In this episode of Getting Retirement Right, Darrin McComas and Shon Peil discuss whether or not to pay off your mortgage using retirement savings. They reveal the advantages and potential pitfalls, leaving listeners with a tantalizing question: Should you risk your retirement security for the dream of a debt-free home, or is there another path to financial freedom? Find out on the next episode of Getting Retirement Right!

In this episode, you will be able to:

• Explore the concept of trading mortgage payments for a stout retirement stash.

• Gauge the perks of swapping your home loan with your golden-years reservoir.

• Delve into the financial effects of potential mortgage decisions, triggering a fresh approach to home ownership.

• Understand why keeping investments in stocks may outweigh the rush to dip into your nest egg.

• Experience the emotional freedom associated with life sans debt, and how it interplays with your financial health. List 2:

Imagine the peace of mind that comes from owning your house outright and being completely debt free. It's a powerful feeling that can transform your retirement. - Sean Peele

The resources mentioned in this episode are:

• Consult with a financial expert: Talk to a certified financial planner or a fiduciary planner to get personalized advice and guidance based on your unique situation.

• Consider tax implications: Before making any decisions, consult with a CPA or tax advisor to understand the potential tax consequences of using your retirement savings to pay off your mortgage.

• Evaluate your retirement savings: Take a close look at your retirement savings and assess whether using a portion of it to pay off your mortgage is a viable option. Consider your overall financial goals and retirement plan.

• Calculate potential interest savings: Run the numbers to determine how much interest you could save by paying off your mortgage early. This can help you make an informed decision about whether it's worth using your retirement savings.

• Review mortgage terms and penalties: Check the fine print of your mortgage agreement to see if there are any early payment penalties or other terms that may impact your decision. This will help you understand any potential costs or limitations.

• Explore alternative strategies: If paying off your mortgage with retirement savings doesn't seem like the best option, consider other strategies such as refinancing, making extra payments, or downsizing to a more affordable home.

• Assess emotional and psychological benefits: Take into

House Rich, Cash Poor Owning your house outright is a delightful thought, isn't it? But when that ownership comes from depleting your retirement savings, there's a massive downside to consider: it leaves you cash-poor. In simple terms, while you may be rich in assets (house), you could be poor in liquid cash. Shon Peil and Darrin McComas urge listeners to reflect upon this scenario. Darrin and Shon warn that while it might feel good to live without a mortgage, emergencies don't announce their arrivals. They emphasize how being cash-poor can leave you woefully unprepared to meet unexpected financial needs. They also hint at potential stumbling blocks if you plan to purchase a new home in the future due to higher interest rates or costs.

Advantages of Staying Invested Let's talk about keeping your retirement funds right where they are. Imagine a bigger picture where your investment keeps multiplying. Now that's what Darrin and Shon talk about as they move to the merits of staying invested. The stock market, on average, has given higher returns historically, making it an appealing prospect over the guaranteed, but lower, returns of mortgage interest. When referencing the comparison between potential stock market returns and average mortgage interest, Darren cites that the market's 8-9% average rate of return starkly outshines the typical 3% mortgage interest. Remember, this is your hard-earned money we're talking about, and getting the most from it should always be your goal. So, before making quick decisions, think about the potential your retirement savings could have if they stayed put and grew for your future.

Consider State & Local Taxes Lastly, the importance of looking at the bigger tax picture isn't forgotten by Darrin McComas and Shon Peil. They talk about the hidden landmines of state and local taxes that can rear their head when you withdraw from your retirement funds. Through their knowledgeable lens, Darrin and Shon remind their listeners to zoom out from personal tax brackets and also consider the ripple effects on state and local taxes. When taking such a viable financial decision, remember to look past the immediate relief and work through how it's going to affect your finances in the longer run. After all, it's not just about making a decision, it's about making an educated one!

Podcast website: Getting Retirement Right

Abraham & Co website

On this episode of Getting Retirement Right with Darrin McComas and Shon Peil, you will be able to:

• Gain insights on retirement planning essentials for a seamless transition into your golden years.

