Retirement Answer Man

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

Setting retirement goals can be a big waste of time. In my 23 years of advising individuals and families, I've rarely found someone that had clear retirement goals.  Guess what?  They were still able to live a great life and retire comfortably.In this episode I'll explore the problems with setting retirement goals and offer a better way to plan. Retirement Tip of the Week How to Prepare for the Unthinkable: a House FireRecently someone close to me went out for a movie and returned to find their home burnt to the ground. They lost everything, including their dog.  In a few short hours they had no home, no clothes, no furniture, no family photos, no records, no nothing.This is the type of thing that can never happen to us, right? It's the type of thing that happens to "other" people. Think again.Here are some simple tips to help you prepare for this unthinkable crisis. Complete a Video Inventory Work room to roomNarrate, describing items (brands, models, amounts)Specifically document valuables (jewelry and artwork)Don't forget the garageKeep copy of video outside the homeUpdate annuallyBack Up Important Documents Tax returnsPhotosContractsEstate planFinancial informationKeep back up offsite (loved one's safe or safe deposit box)Update AnnuallyUnderstand Your Home Fire Coverage Full replacement cost coverageMarket value coveragePersonal property coverageValuables rider for expensive items such as Jewelry, etc.After the Fire contact insurance agent immediatelyAsk for advance on your claim to cover short-term costsSecure your propertyFile claim right awayKeep track of all living expenses (with receipts)Don't stop paying your homeowners insurance premiumDon't close your claim out too fastGet grief counselingFeature Presentation: Screw Retirement Goals, Here's a Better Way Retirement Goals. In my experience, few people set them and even fewer stick to them over the long-term. Retirement goals are something we are told we need to have so we can plan for them. Traditional planning forces them upon you and then shows you all the saving and sacrificing you'll have to do to achieve them.   No wonder nobody plans.Recently a mentor of mine, Michael Hyatt, wrote a great blog about the problem with the traditional concept of retirement (Why Retirement is a Dirty Word). I agree with him.If retirement and retirement goals are outdated concepts than how do you plan for the future?In this episode, I'll explore some of the problems with setting retirement goals and show you a more productive way to plan for the the future.I discuss:The problem with traditional retirement goal settingWhy we don't stick with retirement goalsHow you might be limiting your futureHow you might be limiting your current lifeThe importance of prioritiesHow to turn your financial priorities into actionsHow to negotiate with yourselfHow to live a more balanced lifeQUESTION:  Do you have retirement goals?  If so, are they meaningful?  If not, Why? Let me know via Twitter Tweet to @roger_whitney

If you chose to invest in real estate as part of your retirement plan, you better understand what you're signing up for.  Most "educational" classes, workshops etc. focus on all the benefits of real estate and gloss over the realities of doing it. Buying, owning and operating rental properties is hard work.  This week, I talk with Philip Wetzel about the real work that goes into investing directly in real estate. Retirement Tip of the Week 3 lessons from Jim Collins' books Good to Great and Great By Choice that you can use to make smarter financial decisions. Two of my favorite business books are Great By Choice and Good to Great. Last week, I had the pleasure of hearing the lead author of each, Jim Collins, speak. It was awesome.  The lessons learned from his research on what made companies great can easily be applied in managing your financial life. Here are 3 that you should start using today...First who, than whatConfront the brutal facts (yet never lose faith)Fire bullets, then cannonballsFeature Presentation: What You Should Know Before Investing in Real Estate Investing in real estate can be a good thing-as long it fits your situation, you truly understand the risks and work involved and stay diversified.There are plenty of workshops, classes, seminars, infomercials systems, etc. out there to "teach" you how you should do it. Unfortunately, they are typically strong on the benefits and light on all the work needed to position yourself for success.  In this episode, I start to give you the rest of the story.Some of the topics we cover are:Why you need to run it like a businessHow to do your homework before you buy your first homeWhy passive real estate investing is not really passiveThe difference between flipping house and real estate investingThe importance of having cash reservesThe advantages of being a handymanThe advantages and dangers of using leverageWhy you need to put 20% down when you buy a propertyThe importance of finding quality tenantsHow management companies work 

My financial records are a mess. Are yours?In this episode, I'll outline the framework I'm going to use to get my recording keeping in order. Could you find that important docuement if you needed to?If not, listen and we can get organized together.In the Retirement Tip of the Week, I'll give you a framework for lending money to friends or family so you can help out without ruining the relationship.

