Retirement Answer Man

How are you going to redefine yourself in retirement? Retirement means making the life transition from a full-time career to full-time living on your own terms. Although this is exciting, it can also be scary. During this series, you’ll learn how to create a framework to do this successfully. Learn how to figure out your identity and who you want to become. Are you ready to redefine yourself in retirement? Listen to this episode of Retirement Answer Man to begin to make this huge transition in your life.  Who are you?  We get so wrapped up in our professional titles that now in retirement you have a void to fill. Not only do you have to figure out the logistics of money, healthcare, where you’re going to live, now you’ll have to figure out your identity. Some people can lose direction when they retire. They think about who they were rather than who they want to become. Creating an identity from a completely blank slate can be a challenge. People don’t do well with blank slates. We prefer multiple-choice questions and don’t have the skills required to choose from such a broad palette. Do you know who you are? Do you know who you want to become? Why did I shift the focus of this series from finding your purpose? I had originally planned for this month to be all about finding your purpose in retirement, but then Mike the listener had an objection. Mike feels that there is too much pressure in finding your purpose of retirement. You probably won’t solve the problem of world hunger. Retirement is like the start of college, it’s the beginning of another round of self-exploration. Unfortunately, the analogy ends there since college has a structure and pressure. A well-funded retirement is free of pressure and structure. How will you grow and change in the absence of pressure? How can you hack longevity? It used to be that you might get 10 years of retirement in to simply sit on the park bench. Nowadays ⅓ of your adult life consists of retirement. The pattern written by previous generations doesn’t hold up for this new generation of retirees. This new stage of life has to be reinvented. Just because you stopped working doesn’t mean that you stop everything. People are beginning to hack their longevity by identifying their interests early on in retirement. These interests will carry them for the years of their retirement.  Are you ready to redefine yourself in retirement? When you retire, you can’t just run away from work, you need something to run to. It's not the absence of work that people desire in retirement, it’s the flexibility. Before beginning your retirement it’s time to start thinking about who you really are. What’s your reason to get up in the morning? What will be your storyline? How can you use the skills you have accumulated over a lifetime and translate them into the new game of retirement? OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [3:45] We get so wrapped up in our professional titles [8:14] Blank slates can be a challenge [9:00] Why we aren’t searching for a purpose this month [17:55] What is going on in the Rock Retirement Club this month? PRACTICAL PLANNING SEGMENT [19:08] Dr. Joseph Coughlin is the director of the MIT Age Lab [25:22] People are hacking their retirement [31:55] How can we build support networks in retirement? THE HAPPY LAB SEGMENT [34:44] Axe throwing is really hard to do TODAY’S SMART SPRINT SEGMENT [36:56] Identify your identity right now Resources Mentioned In This Episode BOOK - The Longevity Economy by Dr. Joseph Coughlin 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 still have some questions about annuities so in this episode I answer your annuity questions. We have had several listeners ask some great questions which will help clarify how annuities work. After diving deep into annuities during this 5-week long month, we can all look forward to the next series where you will learn how to figure out who you will be in retirement. But before that, listen to this episode to get all of your annuity questions answered.  Why can’t people just self-annuitize? Ryan asks: why don’t individuals self-annuitize by using the IRS required minimum distribution (RMD) tables. This way they can keep control of their assets with the additional benefit of being able to leave the assets as an inheritance.  This is actually a great idea and the idea that the IRS has behind the RMD. The primary difference between this example and an annuity is the risk factor. In an annuity, the risk has been removed in exchange for your loss of control of assets. So in this example, you would still maintain control of the assets but you would still need to factor in market risk and execution risk. Would you prefer to use your IRA in this way or get an annuity? Do RMD’s play a factor in annuities? Another listener is curious about the role that RMD’s play in annuities. Her husband recently bought an annuity and was told that he would have to begin the annuitization phase at age 70 ½ due to the RMD.  