Retire With Style

In this episode, Alex and Wade discuss the continuum of long-term care, focusing on the different levels of care and the importance of planning for aging in place. They explain the distinction between skilled care and custodial care, and the role of geriatric care managers and care coordinators in navigating long-term care decisions. The hosts also highlight the concept of aging in place and the modifications that can be made to homes to support this. They touch on the potential use of reverse mortgages and the importance of ensuring the safety and comfort of individuals receiving long-term care. This conversation explores various aspects of aging in place and the different options available for seniors. The importance of creating a safe and accessible living environment is emphasized, including the use of smart home technology and wheelchair accessibility. The benefits of social interaction and the potential risks of social isolation are discussed. The conversation also touches on the role of adult daycare and community centers in providing care and support for seniors. Finally, the episodes concludes with a discussion on assisted living facilities and the considerations involved in choosing the right one. Listen now to learn more!   Takeaways Understanding the continuum of long-term care is crucial for planning and making informed decisions. Skilled care refers to medical intervention, while custodial care involves assistance with daily activities. Geriatric care managers and care coordinators can provide valuable support in navigating long-term care decisions. Aging in place is a growing movement that aims to enable individuals to stay in their homes and receive in-home care. Modifications to the home, such as walk-in showers and single-floor living, can facilitate aging in place. Creating a safe and accessible living environment is crucial for aging in place. Smart home technology can enhance safety and convenience for seniors. Social interaction is important for maintaining cognitive function and overall well-being. Adult daycare and community centers can provide support and stimulation for seniors.   Chapters   00:00 Introduction to Long-Term Care Continuum 06:02 Transitioning to Different Levels of Care 09:21 Skilled Care vs Custodial Care 11:46 Geriatric Care Managers and Care Coordinators 12:44 Home Care and Aging in Place 24:05 The Importance of Aging in Place 24:47 Reducing the Risk of Falls 25:08 The Benefits of Smart Homes 26:05 Wheelchair Accessibility and Levered Handles 27:09 Good Lighting and Low Cabinets 28:08 The Importance of Social Interaction 29:06 Adult Daycare and Community Centers 29:22 Reducing Hazards to Falling 30:14 Assisted Living Facilities   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, Wade and Alex discuss the costs and prevalence of long-term care. They explore the probabilities of needing long-term care and the average lengths of care for men and women. They also differentiate between any long-term care needs and paid long-term care needs. The conversation provides insights into the importance of planning for long-term care and highlights the need for realistic expectations and budgeting. This conversation explores the financial implications of long-term care, including the distinction between unpaid and paid care. It highlights the impact of unpaid care on caregivers' lives and the need for paid care. The discussion also delves into the gender differences in long-term care needs and the higher costs associated with women. The Genworth Cost of Care Study provides insights into the average costs of various long-term care options. The conversation emphasizes the importance of considering inflation and demographic trends when planning for long-term care expenses.   Takeaways The probability of needing long-term care is higher for women than men, primarily due to their longer life expectancy. On average, men need long-term care for about 2.5 years, while women need it for about 3.6 years. About 56% of individuals will likely need to plan for long-term care in their retirement. Planning for long-term care should consider both the probability and length of care needed, as well as the potential costs involved. Unpaid care can have a significant financial and personal impact on caregivers, often disrupting their own retirement plans. Women tend to have longer long-term care needs and higher costs due to their longer life expectancy and caregiving roles. The Genworth Cost of Care Study provides estimates of the average costs of different long-term care options. Long-term care expenses are likely to grow faster than the overall inflation rate, making it important to plan for higher costs. Chapters   00:00 Introduction and Personal Updates 05:12 Probabilities and Length of Long-Term Care Needs 10:32 Probability and Length of Any Long-Term Care Event 18:59 Unpaid Care vs. Paid Care 19:37 The Financial Impact of Unpaid Care 20:23 The Cost of Paid Long-Term Care 21:11 Lower Probability of Needing Paid Care for Longer Durations 22:18 Long-Term Care Needs and Gender 23:08 The Impact of Unpaid Care on Women 24:05 Lifetime Expenditures for Long-Term Care 25:18 Inflation and Long-Term Care Expenses 26:35 Triggers for Long-Term Care Needs 28:18 Gender and Long-Term Care Planning 29:01 Genworth Cost of Care Study 31:05 Inflation Rate for Long-Term Care Expenses 32:02 The Progression of Long-Term Care Needs 33:27 State-by-State Differences in Long-Term Care Costs 38:01 Considering Alternative Care Options 39:46 The Growing Need for Long-Term Care   Links Join the waitlist for the next Retirement Income Challenge 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/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"

