Retire With Style

The Retirement Income Challenge is a four-day event that helps individuals create a retirement income plan. Day one focuses on the Retirement Income Style Assessment (RISA), which analyzes two factors: probability-based safety first and optionality versus commitment. Day two introduces the funded ratio, a balance sheet approach to financial planning that compares assets to liabilities. The funded ratio helps individuals understand if they have enough assets to meet their retirement goals. Day three explores how the RISA and funded ratio work together to fill income gaps and create a comprehensive retirement income plan. The conversation covers the Retirement Income Style Awareness (RISA) framework and the Retirement Income Challenge. The hosts discuss the importance of reliable income to cover essential expenses in retirement and the role of the RISA framework in providing alternatives to fill income gaps. They emphasize that shooting for 100% on the RISS percentages is not necessary and that it's important to have reliable income covering essential expenses. They also mention the non-financial aspects of retirement and the importance of planning for what you want to do in retirement. The hosts highlight the interactive nature of the Retirement Income Challenge and the value it provides in helping individuals gain clarity and confidence in their financial plan for retirement. Listen now to learn more!   Takeaways The Retirement Income Challenge helps individuals create a retirement income plan The Retirement Income Style Assessment (RISA) analyzes two factors: probability-based safety first and optionality versus commitment The funded ratio is a balance sheet approach that compares assets to liabilities to determine if individuals have enough assets to meet their retirement goals The RISA and funded ratio work together to fill income gaps and create a comprehensive retirement income plan The RISS framework provides alternatives to fill income gaps in retirement and ensures reliable income covers essential expenses. Shooting for 100% on the RISS percentages is not necessary; it's important to have reliable income covering essential expenses. Planning for the non-financial aspects of retirement, such as what you want to do, is crucial. The Retirement Income Challenge is an interactive session that helps individuals gain clarity and confidence in their financial plan for retirement. Chapters 00:00 Introduction to the Retirement Income Challenge 09:57 Day One: The Retirement Income Style Assessment (RISA) 11:33 Day Two: The Funded Ratio 23:37 Day Three: Integrating the RISA and Funded Ratio 25:33 The Role of the RISA Framework in Retirement Planning 28:40 Shooting for 100% on the Funded Ratio: Is It Necessary? 30:55 Planning for the Non-Financial Aspects of Retirement 39:25 The Value of the Retirement Income Challenge   Links Registration for the next Retirement Income Challenge is OPEN: Learn more and join us for this LIVE 4-Day event starting on August 26th-29th, 2024 from 12:00 -2:00 PM ET each day by visiting risaprofile.com/podcast The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/  This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

In this episode, Alex, Wade, and Jason discuss what to expect in retirement. They cover several major lifestyle changes that occur during retirement, including the loss of work identity, increases in unstructured time, changes in social connections, shifts in physical health, adjustments in daily routines, and the need for financial planning. They provide insights on both the positive and negative aspects of these changes and offer suggestions on how to navigate them. In this conversation, the hosts discuss the importance of structure and routines in retirement. They highlight the difference between structuring time and developing routines, emphasizing the need for both to maintain a sense of purpose and productivity. They also explore the challenges of spending more time with a spouse or partner in retirement and the importance of communication and finding a balance between shared activities and individual interests. The hosts also touch on the impact of social connections and the need to build new networks outside of work. Lastly, they discuss the health and aging process in retirement, emphasizing the importance of managing physical and mental health and avoiding negative feedback loops.   Takeaways Retirement involves major lifestyle changes that can have both positive and negative impacts. Losing work identity and a sense of purpose can be challenging, but it also presents an opportunity to create a new identity based on personal interests and passions. Having unstructured time in retirement can lead to boredom and unhealthy habits, so it's important to establish a new routine and pursue meaningful activities. Maintaining social connections and building new relationships is crucial for overall well-being in retirement. Physical health may change in retirement, and it's important to prioritize self-care and engage in regular exercise. Adjusting daily routines and finding a balance between relaxation and productivity is key to enjoying retirement. Financial planning is essential to ensure a secure and comfortable retirement. Each individual's retirement experience is unique, and the impact of these lifestyle changes will vary. Retirement is an exciting opportunity for personal growth and exploration. Structure and routines are essential in retirement to maintain a sense of purpose and productivity. Spending more time with a spouse or partner in retirement requires communication and finding a balance between shared activities and individual interests. Building new social connections outside of work is important to combat social isolation in retirement. Managing physical and mental health is crucial in retirement, and avoiding negative feedback loops is key. Creating a financial plan that addresses retirement income style and funded ratio is essential for a successful retirement. Chapters 00:00 Introduction and Overview 02:03 Chapter 1: Navigating the Loss of Work Identity in Retirement 11:39 Chapter 2: Managing Unstructured Time in Retirement 15:10 Chapter 3: Maintaining Social Connections in Retirement 18:13 Chapter 5: Adjusting Daily Routines in Retirement 20:47 Chapter 6: The Importance of Financial Planning in Retirement 26:38 Building New Social Connections in Retirement 32:58 Managing Health and Aging in Retirement 39:59 Creating a Financial Plan for Retirement   Links Registration for the next Retirement Income Challenge is OPEN: Learn more and join us for this LIVE 4-Day event starting on August 26th-29th, 2024 from 12:00 -2:00 PM ET each day by visiting risaprofile.com/podcast The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/  This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”

