Retirement Answer Man

Do you feel like you can harness technology in this brave new world? All month we have been discussing how technology can help you in retirement and on this episode of Retirement Answer Man we’ll discuss how you can harness technology without it harnessing you. This can be a tricky task in this age of the attention economy. There are so many forces that vie for our attention. Learn how to use technology to its fullest without it taking advantage of you on this episode of Retirement Answer Man. How can you harness technology without becoming a slave to it? I recently read a book called Digital Minimalism that really helped open my eyes to the distractions in my life. There are so many forces that are vying for our attention in today’s society. There has even been an increase in anxiety and depression. This book gave me some great ideas on how I can continue to harness technology without letting it take advantage of me. Here are a few: Dumb down your smartphone. Take all the social media apps out. You can engage in the apps when it serves you rather than becoming distracted by all of the notifications. Keep your phone on the do not disturb mode. This removes the temptation for distraction. Turn your devices into single-use machines. Multitasking and multi-purposing are a myth. When you switch between tasks constantly you can never give anything your full attention. Try the Freedom App on your computer in your Chrome browser. This app can block access to time-sucking sites like Amazon, Twitter, etc. Use social media like a pro. Social media pros are those that use it from time to time to check in on family, friends, and news. The goal is not to use social media as entertainment, instead be intentional about it. How can you use technology to help you in retirement? When choosing which technology to use to help you in your retirement think about what it can do for you. What technology will you use to be more social? What technology will you use to be healthier? What will help you with transportation? Having intentionality about how you use technology will help you a lot. I recently permanently deleted my Facebook page, I even deleted the Retirement Answer Man Facebook page. This is shocking to some, but it wasn’t that hard for me. I have more time to focus on what I want and I’m happier because of it. How will you choose technology wisely in your retirement? How will AI help people as they age? Richard Caro from Tech Enhanced Life joins me to discuss how we can harness technology as we age. Tech-Enhanced Life evaluates technology to help people decide what they can use to best help them in their life. He has found that the myth that older people are slower to adopt technology is not true. He thinks that people are happy to learn something that will help them out if someone can teach them. AI is an example of that. Alexa is the most recent mainstream form of AI technology. Alexa has become very popular in the past couple of years now that people understand its capabilities. How can Alexa and other technology help combat loneliness? The Echo Show has Alexa as well as a screen which can be used for video chatting with friends. Alexa is easy to use and many people enjoy using it to turn on the lights, listen to the weather, or play music. Wearable gadgets are beginning to replace medical alert technology. Many people hesitate to wear medical alert necklaces since they seem bulky or unattractive. Devices like the Apple Watch are cool and trendy. They have evolved to be able to help in an emergency. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [5:46] How to harness technology without becoming a slave to it PRACTICAL PLANNING SEGMENT [18:10] Meet Richard Caro creator of Tech Enhanced Life [21:43] What is the power of Alexa and AI as people age [25:32] How can AI help to combat loneliness? [35:40] How do you choose what is worth the time and money to learn? THE HAPPY LAB SEGMENT [39:20] I permanently deleted my Facebook page TODAY’S SMART SPRINT SEGMENT [42:05] Try putting your smartphone on do not disturb for a while Resources Mentioned In This Episode BOOK - Free to Focus by Michael Hyatt Tech-Enhanced Life Freedom App BOOK - Digital Minimalism by Cal Newport BOOK - Deep Work by Cal Newport Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

What will the future of retirement look like? Like it or not we will live longer than any other generation that has ever lived. If you aren’t investing in your health now you may still live a long time, but it probably won’t be very fun. If you want to have a greater quality of life in retirement you have to take your health seriously now. The good news is, there is loads of technology that can help you stay healthy. Listen to this episode to hear about the latest in health technology and how you can use it to live a healthier life as you age. What technology do I use to stay healthy? I use technology every day to help me stay healthy and keep fit. Here is a list of my favorite healthy tech items: Bicycle - You may know that I’m an avid cyclist. My bike provides me with mobility, socialization, physical health, and mental health. But you may be thinking that a bike is not very technologically advanced. Bikes today are quite advanced. I just bought a new bike that was fitted for me that sits me more upright and allows me to ride more comfortably while still being fast and efficient. Massage chair - My massage chair is a bit of a luxury but it allows me to work out the knots after a long day and to loosen my muscles. If you don’t want to spend as much, try using rollers. There are a lot of great exercises you can do with them to keep your muscles loose. Yoga studio app - This is a great app for those of us that want convenience and don’t want to go all the way to yoga classes or feel a bit self-conscious about going to classes. The app has different focuses and levels and can be customized to meet your needs. Standing desk - The standing desk is a game changer. It allows me so much mobility throughout my day. I’m constantly adjusting it as I change positions. Mine is adjustable,it goes up and down from standing to sitting, I can even use a stool. Since switching to the standing desk I have experienced fewer problems with my hip flexors and back Online networks - The Rock Retirement Club is an example of how connecting with people in the same season of life can provide you with an encouraging attitude. Technology can connect us through distance. Dog leash - Ok, this may be low tech, but walking the dog each day keeps me active, connected with my wife, and provides me an opportunity to be social. Apple Watch - There are numerous ways the Apple Watch can help you stay healthy. There is a pedometer and there are even settings to remind you to stand up or breathe. It encourages you to work out and can even track your heart rate. What are the different kinds of advances in the future of health technology? Technology is advancing at an astounding rate everywhere including in different areas of health technology. Obviously, we have advanced a great deal in medicine from genome sequencing to knee replacements. The 6 million dollar man is here. But there are also advances in telehealth and telemedicine. You can now call a doctor or health professional and get advice over the phone without having to leave your house. Many people use pacemakers and defibrillators. Remote monitoring allows healthcare professionals to be alerted if there is a sudden change. Electronic health records allow doctors to share information with each other and you can keep the records to have on hand for yourself. Health technology will have a huge impact on our lives as we age. Brain health is just as important as physical health To age well in the future, it is important to pay attention to cognitive health as well as physical health. We can use different exercise, movement, and nutrition apps to help us stay fit and build healthy habits. But its also important to do what we can to exercise our minds. We can use technology to improve our cognitive skills and keep dementia or Alzheimers at bay. We can learn new languages through apps and personalized online classes. You can even take online music lessons. There are games that get progressively harder to keep your mind engaged. What kind of mental exercise are you using to grow your mind? OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [3:45] What technology do I use to keep myself healthier? PRACTICAL PLANNING SEGMENT [21:18] What is some technology for investing in your health? [25:30] Genome sequencing will allow for more personalized healthcare [28:25] There will be cognitive advances as well THE HAPPY LAB SEGMENT [33:51] Nichole and I both have recent graduates at home TODAY’S SMART SPRINT SEGMENT [36:15] Do 1 thing to invest in your health 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

The decisions you make now can affect how you age. Most people would prefer to age in their own home. There’s something about living in our own homes that provides comfort and peace and we want to hold on to that for as long as we can. On this episode, we will explore how technology can help keep you independent longer. We will check out the different technologies that exist already as well as what is in store for us in the future. Join me to discover the exciting world of technology and learn how it can help you rock retirement. What is it about owning a home that makes us feel independent? Do you remember when you finally bought your own home? You could finally paint it however you wanted (with your wife’s permission, of course!). Having our own home creates a sense of privacy, self-determination, and control over our environment. Living alone ensures that we are not a burden to anybody else. Nobody wants to be institutionalized. We don’t want other people to control our routine and invading our space. Listen to this episode to discover how technology can help keep you in your own home longer. What are some benefits of aging in place? Living out your golden years in your own home is not only preferable to you but there are added benefits that you may not have considered. Aging in place can cost less than assisted living, nursing home or a retirement community. It’s more comfortable. You are surrounded by all of your favorite stuff and you know where things are. It helps slow the advancement of memory loss. Since you know where everything is already you are less apt to forget things. Living at home strengthens your social network. There is a comfort in seeing those you know around you. Not just your friends, but neighbors and others in your community as well. You have a higher sense of self-determination. 