In this episode, Wade and Alex introduce the long-awaited arc on long-term care planning. They discuss the importance of planning for long-term care and the impact it can have on retirement. They define what a long-term care need is and explain the activities of daily living (ADLs) that determine eligibility for long-term care benefits. They also highlight the distinction between ADLs and incidental activities of daily living. The episode concludes with a preview of the next episode, which will cover the costs and prevalence of long-term care. Listen now to learn more.   Takeaways Long-term care planning is a crucial aspect of retirement planning, as it can have a significant impact on financial security and the well-being of individuals and their families. A long-term care need is defined as requiring assistance with activities of daily living (ADLs) for more than 100 days. The six common ADLs include bathing, continence, dressing, eating, toileting, and transferring. Cognitive impairment, such as dementia, may also trigger the need for long-term care, depending on the policy's definition. It is important to distinguish between ADLs and incidental activities of daily living, as only ADLs typically qualify for long-term care benefits. The next episode will cover the costs and prevalence of long-term care, providing further insights into planning for this important aspect of retirement. Chapters   00:00 Introduction to Long-Term Care Planning 03:01 Personal Experiences and the Importance of Long-Term Care Planning 08:58 Budgeting for Long-Term Care 14:12 Determining the Amount to Set Aside for Long-Term Care 21:36 The Demographics and Increasing Need for Long-Term Care 26:39 Defining a Long-Term Care Need 27:56 Activities of Daily Living (ADLs) and Cognitive Impairment 32:46 Incidental Activities of Daily Living 36:53 Summary and Next Steps   Links  Join the waitlist for the next Retirement Income Challenge 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 and Wade answer questions on safe withdrawal rates, annuities, and retirement planning. They discuss the considerations for investing in a Qualified Longevity Annuity Contract (QLAC) and the difference between immediate and deferred annuities. They also explore the use of Single Premium Immediate Annuities (SPIAs) in combination with Fixed Index Annuities (FIAs) and the benefits of buffer assets in reducing sequence risk. Additionally, they address the challenges of finding automatic options for equity investments and provide insights for individuals who are considering retirement but are unsure about their options. Listen now to learn more.   Takeaways Consider the insurance aspect of annuities and view them as a way to protect against longevity risk and provide guaranteed income in retirement. When deciding between investing and buying a QLAC, focus on the insurance benefits and peace of mind rather than potential investment returns. SPIAs and FIAs can be used in combination to provide both guaranteed income and growth potential in retirement. Buffer assets can help reduce sequence risk and allow for a higher withdrawal rate from an investment portfolio. Retirement decisions should not be solely based on financial considerations, but also on personal fulfillment and well-being. Chapters   00:00 Introduction and Q&A on Safe Withdrawal Rate and Annuities 02:06 Considerations for Investing in a QLAC 04:16 Viewing Annuities as Insurance Products 06:07 Choosing Between Investing and Buying a QLAC 08:45 Using SPIA and FIA in Combination 16:59 Using Safe Withdrawal Rate and RMDs 21:37 Buffer Assets and Sequence Risk 24:47 Automatic Options for Equity Investments 28:40 Considering Retirement Options   Links  Registration for the next Retirement Income Challenge is OPEN: Learn more and join us for this LIVE 4-Day event starting on March 4th-7th, 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/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"