In this episode, Wade, Alex, and Jason discuss the meaning of retirement and the factors to consider when deciding on a retirement date. They explore the idea that retirement is not just about leisure activities like golfing, but also about personal goals and relationships. They also touch on the possibility of working in retirement and the importance of financial independence. The conversation highlights the need for careful planning and consideration of health, financial, and personal factors when determining the timing of retirement. In this conversation, the hosts discuss the different factors that can influence retirement decisions, such as health, career changes, and financial stability. They emphasize the importance of asking the right questions and setting goals to create a comprehensive retirement plan. The hosts also mention the upcoming retirement income challenge, where participants can learn more about retirement planning. They end the conversation by teasing the next episode, which will focus on the changes that occur in retirement. Listen now to learn more!   Takeaways Retirement is whatever you decide it to be, and it can look different for everyone. Working in retirement or pursuing new ventures after retiring from a career is becoming more common. Retirement should not be solely focused on leisure activities, but also on personal goals and relationships. Financial independence is a key driver of retirement, as it provides the flexibility to do what you want. The timing of retirement should be carefully considered, taking into account health, financial, and personal factors. Retirement plans may need to be adjusted if health issues or unexpected circumstances arise. Retirement is a transition that requires planning and preparation to ensure a smooth and fulfilling experience. Retirement decisions can be influenced by factors such as health, career changes, and financial stability. Asking the right questions and setting goals is crucial for creating a comprehensive retirement plan. Investing in relationships and health is important for a fulfilling retirement. The retirement income challenge is a valuable resource for learning more about retirement planning. The next episode will explore the changes that occur in retirement. Chapters 00:00 Introduction and Small Talk 03:45 Working in Retirement 06:47 Beyond Leisure: Personal Goals and Relationships 09:38 The Importance of Financial Independence 12:25 Timing Retirement: Health, Financial, and Personal Factors 20:31 Adjusting Retirement Plans for Unexpected Circumstances 22:35 Retirement as a Transition: Planning for a Fulfilling Experience 25:15 Asking the Right Questions for Retirement Planning 28:01 Investing in Relationships and Health for a Fulfilling Retirement 37:40 Join the Retirement Income Challenge 41:21 Next Episode: Changes in Retirement   Links The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/  This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”