40% of baby boomers expect to remodel their homes in the future or near the time of their retirement. If you are considering remodeling your home or updating it, listen to this episode to hear how to harness technology to set yourself up for aging in place. How can you harness technology now to set yourself up in the future? We are living in exciting times. There has been an explosive growth in technology since the revolutionary “I’ve fallen and I can’t get up” commercial. Grocery delivery or curbside pickup allows you to skip the trip to the grocery store if you aren’t feeling up to it. If you feel insecure about living alone you can get a camera security system around your house complete with a video doorbell system. The Nest or programmable thermostat can understand your habits and keep your home comfortable. The Roomba vacuum can help you tidy up. When you are considering updating or remodeling your house consider the upgrading to the latest technology, whether you get an easy loading washer and dryer, a smart refrigerator, smart lights and activity sensors. You may not need it now but this technology can help you age in place. What does technology have in store for us in the future? Robotic lawn care will be like a Roomba but for your lawn. Can you imagine that they are creating mirrors that assess your health? They will look for warning signs of illness. If that’s not crazy enough, they are creating toilets that analyze the contents! Pill management can be confusing especially if you have more than one prescription. They are creating pill bottles that can help you keep track of when they have been used. In Japan, there is a large aging population already and they have developed carebots. Carebots are robots designed to help older people. They can do many things from carrying you, to turning from a bed to a wheelchair, to fetching things for you. Listen to this episode to hear what the future may bring to help you age in place. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [3:20] Most people would prefer to age in their homes [6:12] What are some benefits of aging in place? [12:06] The decisions you make now will affect your future PRACTICAL PLANNING SEGMENT [14:56] How can you harness technology now to set you up in the future? [23:54] What technology is coming in the future? THE HAPPY LAB SEGMENT [30:05] Prioritize your happiness TODAY’S SMART SPRINT SEGMENT [32:25] What can you do to prepare your home to age in place? 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

On this episode in the Retirement of the Future series, you will learn how technology will help keep you connected and strengthen your social networks in your retirement. We also discuss why it is important to stay socially connected, how to stay connected, and how to use technology to help you find your tribe. Listen to this episode of Retirement Answer Man to learn how to stave off loneliness and stay connected to your social circle in person and by harnessing the power of technology. Why is it so important to stay connected? We all know that loneliness sucks. But did you know loneliness can actually cause health problems? A vibrant social network can reduce the odds of addiction, Alzheimer's, and even early death. Studies have found that loneliness is actually a predictor of poor health. As you age it can become more challenging to stay connected to your social network. Many elderly become more isolated due to physical restraints or even because they have become the last person standing. How can you continually renew your social circle? Maintaining a vibrant social network takes work. But it is important to continually renew your social circle to include people younger than yourself. Having younger people in your group of friends helps you to stay fresh and allows you to bestow your wisdom on another generation. When you focus your friendships on common interests those connections transcend chronological age. There are many ways to stay active and connected. You can take classes, join a club, volunteer, and attend church or music practice. These activities help you to broaden your circle of friends and often include people from many different age brackets. How can technology help you maintain your social networks? Technology allows people to stay connected in ways that we had never imagined. Who would have thought years ago that your phone would become such a powerful tool that you carry in your pocket? Today we can use Facetime, Zoom, or Skype to connect face to face with people from around the world. Social media sites like Facebook, Twitter, and LinkedIn allow us to connect with people we know or have known years ago. Through these sites, we can have conversations with friends in a digital way even if we aren’t able to connect with them directly. Those digital conversations can spill over to create offline conversations as well. With social media, you can feel like you are a part of someone’s life even over great distances. Even texting is a powerful tool that helps you stay connected. Group texts are a fun way to keep us connected when everyone is too busy for real conversation. How do you find your tribe? Years ago it used to be that you were only able to create friendships with those who lived nearby. Long distance phone calls cost a fortune and conversations with those far away had to be kept short and sweet. Nowadays you aren’t relegated to friendships with only those who live in your neighborhood. Through apps like MeetUp, Our Time, and Connected Living you can find people that share similar interests with you. Meeting people online makes it easy to spark up friendships with people who love what you love. You can build deep connections with people regardless of distance. We have more power than ever before to connect with people in meaningful ways. And technology is just becoming more advanced. Who knows how technology will advance in the future. Listen to this episode to hear how technology is advancing and sign up for 6-Shot Saturday to get a list of online resources to help you find your tribe and stay connected. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [2:28] Loneliness should be targeted in ad campaigns [5:58] Focus on renewing your social circle PRACTICAL PLANNING SEGMENT [8:07] How can technology help you maintain your social networks? [12:28] How do you find your people? [16:54] What will the future bring? THE HAPPY LAB SEGMENT [22:15] Seek out your crowd TODAY’S SMART SPRINT SEGMENT [25:31] Reconnect with someone and create a budding friendship Resources Mentioned In This Episode Connected Living App Our Time App MeetUp App BOOK - 48 Days to the Work You Love by Dan Miller Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center

We are surrounded by technology, but do you really think technology will benefit you in retirement? During this month-long series, we will look into the future to see how technology will change the picture of your retirement. Will it add years to your life? Will technology help you live a richer life in your golden years? How will technology serve you in your retirement? Find out by listening to this episode and this entire series as we explore the retirement of the future. There is freedom in mobility Driving gives you a sense of freedom. Remember when you first learned how to drive? It was a milestone in life that gave you access to the whole country. The first big step you took toward independence as a young adult was learning how to drive. But as you get older your vision, hearing, and reaction times worsen. Medications can also inhibit your reflexes. Older drivers are more fragile and much more likely to be killed in crashes. Everyone wants the ability to move where they want to go when they want to go. And losing your ability to drive can greatly diminish your sense of freedom. Automotive technology is changing the way we drive Self-driving cars are no longer a pipe dream. We are well on our way to seeing self-driving cars on the road. As a matter of fact, we will probably live through that transformation. Technology in the past 10 years has greatly enhanced the driving experience to make driving much safer. Think about it. Your car may not be driving itself yet, but many cars have blind spot sensors, automatic emergency braking, adaptive cruise control, and even self-parking. These incredible advances can help people stay more mobile longer. Because of this current technology and technology we haven’t even thought of yet, you will probably be able to stay on the road longer. What are other ways that technology will help you stay independent longer? Lyft and Uber ride services allow people to get a ride for a fairly reasonable price. The ride will come to pick you up quickly and you can choose the level of ride service you want. You can even choose whether you want to share a car with someone else. The benefit of these services is that you can get a reliable ride in minutes without having to bother someone you care about. So when you start feeling unsafe or uncomfortable driving you can still stay independent. Another benefit of affordable ride services is that you can give up the cost of owning a car. You’ll no longer have to pay for insurance or upkeep.We associate the freedom with driving but technology can provide us with freedom without the burden of driving. What will the future bring? Self-driving cars are coming. We’ll probably see them in the commercial realm first. They could be here in the next 10 years. Other exciting transportation technologies include flying cars, floating trains, and hyper loops. We may see a road system that talks to cars. All of this innovative technology is being tested in some way or another. The most exciting part is that people will be able to maintain a sense of control over where they go and when they go. The pace of change is happening so quickly that we don’t even really notice it. How do you think technology will change your retirement? OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [3:38] How technology is changing so rapidly PRACTICAL PLANNING SEGMENT [12:10] How will technology transform your mobility? [18:22] How ride-sharing apps can keep you independent longer [22:50] Meals on Wheels story [25:54] What will the future bring? THE HAPPY LAB SEGMENT [31:35] Technology is a tool, but don’t let it become a distraction TODAY’S SMART SPRINT SEGMENT [34:55] Put your phone away and say hello to someone Resources Mentioned In This Episode BOOK - Digital Minimalism by Cal Newport Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center The Retirement Answer Man Facebook Page

IRA, Roth and 401K management can be confusing, that’s why I answer listener questions in the Practical Planning segment of this episode. This is the last episode of the How to Use Your Accounts series. You’ll definitely want to go back and listen to the entire series to help you familiarize yourself with the different types of retirement accounts and how to finally use them in retirement. Next month we’ll dive into how technology improves retirement. But for now, listen to these listener questions about account management in retirement. How to make money simple for someone in your life Peter Lazaroff joins me on the Hot Topic Segment. He recently wrote a fantastic book called Making Money Simple. Since graduation season is coming up, I highly recommend this book for any graduate. Many financial advisors and Wall Street bigwigs want you to think that saving money and building wealth is complicated, but that’s not true. It’s easy to make good choices with money if you can just get out of your own way. Peter teaches how to build a system that works around our human nature to complicate money choices. He shows that finding small sustainable habits that you can automate will lead to financial success. What do you do if you miss taking the RMD? One listener asks what would happen if you forget to take your required minimum distribution (RMD) one year. You really don’t want this to happen! The IRS imposes a 50% penalty on the amount you didn’t take. For instance, if you have an RMD of $20,000 but you only took $10,000 the penalty would be $5,000. The first thing you need to do if you miss your RMD is talk to a tax advisor. Then take the distribution as soon as you figure out your mistake. Do it alone and maintain records. You will need to file the form 5329 for the year in which there was a shortfall either with your tax return or separately. If you missed it multiple years then you need to file a form for each year. The IRS has grated redemptions from this so it is important to keep records and let them know why it happened and how it was remedied. Are there any options for tax-free growth investments if your income is a bit higher than the Roth income eligibility? One listener is looking for options on tax-free growth investments. Since he lives in Minnesota he feels that the 403B isn’t his best option because the state loves to tax retirement accounts. One option is a back door Roth IRA. The way to do this is to make a nondeductible contribution to an IRA and then immediately convert it to a Roth. Saving money in an HSA is a good option as well. When you save in an HSA this money is pretax. You can allow it to accumulate and even invest it. It comes out tax-free as well but it can only be used for medical expenses. However, if you keep a record of your expenses you can submit an expense for reimbursement several years later. One last option to ease the tax burden is to move to a different state in retirement. Basic retirement tax tips Start diversifying your balance sheet between taxable, tax-free, and tax-deferred accounts as early as you can. Dial in what it costs for you to live comfortably. You can better control your taxable income when you understand your costs. Consider delaying taking your pension (if you have one) to do Roth conversions. Consider taking distributions from tax-deferred accounts. Move to a lower tax state. Be charitable. Build your balance sheet in a way to give you options. Maximize how you withdraw money. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [2:56] Peter Lazaroff discusses his new book Making Money Simple PRACTICAL PLANNING SEGMENT [21:17] What do you do if you miss taking the RMD? [26:05] Mike wants to know how to hide his money from RMD’s [27:56] Are there any options for tax-free growth investments if you are a bit higher than the Roth income eligibility? [31:41] When does it make sense to roll over a traditional IRA to a Roth while still working? [34:15] Basic retirement tax tips THE HAPPY LAB SEGMENT [36:55] Play your own game and set your own rules, don’t be worried about what others are doing TODAY’S SMART SPRINT SEGMENT [38:32] Have an awesome week! Resources Mentioned In This Episode Morningstar article about the missed RMD BOOK - The Elements of Investing by Burton Malkiel BOOK - 30 Minute Money Solutions by Christine Benz BOOK - The Richest Man in Babylon by George Clason 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 The Retirement Answer Man Facebook Page

You may be wondering, should I convert my IRA to a Roth? It’s hard to know when the time is right for a Roth conversion. So today we continue the discussion on how best to use your retirement accounts and plan your tax strategy. But first, in the Hot Topic session, you’ll learn how important vision is to planning your retirement. So many people are stuck in the prison of their mindset. Listen to this episode to hear more about how important tax strategy is, whether you should convert your IRA to a Roth, and how to break free from your institutionalized mindset and really rock your retirement. Do you have a lack of vision about your retirement? When many people make their retirement plans they are still institutionalized. We have been working our whole lives. That every day 9-5 stunts our creativity and many can’t really visualize what to do with all the time freedom that retirement entails. To simply stop working takes much more forethought than you think. This is why so many people change their retirement plans drastically after they retire. You are only limited by your creativity and your resources. Do you have the vision to dream big? A Roth conversion can help you balance your tax equilibrium At this point in your life, you have probably accumulated plenty of assets in tax-deferred IRA’s and 401K’s. You have set yourself up well for retirement, but you know there is a big tax liability looming ahead of you. At the age of 70 ½, you’ll have to take the required minimum distribution (RMD). If you have a lot saved in tax-deferred assets your tax liability could be significant. This is why proper tax planning could lessen your burden significantly. One possible solution to balance your tax load could be to do a Roth conversion. Should I convert my IRA to a Roth? If you have money in an IRA that you haven’t paid taxes on you can take all or part of that and convert it into a Roth IRA. The catch is, you have to pay taxes on the income the year that you do the conversion. Then the money can grow tax-free for the rest of your life and you won’t have to worry about the RMD. In effect, you are pre-paying your taxes. That is what a conversion is. Taxes are at an all-time low and many believe they will only increase in the future. Some people choose to do a Roth conversion all at once but others choose to do a partial Roth conversion. By studying your modified adjusted gross income with an online income calculator you can choose the amount of money in your IRA that you want to convert that will not push you into the next highest tax bracket. Careful tax strategy can be even more effective than an investment strategy When deciding how to convert your savings into a Roth you need to consider your tax strategy. Do you want to be aggressive about converting the money into tax-free assets? Or do you want to do rolling Roth conversions and think about your tax burden year by year? Here are some things to consider when planning your tax strategy: How will your income change impact your ACA premiums? Use an online calculator to realize your effective federal income tax. How might your savings impact your social security? How will it affect your tax rate What is the time frame for your money, is it multi-generational wealth? If you plan well you can save a significant amount in taxes. If you can convert and save 10% of a million dollars that’s $100,000! Talk about your tax strategy with your financial advisor to decide what the best choice is for you to start planning how you will begin filling your retirement income buckets OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [2:10] Do you have a lack of vision about your retirement? PRACTICAL PLANNING SEGMENT [9:15] A Roth conversion can help you balance your tax equilibrium [13:19] What are some strategies you can use? THE HAPPY LAB SEGMENT [19:10] Treat yourself even if it is spontaneous TODAY’S SMART SPRINT SEGMENT [20:45] Start looking at potential Roth conversions the year after you retire 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 The Retirement Answer Man Facebook Page

You have been diligently saving in tax-deferred accounts for years and you finally have enough squirreled away to fund your retirement. But we need to discuss the elephant in the room. You have a looming tax burden that if not handled correctly can really mess up your retirement plans. On this episode, I’m going to teach you how to come up with a withdrawal strategy to help you fund your retirement. Are you ready to learn how to withdraw from your retirement accounts without Uncle Sam getting more than his fair share? Then listen to this episode of Retirement Answer Man to help you plan your retirement withdrawal strategy. The looming tax burden Your money has been growing tax-deferred year after year. This is a great way to get you to save for retirement, but now it’s time to pay the piper. Do you know what your tax liability is? If you have $1 million in tax-deferred accounts and you take it all out in one year then you’ll have to pay 30% in taxes. Your million dollars just shrank to less than $700k. The good news is that you can minimize your tax liability in how you withdraw from your accounts. The great thing about retirement is that you have more control than ever in deciding which tax bracket you will fall under. You can manage how much you take out and where that money comes from. You need to be more tax aware than ever before How do we take advantage of the tax system to maximize the amount of money that we put in our pockets? Early on in retirement is when you start to