Financial Choices Matter

People often overlook the estate planning side of preparing for retirement. There are a lot of misunderstandings about trusts and wills and the roles they play in the equation. On this episode, we’ll explore some of the critical questions you should ask about these strategies as you prepare for retirement.

Contact:

Phone Number: 480-513-1830

Website: https://pelletoncapital.com/

1:29 - Main Topic: Wills & Trusts

2:03 - Why Are Wills & Trusts Important?

3:52 - How Do You Know If A Will Or Trust Is Right For You?

5:00 - A Will Doesn’t Mean You Won’t Avoid Probate

5:49 - Is A Trust Just For Money?

7:28 - How Much Do They Cost?

8:31 - What Role Does An Advisor Play When Considering These Options?

10:32 - Mailbag: Ian Asks If His Long-Term Care Policy Has Enough Coverage

Vanguard’s “How America Saves 2020” report is packed with lots of intriguing stats and findings about Americans and how they save for retirement in the crazy year that is 2020 (most of the recent data is technically from 2019 although some figures are current through the Spring of 2020). Let’s look at some of the top takeaways from the study and how you might compare to the “normal” savings behaviors of Americans.

1:14 - Main Topic: Statistics On How Americans Save

1:47 - 100 Million Americans Use A Defined Contribution Plan

4:00 - Average Number Of Funds Used In These Plans Are 2.4

5:36 - 34% Of Participants Didn’t Contribute Enough To Meet Their Employer’s Match

6:46 - Is There A Reason To Not Meet An Employer Match?

7:56 - 80% Of Participants Still Had Assets With A Previous Employer

9:26 - 96% Of Those Assets Are Able To Be Rolled Over Into Something Else

11:16 - Tristen Has Asks About How Divorcing Later In Life Might Affect Retirement

We get a lot of questions about how the house (or houses) fit into retirement plans. From downsizing to rental properties to interest rates, let’s explore some of the top retirement questions as it relates to all things housing.

2:03 - Main Topic: This One’s On The House

2:25 - Pay Off The House, Or Enjoy The Low Interest Rates?

3:30 - Is It Wise To Downsize?

5:14 - Is A Rental Property A Good Idea?

7:06 - What Complications Have You Seen When Handling Real Estate In An Estate, Or Legacy Plan?

8:53 - Taking Care Of Our Bodies As We age

9:57 - Life Is About Contribution

12:52 - Shelby Asks If Retirement Spending Starts To Decrease After The First 5 Years

Living a long time isn’t supposed to be a bad thing and it almost seems counterintuitive to categorize it as a risk. But it is. Let’s take a look at how longevity plays a role in a financial plan and have an honest conversation about how deal with the “problem” of living too long.

1:12 - Main Topic - Longevity Risk

2:25 - How Old Is Your Oldest Client?

2:39 - Oldest Person In Your Family?

3:20 - Who Is The Oldest Person You Have Personally Known?

4:00 - Why Is Living Long Risky?

7:02 - Have People Prepared For Longevity Appropriately?

9:10 - Client Story

11:00 - Starting The Conversation

15:07 - Millie Says She Was Going To Get Serious About Retirement Within The Next Year, But Wants Out Of Her Job Now

Many financial issues impact us all the same. But, of course, other challenges have varying impacts from person to person because our situations are all unique. Let’s take a look at some of the financial and retirement challenges that are unique to women. We also discuss some rules of thumb and get Charles' take on them.

2:00 - Main Topic - Financial Issues That Are Challenging For Women

3:29 - Level Of Engagement Women Have Throughout Retirement Planning Process

5:00 - Spouse That Handled Money Passes Away First

6:49 - Why Do Some Women Find Themselves In A Difficult Situation?

8:14 - Specific Challenges Faced By A Widowed Woman

9:50 - Piece Of Advice For The Husbands

10:42 - Second Topic - Retirement Rules

11:06 - The 10%, 4%, 25X, & The 80% Rule

13:13 - The Rule Of 72

14:06 - The Rule of 2.67

15:14 - The Rule Of 100

How complex should a financial plan be? On one hand, a single page plan sounds nice and easy to understand. But is that comprehensive enough if it can fit on one page?

2:07 - Headline: The Market Rebounding

5:44 - Main Topic: Are Complicated Portfolios Necessary?

6:19 - What Do You Typically See When It Comes To The Length Of The Financial Plan?

7:11 - Misconception Between Portfolio And The Plan

8:49 - The Rule Of 11

10:22 - Not Every Advisor Is The Right Fit

13:44 - Mailbag: Nancy Asks If She Should Invest In Her Employer’s Stock

There are some financial planning blunders that are interesting to talk about but are quite rare in reality. On the other hand, there are some financial planning mistakes that happen far too often. Let’s talk about the mistakes so many people have made in the past it has made them “classic”.

1:13 - Headline: 72% Of American Say They Will Prioritize Financial Planning Once Pandemic Is Over

3:15 - Classic Pre-Retiree Mistakes

4:03 - Mistake #1: Investing Like You’re In Your 20’s

5:09 - Mistake #2: Taking Social Security As Soon As Possible

6:49 - Mistake #3: Focusing On Tax Preparation Rather Than Tax Planning

8:10 - Mistake #4: Assuming The Majority Of Healthcare Expenses Will Be Covered By Medicare

9:15 - Mistake #5: Taking On Additional Risk To Make Up For Lost Time

11:20 - Mailbag: Rork Asks If His Is Getting All The Information He Needs From His Financial Advisor

Step into the classroom and let’s take a look at some financial terms, define them, and find out if they’re important for the typical investor and saver to know about them.

3:06 - Main Topic: Financial Dictionary 

3:35 - Accelerated Death Benefit 

4:21 - AGI 

5:28 - Fundamental Analysis

6:09 - Margin Account 

7:11 - High Yield/Junk Bonds 

9:31 - Sammantha Asks, “Should I Let The Kids Know About Our Plans To Leave An Inheritance?” 

11:25 - What”s Buggin’ Charles? 

It seems that most people don’t have a clear picture of whether they should contribute to a traditional IRA or a Roth. Let’s discuss how to determine what’s best for you.

1:23 - Headline: More Than 25% Of Americans Are Raiding Their Retirement Accounts Because Of COVID-19

4:16 - Traditional IRA Vs. Roth IRA - The Basic Definitions

5:10 - Why Are So Many In The Traditional Account?

6:11 - Is The Current Tax Environment We’re In A Catalyst For More People Wanting To Do Roth Conversions?

8:04 - Who Should Be Contributing To A Roth?

8:23 - Who Should Not Be Contributing To A Roth?

10:14 - Marshall Wonders If Paying The Penalty To Take Out His Variable Annuity Is Worth Avoiding The High Fees

12:37 - What’s Buggin’ Charles?

Let’s talk about some of the common mistakes that we see being made time and time again by retirees and pre-retirees.

2:24 - Bonds Are A Safe Investment

5:19 - Avoiding The Idea of Long Term Care Needs

8:43 - Guarding Against Market Declines

10:49 - Categorizing Different Investment Vehicles As Always Good, Or Always Bad

14:03 - Not Having A Plan In Place

16:06 - Beverly Asks If She Has Enough Diversification Between Her 33 Mutual Funds