In this episode, Wade and Alex discuss various topics related to retirement planning and investment strategies. They address questions about reconciling portfolio structure when spouses have different orientations, allocating between growth and value stocks, estimating healthcare expenses in retirement, investing in high-yielding stocks, using closed-end funds for retirement income, and implementing a reverse glide path for early retirement. We'll also discuss various retirement planning topics, including managing the sequence of returns risk in early retirement, blending time segmentation and total return strategies, balancing safety first and commitment orientation, and the impact of RMDs on immediate annuities. Listen now to learn more.   Takeaways When spouses have different orientations, it's important to find a middle ground that considers risk preferences and liquidity needs. The RISA framework helps determine retirement income strategies but doesn't provide specific guidance on asset allocation decisions. Estimating healthcare expenses in retirement should be part of the overall budget and doesn't require a separate reserve. Investing in high-yielding stocks or funds can be risky and may not provide the desired income or diversification. Closed-end funds may not be an efficient or recommended strategy for retirement income due to concentration and leverage risks. A reverse glide path, starting with a lower stock allocation and gradually increasing it, can help manage sequence of returns risk in early retirement. When retiring early, managing sequence of returns risk can be achieved by using a lower withdrawal rate, which may reduce the need for a reverse equity glide path. The glide path can be a way to blend time segmentation and total return strategies, such as using a bond ladder for the start of retirement and gradually increasing equity allocation. Balancing safety first and commitment orientation in retirement planning involves considering contractual protections, such as annuities, while not going overboard with them. RMDs and immediate annuities: The Secure Act 2.0 allows the excess income from an immediate annuity to be applied towards other RMDs, providing more flexibility for retirees. Chapters    00:00 Introduction 03:07 Reconciling Portfolio Structure 09:02 Allocation Decisions 13:05 Healthcare Expenses in Retirement 20:13 Allocation Decisions: Growth vs. Value Stocks 31:12 Investing in High-Yielding Stocks 36:21 Using Closed-End Funds for Retirement Income 39:24 Implementing a Reverse Glide Path 40:31 Managing Sequence of Returns Risk in Early Retirement 42:27 Blending Time Segmentation and Total Return 44:54 Balancing Safety First and Commitment Orientation 45:25 RMDs and Immediate Annuities     Links  Registration for the next Retirement Income Challenge is OPEN: Learn more and join us for this LIVE 4-Day event starting on March 4th-7th, 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, Wade and Alex discuss housing and reverse mortgages. They address the issue of pirated books on Amazon and warn listeners to ensure they are purchasing the legitimate copy of the Retirement Planning Guidebook! They then delve into the topic of using retirement savings for purchasing a house and the potential drawbacks of relying solely on a reverse mortgage. The impact of higher mortgage rates on obtaining a reverse mortgage is also explored, along with the misconceptions surrounding reverse mortgages. The episode concludes with a discussion on the metrics to consider when implementing a reverse mortgage. Listen now to learn more!    Takeaways Using retirement savings for purchasing a house may not be a responsible strategy. Higher mortgage rates can affect the benefits of a reverse mortgage. There are misconceptions surrounding reverse mortgages. Metrics such as the ratio of home value to investment portfolio can guide the decision to implement a reverse mortgage. Chapters   00:00 Introduction and Announcement 03:01 Pirated Books on Amazon 05:07 Reverse Mortgage: Using Retirement Savings 08:06 Impact of Mortgage Rates on Reverse Mortgage 16:27 Misconceptions about Reverse Mortgages 22:38 Metrics for Implementing a Reverse Mortgage 26:30 Effect of Higher Mortgage Rates on Reverse Mortgages 28:30 Conclusion   Links  The Retirement Planning Guidebook: 2nd Edition AND Reverse Mortgages 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/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"

In this episode, Alex and Wade answer various Social Security questions from their listeners. They discuss the limitations of online Q&A and the importance of seeking professional advice for personalized financial planning. They also address the availability of tools for running hypotheticals on Social Security claiming strategies. The hosts delve into the complexities of claiming Social Security at different ages and the potential impact on taxes and spousal benefits. They provide insights on claiming an ex-spouse's Social Security and discuss the considerations of age difference and life expectancy in determining the optimal claiming strategy. Lastly, they share personal updates on their fitness goals and tease the next episode on reverse mortgages. Listen now to learn more!   