In this episode, Wade and Alex discuss the evolution of messaging in the financial advisory industry and the importance of retirement income planning. They highlight the transition from brokers to investment managers to wealth managers and the shift from accumulation to decumulation. They emphasize the need for comprehensive financial planning that considers both the asset and liability sides of the balance sheet. They also discuss the challenges of retirement income planning, including longevity and liquidity risks, and the importance of addressing these risks in a client's financial plan. In this conversation, Wade Pfau and Alex Murguia discuss the signs of a retirement income advisor who is knowledgeable and focused on the specific needs of retirees. They highlight the importance of advisors addressing concerns and risks faced in retirement, such as sequence risk and longevity risk. They emphasize the need for advisors to have a well-thought-out approach to retirement income planning beyond just investment diversification. They also discuss the significance of advisors having specialized retirement income certifications, such as the RICP or RMA designations. Additionally, they stress the importance of advisors having a clear and specific messaging that resonates with retirees and solves their unique retirement income needs.   Takeaways The financial advisory industry has evolved from brokers to investment managers to wealth managers, reflecting a shift from transaction facilitation to comprehensive financial planning. Retirement income planning is a distinct field within financial services that focuses on managing assets to meet liabilities in retirement. Comprehensive financial planning considers both the asset and liability sides of the balance sheet, taking into account the goals and risks of retirement. Retirement income planning addresses challenges such as longevity risk and liquidity risk, ensuring that clients have sufficient resources to meet their expenses and unexpected spending shocks in retirement. A knowledgeable retirement income advisor will address concerns and risks faced in retirement, such as sequence risk and longevity risk. Advisors should have a well-thought-out approach to retirement income planning beyond just investment diversification. Specialized retirement income certifications, such as the RICP or RMA designations, can be a good indicator of an advisor's expertise in retirement income planning. Advisors should have clear and specific messaging that resonates with retirees and solves their unique retirement income needs. Chapters 00:00 Introduction and Acknowledgments 02:51 The Shift from Accumulation to Decumulation 06:12 Comprehensive Financial Planning: Managing Assets and Liabilities 10:13 Addressing Longevity and Liquidity Risks in Retirement 22:08 Signs of a Knowledgeable Retirement Income Advisor 24:12 Beyond Investment Diversification: A Comprehensive Approach to Retirement Income Planning 27:19 The Importance of Retirement Income Certifications 31:23 Clear and Specific Messaging: Key to Effective Retirement Income Planning   Links Join Alex and Wade for our workshop "Elevate Your Practice: Workshop on Marketing Mastery for Retirement Income Advisors" to discover how to better market yourself as a retirement income advisor so you can stand out, attract prospects, and turn them into loyal clients. Register to attend LIVE on August 6th or 7th at www.risaprofile.com/marketingworkshop The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/  This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

In this conversation, Bob French and Rob Cordeau discuss ESG (Environmental, Social, and Governance) investing and its growing popularity. They explore the different ways investors can align their portfolios with their personal values and beliefs. They also address common misconceptions about ESG investing, such as it being solely for liberal investors. The conversation highlights the importance of understanding the impact and potential trade-offs of ESG investing, including the potential for lower expected returns. They discuss different approaches to implementing ESG investing, including using funds and ETFs, separately managed accounts, or donating the difference in returns to charities. The conversation concludes with advice on how to approach the decision of whether ESG investing is right for an individual.   Takeaways ESG investing allows investors to align their portfolios with their personal values and beliefs. ESG investing can involve adding or subtracting certain stocks, industries, or sectors based on values and beliefs. ESG investing may result in a slightly lower expected return compared to a globally diversified market portfolio. Investors should carefully consider the impact and potential trade-offs of ESG investing before making a decision. Different implementation options for ESG investing include using funds and ETFs, separately managed accounts, or donating the difference in returns to charities. Chapters 00:00 Introduction and Setting the Stage 07:37 Implementing ESG Investing: Adding or Subtracting 09:41 The Impact and Trade-Offs of ESG Investing 14:04 ESG Investing: Not a Boycott or Punishment 20:01 ESG Investing and Portfolio Performance 26:58 Implementation Options: Funds, SMAs, and Donations 39:37 Making the Decision: Is ESG Investing Right for You? 41:50 Conclusion and Final Thoughts   Links The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/  This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”