The reason that he has this stipulation is that he must have bought the annuity using tax-deferred assets. If you have other tax-deferred assets you could postpone the annuitization period as long as you are still taking the RMD from other sources. If you have bought an annuity, did you use pre-tax or post-tax assets? Why do insurance companies handle annuities, and how do they make money? Insurance companies handle annuities instead of banks or investment firms because they are pooling risk from a large group of individuals to spread the risk in a similar way as that of an insurance policy. But the insurance company makes money much like a bank. They collect money from thousands of individuals and then they are able to invest it and earn a larger percentage than that of their policy payout. It’s like you going and buying a cd. It is important to remember that an annuity shouldn’t be seen as an investment but rather as a pre-purchased pension.  What if you don’t want to know all the details surrounding annuities? One listener thinks that annuities sound like an excellent option for her retirement but she doesn’t want to know about the fees and charges. With an annuity, it is important not just to read but also understand the contract which is no easy task. The way the contracts are written could cause you to accidentally break the contract if you aren’t careful. If you aren’t looking to be swamped by details, a fixed annuity is much more straight forward than a variable annuity.  If you are considering an annuity you need to first think about your overall retirement strategy. Let the process drive decision making. Consider why you are interested in annuities. Are you looking to insure longevity risk, simplify your financial life, or buy a pension? Remember that you are not buying an investment. So what do you think of annuities? Do they seem like a good option for you? OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [2:18] Who are you going to be in retirement?  PRACTICAL PLANNING SEGMENT [6:50] Why wouldn’t people just self-annuitize? [8:55] Do RMD’s play a factor in annuities? [10:54] Why do insurance companies handle annuities? [13:40] What if you don’t want to know all the details surrounding annuities? [16:06] Are insurance companies selling off their annuity lines because they feel they can’t be profitable? THE HAPPY LAB SEGMENT [20:24] I am excited about next month’s series that focuses on who you will be in retirement TODAY’S SMART SPRINT SEGMENT [21:14] Eat the frog - do the thing you don’t want to do first thing in the morning Resources Mentioned In This Episode BOOK - Eat that Frog by Brian Tracy Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

In this episode of the annuity series, we’ll discuss the pros and cons of variable annuities so that you can learn whether a variable annuity should be a part of your retirement plan. During the Hot Topic segment, we’ll discuss the Rock Retirement Club since enrollment just opened back up. Then in the Practical Planning segment, we jump back into our discussion on annuities. You’ll learn all about variable annuities to help you become more informed. Listen to this episode to learn the pros and cons of variable annuities.  Is the Rock Retirement Club right for you? The Rock Retirement Club has opened its doors once again! Now with over 200 people, the RRC was created last fall as a safe space to help others in various points along their retirement journey. The motto of the Rock Retirement Club is, “Walk with the wise and become wise.” Check out the RRC if you are interested in these 3 things: Get a world-class education on how to ‘do’ retirement. We do this by creating educational courses, workshops run by experts, and meetups on how to do specific things.  Take action. We have a monthly action plan to help you take baby steps towards your retirement goals and we give you the tools to take action. It is a safe place to walk with others along this retirement journey.  What is the difference between a variable annuity and a fixed annuity? There was $200B in annuity sales in 2018. Of that, $100B was in variable annuities. Since variable annuities are such a big part of the market, we should learn more about them. How is a variable annuity different than a fixed annuity? There are still the 2 phases of annuities: the accumulation period and the annuitization or distribution phase. In a fixed annuity you are paid based on a fixed rate specified in the contract. In a variable annuity, you are able to choose from a menu of mutual fund clones then when you go to annuitization you are paid based on what the portfolio was able to grow to. Basically, the case for variable annuities is that you’ll be able to potentially build a bigger pot to annuitize from.  