Retirement Answer Man

Is your soul on fire? Too many of us live in a prison within our mind. We are trapped by our past choices, not realizing that today, right now, we can start a new journey.  If you feel stuck, you can create a new life. You can ignite your soul and live your own hero's journey. Invest Wisely  You'll Never Get the Average One of the biggest roadblocks to setting good expectations about investing is focusing on average returns. We financial planners are the biggest abusers of this. No one get's average returns. By focusing on them, we set unrealistic expectations on what the experience will actually be.Look at the returns of the S&P 500 stock index over the last 15 years. How often did it hit it's average return?  In this episode I discuss this and how to develop a better understanding of what to expect (and not expect) from your investment assets. Plan Well     How to Live an Intentional Life with Kary OberbrunnerKary Oberbrunner is like you or I. He went to school, got a job, got married and lived a normal life, until something happened inside him. His soul ignited. Today, he is living a more intentional life and is on a mission to help you ignite your soul and do the same.Kary's message really resonates with me. Much of my life, I was blind to the choices I had. I felt imprisoned by my past decisions. I think many of us feel this way. We're not. Our prison is in our mind. If we break free from our past self, we can create the life we desire.Kary and I discuss:The roadmap from Day Job to Dream JobHow to get unstuck from your past stuck selfHow day jobs are killing peopleWhy it's so hard to leave a day jobHow to go from prison, to plan, to payoffHow to design your storyWhy it's important to go through your own hero's journeyHow to change your life in a half hour a dayDream Job Boot Camp Take the assessment and let's compare results on twitter Tweet to @roger_whitney

You don't like to lose money. Nobody does. That's one reason it is so hard to stick to a long-term investment plan when we feel like we're getting punched in the face by the markets. Just like a boxer, it's natural to want step back and protect ourselves. This natural reaction, however, has caused most investors to underperform the very assets they invest in.  In this episode, I discuss 7 steps to help you fight through a normal market correction. Invest Wisely: 7 Steps to Fighting Through a Market Correction A 2014 Dalbar Study once again showed that average investors drastically underperform the very assets they invest in. Over the last 10 years the average investors, investing in a mix of stocks and bonds, had an average annual return of 2.6%. Over that same period, the S&P 500 had an average return of 7.4% and fixed income averaged 4.6%.One of the biggest contributors to this is our natural reaction to run from pain.  It's a strong instinct that I struggle with during every market downturn.In this episode, I introduce 7 steps you can take to help fight through a market correction so you can invest wisely for retirement.STOP listening to financial media and market "experts." They only magnify your fearLearn the nature of the markets you invest in. Develop a clear understanding of how they workDetermine your appetite and need for market risk. How much volatility can you stomach? How much market risk do you need to achieve your goals?Set a portfolio allocation that fits your needs.Rebalance it religiously to manage your risk and potential return goalsMaintain enough cash reserves. This will help your long-term assets be focused on long-term objectivesRevisit steps 1 thru 7 religiously to adjust as your life unfold.Not sure how?  Find someone to help.Investing wisely is easy to understand.  The hard part is sticking to a well thought out plan when you get punched in the face by a market correction. Plan Well: Budgets That Work With Jim Munchbach Recently I had the pleasure of talking with Jim Munchbach from imakeyourmoneycount.com about how to find a budget that works for you. Jim is a Certified Financial Planner, State Farm agent and instructor of Introduction to Personal Finance at the University of Houston.Here are some of the topics we cover:Why it's important to track your spendingFinding the truth about your financial behaviorA budget that works, if you hate to budgetHow a budget helps you create free cash flow in order to saveThe value in learning to track your spendingIt's not the tool that is important, its the goalHow to manager your cash flow like a businessThe law of spending and savingRetirement Toolbox:  Retirement Planning Worksheet This worksheet may help you determine if your current retirement savings effort is on course or if you need to chart a new direction to help reach the retirement destination that you desire. To help you, I’ve added a new worksheet to the Retirement Toolbox titled Retirement Planning Worksheet. Click Here to Access 