In this conversation, Wade Pfau, Alex Murguia, and James Matthews discuss retirement income and the Retirement Income Style Awareness (RISA) framework. James shares his background in the retirement income space and his realization that traditional retirement planning advice was lacking. The conversation touches on the limited investment options in 401(k) plans and the need for a holistic view of retirement income. They also discuss the importance of risk management and the gaps in the current financial planning curriculum. Overall, the conversation highlights the need for a more comprehensive approach to retirement income planning. The conversation explores the need for a strategic approach to retirement income planning and the limitations of traditional retirement income paradigms. It emphasizes the importance of maximizing living standards in retirement and the need for open-mindedness in exploring different methodologies. The conversation also discusses the role of the Retirement Income Certified Professional (RICP) designation in addressing the gap in retirement income planning education. It highlights the shift towards a more client-focused and personalized approach to retirement planning and the potential applications of the RISA framework in other retirement decisions. The conversation concludes with a discussion on the importance of finding an advisor who embraces an open-minded and client-centric approach.   Takeaways Traditional retirement planning advice often lacks a comprehensive approach to retirement income planning. 401(k) plans typically offer limited investment options and lack clear mechanisms for converting assets into retirement income. The Retirement Income Style Awareness (RISA) framework provides a more holistic view of retirement income planning. Risk management is an important aspect of retirement income planning that is often overlooked. There is a need for improvements in the financial planning curriculum to better address retirement income planning. Retirement income planning requires a strategic approach beyond traditional paradigms. Maximizing living standards in retirement should be the primary goal. The RICP designation addresses the gap in retirement income planning education. A client-focused and personalized approach is crucial in retirement planning. The RISA framework can be applied to other retirement decisions. Finding an advisor who embraces an open-minded and client-centric approach is essential. Chapters 00:00 Introduction and Background 09:59 The Retirement Income Style Awareness (RISA) Framework 23:21 The Importance of Retirement Income in ERISA 30:40 Applying the RISA Framework to Other Retirement Decisions 37:05 The Importance of Finding an Advisor with an Open-Minded Approach   Links Join the Retirement Researcher team for "Travel in Retirement: New Options and Opportunities," with Dan Veto, CSA, to learn how travelling in retirement is different from the vacations you took while you were working - and how you can make the most of these differences. Register to attend LIVE on 7/23/24 at 1:00 PM ET by visiting risaprofile.com/podcast. The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

In this episode, Wade and Alex answer listener questions about portfolio allocation in retirement. They discuss the impact of low yields on TIPS and how it affects a retiree's portfolio. They also explore the optimal allocation of assets in taxable, tax-deferred, and tax-avoided accounts. Additionally, they address the role of annuities in retirement income and how they can replace the bond portion of a portfolio. They emphasize the importance of tax diversification and asset location. Finally, they provide insights on investing in stocks and the different factors to consider, such as value, small-cap, and REITs.   Takeaways Low yields on TIPS impact a retiree's portfolio and may require a reassessment of risk and allocation. Tax diversification is important, but the exact percentages in each type of account are not as crucial as asset allocation and asset location. Annuities can play a significant role in retirement income by providing protected lifetime income and reducing reliance on other investments. When investing in stocks, it is important to capture market risk and consider factors such as value, small-cap, and REITs. Growth indices may not necessarily provide a premium over value stocks in the long term. Chapters 00:00 Introduction and Small Talk 02:45 Navigating Low Yields and Portfolio Allocation in Retirement 09:15 Optimal Allocation of Assets in Taxable, Tax-Deferred, and Tax-Avoided Accounts 25:58 The Importance of Tax Diversification and Asset Location 26:41 Investing in Stocks: Capturing Market Risk and Considering Factors   Links The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/  This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

In this episode, Alex, Wade and Rob answer listener questions about retirement planning. They discuss topics such as asset allocation, selling RSUs, managing sequencing risk, and when to claim Social Security. They provide insights on diversification, tax implications, and the importance of considering both sequence risk and concentration risk. They also suggest strategies like creating a bond ladder and using IRA distributions to bridge the income gap. The episode ends with a plan to continue answering more listener questions in the next episode. Listen now to learn more!   Takeaways Consider the risks and benefits of holding concentrated positions, such as RSUs, in your portfolio Evaluate the tax implications of selling RSUs and consider the potential benefits of diversification Use Social Security claiming software to determine the optimal claiming strategy for both spouses Explore strategies like bond ladders and IRA distributions to bridge income gaps in retirement Balance the preservation of principal with the need for growth and income in your retirement portfolio Chapters 00:00 Introduction and Q&A Format 05:42 Managing Concentrated Positions and Sequencing Risk 27:43 Creating a Bond Ladder to Bridge Income Gaps 29:54 Using IRA Distributions to Manage Tax Liability 35:23 Balancing Preservation of Principal with Growth and Income   Links The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/  This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”

