you might be wondering what you can do to be proactive. There are 2 things you can do right now. First, go to ssa.gov and set up your login to begin to manage your account. Review your earnings history, give it a once over to make sure it is reported correctly. Your benefit is based on the reported earnings history so you’ll want to make sure they are in the right ballpark and act early if something is amiss.  Secondly, check out the retirement estimator calculator. This is a great tool to help you with multi-year tax planning which is imperative in retirement.  Are your social security benefits taxable? Wait! I already paid taxes on my Social Security benefits, why are they taxing me again? This is why we’re learning about retirement tax management now. So there won’t be any surprises later. Your Social Security benefit is taxable but only up to a certain amount. It really depends on your adjusted gross income (AGI) and your nontaxable interest accounts. Make sure you listen to the examples I give to fully understand when and how your Social Security benefits are taxed.  What can you do now to help manage future taxes? In your working years, you don’t really have control over your tax bracket or how much you will owe, but in retirement, you can have a lot of control if you are proactive. Multi-year tax planning is so important and that’s why you are listening to Retirement Answer Man now.  There are several strategies that you can think about using to manage your taxes. Consider these: Delay Social Security while you take distributions from your IRA’s or earn income in pretirement Start converting your IRA’s to Roth IRA’s early Consider multi-year tax strategies to think about your IRA withdrawals Fill your tax bracket Make sure to listen in next week to meet our old friend IRMAA and find out how she could affect your Medicare premiums.  OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [4:00] Tax tips from financial advisors PRACTICAL PLANNING SEGMENT [11:40] How does the tax scheme work in retirement for your Social Security benefit [14:07] Are your Social Security benefits taxable? [17:45] Let’s look at an example [23:22] What can you do now to plan for the future? THE THANKFUL LAB SEGMENT [26:30] I’m thankful for the listener interaction we get TODAY’S SMART SPRINT SEGMENT [28:14] Go register at SSA.gov and check out the new retirement calculator Resources Mentioned In This Episode SSA.gov Retirement Estimator Calculator IRS Publication 915 BOOK - Making Money Simple by Peter Lazaroff Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

Wait, did you think that tax management would become easier in retirement? That’s hilarious! Managing your taxes in retirement can be a scary endeavor. There are new terms popping up at you from every direction. That’s why we’re taking this whole month to discuss retirement tax management. With a little bit of education, you won’t find tax management in retirement that daunting. Start your education in retirement tax management by listening to this episode of Retirement Answer Man.  Should we all jump on Michael Kitces’ rising equity glide path? Last month we presented Michael Kitces’ argument for the rising equity glide path. This academic theory of investing goes against everything that seems natural to an investor. The idea is that the investor should get more aggressive as they get older since that is when the sequence of return risk is the greatest and they have the longest amount of time ahead of them. A listener was wondering why we would air this on the show if we weren’t advocating that our listeners go out and try this with their own investments. Remember, I am here to present research to help you all stay informed and so that you can understand and identify risks. I am not advocating that you do anything. I don’t know you and cannot give you advice on this show.  Don’t miss this opportunity to save money! Retirement tax management is one of the most missed opportunities in retirement. It is commonly missed because it is so confusing to advisors. In addition, financial advisors can’t give tax advice, we can only be tax-aware. Most CPAs aren’t as familiar with all of the tax opportunities in retirement either. They are so used to recommending deferring taxes for as long as possible. And while that’s a great plan for the accumulation stage of retirement planning, once you retire you need to come up with a new tax strategy. Do you have a tax strategy that you plan to use in retirement? How is it different from your tax strategy in your working years?  Why is multi-year tax planning important in retirement? In retirement, it’s time to stop thinking of your taxes one year at a time. Multi-year retirement tax planning will save you money in the long run. Small things can add up to make a big difference over the long-term. One of the coolest things about retirement is your flexibility in realizing income. There are also actions you can take now to help your future self out from a tax perspective. Do you have a plan to manage your assets in retirement? Have you thought about tax planning in retirement? Retirement tax management starts with knowing the different tax brackets It’s important to become familiar with the different tax brackets. Retirement is probably the only time in your life where you can actively manage your income. Retirement income is usually a combination of after-tax assets, pretax assets, tax-free assets, and income. These are the raw resources you can use to create a retirement income. Once you know the different tax brackets you can understand where you want to fall and how much wiggle room you have to continue to stay in the tax bracket that you want to be in. Find out what other tools you have to manage your taxes in retirement by listening to this episode of Retirement Answer Man. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [2:56] A listener had a question about the rising equity glide path PRACTICAL PLANNING SEGMENT [10:25] Retirement tax management is one of the most missed opportunities in retirement. [12:34] What materials do you have to manage your taxes in retirement? [14:00] What are the tax brackets? [17:35] What opportunities can you take to manage taxes in retirement? THE HAPPY LAB SEGMENT [19:48] It’s easy to assume the worst, but try not to TODAY’S SMART SPRINT SEGMENT [22:03] Focus on not predetermining the outcome of things. Just let it flow 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