Pros and cons of variable annuities Variable annuities have many riders to choose from Another thing variable annuities have are riders. There are a lot of riders that are designed to provide you with income at some level without having to annuitize first. But the devil is in the details with these riders. You can often get a death benefit rider or a long-term care rider. There could be a guaranteed withdrawal benefit which may give you some guarantee about how much you’ll be able to withdraw. A lifetime income benefit rider can provide you with a guaranteed lifetime income. There could be a guaranteed minimum accumulation rider and so many others to choose from. Check out the Good Financial Cents website to learn more about the different types of riders you may come across with variable annuities. What are some disadvantages to variable annuities? Since you are investing in markets you could end up with a lower payout. If you do well and the assets grow they will be taxed as ordinary income rather than capital gains. Then there are the fees. There is a mortality expense, an investment expense, a manager expense, a surrender fee, and then, of course, the riders. There could be anywhere from 2.5% - 4% in annual fees, but if you get any riders attached then those fees could bump up to 6%. These types of products are usually sold rather than being sought out. The people that are selling annuities aren’t fiduciaries so they don’t have your best interest at heart.  OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [3:31] The Rock Retirement Club has opened its doors once again PRACTICAL PLANNING SEGMENT [10:01] How is a variable annuity different than a fixed annuity? [14:20] Variable annuities have many riders to choose from [16:35] What are some disadvantages to annuities? THE HAPPY LAB SEGMENT [22:45] To be happy we need to minimize confusion TODAY’S SMART SPRINT SEGMENT [24:35] What can you simplify in your life? Resources Mentioned In This Episode GoodFinancialCents.com/annuity-riders Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

On today’s episode of Retirement Answer Man, we’ll consider the pros and cons of fixed annuities. During this series on annuities, we are discussing whether annuities are right for your retirement. Many people choose pretirement as an income floor for their first few years of retirement to help them ease into the lifestyle and decrease financial risk. An annuity can be considered a backend floor to cover your retirement spending in your 80’s, 90’s and even 100’s. We all know that longevity is a big factor in retirement planning and a fixed annuity could help supplement your social security income in old age. Listen to this episode to help you consider the pros and cons of fixed annuities so that you can judge whether an annuity is a good choice for your #retirement. What are the pros and cons of fixed annuities?  What are the pros for a fixed annuity? Since an annuity is like a pension that you pay for in advance, you get a guaranteed income for the rest of your life. Once you buy it and put it in place you can‘t really mess it up. It also offers protection for your future self. You may not be as astute in your later years and an annuity can help protect you against fraud, poor judgment, etc. An annuity also gives you a kind of longevity insurance since you get payments for your entire life whether you live until 80 or 110. Although an annuity can simplify things, you must give up some things in return. First of all, you give up your lump sum. In doing so, you lose the opportunity to use the money in a different way. You don’t really know how much you will get in return since it is gone if you die the next day. Another potential downside is inflation. By the time you actually begin annuity payments, the inflation can lower your purchasing power by 20% or more. You also give up the opportunity to leave a legacy with the money. Why did B.W. choose to purchase an annuity? B.W. is a member of the Rock Retirement Club and has recently retired at age 55. He has decided to dive headfirst into retirement financial planning. Since he chose a bucket strategy for retirement expense planning. He has 10 years of spending set aside until he reaches the age of 65. At age 65 he’ll receive Social Security and a pension which will cover 75% of his costs. He decided to find an annuity to cover the other 25%. B.W. chose a deferred annuity since he doesn’t need the money until the age of 65. He looks at purchasing an annuity as an insurance policy rather than an investment. Listen to this episode to hear why B.W. chose to purchase an annuity to cover his retirement expenses. How did B.W. determine which annuity to buy? B.W. started searching for annuities by considering the amount of money that he wanted to cover. He also knew how much he was willing to spend. This led him to explore the options that he could afford. He narrowed his selection down to one consideration: What would be the guaranteed joint life income stream from the annuity? He looked at just about every annuity there was and considered various sources. B.W. ended up choosing a deferred fixed annuity called SPDA (single premium deferred annuity). He chose an annuity that would cover both the lives of he and his wife. Are you considering an annuity as a way to provide income in retirement? Listen now to hear how B.W. figured out which annuity would work best for his goals.  OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [4:10] Have you considered a backend floor to cover your retirement spending? [8:25] What do you give up with an annuity? PRACTICAL PLANNING SEGMENT [21:28] Why did B.W. choose to purchase an annuity? [24:22] How did he determine what to buy? [27:37] What class of annuity did he end up with? [30:10] What were the options that he considered? THE HAPPY LAB SEGMENT [39:26] I’m happy that my friend Vinny started the Total Life Freedom podcast TODAY’S SMART SPRINT SEGMENT [41:40] Go to RockRetirementClub.com and check us out Resources Mentioned In This Episode PODCAST - Total Life Freedom Episode 280 Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

This week on Retirement Answer Man, we define what role an annuity could play in your portfolio. Annuities can be a polarizing topic in the financial world but we need to think critically with a curious and open mind rather than vilify or glorify these investment tools. I’m checking my own biases at the door to bring you the most reliable information I can. Annuities may not be the most exciting topic, but we want you to rock retirement with intentionality so let’s dive in and learn as much as we can.  Rock Retirement Club enrollment is back Last year we opened the Rock Retirement Club as an online space where you can get your retirement questions answered and engage with people like yourself. Everyone in the club is learning as much as they can so that they can rock their retirement. You’ll also find resources to take action so that you have all the tools you need to rock your retirement. Our little club has grown over the past year and we only open enrollment during certain periods. This subscription-based club will be open for enrollment soon. Check out RockRetirementClub.com and put yourself on the waitlist so that you will be notified as soon as enrollment is open.  In retirement, you have true freedom Retirement is a special time because you finally have the ability to organize your life however you want maybe. You can do what you want, live where you want, and hang out with whoever you want without a job or social constraint tying you down. I recently read an article which proposed that college towns make a great place to retire. The author had 6 reasons to justify her theory:  Cost of living is generally less expensive, so your retirement fund may stretch farther. There are exciting events, museums, and culture. College towns are diverse both ethnically and politically.  There is usually great access to healthcare. You can be surrounded by youthful energy. There are plenty of opportunities to get involved in the community.  What do you think of this idea? Would you consider retiring to a college town? How can you make your retirement funds last as long as you? The biggest question in retirement is how to make your money as long as you do. The problem is; no one knows how long they may live. In addition to unknown longevity, market risk, cognitive and physical decline, inflation are other unknown issues that we may experience in retirement. That is why we are exploring the topic of annuities. With the unknown of the future, it can be nice to have a certainty to help you through as you age. Let’s explore how an annuity can help you to maintain your lifestyle as you get older no matter what life throws at you. What roles annuities can play in your portfolio? Longevity insurance. In this changing world where most people don’t have pensions, an annuity can act as a substitute for the typical employee pension. The difference is that you have to buy it yourself rather than getting it from the company you work for. Guaranteed income. We underestimate the importance of social security. An annuity can be a second source of social capital. It can replace your pretirement income and help support your lifestyle later in life. It has the added benefit that you can’t overspend or mismanage it Help to supplement your no-go years. You could plan your annuity to turn on at age 80 or so. This in addition to social security can support your needs as your life slows down.  Simplify things for your future self. You don’t know where you will be in 30 years. By buying an annuity you are securing another source of income that you won’t have to worry about or even think about. This can help protect you from fraud, cognitive decline or even greedy kids.  Have you thought about the roles an annuity can play in your portfolio? What do you think? Do these benefits outweigh the costs? Listen in to hear the positives and negatives involved in getting an annuity in retirement OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [4:40] You have the ability to organize your life however you want PRACTICAL PLANNING SEGMENT [13:16] How can you make your retirement funds last as long as you? [16:43] What roles annuities can play? [36:33] What are the costs of an annuity? THE HAPPY LAB SEGMENT [40:56] I’m reading a book I really love TODAY’S SMART SPRINT SEGMENT [42:56] Check out Atomic Habits by James Clear to prepare for our series in August Resources Mentioned In This Episode Market Watch article - 6 Reasons a College Town is the Perfect Place to Retire BOOK - Atomic Habits by James Clear 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 know the annuity basics? Over the next 4 episodes, we will explore annuities to see if they have a place in your retirement journey. We’ll discover how they work and if they can help you rock retirement all the way into your 80’s, 90’s, and beyond. On this episode, we’ll start from the beginning and explore our own biases and then cover the annuity basics. By the end of this series, you can decide whether annuities are the right choice for you. Are you ready to get your financial geek on? Strap on your headphones and get ready to explore annuity basics so you can rock retirement. Annuities: love them or hate them? Just like in politics, finance has its own polarized camps of thinking. There is an active management camp and a passive management camp. The passive camp says that lower cost is always better and the active camp says the opposite is true. Annuities also have their own love them or hate them camps. Before we begin to have a discussion on annuities it’s important to acknowledge your own biases. I want you to come to this discussion with an open mind. Many of us use positional thinking and believe there are only 2 sides of the coin. But the downside to positional thinking there is that no curiosity remains to explore other ideas. Over the next 4 episodes try to remain open to critical discussion so that we can start a dialogue about annuities.  Understanding annuity basics An annuity is a contract that you make with an insurance company. When considering an annuity it is important to read and understand the prospectus. The details are extremely complicated, not just for the layman but for financial advisors as well. Every insurance company is different and so are the features and the contracts they offer. When it comes to taxes, annuities can be tricky. You’ll want to consult your tax advisor before locking yourself into an annuity. The most important consideration is that the contract controls everything.  Annuities have 2 phases The 2 phases to an annuity are the accumulation phase and the annuititzation phase. The accumulation period is the period in which the money that you put in is being put to work. The annuitization period is when you start to receive payments which typically occur monthly until the time of death. There is often a death benefit in the case of unexpected death if you are to pass away before the annuitization period begins.  What are the 3 types of annuities? A Fixed Annuity earns a fixed interest rate that is predetermined. The payments will be fixed when you annuitize. These can include 2 types: an immediate annuity which starts right away or a deferred annuity. The deferred annuity starts at a later date at which time you can decide to take it all back or get an income stream from the money invested. A Variable Annuity is less secure and has a menu of investment options similar to mutual funds. These go up and down with the performance of the investment. These have higher fees and your annuity payments can vary based on performance.  An Equity-Indexed Annuity has money invested in a fixed account. You could earn additional interest based on the contract.  The potential benefits of annuities are tax deferral, guaranteed income stream, and creditor protection. They guarantee against loss and income. Over the next few episodes, we will explore whether they are worth the cost of the extra fees, the time costs, and the lack of flexibility. Be sure to listen as we dive into the question of annuities with an engineering approach to see if annuities would be a good tool for you to use to rock your retirement. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [2:55] Annuities: love them or hate them? [8:10] My feelings on annuities PRACTICAL PLANNING SEGMENT [12:33] What is an annuity? [22:00] What types of annuities are there? THE HAPPY LAB SEGMENT [28:47] How are you doing with your chosen word of the year? TODAY’S SMART SPRINT SEGMENT [31:13] Identify a bias you have Resources Mentioned In This Episode Episode 252 Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