In this conversation, Alex Murguia and Wade Pfau discuss various topics related to retirement planning, including glide paths, asset allocation, index funds, and tax planning. They address questions about implementing a rising equity glide path, asset allocation across different types of accounts, the performance of index funds, and the availability of withdrawal strategy software for retirees. They also touch on the topic of Medicare and HSA contributions. Overall, the conversation provides valuable insights into retirement planning strategies and considerations.   Takeaways Implementing a glide path for retirement asset allocation depends on individual circumstances and goals, and there is no one-size-fits-all approach. When considering asset allocation across different types of accounts, it is generally recommended to place tax-efficient assets in taxable accounts and tax-inefficient assets in tax-deferred accounts. Index funds generally reflect the performance of the stocks in the index they follow, and their daily performance is based on the weighted average of the proportion of each stock in the index. Withdrawal strategy software packages for retirees are primarily available to investment advisors and may not be easily accessible to individual consumers. Individuals who work for employers with more than 20 employees can delay applying for Medicare after age 65 to continue contributing to their HSA accounts, but it is important to consult with HR and understand the implications of signing up for Medicare. Chapters 00:00 Episode 131 Starts 01:29 Asset Allocation and Glide Paths in Retirement 04:07 Understanding Index Fund Performance 07:10 The Drawbacks of Equal-Weighted Indices 10:47 Tax-Efficient Asset Location 21:46 Limitations of Withdrawal Strategy Software 28:00 Managing Medicare and HSA Contributions 32:33 The Value of Professional Advice in Retirement Planning   Links The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/  This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”

In this conversation, Alex and Bob discuss the impact of the election on the stock market and retirement planning. They emphasize the importance of looking at historical data and not getting caught up in the rhetoric and uncertainty of the election cycle. They also highlight the recency effect and how campaigns are information machines that can influence market movements. They discuss the complexity of interpreting campaign statements and the countervailing effects they can have. They also mention the upcoming webinar where they will dive deeper into the numbers and provide more insights. The conversation explores the relationship between presidential elections and the stock market. The hosts discuss whether there is a correlation between the political party in power and stock market performance. They also touch on other factors such as the height and handedness of presidents and their impact on the stock market. The hosts emphasize the importance of taking a long-term view when it comes to investing and retirement planning, rather than trying to time the market based on election cycles.   Takeaways Look at historical data and avoid getting caught up in the rhetoric and uncertainty of the election cycle. Campaigns are information machines that can influence market movements. Interpreting campaign statements and their impact on the market is complex and uncertain. Consider the countervailing effects of policy proposals and how they may impact the economy and stock market. Join the upcoming webinar for a deeper dive into the numbers and insights. There is no clear correlation between the political party in power and stock market performance. Other factors such as height and handedness of presidents also do not have a significant impact on the stock market. Taking a long-term view and focusing on retirement planning is more important than trying to time the market based on election cycles. Understanding historical context and having a framework for interpreting market events can help investors make informed decisions.   Chapters 00:00 Introduction and Setting the Stage 00:29 Discussion on the Election and Stock Market 05:08 The Recency Effect and Campaign Season 07:20 Interpreting Market Movements After an Election 08:46 The Challenge of Timing the Market Based on Current Expectations 09:15 The Difficulty of Predicting Market Reactions to Campaign Statements 13:14 The Volatility of Campaign Season and Uncertainty 15:12 Considering the Impact of Policy Proposals 22:38 Upcoming Webinar and Deeper Dive into the Numbers 25:30 The Impact of Presidential Elections on the Stock Market 33:51 The Relationship Between Election Years and Market Volatility 37:25 Long-Term Investing and Retirement Planning 41:16 Understanding Historical Context and Interpreting Market Events Links Register now to attend the next webinar with Retirement Researcher, “The Election and The Stock Market: Understanding the Effects on Your Investments” on 6/25/24 at 1PM ET hosted by Bob French. Visit risaprofile.com/podcast to reserve your spot! The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/    This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips