Retirement Answer Man

We all screw up along the way to retirement. We blow all our earnings. We accumulate a pile of debt. We dig a hole so deep, we wonder if we can every get out and prosper financially.In my 20's I bought a nice BMW and my wife and I built a fancy custom home. Both of us were earning good money and our prospects for future increases were great.  I thought this adult career thing was easy. Projecting "normal" wage increases on our income, meant that we would be on easy street. I mean my income could never go down could it?Lets just say I spent my 30's learning hard lessons and cleaning up the mess I made in our 20's. Jen's Journey to Retirement In this week's journey to retirement story, we here from a smart lady that screwed up with debt, dug herself out of her hole and is now prospering.If you're feeling like you're in a financial hole, listen to her story. She dug out and so can you. About Jen Native CalifornianDivorcedMid-40’s (aka 29)No childrenWorks in middle managementWhat Does Retirement Mean to You? “I do believe that as we’re exposed to new ideas…our values shift”“I didn’t realize how much debt could be shackles to your future”“Retirement is freedom for me. Freedom in terms of my determining where I want to spend my time”“Maybe for me it’s not really retirement, it’s financial freedom and independence” What Are You Most Excited About Retirement? “That ability to make spur of the moment decisions” How Would You Have Changed Your 20’s? “I would not have lived what I thought a typical american lifestyle was. I would not have lived beyond my means.” What Are You Most Worried About Retirement? “That I’m not going to make it and if I do my health won’t be there.”“What am I missing now since I’m deferring so much for this date in the future.”“The fact that maybe it’s too late. That I won’t be able to make that catch up date.”“Retirement is the language I grew up hearing. We all work until we’re 65 and then we collect Social Security”.“I don’t want to be that person that I have to augment my retirement.”“You can’t bank on the fact that you have good health in retirement and that you’ll be able to work” How Do You Think You’re Doing? “I would love it if someone could look into their crystal ball and say I’m okay.” Do You Use a Financial Planner? “I’m afraid I’m going to choose someone that is inexperienced or has dealt with a situation similar to mine” What is the Worst Financial Decision You’ve Ever Made? “Oh there are SO many”The decision to be a self employed individual and I was ill prepared with what that meant”.“I got into something like $40,000 of credit card debt”."“I understand depression. When you wake up and there’s nothing and there is nothing I can do to get out of this mess.” What Has been the Hardest Thing to Deal With Personally in Managing Your Finances? “There’s a fear that any moment now my good fortune could disappear.” What Resources Have Had the Most Impact on Your Life? The Little Engine That CouldYoung, Fabulous and Broke, by Suzi OrmanWhy you need FU money, Jlcollinsnh.comMr. Money MustacheHow Do You Want to Be Remembered? “I’m hoping who ever I meet…that I impact them positively.”

