Retirement Answer Man

Welcome to the last episode in this Retirement Plan Live series. This is the Flying Solo Edition where you can learn how to rock single retirement. Several listeners offer fantastic retirement questions and comments that I answer on this episode and the answers will interest you. On the practical planning segment of the show I am joined by Herb who gives us a male perspective on retiring single, so you won’t want to miss that. Be sure to listen to this episode as well as the webinar on June 7th to hear the grand finale and find out what happens to Sam’s retirement plans. How do you save your own retirement funds from an ill spouse? The first retirement question is actually from a married person, but she brings up an interesting point. Jackie is concerned that she and her husband’s shared retirement funds may run out with his exorbitant end of life medical expenses. She would like to know if there is a way to protect her own IRA account so that she will have enough money for herself to live on after he passes. End of life medical expenses can be incredibly costly, so this is a valid question that affects so many. Singles may not realize that this question is one advantage of being single. Listen to the hot topic segment to hear my answer to this challenging retirement question. What inflation rate should be used for retirement planning? Another listener has a retirement question about inflation rates. It is important to hedge against inflation when planning retirement. I use a rate of 4% even though there has only been a 2% inflation rate over the past 15 years. It is important to use all the available data over a long period of time to get a better idea of what inflation could do. If one only relies on 15 years of data to plan then it doesn’t paint a complete picture of what could happen. Listen to this episode of Retirement Answer Man to hear retirement questions and why and how I calculate inflation for retirement planning. What can you learn from my aunt and uncle about retirement planning? My own aunt and uncle join me on the practical planning segment to give us their perspective on retirement issues that you may not have considered. Recently after my aunt had surgery they were surprised to find that Aunt Patty needed 24-hour care for a whole week after a routine surgery. This brings about the retirement question: how do you plan for 24-hour care? This is hard enough for a married couple to plan for, and if you’re single it may take serious consideration. If you are considering moving to a new area after you retire you may also want to consider the medical facilities available. Listen to this episode as my aunt and uncle share insight that only comes with hindsight. Finally, a single man volunteers to represent half the population! Herb steps up to give a male perspective on retiring single. He recently contacted me and was the only male to volunteer to share his point of view on retirement. Thankfully Herb is a great candidate to represent half the single retirement population. Herb is 55 and planning on retiring in 3-5 years. Since he lives where there is a high cost of living he would prefer to move when he retires. One of the benefits of retiring single is that the choice is all his, and he won’t have to compromise. Herb is great at getting out of his comfort zone and feels that this will help him to create a network of friends wherever he decides to land. Listen to the practical planning segment to hear Herb’s perspective on retiring single. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN [1:22] Find out about the webinar where you discover the results of Sam’s retirement conundrum HOT TOPIC SEGMENT [4:08] Jackie has a question about how to save her own retirement funds from her husband’s medical expenses [6:39] Carla asks: what inflation rate should she use for retirement planning? [7:40] Scott would like to know: Why does Roger use such a high inlfation rate? [10:10] Mark remarks on travel plans [11:40] K.J. asks where can she find affordable financial planning [13:27] Sarah feels less weird about being a happily single woman after listening to this series PRACTICAL PLANNING SEGMENT [15:10] My aunt and uncle join me on the show to discuss healthcare [27:27] Herb joins me to give a male perspective on retiring single THE HAPPY LAB SEGMENT [36:02] Embrace life, be adventurous TODAY’S SMART SPRINT SEGMENT [37:10] Go buy my book, it really will help give you a better perspective Resources Mentioned In This Episode Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Ask Roger a question Work with Roger 3-video Series: 5 Minute Retirement Makeover Roger’s Retirement Learning Center The Retirement Answer Man Facebook Page Intro music by bensound.com