It's natural to fear a market correction. Losing money (even if on paper) sucks. News reports, act as if market corrections are bad.  That's not true. The economy and the markets don't function well without corrections.   Just as there are benefits to a forest fire, a market correction is an essential element of a strong economy and market. Invest Wisely  4 Benefits of a Forest Fire and Market Correction Are we headed for a market correction? Last week the S&P 500 was down 3.4%. It's been over 34 months since we've had a correction in the S&P 500 of over 10%. Normally we experience one every 18 months. I've always likened market corrections to forest fires. Both cause some short term pain but are essential to the long-term health of the forest (or market).  I've used this analogy for years. Sure enough, if you read the Benefits of Fire from the California Department of Forestry and Fire Protection, the 4 benefits of forest fires parallel to the benefits of a market correction.In this podcast I explore these 4 benefits of forest fires and market corrections:Cleans the Forest Floor "Fire clears the weaker trees and debris and returns health to the forest"Provides for More Habitat "When fire removes a thick stand of shrubs, the water supply is increased. With fewer plants absorbing water, streams are fuller, benefiting other types of plants and animals."Kills Disease "Fire kills diseases and insects that prey on trees and provides valuable nutrients that enrich the soil. Fire kills pests and keeps the forest healthy."Provide Room for New Generations  "Without fire, these trees and plants would eventually succumb to old age with no new generations to carry on their legacy."Plan Well   Kim Blanton From the Center for Retirement Research at Boston College Recently I had the pleasure of talking about the retirement landscape with Kim Blanton. Kim works with the Center for Retirement Research at Boston College and writes their Squared Away Blog. Her Blog is about financial fehavior as it relates to working, saving and retiring. Kim and I discuss the changing landscape of retirement and how we can plan for it.How retirement is changingThe impacts of being responsible for your own retirement savingsMore than half of Americans are on track to have their standard of living decrease during retirementThe benefits of working longerThe benefits of taking Social Security laterRetirement: a Good State of MindThe danger of consumerism during retirementStark Differences in U.S. Cost of LivingHow to better plan for retirementRetirement Toolbox: Retiring to a Different State If your family is considering retiring to a different state, there are some important planning items to consider. To help you, I’ve added a new worksheet to the Retirement Toolbox titled Retiring to a Different State.  www.rogerwhitney.com 

Medicare eligibility starts at at 65. If you're blessed to be able leave your career earlier, you'll need to evaluate your healthcare options until then. This week I talk with health insurance guru, Misty Kimbrough about your healthcare options before age 65. Invest Wisely     3 things you can do to ignore the voices in your head I'm starting to hear voices in my head. Maybe you are too. They're asking "Should I move to the sidelines? Should I wait to invest?"  Certainly we've heard these voices on our beloved financial media outlets. Over the last 3 weeks or so, equity markets have had some big down days and it's making people nervous.Don't base your investment strategy off of intuition, regardless of how well reasoned you think it is. The fact is professional investors struggle with timing markets. Even those that have great "market calls" can't do it consistently enough to be of much use to you or I.Stop chasing rainbows. Turn off all financial that peddles predictions, forecasts, etc. Don't fall for the siren sound of predicting the future. It's hard to tune out. We all want certainty. We crave it. It's uncomfortable to sit with not knowing. You must though if you are going to focus on the things you can controlRevisit your cash reserves. Having enough cash so your long-term investments can be long-term. Selling at the wrong time because you need the money can be a disastrous to your portfolio.. Initially target 3 months lifestyle expenses and increase it if your income is less certain. For retirees, we target 18 months of expected lifestyle expenses.Rebalance your portfolio. If you haven't rebalanced your portfolio to your target risk/return profile, do it. Part of investing wisely is consistently rebalancing to your targeted risk/return profile.Plan Well     Health Insurance Options Before Age 65 This week I talk again with Misty Kimbrough from Red Apple Insurance. She and I discuss the insurance landscape if you've been blessed to retire early. We discuss:How COBRA coverage worksInsurance options before you're eligible for MedicareIndividual insurance plans (Bronze, Silver & Gold)How to structure your individual policyShould you go on your spouse's planInsurance add on options.Retirement Answers     How Do I Choose Long Term Care Insurance This week I added a 2 page fact sheet to give you the basics on long term care insurance. You can access it for free by clicking the cool button below 