• Understand the benefits of setting a well-structured budget for managing retirement finances.

• Unravel the connection between active living, health, and a joyful retirement.

• Realize why financial adaptability matters when facing unforeseen expenditures.

• Learn the value of seeking guidance from fiduciary advisors to optimize your retirement plan.

Life's not over. You're in retirement. This is supposed to be one of the best seasons of your life. - Shon Peil

The resources mentioned in this episode are:

• Create a retirement plan before leaving the workforce.

• Consider transitioning into retirement gradually by working part-time or doing consulting work.

• Have a purpose in retirement, such as volunteering or mentoring youth.

• Stay active and get involved in the community.

• Be mindful of spending and have a financial plan in place.

• Find your identity outside of the workplace.

• Consider working with a fiduciary advisor to ensure a successful retirement.

• Explore opportunities to simplify your financial life and minimize taxes, risk, and stress.

• Stay up-to-date on financial news and trends that may impact your retirement.

• Consider using tools and resources, such as those provided by AARP, to help navigate the transition into retirement.

Staying Active in Retirement An essential aspect of retirement planning is maintaining one's health and staying active. A physically-active retirement can lead to improved overall well-being, reduced healthcare costs, and a better quality of life. Following AARP's recommendations like establishing a daily routine and incorporating exercise and physical activities into it can have lasting positive effects on retirees' health. Darrin McComas and Shon Peil emphasize the importance of being physically active in retirement, believing that it not only helps minimize healthcare expenses but also enhances general well-being. They encourage retirees to follow AARP's advice on creating a daily routine that includes exercise, which can enhance their retirement experience. Staying fit and healthy also contributes to a more vibrant social life, further enriching the retirement journey.

About The Hosts

www.gettingretirementfightpodcast.com

www.abrahamco.com

In this episode, you will be able to:

• Learn groundbreaking strategies to supercharge your retirement savings with a seamless 401(k) rollover.
• Familiarize yourself with options for tailoring your IRA investments to suit your unique financial goals.
• Unravel the mystery behind maximizing tax planning benefits through strategic Roth account conversions.
• Master the art of adaptable estate planning to ensure a smooth and stress-free asset distribution.
• Realize the importance of working with a financial advisor who delivers indispensable advice for flexible withdrawals.

Discover the power of the Roth IRA and the misconceptions surrounding it, as hosts Darrin McComas and Shon Peil simplify the differences between a conand contribution and offer insights on maximizing your retirement plan.

In this episode, you will be able to:

• Delve into the powerful benefits of Roth IRAs for long-term financial stability and generational wealth transfer.

• Dispel the misinformation surrounding Roth IRA contributions that may hamper your financial progress.

• Acquire the knowledge you need to plan systematic Roth IRA contributions and dodge tax hurdles.

• Recognize the potential drawbacks of traditional IRAs, such as taxes and mandatorily imposed RMDs.

• Comprehend the significance of an organized retirement strategy and the support of a knowledgeable advisor.

'The Roth IRA is one of your greatest tools in retirement. - Darrin McComas'

The resources mentioned in this episode are:

• Consider opening a Roth IRA as part of your retirement plan.

• Work with a fiduciary advisor to create a plan for converting traditional IRA funds to a Roth IRA.

• Be aware of the earned income limits for Roth IRA contributions.

• Explore the benefits of tax-deferred traditional IRAs, especially while still working.

• Be mindful of the potential tax burden and required minimum distributions that come with traditional IRA funds in retirement.

• Consider the potential estate planning benefits of leaving a tax-free Roth IRA to beneficiaries.

• Work with a professional to determine if overfunding your IRA is necessary or if diversifying your retirement portfolio may be a better option.

• When taking money out of your Roth IRA before age 59 and a half, be aware of potential penalties and the five-year rule.

• Always have a plan and explore all options and opportunities for tax-efficient retirement and legacy planning.

Pros and Cons of a Roth IRA The use of Roth IRAs in retirement planning comes with both pros and cons. Pros include tax-free growth, tax-free withdrawals, and no required minimum distributions, making it particularly advantageous for individuals expecting higher tax rates during retirement. However, the cons involve initial taxation and moving money from savings and checking accounts to the Roth IRA. In discussing the pros and cons of Roth IRA, Darrin McComas and Shon Peil encouraged listeners to consider their specific financial situation and goals. They noted that while tax-free income and growth can be very beneficial, the initial taxation can be a hurdle for some individuals. They reiterated the importance of working with a fiduciary advisor to determine the best strategy tailored to an individual's needs.

Estate Planning with a Roth IRA A vital aspect of retirement planning is ensuring that your loved ones are taken care of after your passing. A Roth IRA offers several benefits for estate planning, as inheritance from a Roth IRA remains tax-free, and the lack of required minimum distributions during the account holder's lifetime enables greater control over the timing of withdrawals. Throughout the episode, Darrin McComas and Shon Peil highlighted the advantages of using a Roth IRA in estate planning, particularly regarding the possibility of leaving tax-free income to heirs. They emphasized that working with a fiduciary advisor can help maximize these benefits and ensure a more secure financial future for your loved ones.

Getting Retirement Right with Darrin McComas and Shon Peil podcast page

In this episode of Getting Retirement Right with Darrin McComas and Shon Peil, you will be able to:

• Unveil the importance of strategic investment planning and tranche methodologies for lasting prosperity.

• Understand the perks of collaborating with fiduciary advisors for optimal investment outcomes.

• Identify the hazards of bypassing company match contributions to your 401(K).

• Explore the advantages of incorporating a Roth 401(K) in your tax-saving game plan.

• Grasp the value of seeking professional insight for customized financial recommendations.

Don't just wing it. It's important to have a plan and not just let it all go, because guess what? That doesn't work. - Darrin McComas

The resources mentioned in this episode are:

• Start with a plan and be intentional with your investments.

• Consider working with a fiduciary advisor who acts in your best interest.

• Use a tranche system to organize your investments based on when you will need the money.

• Avoid investing in too many different sectors or asset classes.

• Prioritize liquidity and avoid investments that limit your ability to access your funds.

• Look for products and services that offer the best overall value for your dollar.

• Review your portfolio regularly and make adjustments as needed to stay on track with your goals.

The Importance of Having a Plan Having a well-thought-out plan is vital in achieving retirement goals. Such a plan not only outlines specific objectives for one's money, making allocation easier, but also minimizes the likelihood of suffering significant losses from poor investment choices. To develop a sound plan, it is essential to evaluate one's financial situation and establish clear goals before making any investing decisions. On their podcast, Darrin and Shon stress the significance of not placing all of one's money into the same investment type. They encourage listeners to develop a multi-faceted plan to allocate funds in a manner that maximizes their return. By following a methodical strategy, investors can better control their money placement and avoid harm from sudden market fluctuations.

The Risks of Investment Losses Investment losses pose a serious threat to those planning for retirement, as they may lead to insufficient funds when it's time to retire. To mitigate this risk, make sure you have a diverse, well-balanced portfolio. Diversification not only helps spread out the potential for risks across various investment types, but also fosters long-term growth. Darrin and Shon discuss the importance of being intentional with investments to minimize the risks of losses. They believe in making purposeful choices backed by a well-thought-out plan. Through careful planning and wise decision-making, investors can better protect their retirement funds and ensure they have the necessary resources for a comfortable retirement.

Getting Retirement Right with Darrin McComas and Shon Peil Podcast

From shock to passion: How one conversation about retirement risks took an unexpected turn and sparked a mission to help others. But what happens when the unexpected strikes? Keep reading to find out.

In this episode of Getting Retirement Right with Darrin McComas and Shon Peil, you will be able to:

• Grasp the significance of preparing for healthcare expenses during retirement.

• Recognize the consequences of underestimating the true costs of healthcare in retirement.

• Discover the advantages of having a well-rounded retirement plan with professional assistance.

• Identify retirement-related risks and learn effective ways to handle them.