On this episode of Retirement Plan Live: Flying Solo Edition we tackle a challenging question. Is retiring single risky? This episode is all about risk and the special or riskier situations that retired singles may find themselves in. Single people have different considerations than married people and may need to plan their retirement in more detail. I ask Sam, my guest, and case study for this edition of Retirement Plan Live, about what types of concerns she has retiring single. You’ll want to make sure that you listen to this episode so that you can begin to think about all of the circumstances you may encounter when retiring single. Should you embrace risk or hide from it? There are risks to everything in life, but to live a full life you have to take on a certain amount of risk. If you run away from risk entirely you end up living a smaller life. The more you embrace risk the more it can broaden your life. There is a certain amount of freedom that comes with being a single person. You don’t have anyone that you need to check in with, you can travel whenever and wherever you want. But there are situations that a single person needs to prepare for more than a married person. Listen to this episode of Retirement Answer Man to start thinking about how much risk you are willing to take in your retirement and your life. What are some of the normal risks that are increased for singles? Retired singles have an increased chance of loneliness as they age. You can begin to combat loneliness in your elderly years by establishing a strong network of friends now. Making friends with similar interests is easy to do. There are groups and clubs for just about every hobby, even solo activities like knitting and fishing can be enjoyed with others. Another consideration you may not have thought of is whether or not you have someone to use as a sounding board for big decisions. Making life altering decisions can be a challenge and it is always helpful to have someone you trust to help you talk things out. Listen to this episode to hear several considerations that you may not have thought of that you will need to plan for as a single person. How do you plan your estate when you’re single? If you don’t have any heirs you may think that what happens to your estate doesn’t really matter, but you do need to think about who you would like to be the executor of the estate. There are professionals that can be hired to do this job if you don't have anyone to ask. Long-term care insurance is a good option when thinking about what will happen when to you when you are no longer able to care for yourself. But have you considered who will have power of attorney and can handle the personal medical decisions that may be faced if you are incapacitated? This episode may not be as fun as the dreaming big episode, but it is important nonetheless. Listen in to hear many of the significant considerations that you may not have thought of when retiring single. What are Sam’s worries about retiring single? Sam has been considering retirement for quite some time and has put a bit of thought into many things. She has been working with a financial planner whom she trusts for many years. He has helped her weather the financial upheaval of 2008. Sam thought it was important to purchase long-term care insurance, so as not to burden her daughters with caring for her if she becomes unable to care for herself. Sam considers herself pretty conservative and not much of a risk taker, so listen to her concerns as she considers retiring single on the practical planning segment of this episode. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN [2:42] The live results webinar is on Thu June 7 HOT TOPIC SEGMENT [6:22] What are some of the normal risks that are more heightened for singles? [17:22] How do you plan your estate when you’re single? PRACTICAL PLANNING SEGMENT [21:21] How does she handle her investment accounts? [27:21] What are her worries as a single person? [32:03] How did she find her investment professional? THE HAPPY LAB SEGMENT [40:02] How do you balance taking risks and staying safe? TODAY’S SMART SPRINT SEGMENT [42:39] What risks am I allowing to restrict my life? Resources Mentioned In This Episode Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Ask Roger a question Work with Roger 3-video Series: 5 Minute Retirement Makeover Roger’s Retirement Learning Center The Retirement Answer Man Facebook Page Intro music by bensound.com

Welcome to Retirement Plan Live: Flying Solo Edition. On each Retirement Plan Live, I walk prospective retirees through the same agile retirement planning session that I do with my clients. This edition is created by popular demand for singles who are planning to retire. There are so many retirement planning resources out there geared toward married couples, but hardly any are focused on singles. This series hopes to change that. Listen to this episode of Retirement Answer Man as Sam and I discuss the resources she has at her disposal to help us plan her ideal retirement. What resources do you have to achieve your ideal retirement? The last episode in this series focused on dreaming big. Sam shared her retirement dreams and I dared her to dream even bigger. We start to come back down to earth in this episode as we focus on what resources she has to plan her retirement. It’s great to dream big, but then you have to find a way to fund it. The next step in creating a retirement plan is uncovering what resources are available to you. Resources are any income sources you may have, these may include income, pension benefits, social security, etc. Listen to this episode to discover how to take the next step in your retirement plan. Create an action plan When you create an action plan you have to organize yourself and your finances. Luckily on this week’s 6 Shot Saturday