Coasting In Retirement with Josh Null

Today your host Josh and co-host Michelle discuss 5 steps on how to NOT to screw up passing your wealth to your heirs, with obviously some of the discussion centered around having a will.

Takeaways:

• In 2026, the current state exemption of $12.92 million per person that was part of the 2017 Tax Cuts and Jobs Act is set to expire. The future amount is projected to be reduced by roughly half to about $6.4 million per person
• Have a conversation with your heirs. It may be uncomfortable. If it's going to be super uncomfortable, have your professional team with you
• If possible, think about helping your heirs while you're still alive and they could probably use the assistance. For example: the gift tax exclusion for 2023 is $17k per done, $34k per married couple

Today your host Josh and co-host Michelle discuss 5 things that retirees should simply ignore in retirement.

Takeaways:

• Debt ceiling has been increased 78 times since 1960
• Wharton School did a 15 year study on the stock picks of TV personality Jim Cramer and found that not only did he not beat the stock market, he didn't even keep up with the S&P 500 index

Today your host Josh and co-host Michelle discuss the pressure facing Real Estate Investment Trusts, commonly known as REITs, particularly those in the commercial office space, PARTICULARY those that are not publicly traded.

• Sequence of Return Risk and timing of withdrawal risk. We're going to lump in market volatility to this, because over the past few years we've had historically levels of markets going up and down, often in the same day(!), and even making a withdrawal on the wrong DAY can have long term impacts to the longevity of your portfolio
• On the longevity note, one of the greatest threats to your portfolio is longevity risks. People are living longer than ever, but that doesn't necessarily mean they are living healthier than ever. Many folks deal with extended healthcare events in retirement, and there is no greater threat to your wealth than an unplanned extended health care event, often referred to as long term care

• If you have an annuity, having the wrong type of annuity, OR, picking the wrong features and riders for what you are trying to accomplish with your retirement planning

Today your host Josh and co-host Michelle discuss investments to avoid in retirement.

Takeaways

• Penny stocks are a class of low-price, high-risk public companies. They tempt highly speculative traders with the illusion of easy exponential growth, offering the chance to double, triple or quadruple their money
• 80% of businesses in the US will never sell
• the difference between term and whole life, as well as how fees can eat into your whole life cash value

Today your host Josh and co-host Michelle discuss 4 simple steps for those nervous about their money to take, especially for those in or near retirement.

Takeaways

• If you don't have a financial advisor, consider using one – but only after you interview them first
• Getting an analysis performed on your existing invest mentportfolio is very important
• 1/3 of Americans have a written financial plan

Today your host Josh and co-host Michelle discuss a handful of options that are considered low-risk and an option that may be attractive to some investors.

Takeaways

• Preferred stocks have some bond like features vs common stock
• Satellite holdings are meant to diversify away from those core holdings, often allowing an investor to have a particular goal in mind, such as income production
• that the median Wall Street forecast since 2000 had missed its target by an average 12.9 percentage points a year

Today your host Josh and co-host Michelle discuss the recent bank failures of Silicon Valley Bank, otherwise known as it's initials SVB, and another unrelated bank called Signature Bank.

Takeaways

• Bonds have an inverse relationship with interest rates
• SVB locked in $80 billion into long term bonds, particularly 10 plus year mortgage securities, then got hit by rising interest rates
• Banks with $15.2 million to $110.2 million in transaction accounts must hold 3% in reserve

Josh and cohost Michelle finish discussing ways to use both your investment assets and possibly your real estate holdings to generate passive income.

Takeaways

• An investor purchases multiple bonds or CDs with different maturities. As each bond or CD matures, you can reinvest the principal in new bonds with the longest term you originally chose for your ladder
• If interest rates move higher, you can reinvest at higher rates. If rates fall, you'll still have some bonds locked in for the longer term at higher yields
• Since many bonds pay interest twice a year on dates that generally coincide with their maturity date, investors can structure predictable monthly bond income based on coupon payments with different maturity months as well as years

Josh and cohost Michelle discuss ways to use both your investment assets and possibly your real estate holdings to generate passive income.

Takeaways

• Total Return is basically a fancy way of describing a diversified portfolio of stock and bond index funds
• Deferred income annuities are the most "pension" like of annuity options. In fact many pension payouts are facilitated thru an insurance company
• REITs can be attractive to investors because they offer the opportunity to earn this dividend-based income from real estate without having to actually own and maintain any of the properties

Josh and cohost Michelle finish discussing financial intentions. Also discuss the most recent headlines on retirement.

Takeaways

• Schedule a meeting with an advisor that doesn't collect commissions, because they are looking out for your best interest
• A vast majority of Americans do not have a will which can lead to arrears open to probate and to strangers determining the fate of your arrears inheritance
• Modifying your financial plan for longevity risk and healthcare events can prepare you for situations like know if your money will last as long as you or long term care