Despite what the media and some financial advisors tell us, preparing for retirement isn't about fancy strategies or the best investment. This week listener "Rick" shares his story of how he became a 401(k) millionaire by using a simple but powerful strategy."Rick" was the first listener to share his story. Rick isn't his real name and in order to present you a better image of who he is, I asked him what his financial "spirit animal" was. After an awkward pause he replied tortoise and after hearing his story, I thought it was perfect!As you listen to Rick's story, you may feel like I did...a little jealous.  Rick grew up with a sound financial basis from his parents. As you heard last week, I didn't. In fact, I think most of us didn't. If you're like me, don't worry. Regardless of where you are, you can begin a journey towards financial independence. About "Rick" Age 59Has worked for the same company for 30 yearsMarried 30 yearsSame House 30 years3 grown kidsShares hobbies with spouseWhat Does Retirement Means to You?   “I found it a little bit frightening"“I love my work…though I;m caught between the parts I like and the parts I don’t like”“I’ve always had a big lazy streak…work has so much structure and so many demands that it keeps me going”. What Are You Most Excited About Retirement? “The lack of stress!""That I’ll have time to do the things I like to do”. What Are You Most Worried About Retirement? “I think it would be health issues”.“I’ve seen a lot of healthy people get hit with significant deseases out of the blue.”“Nobody lives for every but I’d love to have 20-30 years of health left in my life.” How Do You Think Your Doing? “We probably have saved 20% of more of my pay since day 1.”“Even in the early years when my income wasn’t anything special we saved.”“We’re 401k millionaire now.”“Money doesn’t come into our lives just so we can get as many toys as possible, it’s there to help people.”“If you don’t save it, it doesn’t matter what your rate of return is, you’ll never have much.” What Has Been Your Worst Financial Decision? “I didn’t make many money mistakes because my parents were kinda Dave Ramsey people, long before Dave  was born.”"When we first got enough money to afford cars, we bought new cars”. What has been the Hardest Thing to Deal with Personally in Managing Your Finances? “I really don’t know an answer to this one.” What Resources Have Had the Most Impact in Your Life? How to Win Friends and Influence People. "That ability to communicate and sell my ideas had as much to do with my intellect when it came to the success of my career.”What Do You Want to Be Remembered By? “I think really all I really want is my kids to remember me a certain the way, like I remember my parents.”“Someone that is honest, generous and was a loving father.” Want to Share Your Story? Tell me below. I'll send you the questions and details on how it will work.As a thank you for contributing to the community, you'll receive a free 30 minute consultation to address any financial planning issue you want.

There are plenty of people around today that will offer their services as a “life coach” or “business coach.” Few have the demonstrated history of success as businessman, family man and friend to man as Aaron Walker. Register for May 26th's Webinar: How to Manage Cash Flow in Retirement Click Here to RegisterIn this episode, Aaron shares his Journey Towards Retirement. Below are some notable quotes from our talk. Aaron Walker's Journey to Retirement What Does Retirement Means to You?   “I won’t ever retire. I may slow down but I love building…”   “Retirement means, I just want to be safe because I may not be able to work”“I don’t want to quit, but I do believe we should have common sense” What Are You Most Excited About Retirement? “I’m excited I’m able to help ordinary men become extraordinary….pouring knowledge and whatever little bit of wisdom I have into others” What Are You Most Worried About Retirement? “What creeps up sometimes is the fear of not being healthy”“Recently I started paying attention to my health…I’ve lost 40 lbs since November 1st” How Do You Think You're Doing? “I’m a big real estate guy, 75% of my retirement is in real estate”“I wish I’d saved a little more cash”“I worry sometimes if I’m balanced properly”Who Do You Use in Your Life to Help Make Smart Financial Decisions? “For the most part, I’ve done it for myself, that’s the reason I’m not as balanced as I should be” What Has Been Your Worst Financial Decision? “I’ve never blown money, I work to hard to make it”“Its simultaneous with one of my biggest successes. It was when I was 27 years old and I sold my business”“Looking back now, I think I probably could have parlayed that into something larger”.“I didn’t know I was going to get bored as fast as I did”“I came from a very poor family…when to opportunity came along, it was the most money I could ever imagine” What has been the Hardest Thing to Deal with Personally in Managing Your Finances? “In managing my finances, I’m self reliant and I probably should have been looking outward more and seeking more expert advice” What Resources Have Had the Most Impact in Your Life? Essentialism: The Disciplined Pursuit of Doing LessHow to Win Friends and Influence PeopleThe BibleTED TalksMastermind groups “absolutely a game changer for me” What Do You Want to Be Remembered for? “I want to be remembered as the guy that helped other achieve their goals and dreams”‘I want to be remembered as the guy that stops waiting to talk and fully engages” Free Resources From Aaron Walker to Help you Find Meaning Click Here to Get Aaron's Free ResourcesA Personal AssessmentWhat Do I Want?Steps to a Productive Day 