I include a heap of resources for you to use to create your own action plan. This action plan will help you consider all of the income streams that are available to you that you may not have even thought of. Your action plan may include pretirement income, downsizing your home, or even social security from an ex. Be sure to listen to this episode so that you can begin your action plan to help you plan your ideal retirement. Do you have a net worth statement? Many people have never even heard of a net worth statement, and many more haven't created one. I’m here to tell you: you need one! A net worth statement can seem intimidating to create, but you will feel much better once you have one in place. It will help you become more intentional in your retirement planning. A net worth statement gives you an easy snapshot of all of your available resources. I love net worth statements so much that I am including a worksheet to help you create your own in this week’s 6 Shot Saturday. So make sure you are signed up to get all the goodies that I have coming your way to help you build your ideal retirement plan. Does Sam have a net worth statement? Last week Sam got to dream big, but this week we come back to earth a bit and discuss how to make those dreams happen. Sam has heard of a net worth statement but has never created one herself. I walk her through a series of questions to build an understanding of her assets and debts so that I can create an accurate net worth statement for her. We also discuss her different income sources, inheritance, pensions, and pretirement options. Listen to the practical planning segment as I walk Sam through the steps to build her net worth statement and action plan. These steps will help you build your own agile retirement plan.   OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [3:22] What resources do you have to identify your ideal retirement? [8:02] Do you have a net worth statement? PRACTICAL PLANNING SEGMENT [[12:00] How did it feel to hear herself on the podcast? [14:35] What are Sam’s income sources? [18:23] Sam and I build a net worth statement [31:22] Next week we’ll discuss risks THE HAPPY LAB SEGMENT [32:59] Building a net worth statement can be intimidating, but it helps you be more intentional TODAY’S SMART SPRINT SEGMENT [33:47] Get the resource in 6 shot Saturday to build your own net worth statement   Resources Mentioned In This Episode Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Ask Roger a question Work with Roger 3-video Series: 5 Minute Retirement Makeover Roger’s Retirement Learning Center The Retirement Answer Man Facebook Page Intro music by bensound.com

Retirement Plan Live is flying solo this time around. Retirement Plan Live is a series of episodes on the Retirement Answer Man podcast designed around real, live case studies with listeners that would like to retire in the near future. This time I looked high and low for the perfect single potential retiree. Sam agreed to come on the show and share her retirement dreams, goals, and aspirations as well as her financial realities. This conversation focuses on the fun stuff. We envision what her ideal retirement would look like. Listen to this episode of Retirement Answer Man to hear Sam’s retirement dreams so that you can get some great ideas on how to plan your own single retirement. How do we deal with this retirement dilemma? The age-old retirement dilemma is how do you have as much fun as you can while you still can and have enough left over to see you through the rest of your life? So many of us worry about spending anyways, and once we stop working the anxiety can worsen. When you’re single this can prove even more challenging. You don’t have anyone next to you help you bring balance to your financial planning. You won’t want to miss the Retirement Plan Live: Flying Solo series if you are planning a single retirement. So make sure you listen to this episode to help you get started in your retirement planning. Are you looking for tips on how to plan your retirement? When you are planning for a single retirement it can be a challenge in many ways. There is only one income and you don’t have anyone to bounce ideas off of. A great way to get started planning your single retirement is to draw your own retirement vision board. Think of what your ideal life would look like. Concentrate on these aspects: environment, relationships, hobbies, and health. Thinking of these categories will help you negotiate and prioritize where your money should go and keep your eye on the fun. Listen to this episode of Retirement Answer Man to hear some great tips on your retirement planning. Start retirement planning by focusing on your ideal retirement What would your ideal retirement look like? If you could have anything you want in the world and money was no option, what would you do? Would you have a garage full of fancy cars, travel around the world, or maybe spend quality time with family? The best way to get started planning your retirement is by shooting for the stars. After you have really dreamed big, then you can start trimming away to find a balance between the dream and the perfect lifestyle that is within your reach. Make sure you are signed up for 6 shot Saturday to get a worksheet to help you begin to plan your retirement fun. Listen to this episode to hear more about how you can begin planning your single retirement. What does Sam’s ideal retirement look like? Sam joins me for a fun conversation on the practical planning portion of the show. She and I discuss what her ideal retirement would look like. We plan big trips, work on her house, family time, healthcare and more. She gives me some ideas on how much her ideas cost and I help her guestimate some expenditures. This is the fun part of planning for retirement and you won’t want to miss hearing what Sam is envisioning in her single retirement. Tune in to the practical planning segment to hear what Sam’s ideal single retirement sounds like and to get some great ideas on how to begin planning your own retirement. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [3:55] How do we deal with this retirement dilemma? [10:43] Tips for dealing with the retirement dilemma PRACTICAL PLANNING SEGMENT [18:38] Sam defines her ideal lifestyle [26:22] What are Sam’s big expenditures? [29:29] What does her travel look like? [34:38] All of the other extras Sam may want in retirement THE HAPPY LAB SEGMENT [39:19] Planning your ideal retirement can be fun TODAY’S SMART SPRINT SEGMENT [40:33] Sit down and dream up your ideal retirement Resources Mentioned In This Episode Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Ask Roger a question Work with Roger 3-video Series: 5 Minute Retirement Makeover Roger’s Retirement Learning Center The Retirement Answer Man Facebook Page Intro music by bensound.com

Can you be single and still rock retirement? This Retirement Plan Live series focuses on a single person. Over the next four weeks, I’ll help Sam make up her personalized retirement roadmap based on her individual needs. Being single in retirement is a topic that isn’t covered by me or by other retirement resources nearly enough, so I’m glad to be investigating retirement as a single person over the next four episodes. If you are flying solo and ready to rock retirement, you won’t want to miss this episode or the ones to come. There are few retirement resources geared toward singles You can look high and low, but there isn’t much out there to help single people plan for retirement. Just about everything is geared toward married couples. Single people have different concerns than married couples when planning their retirement. Listen to the Hot Topic segment to meet Sam, the subject of this Retirement Plan Live and then stick around for the Practical Planning segment as I interview several other singles that are embarking on their retirement planning journey. Meet Sam, the next subject of Retirement Plan Live We don’t talk about single people enough in the retirement planning industry. That is why I decided to focus this series on a single retiree. Sam is the subject of this month’s Retirement Plan Live. Sam is 59 and lives in Arizona. She is trying to figure out what kind of lifestyle she can afford in retirement with the amount of money that she has. Her goal for this series is to find out how she can balance lifestyle, money, and longevity. If you are single and thinking about retirement you won’t want to miss this series, so listen to episode 219 to begin. What are the biggest worries as a single retiree? In the Practical Planning segment, I chat with several different singles to get a feel for what their concerns are as they plan for retirement. The biggest worry for each of them seems to be when they reach old age. As a single person, this brings on different types of worries than a married couple. It may be advantageous to start planning for old age while you are still relatively young and have all of your faculties. You’ll want to hear how these people are planning to handle old age in different ways. Use this episode as a starting point for your retirement plan as a single retiree. Planning for retirement as a single person doesn’t have to be scary, it can be quite exciting Planning for retirement isn’t all gloom and doom. Think about it: what are you excited about when you think about retiring as a single retiree? I ask several different people this question. The answers range from freedom, to travel, to giving back to the community. This episode of Retirement Answer Man is all about planning your retirement as a single person. Get started planning now by listening to the Retirement Plan Live series so that you can enjoy all the freedoms that retirement brings just as soon as you are ready. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN [1:22] Retirement Plan Live is back! HOT TOPIC SEGMENT [5:05] Let’s meet Sam and hear why she chose to do this [6:59] What are we trying to figure out? PRACTICAL PLANNING SEGMENT [11:27] What are Elizabeth’s biggest worries as a single person? [20:29] How is Lisa planning her retirement? [27:18] Kirbie would like to hear more about possible paths forward for single people [32:54] Jen lives in a high cost of living area and wants to connect in her community [39:44] What does Twila think is different between retirement planning when you are single vs. when you’re married? THE HAPPY LAB SEGMENT [46:14] Don’t mislabel things, they can be pretty cool if you make them your own TODAY’S SMART SPRINT SEGMENT [47:49] Sign up for 6-Shot Saturday Resources Mentioned In This Episode BOOK - The One Thing by Gary Keller and Jay Papasan BOOK - AARP Guide: The Single Woman’s Guide to Retirement by Jan Cullinane Roger’s YouTube Channel - Roger That BOOK - Rock Retirement by Roger Whitney Ask Roger a question Work with Roger 3-video Series: 5 Minute Retirement Makeover Roger’s Retirement Learning Center The Retirement Answer Man Facebook Page Intro music by bensound.com

Episode 218 is the final episode in the April Bond series. We’ve walked through all the benefits and dangers of bonds over the past few weeks. In this episode, we talk about some gadgets that could help you save your portfolio against a couple of evil villains. You’ll want to hear about all the gadgets that will serve you and your portfolio as you plan for your retirement years. Make sure you listen to this episode to hear about all the coolest gadgets that are out there to help you fight rising rates and avoid getting your assets kicked.Who are the villains in this investing mission?There are two villains to be fought when planning for retirement. And just like James Bond, you need tools to fight the bad guys. The first villain is inflation. You have to keep up with inflation because it will zap your purchasing power and steal your lifestyle away over time if you let it. Volatility is the second villain. There’s always the chance of losing your money because you were too aggressive in your investments. So where do bonds stand against these bad guys? Well, bonds generally stink at fighting inflation, so they are definitely not the gadget you want for that job. They do a great job at fighting volatility though. If you want to hear about how a few bond gadgets can help you fight off the evil villains listen to this episode of Retirement Answer Man.There is such a thing as too many gadgetsHow subtle do you want your gadgets to be? Think about what the mission is that you’re on with your investing. It’s easy to get caught up in the excitement and potential of certain proposals. When you look at the possibility of returns it can be exciting. However you have to remember that it is a proposal, and proposals are meant to sell you something. All you should care about is whether they can deliver what they promise. You need to investigate further to see if they can actually replicate past results. Listen to this episode to hear about some of the coolest gadgets in the investment world and how you to make sure they are right for you.What are a few of the gadgets that Q has in store for you?There are many kinds of gadgets you can use to help battle against rising rates. Lower duration or maturity bond investments can help with volatility. Even foreign bonds can play a role in your portfolio. Different economies are in different economic cycles, so when one goes down the another may be going up. Another gadget you can use is to buy individual bonds rather than a portfolio. These will mature, whereas bonds in a portfolio will never actually mature. These are just a few of the gadgets that a bond investor can use to battle the bond villains. Listen to this episode to hear all of the gadgets that I employ and see if some are a good fit for you.How gadgety do you want to be?Think about what you are really trying to accomplish with your bonds before you come up with a strategy to use. Are you looking to be subtle with your gadgets like James Bond, or flashy like Ironman? Before you use any gadgets make sure you understand what you’re getting into. I like to use a fixed and flexible approach to investing and try an maintain 50% passive investments and about 50% using gadgety strategies. Adding complexity to your portfolio can be as easy or as complicated as you make it. Listen to this episode to hear how you can employ some awesome gadgets in your portfolio.OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MANHOT TOPIC SEGMENT[4:55] What is the mission that we’re on with our bonds?[7:22] Who are the villains on this mission?PRACTICAL PLANNING SEGMENT[11:29] You can spend so much money on gadgets[14:44] Lower duration or maturity bond investments can help with volatility[16:22] Foreign bond can play a role in a diverse portfolio[20:10] A bond ladder[22:15] High yield bonds[26:01] Stable value funds[27:49] What is a barbell strategyTHE HAPPY LAB SEGMENT[31:58] Who are the Q’s in your life that help make your life awesome?TODAY’S SMART SPRINT SEGMENT[33:42] Look at your asset allocation and see if it’s working for you?Resources Mentioned In This EpisodeRoger’s YouTube Channel - Roger ThatBOOK - Rock Retirement  by Roger WhitneyAsk Roger a questionWork with Roger3-video Series: 5 Minute Retirement MakeoverRoger’s Retirement Learning CenterThe Retirement Answer Man Facebook PageIntro music by bensound.com