Do you use index-based investments? There is a trend towards passive investing as people are stepping away from high fee managed funds. There are many positives in passive, index-based investments, but there are some downsides too. In this classic episode, we explore the downfalls that can come with index-based investments. If you are on the passive investing bandwagon you’ll want to discover what the negatives are to have all the information and make intelligent decisions.  Should we all move to passive investing? Passive based investing seems to be taking over the investment management world. In 2000 only 12% of stock market investment assets were passive based. In 2005 that number rose to 17%, in 2010 it rose again to 25%. In 2016 the percentage of passive based investments rose to 42%. Although the number of passive investments has still not caught up with active investments, the trend is heading that way.  Over the past 10 years, the S&P 500 outperformed hedge funds. Active stock managers have failed to beat their indexes over the previous years and they continually lose money. Since they charge high fees and lose money does that mean we should all move to passive investing?  Does index-based investing make the market less efficient or more efficient? We know how efficient index-based investments can be. Taking out the middle man of stock managers streamlines the entire process and make investing much less expensive. But is it actually more efficient? Might passive investing be less efficient because if so much of every dollar is going into the same indices? The average buyer is buying without respect to any fundamentals of investing. We also need to consider that all of this money is going to the same companies. The largest companies have the largest influence on the index. 20-30 companies influence the whole index. More and more money is flowing to fewer and fewer stocks as index-based investing gets bigger.  What will happen when we enter a bear market? We all know that markets rise and fall. After being in a bull market for so long we know that a bear market is sure to follow. But if all of our assets are funneled into fewer and fewer stocks what will happen when the bottom falls out? In bad markets investors sell. This will cause these large companies’ stocks that are tied to these investments to all even further. You’ll want to consider a solution I have for continuing small-fee, indexed based investing. Make sure to listen in to find out what you can do to protect yourself in a bear market and still passively invest.  Should Tyler use future raises to pay down debt? What should you do when you get a raise? How do you allocate that money to support your family? One listener is considering what to do with new income when he gets a raise.  I encourage you to think about income from a net worth perspective. There are only 5 things you can do with money: spend it, give it away, pay down debt, save it, or invest it. It’s helpful to think of things in that order. Look at your net worth statement ot identify where the imbalances might be. Focus on what you can control because we will always be living in uncertain political times. Listen to this episode to hear more great listener questions. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [3:36] Should we all move to passive investing? [8:00] Does passive investing make the market less efficient or more efficient? [10:59] What will happen when we enter a bear market? [12:45] What are the solutions? PRACTICAL PLANNING SEGMENT [16:32] Should Tyler use future raises to pay down debt? [22:45] What are red flags to look for when hiring a financial advisor? [32:22] Should Keith pay off mortgages or save for retirement? [34:33] Timothy has an RMD question 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

Are work and retirement mutually exclusive? Here at the Retirement Answer Man world headquarters, we don’t think so. On this classic (throwback?) episode, we revisit the idea of pretirement. Pretirement is the concept that you can work and retire at the same time. If you aren’t ready to hang up your hat and sit on the park bench of life, you’ll want to explore the concept of pretirement. Listen to this vintage episode of Retirement Answer Man to ponder the idea of work and retirement and discover if this is the right concept for you.  Hard-at-work-October is progressing beautifully Are you ready for the most amazing, comprehensive retirement course ever created? All of us here at Retirement Answer Man HQ are busy creating a life-changing course that will help you rock your retirement. The good news is, this retirement course will be an exclusive benefit for everyone that has joined the Rock Retirement Club. If you’re not a member yet, make sure to join before November 1 to lock in your low lifetime price.  Are you one of the millions of Americans in a sad state of retirement readiness? Pick up any news article on retirement and you are bound to read about the fact that Americans don’t save or invest enough to support themselves over the course of retirement. We are healthier and living longer than ever before and our savings numbers just don’t work. But what is the right amount of money to have saved anyway? Whether you are worth $50,000, $500,000, or $5 million there will still be the feeling that you just don’t have enough.  Do you think of retirement as a light switch between work and retirement? According to a recent survey among Retirement Answer Man listeners, freedom is the number one aspect to retirement that you all look forward to. Be strategic about how to put a plan in place to slow down your working pace. Pretirement is the strategic phase in which you still earn income (maybe less than before) but you gain the time freedom that most seek from retirement. Rather than seeing retirement as an off-switch to working, pretirement is more like a dimmer switch.  What are some benefits of pretirement? It takes the pressure off of you to save everything you can It takes away the worry about the economy At the beginning of your retirement, your skills are still relevant and you still have a network of work contacts Your longevity risk and market risk are the greatest at the beginning of retirement. Pretirement eases these risks The retirement transition is a period of significant change, pretirement can ease you into that change  You don’t have to dip into your savings so soon so your investments can continue to grow You can delay taking Social Security which increases your benefits You may experience a reduction in healthcare costs OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [6:46] Most Americans feel that they are not retirement ready PRACTICAL PLANNING SEGMENT [9:15] What excites you most about retirement? [16:09] Why is pretirement important? [19:42] What are the benefits of pretirement? [27:22] What are some qualitative benefits of pretirement? [33:28] Tips to start planning pretirement [36:48] Some examples of pretirement work TODAY’S SMART SPRINT SEGMENT [38:09] Think about what you might want to do for pretirement work THE HAPPY LAB SEGMENT [38:58] You have a choice about how you respond to things Resources Mentioned In This Episode BOOK - The 100 Year Life by Andrew Scott and Lynda Gratton BOOK - Built to Sell by John Warrillow Couple Money Podcast Stacking Benjamins Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

In all of your planning, have you planned for happiness in retirement? Many people just look at the facts and figures in their retirement and they don’t stop to think about how they will create their own happiness in retirement. On this classic episode of Retirement Answer Man, we revisit an oldie but goodie. Listen to this episode to see if you can discover why this was the one that made Nichole decide once and for all that she wanted to come work with me! Are you ready for the most epic retirement course ever? During this hard at work October the Retirement Answer Man team is busy creating The Most Comprehensive Retirement Course EVER! (Yes it’s that great that it needs to be capitalized!) Our Rock Retirement Course will be the most comprehensive retirement course in the history of retirement courses. This course will be your roadmap for creating a rockin’ retirement. Also, don’t forget that we are in the last few weeks for you to take advantage of the low price of the Rock Retirement Club. Starting November 1 the price for the Rock Retirement Club goes up, so sign up today to become a member of the most awesome group on the internet.  Why planning for happiness in retirement is even more important than financial planning When you sit down and plan for retirement most people consider the normal questions. How much do I have? How will I disperse my money? This is what we think of when planning for retirement. Most people don’t stop to think how will I be happy? Retirement is a time of great change in your life. It is much like leaving college to start your career. The trajectory of your life will completely change. So this makes it a great time to consider who do you want to be for the rest of your life? Once you know that then you can think about how you are going to build the life that you want to build. Discover how to map out a meaningful life in retirement on this episode of Retirement Answer Man. Why you need a life of congruence Congruence means the state achieved by coming together. It is a state of agreement. If you say you value A, B, and C are you living your life that is congruent with your values? In my younger years, my actual life did not reflect my values at all. I had a great job, wife, and kids. But I was often a jerk to those I loved the most. I had to sit down and define my values before I could begin to live a life that was congruent with them. Have you sat down to define the values in your life? Now is the time to consider your core values so that you can live a life that aligns with your values and find real happiness.  How I define my top 10 values God - I have a strong relationship with God and talk to him every day. Quality relationships - I value deep friendships. I love listening and going deeper with my friendships rather than just brushing the surface. Adventure - I love being open to new experiences, ideas, and emotions. I always strive to experience new things. Service - I believe I was put on earth to help change the concept of retirement. This is my service to others. Continuous improvement - I don't want to have a fixed mindset, a growth mindset helps me continuously improve as a person.. Fitness - Staying fit helps me not just physically but mentally.  Laughter - Although I am intense, I love to laugh. I am more engaged and optimistic when I laugh more.  Positive attitude - A positive attitude is empowering. It can help create an incredible life. Freedom - I value living life on my own terms. Bravery - Bravery gives me the strength to live out my values even when it is easier not to.  OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [3:34] Who do you want to be for the rest of your life? THE HAPPY LAB SEGMENT [13:39] What happens when you live a life congruent with your values?  PRACTICAL PLANNING SEGMENT [18:24] How I brought my life into alignment with my personal values [20:02] My 10 personal values TODAY’S SMART SPRINT SEGMENT [34:15] Identify your personal values 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