At the end of day, all that matters is what retirement means to you. Forget what the commercials say. Forget what the brochures say. Forget much of what your advisor may say. You don't have a "number", you have a life that you get to define and live. This week, I'm starting a new series called Retirement to Me, where you, the listener, get to share the lessons you've learned along your journey and what retirement means to you. Your Story is Important.  Each of you have unique experiences, knowledge and perspective about money and retirement. By sharing your story, you can have a positive impact on other's journey and help them view retirement from a fresh perspective. My guess is, by telling your story you'll learn more about yourself as well. Here's How it Works I'll interview willing listeners for approximately 20 minutes about their money and retirement story.Our conversation will be just that: an informal conversation (no fancy interview structure).I'll ask the same 10 questions (see below).You'll get the exact questions beforehand.Our talk will be prerecorded to allow for review and editing before publishing on the podcast.You can share as much or as little as you're comfortable with. In order to protect your identity, you can change your name and/or elements of your story.As a thank you, any participant whose talk is aired will receive a 30 minute planning call with me to address any financial issue they'd like to discuss.Interested? Let me know here (remember to include your e-mail!) I'll Go First To start things off, here is my money and retirement story. 

If you want to retire and are looking for guidance don't just find someone smart. There are plenty of smart advisors with plenty of smart ideas. It's been my experience that smart by itself, isn't enough. If you want to retire successfully, it's better to seek out wisdom."It ain't what you don't know that gets you into trouble. It's what you know that just ain't so."In this episode, I discuss some of the value a wise advisor can bring to your financial life. Including:Finding blindspots in your retirement planBring perspective learned from walking the journey with others on the same pathCreative solutions to your unique lifeManage emotions that can derail the best laid plan to retireDiligence to help you address the right issues,Consistent communication to assure the right conversations happen in the right frequency so you can make adjustments as your life unfoldsListener Question One question I had is if the Monte Carlo model factors in the different investment bucket assumptions. My assumption is it assumes the regular draw out amounts occurs evenly between the buckets in good times and bad.  If this is the case then not drawing on the equity bucket during bad time will help to increase the likelihood of not running out of money in retirement.  Please clarify.  Thanks, MonteGreat observation Monte. How you manage drawing from your assets during retirement is critical. Do it wrong and you could seriously handicap your chances of maintaining your lifestyle. In this episode, I answer your question directly.How to manage drawing from your assets during retirement is one of the most common questions I get.  To help you understand, it will be the focus of my next webinar. How to Manage Cash Flow in Retirement Webinar During the webinar I'll show you how to:Draw from your assets for incomeSet up and manage your cash flow reserve bucketsManage cash flow during down marketsevaluate the best strategy for youWhen:  Tuesday, May 26thTime:  2:00 CSTClick Here to register 

If you work for a company you're a cog in the machine. You're a replaceable part, easily eliminated or replaced if it suits the needs of the company. Sorry to be so blunt. I'm not trying to hurt your feelings. It's just important you accept this if you're going to thrive in the years ahead.Marc Miller is the founder of Career Pivot, which helps Baby Boomers design careers they can grow into for the next 30 years. Miller authored the book “Repurpose Your Career: A Practical Guide for Baby Boomers.” You can follow Miller on Twitter or Facebook. In this episode we discuss: What to do when you're offered a buyoutWhat is negotiableHow to evaluate a buyout packageHow to maintain your professional networkThe loss of the "social contract" How to succeed in the freelance economyWhy everyone is an entrepreneur

Most of the personal finance blogs you read focus on how to be more frugal. How to cut costs so you can safe and invest for retirement. it's important to be frugal but frugal only goes so far.I've invited Paula Pant from Afford Anything to chat about frugality and what might be a better place to focus your time if you're saving for retirement.Paula, is a thirtysomething that has chosen a unique path for her life. She's rejected the "normal" work path baby boomers learned and has embraced the opportunities of the growing freelance economy. Us "old folks" can learn from this sharp lady.Show Topics Include:The diminishing returns of frugalityThe opportunities to earn incomeA different way to approach retirementUnderstanding the new freelance economyWhat side hustle isHow to find income opportunitiesHer article Flex Your Hustle MusclePLUS Listener Questions & Webinar Feedback What are the actual mechanics of drawing money from my accounts during retirement?Can you explain return sequence risk?Is iCloud storage save for my In Case of Emergency plan?How do distributions work from an inherited IRA