Takeaways Seek professional advice for personalized financial planning rather than relying solely on online Q&A. Tools for running hypotheticals on Social Security claiming strategies are limited, but resources like Open Social Security can provide some insights. Claiming Social Security at different ages can have implications for taxes, spousal benefits, and survivor benefits. Eligibility for claiming an ex-spouse's Social Security depends on factors such as length of marriage and timing of divorce. Consider age difference and life expectancy when determining the optimal Social Security claiming strategy. Personal updates: Alex and Wade are working on their pull-up goals and discussing the benefits of hanging exercises. The next episode will cover reverse mortgages. Chapters   00:00 Introduction and Q&A Arc 03:01 The Limitations of Online Q&A 04:13 Tool for Running Hypotheticals on Social Security 07:43 Claiming Social Security at 70 and Tax Planning 11:31 Claiming Ex-Spouse's Social Security 14:45 Claiming Social Security at 62 and Spousal Amount at Full Retirement Age 17:41 Claiming Social Security at 69 and Spousal Amount at 67, or Waiting Until 70 22:47 Impact of Age Difference and Life Expectancy on Claiming Strategy 27:15 Personal Update: Pull-Ups and Hanging Exercises 31:19 Closing Remarks and Preview of Next Episode   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 and Wade discuss various tax planning strategies for retirement. They announce a webinar on tax-efficient retirement distributions and highlight the importance of the Retirement Planning Guidebook. They address the impact of taxes on deferred accounts versus non-qualified accounts, including the implications for Social Security benefits and IRMAA surcharges. They also discuss determining the amount to convert to a Roth IRA and the considerations for inherited Roth IRAs. The conversation covers managing taxes for couples with over $5 million, the intersection of tax planning and safety-first income annuities, and the importance of preparation and account setup for retirement. They conclude by addressing strategies to limit the impact of ACA premiums on MAGI. Listen now to learn more!   Takeaways Consider attending the webinar on tax-efficient retirement distributions to gain a deeper understanding of tax planning strategies. The Retirement Planning Guidebook is a valuable resource for retirement planning and is regularly updated to reflect changes in tax laws. Tax planning should consider the impact of taxes on deferred accounts versus non-qualified accounts, including Social Security benefits and IRMAA surcharges. Inherited Roth IRAs may be subject to different rules and tax implications, and it is important to understand the options and potential tax consequences. Preparation and account setup for retirement can help optimize tax planning strategies and provide more flexibility in managing income and expenses. Strategies to limit the impact of ACA premiums on MAGI may include suspending Social Security benefits, spending from taxable accounts, and tax-efficient asset management. Timestamps 00:00 Introduction and Webinar Announcement 02:12 Discussion on the Retirement Planning Guidebook 03:12 Considerations for Buying the New Book 04:08 Tax Planning for Deferred Accounts vs. Non-Qualified Accounts 05:03 Impact of Taxes on Social Security Benefits and IRMAA Surcharges 07:01 Determining Roth IRA Conversion Amounts 09:06 Understanding IRMAA and Social Security Tax Torpedo 12:12 Inherited Roth IRAs and Legacy Goals 15:04 Managing Taxes in Retirement for Couples with Over $5 Million 18:22 Tax Planning and Safety-First Income Annuities 22:36 Preparation and Account Setup for Retirement 25:21 Limiting ACA Premium Impact on MAGI   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/  To celebrate the updated RPG, Wade is hosting a FREE Webinar where he will be discussing the most significant update, tax planning. Visit risaprofile.com/podcast to register to attend, How to Create Tax-Efficient Retirement Distributions on Monday, February 5th at 2:00 PM ET.    This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"

Wade and Alex are back this week answering more of your questions! This week, we tackle retirement spending and withdrawal rates, the benefits of delaying Social Security and survivor benefits, the concept of replacement ratios for retirement income, the use of annuities for retirement income, the impact of future tax rates and national debt, and the decision to pay off mortgages in retirement. Listen now to learn more!   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/  To celebrate the updated RPG, Wade is hosting a FREE Webinar where he will be discussing the most significant update, tax planning. Visit risaprofile.com/podcast to register to attend, How to Create Tax-Efficient Retirement Distributions on Monday, February 5th at 2:00 PM ET.    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

This week on Retire With Style, we are back to continue working through your questions! Wade and Alex tackle another array of topics including pros and cons of Deferred Annuities, couples retiring at different times, MIGA Bonds, Index Funds and much more. We are having a great time with these and hope you all are finding this useful. You've certainly put us to the test with these great questions! Listen now to learn more.    This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"