If you're planning on living a long life, make investing in your health a priority. USA Today recently reported that the top retirement concern for people over age 50 is healthcare costs. Growing older and being unhealthy can be financially disastrous. It just makes sense, to take a proactive approach to investing in your health. INVEST WISELY: 5 Steps to a Healthier Life with Corbin Links Corbin Links not only talks the talk, he has walked the walk. His 12 year journey to living a healthy lifestyle included tons of research on nutrition, slowly creating healthier habits that helped him lose over 80 lbs. Today, his is a walking encyclopedia of health and nutrition.In this episode we explore his 5 steps to living a healthier life. We discuss:How to approach your journey to living healthierWhy it's important to get out in front of your health issuesHow to simply evaluate your current health condition (beyond physical fitness)The value of making small incremental changesHis 5 steps to living healthier today (and the science behind it) Mineralized waterGreen juiceSleepProbiaticsMagnesiumHow to learn more: Corbin's PodcastHis book Up Your Health GamePLAN WELL:   How does working affect Social Security Survivor Benefits? Last week I a listener e-mailed me this question. Here are the facts about Social Security Survivor Benefits that we discuss in this episodeThe Social Security Administration's resource on the topicIf you are under Full Retirement Age (FRA) and receive a survivor benefit it can be reduced based on the income you earn. Here is the current tableOnce you reach FRA, your survivor benefit will not be reducedA spouse survivor can receive 100% of the worker's benefit at Full Retirement Age (FRA)If you are 60 or over but under FRA, you'll receive between 77-99% of the benefitA surviving spouse of any age with children 16 or under can receive 75% of the worker's benefitQuestion: What steps are you taking to invest in your health? Tweet to @roger_whitney

Are you in a career that matches your God given talents? Most of us are in careers that we were trained to do. Not careers that centered on our talents.  After college, we start work and our careers generally progress on their own, without much intentional direction from us. If you're in your 50's and this fits you, it's not too late to begin to pivot you're career towards something you have natural talents for. In this episode, Career Pivot's Marc Miller, outlines how to start your pivot. INVEST WISELY: Things to Consider Before You Buy Alibaba Interesting. Over the last few days I've heard more people talking about the blockbuster Alibaba IPO than the new iPhone 6. As a result, I've gotten more than a few inquiries asking whether Alibaba is worth buying. Now, I would not dare to recommend the purchase of any investment on this blog. That would be silly. I know nothing about you or your situation. In fact, please RUN from any site that makes such recommendations.If you are considering buying Alibaba stock, ask (and answer) yourself these questions:Are you gambling or investings?If you're gambling, treat it as such and make sure you are only using excess funds that you can afford and are willing to lose.If you say you are investing, then do your homework and evaluate for yourself: Is Alibaba a well run company?Is it profitable?What is the competitive environment?What is the regulatory environment?Does Alibaba have a solid balance sheet (that can survive growing pains)?Are you paying a discount, premium or fair value for the projected growth?What is your exit strategy?How does this help you Retire Well? PLAN WELL:   Doing What You Love: A Conversation with Marc Miller from careerpivot.comMarc and I discuss:The origins of the “retirement” concept and why it’s outdatedHow Baby Boomer’s view of themselves is changing the concept of retirementThe importance of having a purpose during retirementHow the social contract has changed between employers and employeesHow to pivot your career even in if you’re in your 50’sThe difference between skills and talentsHow to make the transition from doing what you’re trained for to doing what you loveThe importance of relationships in your career pivotThe value of simplifying your life as you pivotYou can connect with Marc at careerpivot.com Question: If you're in your 50's, do you plan to work during retirement? Let me know on Twitter Tweet to @roger_whitney

Wouldn't it be great to learn about retirement from those that have retired successfully? Here's your chance.  Today at FinCon, the national conference for money media, moneytips.com is releasing the book, The Retiree Next Door. The best part is you can get it for free.Over the last year, the folks at moneytips.com conducted a survey of over 500 successful retirees. Their objective: to identify clear traits and strategies they used to do so. Recently, I spoke with Moneytips.com's Michael Dubrow about the project and some of the lessons learn for those working towards retirement. Take a listen and learn: Where you can get your free bookHow to use the research to plan well for your retirementHow the research was conductedWhat the biggest surprises wereHow you have more control over your retirement then you may thinkThe wisdom learned from those surveyed These projects are great because they help us learn from those that have walked before us. No theory here, just practical incites into the Retiree Next Door. 

