Episode Summary:

Laura Rehbein shares her journey from becoming head of household at age 12 in rural Michigan to building a successful financial advisory practice over nearly three decades. Her book "Fearless Finance" addresses the anxiety that highly educated, successful professionals feel about their finances despite their achievements. Laura reveals why knowledge replaces fear and how proper planning can help clients "face everything and rise" rather than "forget everything and run." She discusses practical strategies like productive pessimism, the bucket approach to retirement income, and often-overlooked risks that can derail investment plans.

About the Guest:

• Laura Rehbein owns Impavid Wealth and has spent nearly 30 years in financial advising. Growing up in rural Michigan farming country, she became responsible for her household at age 12. She entered the financial industry after recognizing a need for more women advisors.

Key Concepts Explained:

Fearless vs. Reckless: Laura defines fearless as making informed decisions with knowledge and clarity, not reckless choices. Her approach focuses on empowering clients with understanding rather than eliminating all fear.

"Throw It in a Pile" Strategy: Laura encourages overwhelmed clients to gather all financial documents without organizing them perfectly. She compares this to hiring a personal stylist who sorts through your closet - sometimes you need an objective professional.

Productive Pessimism: This planning approach involves overestimating expenses, underestimating investment returns, and planning for longer lifespans. Rather than being negative, it creates a buffer that helps ensure money lasts throughout retirement.

"Bad Math": Laura's term for overly optimistic financial thinking, like believing you can retire by cutting out Starbucks or that a $100,000 inheritance solves all retirement needs. It occurs when people avoid doing real calculations.

Bucket Strategy: Laura structures retirement assets in three buckets: 12-24 months of expenses in cash, 3-6 years in medium-risk investments, and the remainder in growth investments. This provides short-term security while maintaining long-term growth potential.

Overlooked Financial Risks:

Sequence of Returns Risk: Two identical retirees can have vastly different outcomes depending on whether they retire at the beginning of a bull or bear market. Early losses can devastate portfolios even if long-term returns average out.

Healthcare and Long-Term Care: Laura shares stories of clients facing unexpected healthcare costs that required rapid plan adjustments, emphasizing the importance of addressing these risks proactively.

Modern Estate Planning Considerations:

Digital Assets: Beyond cryptocurrency and online accounts, this includes cloud-stored photos, social media profiles, and email accounts. Some platforms delete accounts upon notification of death, potentially losing family memories.

Pet Trusts: Laura emphasizes that verbal promises to care for pets often fail due to changing circumstances. Pet trusts provide funding and assign responsibility for animal care, preventing beloved pets from ending up in shelters.

Practical Takeaways:

Laura emphasizes that financial planning requires ongoing adjustments as life changes. Whether facing health crises, remarriage, or unexpected events, having a trusted advisor helps navigate transitions while keeping long-term goals on track.

Connect with Laura:

Email: [email protected] | Book: "Fearless Finance"

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