This is the third episode in our April series on bonds. On this episode, we discuss interest rates and how they affect bonds. One question we explore is, are interest rates the nemesis of bonds? To help me explore this question and explain a bit about bonds Chief Investment Strategist, John Lynch of LPL Financial joins me. Together we discuss rising inflation and interest rates and find out what this all really means for the economy and your portfolio. If you are worried about what rising interest rates mean for your portfolio then you’ll want to listen to John’s explanation Interest rates are rising, but what does that mean? Now that interest rates are rising everyone is in a panic, but the reality is that interest rates have been at a historic low and were dropping for more than 30 years. We still aren’t even back to normal levels. The Fed’s job is to control the rate at which interest rates rise and it ensures that they don’t rise too high too fast. So even though interest rates are rising it’s not the end of the world. Learn more about what rising interest rates mean to you by listening to this episode of Retirement Answer Man. How do rising interest rates affect bonds? Interest rates and bonds have an inverse relationship. When interest rates drop, bond returns increase. So now that interest rates are on the rise again after 37 years of falling, bond prices will probably fall. According to Bloomberg Barclays U.S. Aggregate, interest rates may continue to increase. These rising interest rates can seem scary for the bond market, but it may not be as scary as you think. Listen to this episode of Retirement Answer Man to learn how rising interest rates may affect the bonds in your portfolio. Bad news for interest rates leads to good news These rising interest rates seem like really bad news, but rising interest rates and inflation are actually good news for the economy. The economy is growing and employment rates are on the rise. Inflation means growth for the economy. The interest rates have been artificially low to stimulate the economy but now that the economy is moving again the Fed doesn’t have to keep interest rates artificially low. The Fed can now help them to rise slowly back to normal rates. Listen to this episode of Retirement Answer Man to hear how this bad news is actually good news all around. What is duration? Duration is the mathematical formula that indicates the value of a bond. It is the amount of time that an investor has to receive coupon payments to and get the principal back. It is a useful tool that investors use to measure risk or volatility. The benchmark used by financial professionals is Bloomberg Barclays U.S. Aggregate. Barclays predicts that long-term investors should not have a problem with interest rates and duration as long as bonds are used in a balanced approach to your portfolio. Listen to this episode of Retirement Answer Man to hear how and why you should still add bonds to your mix. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN [1:22] Are rising interest rates the villains of bonds? HOT TOPIC SEGMENT [5:36] Interest rates may rise faster than we are used to [7:26] Meet John Lynch [13:29] What do interest rates mean in terms of bond performance [15:15] Bad news leads to good news PRACTICAL PLANNING SEGMENT [22:44] What is the relationship between bonds and interest rates [27:40] What is duration? THE HAPPY LAB SEGMENT [33:03] Who is your favorite villain? TODAY’S SMART SPRINT SEGMENT [34:49] Look at where you keep your cash reserves so that you don’t leave money on the table Resources Mentioned In This Episode John Lynch on LinkedIn BOOK - Rock Retirement  by Roger Whitney Ask Roger a question Work with Roger 3-video Series: 5 Minute Retirement Makeover Roger’s Retirement Learning Center The Retirement Answer Man Facebook Page Intro music by bensound.com

Why would you ever add bonds to your portfolio if their return is so low? This is the second episode in the April bond series. This month we are learning all about bonds. On this episode, we delve into the question: why do we even have bonds in our asset allocation? I really get into the science behind why bonds are in our portfolios. If you are planning on retiring soon your role as an investor is changing and you may want to have more bonds than you think. Find out why you need bonds in your mix and what bonds add to your portfolio by listening to this episode of Retirement Answer Man. What is the difference in investing when you’re younger vs when you’re older? When you’re younger you have a lot of time for your investments to work for you. When you’re in the wealth accumulation mode of youth you’re on autopilot, socking away money each month without even paying attention. This strategy no longer serves you when you are preparing to retire and you stop accumulating wealth. Now your role is changing, soon you will start tapping your wealth. So when the markets dip you will actually feel it in your portfolio. Psychologically you will feel more vulnerable because the market volatility becomes pretty scary. This changes the way you think about markets and investing. Listen to this episode to understand how your role as an investor has shifted with age. What can bonds add to your investment cocktail? Bonds add more than you think to your portfolio. Soon you will stop adding to your portfolio and you will be taking money out of it. Now that you don’t have as much time to play the markets, the security that bonds bring to your investments will provide peace of mind. And a healthy mix of bonds in your asset allocation can actually bring about good returns while also providing stability and less risk. It may be time to start thinking about managing your assets differently. Listen to this episode to understand how bonds can lead to the perfect investment