• Find out how to maintain a balanced approach to investment risks and the benefits of seeking expert opinions.

Just because it might not be important today doesn't mean it's not going to be important down the road. - Shon Peil

Takeaways from this episode include:

• Working with a professional financial advisor who specializes in retirement planning and healthcare costs.

• Researching and exploring healthcare options, including Medicare and state exchanges, to find the best coverage for your needs.

• Budgeting for healthcare costs in your retirement plan, including premiums, prescriptions, and medical devices.

• Considering long-term care insurance options, but be careful of policies with rising premiums and limited benefits.

• Focusing on maintaining a healthy lifestyle through exercise and healthy eating habits to reduce healthcare expenses in the long run.

Long-Term Care Policies Long-term care policies can be a practical solution for some retirees, assisting in covering the ever-growing healthcare costs they might face. However, it is crucial to carefully assess the limitations of such policies and consider the type of funds used to purchase the policy. Having a clear understanding of the terms and conditions involved in long-term care policies will enable individuals to make the best decisions for their personal circumstances. During their conversation, Darrin McComas and Shon Peil address the topic of long-term care policies as a potential way for individuals to prepare for healthcare costs in retirement. The hosts emphasize the importance of examining the limitations of these policies and considering the funds used to purchase such a policy. Their discussion illustrates the significance of finding suitable healthcare coverage to ensure retirees' financial stability and long-term well-being.

Taking on Too Much Risk Retirement planning also involves managing investment risks, as taking on excessive risks can lead to financial strain or even loss of funds. Intentional investing, which includes creating diversified investment portfolios based on different timeframes, can help retirees maintain their financial resources and avoid unnecessary risks. Being aware of their investments and the risks involved is vital for retirees, enabling them to make well-informed decisions and seek professional advice when needed. In their conversation, Darrin McComas and Shon Peil address the risks associated with investing and the concept of sequence of return risk. This risk refers to potential losses early in retirement when retirees withdraw money from their accounts, leading to a shortage of funds in the long term. To avoid this, the hosts suggest intentional investing and seeking the advice of trusted financial advisors, emphasizing the need for retirees to manage risks in their retirement planning proactively.

Planning for Healthcare Costs Incorporating healthcare costs into one's retirement plan is vital to not only ensure financial security but also maintain a healthy and fulfilled lifestyle in retirement. A comprehensive retirement plan that accounts for inflation and long-term healthcare expenses is essential when devising a strategy for managing these costs. Developing a target to aim for and working with a professional to build a plan can help prepare individuals for the inevitable healthcare expenses that arise throughout their golden years. Darrin McComas and Shon Peil discuss the importance of having a solid plan in place to address healthcare costs during retirement. They advise listeners not to wait until it's too late, and instead, work with a fiduciary to make well-informed decisions about healthcare expenses. In this conversation, the hosts echo the professional advice of working to develop a comprehensive plan to address healthcare costs that might arise in one's retirement.

Getting Retirement Right podcast page

Retirees, are you tired of feeling lost during market instability? Have you heard these myths about the Importance of having a proactive financial advisor? Let's debunk them together: Myth #1 - I'm too old to worry about the market, Myth #2 - I can handle my finances on my own, and Myth #3 - I only need an advisor during good times. The truth is, having a proactive financial advisor during market instability is more crucial than ever. Let's explore why.

In this episode of Getting Retirement Right with Darrin McComas and Shon Peil, you will be able to:

• Unearth the potential impacts of the debt ceiling crisis on retirement finances.

• Understand the indispensability of a proactive financial advisor in turbulent markets.

• Learn about the possible delays in Social Security and pension payments.

• Comprehend the risks tied to passiveness and refusal to tweak investments.

• Acknowledge the importance of seeking alternative viewpoints and proper investment risk management.

You have to have some sort of plan for uncertainty. - Shon Peil

The resources mentioned in this episode are:

• Get a second opinion or fresh perspective on your retirement plan from a fiduciary advisor.

• Consider a portfolio analysis to determine the risks you are taking on and what you own.