Just because Bill & Sally can't achieve their ideal retirement, doesn't mean they can have a great retirement. In this episode,  we'll discuss: Why it's okay to not be able to achieve an ideal retirementCommon ways to adjust your retirement planUncommon ways to adjust your planHow to gauge how much investment risk to take during retirementPreview tomorrow's webinar results showHow to Access Tomorrow's Free Webinar If you've signed up to plan alongside Bill and Sally, you'll receive an e-mail with all the details.Thursday, March 26 at 7:00 pm CSTWebinar replay available to those that registerIf you haven't and want to attend...Click Here

Yeah, you read that right.  Bill and Sally cannot achieve their ideal retirement. That really sucks....or does it???Remember in episode 55, when I outlined Bill and Sally's ideal retirement? I said "too many people are being too reasonable when setting their retirement goals" and challenged you to think BIG about yours. Well, that's what Bill and Sally did. The fact that they can't achieve their ideal demonstrates that they did it right. They thought BIG about what their life could be. Now that they realize that "ideal" isn't reasonable, they can begin the work of prioritizing what matters most to them. That's an awesome accomplishment. Only by thinking BIG first were they able to identify everything they might want. Now they can choose the most important things.In this episode, I review their ideal retirement goals, financial resources and the results of their ideal retirement analysis. Here Are Your Action Items for the Week: Listen to the episode and think creatively about how we can build a plan for their retirementReview the ideal retirement analysis, are we missing anything?Answer the challenging questions.  This is important because YOUR input will be used in our live webinar on March 26th. Help Create Their Retirement Plan What possible changes can they can make?What changes would have the most impact?What are some "outside-the-box solutions you've seen?If they are unwilling to take more investment risk, what is the impact on their life goals?Go Here and submit your answers and I'll work to incorporate them into next week's webinar. Bill & Sally Want to Retire Webinar, March 26th at 7:00 CST If you're not already signed up to plan along side Bill and Sallysign up for the webinar here. 

If you asked me what was the most important item you should do to track your financial health I would tell you to track your net worth. A net worth statement is the most powerful tool you can use to track your financial progress over time. This simple one page document represents the sum of all your financial decisions over time.  There's no hiding with good intentions on a net worth statement. Ultimately, I think, it reflects what you value most. Organizing Your Financial Resources Now that Bill and Sally have dreamed big and identified their needs, wants and wishes for retirement, it's time to see what resources they have to work with.This week, we review their cash flow (income sources and expenses) and create a net worth statement to see their assets and debts.If you've signed up to plan alongside Bill and Sally, here are your action items for the week. (Haven't signed up yet? see the bottom of this post) Here’s Your Action Items for This Week: Make sure to listen to the episode. I review your comments and walk through Bill and Sally's financial situation.Review Bill and Sally’s cash flow summary and net worth statement. This will give you a snapshot of what the end result can look like.Watch the short video. I walk you each step of  identifying your income sources and creating your net worth statement.Complete these worksheets. It might take a little homework to get the estimated value of your social security, pension, assets and liabilities. It’s worth the effort. Your net worth statement will be the key document you use to track your financial life.Estimate future retirement income sourcesBuild your net worth statementManage your current lifestyle and cash flowChallenging Questions of the Week Should they pay off their car loans? Why or why not?Should they contribute to ROTH IRAs? Why or why not?Are they saving enough? Why or why not?Respond with your answers here. It's Not Too Late Get All the Free Resources and Access to the Webinar on March 26th Click Here to Sign Up