cocktail. What is the science behind asset allocation? Let’s get to the science behind why we have different asset classes and what their benefits are. The modern portfolio theory is considered the best practice in portfolio management. This theory states that for a given level of return you will try to minimize as many risks as possible. And that for a given level of risk you will try to optimize returns and get the most bang for your buck. We measure this by using standard deviation. Is this bringing on flashbacks from college? Listen to me explain standard deviation in a way that you can finally understand, I promise there won’t be a pop quiz at the end! What does modern portfolio theory mean for your assets? Modern portfolio theory is great for helping to measure your risk tolerance. And this is the whole reason that your financial planner asks you to fill out risk tolerance questionnaires. The problem with all this science is that once you reach your 50’s and 60’s everything changes. You should no longer be measuring your maximum amount of risk tolerance, but how to live the life that you really want to. This episode will help you to understand how much science and how much art you should apply when managing your money, so grab your favorite pair of headphones and listen in. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN [1:22] What can bonds add to your investment cocktail? HOT TOPIC SEGMENT [4:00] What happens when you accumulate assets when you’re younger? PRACTICAL PLANNING SEGMENT [11:02] What role do bonds have in your investment cocktail? [12:25] Let’s understand the science behind different asset classes [17:28] Why are risk tolerance questionnaires are so important? THE HAPPY LAB SEGMENT [24:42] Try a new cocktail (or a new recipe!) TODAY’S SMART SPRINT SEGMENT [26:13] What is the role of the bonds in your portfolio Resources Mentioned In This Episode BOOK - Rock Retirement  by Roger Whitney Ask Roger a question Work with Roger 3-video Series: 5 Minute Retirement Makeover Roger’s Retirement Learning Center The Retirement Answer Man Facebook Page Intro music by bensound.com

April is Bond Month on the Retirement Answer Man podcast. Over the next four weeks, we will be discussing all things bonds. This is the first episode in the bond series in which we will discuss what exactly a bond is and why we all love them. You’ll want to listen to this series to find out what a good bond is and how to get one. Start learning about bonds by listening to this episode to find out exactly what a good bond is, how to buy them, and what the future holds for bonds. Is our love affair with bonds coming to an end? We have had a love affair with bonds for the last 30 years, but is the love affair with bonds coming to an end? The reason we have had such a good run with bonds is that they have had great returns while at the same time being a pretty low risk. Over the past 37 years, bonds have yielded an average of 8% a year. The worst year in bonds has brought -10% profit. Let's compare bonds with the stock market during the same period. The stock market yield has averaged 10.4%, not much higher than bonds. But the stock market low was -50%! Listen to this episode of Retirement Answer Man to find out if the stability and high rate of return of the bond market are at the beginning of the end. What do interest rates have to do with bonds? Interest rates may end up spoiling our love of bonds. Interest rates and bonds have always had an inverse relationship. As interest rates have dropped, bond returns have increased. Over the past 37 years, interest rates have dropped steadily, but it looks like that time has come to an end. According to Barclays, interest rates may continue to increase. These rising interest rates can be scary for the bond market. Listen to this episode of Retirement Answer Man to learn how rising interest rates may affect the bond market. What is a bond? A bond is basically a loan to someone else. Different bonds have different ratings depending on the borrower’s credit rating. The coupon rate is the amount of interest that the borrower pays depending on their credit rating. The maturity date is the length of time that the money is borrowed for. There are many different types of bonds including treasury bonds, corporate bonds, municipal bonds, and international bonds. All of these different types have various characteristics. If you want to learn all about bonds you need to listen to this episode of Retirement Answer Man. How do you buy a good bond? There are a couple of different ways that you can go about buying good bonds. You can research the kinds of bonds that you are interested in and have your broker find them for you. The pricing of bonds is a bit shady and not as straightforward as with stocks and it’s hard to tell whether you are getting a good deal. Make sure to diversify your bond portfolio. Mutual funds and exchange-traded funds are ways to diversify. By buying mutual funds your portfolio never really matures like with buying individual bonds. But they make it easy to reinvest the interest payments. Listen to this episode of Retirement Answer Man to hear about the various ways to buy good bonds so that you can decide what’s right for you. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN [0:52] This month we explore bonds HOT TOPIC SEGMENT [4:01] We have seen a steady decrease in interest rates for 37 years [6:29] Let's look at bond returns [9:19] Is the love affair with bonds coming to an end? PRACTICAL PLANNING SEGMENT [10:40] What is a bond? [15:23] What are the different types of bonds [16:57] How do you buy a bond? [20:06] Next week we discuss what role bonds play in your portfolio THE HAPPY LAB SEGMENT [21:05] What is your favorite James Bond theme song or soundtrack? TODAY’S SMART SPRINT SEGMENT [21:58] Identify what kind of bond investments are in your portfolio Resources Mentioned In This Episode Listen to listener questions on Retirement Answer Man on YouTube BOOK - Rock Retirement  by Roger Whitney Ask Roger a question Work with Roger 3-video Series: 5 Minute Retirement Makeover Roger’s Retirement Learning Center The Retirement Answer Man Facebook Page Intro music by bensound.com

This is the fourth and final episode of the Healthcare Before Medicare series. On this episode, we discuss two more options to consider when thinking about healthcare before Medicare: taking on a part-time job for the insurance benefits and COBRA. We also answer some listener questions and comments in the practical planning segment of the show. Learn more about which companies are the best for part-timers to receive healthcare benefits as well as whether COBRA may be a good option for your healthcare coverage needs listen in to gain more knowledge about how to maneuver our complex medical insurance system. Have you thought about pretirement? Will you take a pretirement phase of retirement? Would you enjoy finding low-key meaningful work to ease yourself into full-blown retirement? I often refer to this option as pretirement. A part-time job can be a fun way to work your way into retirement and it could also provide you with insurance benefits. You could find something fun that you enjoy doing as a part-timer. One example of this is if you enjoy handy work you might enjoy a part-time position at Home Depot. You’ll definitely want to factor in your physical limitations and you certainly don’t want to go back to the grind of full-time employment. Listen to this episode to find out which companies offer benefits to part-time employees. Would COBRA work for you? You can maintain COBRA coverage for up to 18 months after leaving your work so if you are close to Medicare age you may want to consider COBRA. COBRA is also a good option if you don’t qualify for ACA subsidies. The good news is that you have 60 days to notify the insurance company that you would like to elect COBRA coverage. COBRA is probably the closest you will come to your current healthcare coverage, so if you have many healthcare needs you may want to consider this option. There are a lot of great benefits when choosing COBRA, listen to this episode to hear them all. How do you decide what the right choice is for you? Are you curious to find out which healthcare option I will choose? This entire series has come at a great time for me since my wife recently left her job and we are seeking alternative healthcare options. The ACA is a nonstarter for my family due to the exorbitant costs for us without a subsidy. We have narrowed our choices down to Medishare and COBRA. Planning for every eventuality is challenging, especially since no one wants to think about a catastrophic medical event happening to them, but that is the point of having medical insurance. Listen to this episode as I walk through my thought process in making this decision for myself and my family. Who knows, maybe my process may help you with a difficult decision of your own. Who do you turn to help you figure out health insurance? As usual, my listeners have some fantastic questions and comments. One listener asks, who can help you figure insurance out? An insurance broker, a financial planner, a tax consultant? That’s a tricky question! Listen to the answer to this question and a few others during the practical planning segment. There are so many different factors to consider when choosing the right healthcare option for you before Medicare kicks in, be sure to listen to the whole 4-part series to help you make your healthcare before Medicare decision. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN [1:22] April’s theme will be all about bonds HOT TOPIC SEGMENT [3:55] Will you take a pretirement phase of retirement? [5:12} What kind of work might you enjoy? [9:12] Would COBRA work for you? [12:24] What are my options? [22:21] How do you decide? PRACTICAL PLANNING SEGMENT [24:46] A listener comment from a health insurance broker [28:55] Who is the best person to talk with about healthcare? [31:48] A customer comments about their Medishare experience [34:41] What are some other options and ethical questions? THE HAPPY LAB SEGMENT [38:30] Check out the think up affirmation app TODAY’S SMART SPRINT SEGMENT [40:14] Identify one area where you need to be healthier Resources Mentioned In This Episode careerpivot.com Forbes Article on benefits for part-time workers Think Up App BOOK - Rock Retirement  by Roger Whitney Ask Roger a question Work with Roger 3-video Series: 5 Minute Retirement Makeover Roger’s Retirement Learning Center The Retirement Answer Man Facebook Page Intro music by bensound.com