How to make your money last as long as you do is the biggest question in retirement planning. And now that people are living longer lives your money has to stretch farther than ever before. Today’s retirement is a brave new world and the problems you will encounter haven’t been experienced by any previous generation. Are you ready to learn what you can do to make your money last as long as you? Check out this episode of Retirement Answer Man as we dive into this important question.  Is there a right way to retire?  Do you think there is a right way to retire? Do you think that there is a secret formula waiting for you? The truth is that nobody has the recipe for the secret retirement sauce. That’s because no one has done it before. You’ll live longer than ever, you’ll live more years in retirement, you’ll be more active, you’ll spend more, and you probably don’t have a pension. This is all still so new to all of us. So don’t be fooled by someone who thinks they have all the answers, because they don’t. This should challenge you to make small smart decisions since there is no big “right decision.” How to make your money last As you now know, there is no perfect model for making your money last. The most important thing to consider is to be agile in your decision making to keep many options open. Since there is no clear path ahead, you just have to stay agile. It's better to acknowledge that and to build a framework that allows you to make lots of little decisions correctly. That way you can react to opportunities and risks quickly as life unfolds.  Key areas to be intentional about in retirement planning  When you are thinking about how to make your money last in retirement there are some key factors that you can consider. Your lifestyle choices. These have a huge impact on the longevity of your money. You can examine what is a need vs. want? Think about your discretionary and non-discretionary expenses. How you define these terms is important. Lifestyle choices are critical to making money last.  Social capital. Social capital includes social security and annuities. Annuities can guarantee payment to you for the rest of your life. We’ll dive more into annuities in July so be sure to listen to episodes 280-283 when they come out. Human capital. Your human capital is you. I call this pretirement. Most people who retire really want more time freedom to pursue things they enjoy rather than simply not working. Every year that you continue to work it not only gives you some money, it also gives you socialization, purpose, and fulfillment. The longer you work the longer it takes for you to tap into your financial assets Turn your use assets into productive assets. Use assets are assets that don’t produce anything for us. They give us enjoyment instead. Your home, car, boat, and collectibles are examples of use assets. You reversible mortgage. Agile retirement planning helps you keep your options open Agile retirement planning is all about keeping your options open. You want to have the ability to reevaluate everything as life unfolds. Create a stress test and make small changes along the way. Find risks and opportunities to improve your plan. A bit of intentional action will take you a long way. Check out my book to learn more about agile retirement planning. If you read it and leave an honest review on Amazon I’ll even send you a signed copy! OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [2:40] Nobody knows the right way to retire PRACTICAL PLANNING SEGMENT [13:36] How to make your money last? [15:30] There are key areas to keep in mind  THE HAPPY LAB SEGMENT [29:02] Nichole learned how to ride a bike! TODAY’S SMART SPRINT SEGMENT [31:00] Do something that you have been wanting to learn 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 think that extended lifespans will have a positive impact or a negative impact on your life? We all know that people are living longer than ever before, many people see this as a negative, but have you considered the positive impact that this could be on society? Andrew Scott, coauthor of The 100-Year Life joins me to discuss longevity and adding purpose to life. He has some fascinating ideas about longevity and the role of older people in society, so grab your favorite headphones and join me on this episode of Retirement Answer Man. The House of Representatives just passed the Secure Act Exciting news for everyone that likes to see work getting done in Congress. The House of Representatives recently passed the Secure Act and it is now going to the Senate. If passed, The Secure Act is likely the most significant change to retirement planning since 2006. Here are a few of the details in the bill. The bill suggests repealing the maximum age of retirement contributions which is now 70 ½. Since people are working longer they would be able to save longer. It plans on increasing age of required minimum distribution (RMD) from 70 ½ to 72. It will lett long-term, part-time workers participate in 401K’s Parents will be able to withdraw up to $5000 from retirement accounts penalty-free within a year of the birth or adoption of a child. The bill will allow the withdrawal of up to $10,000 from a 529 plan to help repay student loans. How can we discover the positive impact of longevity? As we have seen over the past few weeks, people are living longer than ever before. There are many implications to longevity but some people only look at the downsides. However, there are many positive aspects to living longer. How do we embrace the positive aspects of longevity? Even though not all the long years are healthy ones we are, on average, living longer, healthier lives than the previous generations. When people are more forward-thinking they