Is the stock market correction here?  In the last week of July the S&P 500 index lost 2.7%. The worst weekly loss in over two years. It didn't take long for the sensationalist headlines to pop up. Here are two of my favorites. Warning: That plunge in stocks is just the beginning MarketWatch.com 3 market warning signs predict 20% stock tumble Insight: When these indicators flash together, it’s time to sell MarketWatch.com Strategies to Help You Handle Market Corrections I'm all about investing wisely for retirement. If you are a trader, market timer, trend follower, etc. you might want to click away. For the rest of you, here are my suggestions to help you invest wisely and sleep better at night. 1. Have a Plan Sounds simple but most people don't. They invest based on intuition, emotion and trust rather than facts, process and purpose.  Your plan doesn't have to be elaborate it just needs to be clear and actionable. It should include:Goal for investment assetsInvestment timeframeRisk/reward targetTarget investment allocationRebalancing policyCommunication and evaluation schedule2. Have adequate cash reserves More than anything, this may the most practical strategy to weather market corrections. One of the biggest mistakes you can make is  to sell an investment at the wrong time because you need the money.With interest rates on savings accounts near 0%, it is tempting to put all your money "to work". Don't. Cash reserves give you the flexibility to weather uncertain times in your life as well as the markets. (in episode #17 I discuss cash reserves). Here are the basics of cash reservesEmergency fund (3 months to 2 years living expenses) + Expected expenses within the next 12 months=Less emotional decisions 3. Have at Least a 3 Year Investment Timeframe Anything under a three year time frame is speculating not investing. Investing wisely requires time. 4. Be Well Diversified Every time I say this I feel like the teacher in the Peanuts cartoons...Blah, Blah, Blah. Diversification and asset allocation help you avoid the trap of trying to pick winners and losers. They position you to participate in the economic growth of the world. That is the point of investing.  The more you try to game the system, the more likely you'll miss out (Here is a recent episode on investing mistakes).One thing you can do right now is make sure your allocation is rebalanced back to the target you should have set in the beginning. Over the last 4 years, the stock markets have done quite well. If you haven't rebalanced to your target you probably have a lot more equities than you originally intended. This could mean you have more volatility than you bargained for. Studies have shown that rebalancing your portfolio regularly helps you achieve better results. Rebalancing Feels bad, but works good. 5. Understand Market Corrections are Healthy for the Markets and Your Portfolio You've heard it said that investing is like gambling. In a sense that's true. If you invest based on intuition, emotions and the advice of the financial press, you're just one of the suckers walking into the casino. If, however, you invest based on history, research, process and prudence you are more likely to have the odds of the casino over the long-term. That is investing wisely. Retirement Tip of the Week Try it Before You Buy it You need to be very careful when you are in the Retirement Nesting stage of life. Retirement Nesting occurs during the 3 years prior to retirement and the 2 years after you retire. This is the time of retirement lifestyle dreams. AND a time when you are susceptible to marketers selling the retirement dream.The Retirement Nesting stage is a danger zone for poor financial decisions. Don't fall for the emotional urges to buy an R.V., vacation lot, condo or big toy. They can be great but you need to be certain, very certain, that it is something you will truly use. Just recently, I had to help a gentleman unload a beach condo he purchased on a whim 5 years ago. He lost over $100k on the deal (and only used once). Don't be that guy.Here are some tips to avoid the same mistake:Do LOTS of research over  a 12 month period before you buyAlways pay cash.Rent the object of your desire for the first 2 years to see how much you actually use it. It is easy to rent anything anywhere nowadays.Test drive vacation homes, R.V.s and resorts over the first 5 years of you retirement. It can be great fun and save  you from making a costly mistake.Resources Discussed A Field Guide to Market CorrectionsVacation Rentals By Owner (VRBO)Episode on the Importance of Cash ReservesCommon Investment Mistakes