Have you ever felt distant from your wife? I sure have. In my 23 years of marriage, there were times my wife and I drifted apart. It's easy to do. Work, kids, hobbies, etc. can cause a man and wife to drift apart. We eventually learned we needed to be intentional about nurturing our marriage. Plan Well:  Invest in Your Marriage In this week's episode Jackie and I discuss how married men can become the leaders they want to be.Jackie helps husbands and fathers learn how to lead and love their families so they can have lasting, fulfilling marriages and meaningful influence on their kids.How to be the leader you want to beHusband as a servant leaderThe G.E.T. strategy: Give, Encourage, TeachHow to control your inner voiceThe importance of having a date night with your wifeThe top ten dates to improve communicationHow to have date nights that fit your time and budgetLessons he learned from his parents 50 year marriageWhy you need to know the  7 Rings of MarriageWant to be a better husband and father? Check out Jackie's great resources: His blog at jackiebledsoe.comDate Night in a BoxThe 7 Rings of MarriageInvest Wisely: Should I Worry About Big Bad Events? The recent anniversary of the 9/11 terrorist attack reminds us that big bad events can happen in the world. There always seems to be some catastrophic event "just around the corner":Russian and the UkraineISISSyriaTerrorist threatsChinaShould you worry about these as you invest for your future? It sure seems so. This week, I take a look at how markets have acted after some of the biggest "big bad events" over the last 75 years. It's easy to act emotionally with investing.  Our emotions drive most decisions. If you are going to Invest Wisely for your future, it's important you focus on facts and process. This will help you make smarter financial decisionsHere's a table to give you some perspective: 

Taxes suck. They erode away your income, savings and investments. One strategy to maximize your retirement savings is to convert your IRA to a ROTH IRA. ROTH IRAs are a powerful tool to help you do this but there are lots tax and planning issues to consider first.That's why I turned to Ed Slott, America's IRA expert. He is a nationally recognized IRA-distribution expert, a professional speaker, and the creator of several public television specials, including the most recent, Ed Slott’s Retirement Rescue! Investing Corner--The Importance of Dividends When most people thing of making money in equities, they think of buying low and selling high. That's a great strategy, but it's only part of the story. This week I explore the importance dividends can have in any investment portfolio.I discuss these 5 reasons dividend can be a benefit to any portfolio:   How dividends have comprised over 50% of the total return of the S&P 500 indexThe favorable tax treatment dividends can receiveHow dividends can be a good hedge against inflationWhy dividends can help you control risk in your portfolioWhat are the attributes of most companies that pay dividendsRetirement Tip of the Week During my conversation with Ed Slott, we cover: Best places to save for retirementThe benefit of contributing to a ROTH IRAEd's "Forever Tax to Never Tax" strategy using a ROTH IRAThe importance of understanding the ROTH IRA conversion rulesWhen it doesn't make sense to use a ROTH IRAHow to use ROTH IRAs as an estate planning vehicleThe types of people that should consider converting to a ROTH IRAThe order to draw from your taxable, IRA & ROTH IRA accounts during retirementThe benefits of drawing from your IRA in order to delay Social Security during retirementBiggest mistakes people make with IRAsHave you considered converting to a ROTH IRA?  If you have a question, ask me at rogerwhitney.com

Stressed about planning for retirement??? Your not alone, most of use (including me) freak out when we look at what it could take to provide for our family in retirement. Don't believe all the statistics, you can take control. Investing Corner Listener Question Wayne AsksMy question is are there hidden risks doing my diversifying on top of diversity that I do not realize, other than my time for managing, and the loss of opportunity of my conservative and explore portfolio $s?Wayne has multiple portfolios, each with it's own allocationLarge aggressive portfolioSmall moderately conservative portfolioExplore portfolio (where he invests based on his economic views)Hidden risks might include:You are 55, and close to the danger zone. A time 5 years before and after retirement when big investing mistakes can have the most impact on your retirement. The retirement danger zone is a time to focus on consistent investment returns.Not having a consistent risk profile of your investments based on what you are trying to accomplishNot having a process for evaluating the value, performance of each bucket. (no bonus points for complicated investments)Chasing returns or safety at the cost of focusing on your lifestyle goals for retirementRetirment Planning Stress: How to take control No Wonder We're Stressed: 60% of all works have less than 25k saving for retirement (USA Today)Only 22% of workers have over 100k saved for retirementOnly 28% of current retirees have over 100k in savings and investments4 Strategies for Beating Retirement Planning Stress: Forgive yourself--We've all made financial mistakes. Stop with the coulda/woulda/shoulda's and own where you are now and focus on the future.Don’t stick your head in the sand--Don't get discouraged by the statistics about retirement. Regardless of your financial situation, you CAN make progress.Take control of your financial decisionsThink creatively about your futurerogerwhitney.com