think of spending in big ways. You may want to buy an RV or a vacation home or remodel your current home. Many people spend on these extraordinary expenses with little thought as to how they should withdraw the money for these projects. You want to be aware of the tax brackets when you decide how you withdraw your income. Thinking about tax strategy is not nearly as exciting as when you think about investment strategy. It’s not glossy and sleek, but having the right tax strategy is even more important at this point in your life and having the right strategy to fund your retirement can save you thousands of dollars down the line. What are your income sources in retirement? There are usually 3 sources of income to fund your retirement. There is social capital like pensions and Social Security. Next, you have human capital, which is the income that you may earn in pretirement. Lastly is financial capital or the money you have saved in various accounts. Your financial capital is then broken up into 3 categories. The money you have already paid taxes on, money from tax-deferred assets (401K’s and IRA’s), and tax-free assets (Roth IRA’s). You have to have a strategy on how to manage all of these buckets of differently taxed assets. Having the 3 buckets gives you some flexibility on how to pull money out of these accounts. What can you do to frame your withdrawal strategy to fund your retirement? Retirement tax strategy can get really complicated. That’s why it is so important to have a plan. Follow these steps to help you minimize your tax burden. Know your income sources. Figure out what your social capital, human capital, and financial capital are and identify where you have control. Know your planned spending. This sounds simple but you should understand the sequence of your spending and plan for the lump sum expenses. Decide how you will pay for them. Model how to find tax equilibrium. You need to look at your tax bracket and plan year by year. Think about where to put your investment assets. Think dynamically to stay agile and flexible each year. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [2:20] That looming tax burden [6:33] Be aware of your tax bracket as you withdraw your income PRACTICAL PLANNING SEGMENT [9:25] A correction from a previous episode [10:53] Have a withdrawal plan [16:45] RMD is waiting for you [19:02] The ACA adds another element of complexity to your withdrawal strategy [23:12] What can you do to frame your withdrawal strategy THE HAPPY LAB SEGMENT [26:02] Human connection is awesome to see TODAY’S SMART SPRINT SEGMENT [28:05] Outline how you will withdraw money in your first 2-3 years of retirement 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 The Retirement Answer Man Facebook Page

You have been saving into your IRA’s, Roth IRA’s and 401K’s for years. But once you retire how should you get money out of them? Over the next few episodes, we are going to dive into your different retirement accounts so that you can fully understand them. It’s important to understand the difference between these accounts so that you can create a withdrawal strategy to minimize the tax implications. Are you ready to learn about the different types of retirement accounts so that you can rock retirement? Listen in to this episode of Retirement Answer Man, to hear the basics of IRA’s, Roth IRA’s, and 401K’s so that you can understand how to create a sound withdrawal strategy. To click, or not to click? The secret your financial advisor doesn’t want you to know. . . With all the uncertainty in the current markets. . . Massive returns with no risk at all. . . Do these sound like headlines you’ve seen on the internet? We are all looking for the secrets to investing. Although we are all looking for the best return on our investment and we understand that there is no such thing as no risk, it can be hard not to click just to see what they are talking about. There must be some secret to what the rich are doing, right? But once you click on these ads you are put into a hard push sales cycle. If you see these catchphrases, run in the other direction. What are the basics of IRA’s? You’ve been contributing to an IRA for years, but what is it exactly? When you make a contribution to an IRA you can deduct it from your taxes. This money is tax-free when you put it in the account. It grows in the tax-deferred account for decades. At age 59 ½ you can take the money out, either a little bit at a time or all at once. This is when you will pay the taxes on the money. This type of account works well because you are usually in a much lower tax bracket once you retire. But the taxes can be tricky if you have been a great saver. The IRS wants you to take the money out eventually so that they can tax it. This is why they have a Required Minimum Distribution at age 70 ½. The Required Minimum Distribution is a certain percentage that you are required to take out of the IRA each year. And each year the percentage goes up. So if you are overfunded the RMD can be a tricky tax issue. What is the difference between Roth IRA’s and IRA’s? With an IRA you get the tax benefit when you put money into the account, with a Roth IRA you have already paid taxes on the money. The beauty of