can have an active, healthy life. Late middle-age has become longer. A longer life also means that you need to invest more in your future. Not just financialilly, invest more in your skills, in your health, and in your relationships. The 100-year life is a multi-stage life When we look at having a long life we look at that life in stages. The first part is focused on learning, the next is more career-centered, and in the past the third stage was focused on resting. Today’s modern retiree isn’t necessary looking to rest, they just want more time freedom. Finding purpose in retirement is important to living a happier, healthier life. The more purposeful your life is the longer it tends to be. We now need to find fulfillment in somewhere other than the workplace. So look around you to see how you can invest in yourself and find your purpose in retirement. What habits is Andrew working on to create a long, healthy life? Andrew Scott is in his 50’s so he knows that it is important for him to invest in physical and mental health as well as in relationships. He approaches life with curiosity and is focused on growth and exploration. He knows that since age is more malleable than ever before that he needs to be forward thinking. He sees retirement as a time to create a vision to see what all the possibilities are. He thinks that the future is exciting and that once again the baby boomers are here to blaze the trail ahead. What do you think? Are you excited about the prospect of an extended life? OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [6:25] The House of Representatives just passed the Secure Act PRACTICAL PLANNING SEGMENT [10:06] Dr. Andrew Scott is the co-author of the book the 100-year life [14:53] Longevity is not just about how long you live but about how well you live. [23:11] What kind of habits is Andrew working on to create a long, healthy life? [26:04] What is different about the newest generation? THE HAPPY LAB SEGMENT [32:14] My biking accident caused me to be thankful TODAY’S SMART SPRINT SEGMENT [37:44] See if you can react positively to a negative situation Resources Mentioned In This Episode BOOK - The 100-Year Life by Lynda Gratton and Andrew Scott Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

Are you creating healthy habits so that you can age well? Since we are going to live longer lives we want to make sure that we live well not just live long. On this episode of the Longevity and Retirement series on Retirement Answer Man we dive into how to create great habits so that we can age well. What kind of healthy habits have you created to ensure that you age well? Find out which 8 habits can help you improve your life as you age by listening to this episode of Retirement Answer Man. Are subscription services helpful or a waste of money? What kind of subscription services do you have? Subscription services are a great way to pay money for things that you truly value. But they can add up if you aren’t careful. Many of us have several different kinds of subscription services ranging from Netflix to gym memberships to the Rock Retirement Club. If you aren’t careful subscribing to multiple services can get out of control and you can even forget that you signed up for something. It's a good idea to periodically review your credit card and bank statements for these recurring charges. Learn 3 steps you can take to ensure that you aren’t paying for services that you don’t use by listening to the Hot Topic segment. Habits make us who we are What habits are important to you? The idea of creating good habits becomes much more important as we age. Habits make us who we are but they can also prolong your life. As we age we can experience a cognitive and physical decline. But if you create healthy physical, mental, emotional, and relational habits now they can serve you in later years and help you age well. Some habits can even help you lengthen your lifespan. These 5 habits have been proven to help you live longer. Not smoking Moderate alcohol intake Regular exercise of 30 minutes or more per day A healthy diet Maintaining a healthy normal weight These 8 habits can help you live better and help you age well Most people don’t have a goal of living to be 100. The thought of living 20 years or more in old age can be frightening. You don’t have control over how long you will live but you do have control of how well you can live. Consider these 8 habits to help you age well. Exercise. Your exercise habit should include stretching, strength training, and endurance training. Have a purpose in life. Do something that is meaningful to you whether it is volunteering or even being a fantastic grandparent. Make sure you have a reason to get out of bed in the morning. What is your purpose? Cultivate a purpose Train your mind. Training your mind is just as important as training your body as you age. Challenge yourself to learn something new. Maintain a healthy weight. Eat well. Cultivate a positive mental attitude. Seniors that think of a time of wisdom and satisfaction are 40% more likely to recover from a disability than those who see aging as synonymous with helplessness. Improve your mood. This can affect so much more than you realize. Stay social. Create positive social networks that go down the age spectrum. You can keep the friends your age of course, but try to befriend those younger than you as well. Be a participant in life, not a spectator. Stay out and about, don’t just watch other people do things. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [2:53] Subscription services are a way to pay money for things you care about PRACTICAL PLANNING SEGMENT [14:41] Habits make you who you are [17:50] 5 habits that could help you lengthen your lifespan [20:11] 8 habits to live and age well THE HAPPY LAB SEGMENT [35:04] Create an environment that brings people to you TODAY’S SMART SPRINT SEGMENT [36:38] Pick one of the 8 habits to help you age well Resources Mentioned In This Episode Wall Street Journal Article about subscriptions Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

How long will you live is one of the trickiest questions in retirement planning. During the Longevity in Retirement series, we will take a look at this question and try and figure out if we can come up with an answer. Chances are it’s longer than you think! Learn how you can try and calculate your longevity, what other wild cards might factor into longevity, and discover some money misconceptions on this episode of Retirement Answer Man. What are some common misconceptions about money in retirement? There are plenty of misconceptions about money in retirement. Let’s jump in and find out what some of them are. The average return on the S&P 500 has been about 10%. Sure this is true, but if you look at the past 93 years you will only find 6 instances where the returns were actually within 2% of that 10%. So although 10% is the average return that is a bit misleading. The S&P 500 is actually up and down and all over the place. We spend consistently in retirement. The problem with retirement planning is we don’t spend consistently. Our spending is lumpy. You need to plan out your cash flow management in retirement. We overestimate inflation. Front load Using average returns in planning. We often base our projections at 6% or 7%. But it’s dangerous to make decisions based solely on that. There are better ways to plan for retirement. Depleting your portfolio is the worst thing that can happen. It’s surprising, but there are worse things than running out of money You're going to be fulfilled by not working. You need to be retiring toward something not away from work. You won’t be tempted to by an RV. Just listen to the RV Virus series to understand that’s not true! Taxes will be lower. Sorry, but that’s not typically the case Retirement is purely a financial decision. There is so much more to consider Your portfolio needs to be more conservative. Medicare is free. Sorry, that’s only true for part A. You’ll still have part B and copays. How long will you live? This question is one of the oldest questions we have. But it becomes more important in retirement planning. You want to plan so that you won’t just survive retirement, but rock retirement. A person that has already reached the age of 65 is expected to live until 84. Surprisingly, the older you get your life expectancy actually increases. There are many factors that influence longevity. Of course, there are genetic factors, and everyone knows that women live longer. But did you know that prenatal and childhood conditions also have an impact on your longevity? Married people live longer. Socioeconomic status, education, ethnicity, and lifestyle choices are all considerations for calculating longevity. What are some wild cards that may affect your longevity? You may have heard that the human lifespan is getting longer. Right now the maximum human lifespan is 125 years, but where do the wild cards fit in? Science is continually coming up with new ways to extend our lives. How quickly will scientists extend the human lifespan and how long will humans live in the future? Gene therapy can knock out 2 genes that are affected by aging which can cause you to live longer. There are now rejuvenation technologies and artificial reconstruction. Scientists are trying to grow our own body parts so that we don’t have to get transplants. But until then there are already robotic replacement parts like artificial knees and hearts. Improvements in diagnostics help doctors detect diseases early. How long do you think you’ll live? OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [3:01] What are some common misconceptions about money in retirement? PRACTICAL PLANNING SEGMENT [15:25] How long will you live? [21:09] What are some wild cards that affect longevity? THE HAPPY LAB SEGMENT [28:04] How will Nichole adjust to becoming old? TODAY’S SMART SPRINT SEGMENT [31:30] How will you handle the natural progression of getting older? Resources Mentioned In This Episode Livingto100.com Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center