the Roth is that all the growth that the money earns in the account over time does not get taxed. It’s a great deal. Before you take money out of the Roth IRA it’s important to understand the 5-year rule. The 5-year rule states that 5 years must have passed since the tax year that you have made your first contribution before you can withdraw any earnings from the account tax-free. If you don’t follow the rule and you are under 59 ½ then not only is the growth taxable, but you have a 10% penalty as well. Another important difference to understand about the Roth IRA vs. the IRA is that there is no Required Minimum Distribution. What is a 401K? A 401K is an employer savings plan. Again you must be 59 ½ to withdraw from your 401K without a penalty. You can roll it over or transfer it into an IRA. You may want to look into starting a post-tax Roth 401K. These are bound by the same 5-year rule as the Roth IRA. Listen to this episode to learn more about the rules surrounding 401K’s, Roth IRA’s and traditional IRA’s. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [3:46] Should you click on that ad? PRACTICAL PLANNING SEGMENT [12:08] What are the basics of IRA’s? [17:46] What’s so great about Roth IRA’s? [21:15] Understanding the 401K THE HAPPY LAB SEGMENT [25:35] What are your spring vacation plans? TODAY’S SMART SPRINT SEGMENT [27:40] Get your tax papers to your CPA now Resources Mentioned In This Episode Retirement Starts Today with Benjamin Brandt Mark Lehman 228Main.com Wealth Care for Women Money for the Rest of Us Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center The Retirement Answer Man Facebook Page

After this month’s RV virus series, I’m sure you are all ready for a road trip! Ty and Larry join me on this episode to share their wisdom from more than 7 years on the road. This couple is truly inspirational and will have you rethinking your purpose and what it means to retire. Listen to Larry and Ty discuss what it means to retire with purpose and how their life looks after 7 years on the road. Are you planning a retirement with purpose? Retirement is a dream that comes after years of hard work and planning. You wait so long for that magical day to come. But what if all of a sudden the day comes and you discover that you don’t have a reason to get up in the morning? So then what are you going to do? You can only golf or fish or ride your bike for so many days. Ty and Larry realized that a lack of purpose in retirement leads to a lack of meaning in their lives. They found purpose in getting out of the house and helping others. Have you thought about what your purpose will be in retirement? Modern retirement isn’t about spending your golden years resting on a park bench The modern retiree has so much time, capital, and wisdom to share with the world. Retirement isn’t about finally reaching the day where you have nothing to do with your life. It is a major life change where you get to redefine what life is all about. This is the opportunity for you to redesign your life around what you are passionate about. What will be your purpose in retirement? Will you volunteer? Devote time to the grandkids? Write your memoirs? It doesn’t matter what it is, it just matters that you have a purpose. Think about what your purpose will be and who you will spend your time with. An RV road trip with a purpose Larry and Ty quickly realized after they retired that they needed a purpose. It was important for them to serve others. 7 years ago they discovered Habitat for Humanity and have been active Habitat RV Care-a-vanners ever since. With the Care-a-vanners they have a mobile community where they can be of service to others. Their purposeful road trip takes them all over the country building homes and serving different communities. They love the work they do and find that it helps to keep them young. What is the cost of living their RV lifestyle? Ty and Larry drive a 38 foot Class A Winnebago diesel. These rigs can run anywhere from $250,000-$2 million when purchased new. They found a good deal on a lightly used model. Their rig is self-contained and has a washer and dryer and even a satellite dish for watching tv. They spend about 250 nights a year on the road and maintain a home base in Illinois. They find places to stay through their work with Habitat for Humanity and often stay 2 months at a time in a single location. Often these sites are discounted or even sponsored by generous donors. They also utilize a senior pass that allows them discounted rates at national parks and Army Corps of Engineer sites OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [3:46] Some comments about purpose in retirement PRACTICAL PLANNING SEGMENT [11:08] How Larry and Tai have lived the RV lifestyle and coupled it with purpose [21:01] What is the cost of living? [26:07] Working keeps them young THE HAPPY LAB SEGMENT [28:43] What can you do next to improve your health? TODAY’S SMART SPRINT SEGMENT [33:44] What sense of purpose will you have in retirement? Resources Mentioned In This Episode Habitat for Humanity Winnebago Group WIT club Habitat RV Care-a-vanners National Parks Senior Pass Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center The Retirement Answer Man Facebook Page