• Prepare for uncertainty by having a plan in place for potential consequences of the debt ceiling crisis.

• If you are a federal employee, ensure you have a plan to address any delays in pensions or benefits.

• Consider filing Social Security paperwork sooner rather than later to avoid potential delays.

• Work with an advisor who is proactive in positioning your hard-earned money to protect it from potential market downturns.

• Consider diversifying your investments to minimize risk.

• Ask your advisor the hard questions and ensure they can articulate and answer your concerns.

Consequences of Running Out of Money When the government reaches its debt ceiling limit, various services may be disrupted or delayed, negatively affecting retirees and those nearing retirement. This situation can lead to furloughs and delayed pension and benefits payments, as the government may not have sufficient funds to cover Social Security, Medicare, and other mandated expenses. It's crucial for retirees to consider how this uncertainty might impact their financial security and to have a plan in place to mitigate potential damages. During the episode, Darrin McComas and Shon Peil emphasized the importance of retirees and soon-to-be retirees working with a proactive financial advisor to protect their hard-earned money. They also suggested filing Social Security paperwork early, as agencies may experience delays and backlogs due to the debt ceiling crisis. Being prepared for such situations can help minimize the effects on individual financial stability.

Retirement Planning A well-thought-out retirement plan is essential for managing finances during uncertain times. By partnering with a proactive financial advisor, individuals can develop a personalized approach that accounts for potential market volatility and other financial challenges faced in retirement. Proper planning, coupled with consistent analysis and adjustments to investments, can make a significant difference in financial security for retirees. Throughout the episode, Darrin McComas and Shon Peil emphasized the importance of seeking a second opinion and obtaining a fresh perspective on retirement planning. They encouraged listeners to engage in thoughtful analysis of their retirement strategies and investments, ensuring that they remain prepared for unforeseen challenges and are able to minimize the adverse effects of market instability on their investments.

Warning Signs in the Market Being aware of warning signs in the market is crucial for navigating potential instability. Darrin and Shon pointed to credit default swaps (CDS) charts as an indicator of potential market volatility. They explained that a rising blue line on these charts signifies that savvy investors are betting against companies that may be at risk of defaulting. Additionally, risks in commercial real estate could develop with the shift towards remote work and empty office spaces. The hosts stressed the importance of staying informed and proactive in monitoring market conditions. By understanding these warning signs and adjusting investments accordingly, investors can minimize losses and protect their finances during market instability.

In Getting Retirement Right, hosts Darren McComas and Sean Peil are talking about the risks that come with retirement. They discuss inflation and political risk, and the newly proposed budget of $4.7 trillion in new taxes, leaving the audience to wonder what will happen if taxes go up dramatically. But one thing is certain, a comprehensive financial plan is key to ensuring a safe and secure retirement, even in the face of unforeseen risks.

In this episode, you will be able to:

• Explore the effects of inflation risk on retirement planning and maintaining your hard-earned wealth.

• Learn how to navigate political risk and changing tax policies when preparing for retirement.

• Discover the benefits of using Roth conversions to safeguard your assets against potential tax hikes.

• Understand the significance of proactive planning and risk management for a secure and worry-free retirement.

• Recognize the value of seeking professional financial advice and obtaining second opinions on your retirement strategies.

The resources mentioned in this episode are:

• Acknowledge the risk of inflation and its potential impact on your retirement savings.

• Create a comprehensive financial plan with the help of a fiduciary advisor to address inflation and other risks.

• Monitor and adjust your financial plan regularly to account for changes in inflation rates and market conditions.

• Stay informed about political developments and their potential impact on taxes and retirement benefits.

• Consider strategies to minimize tax risk in your retirement plan, such as utilizing Roth accounts or converting traditional IRAs to Roth IRAs.

• Reevaluate your investment portfolio to ensure it is properly diversified and aligned with your risk tolerance and long-term goals.

• Keep an eye on the required minimum distribution (RMD) rules and potential changes that may affect your retirement income.

• Stay engaged with your financial planner and be proactive in making adjustments to your financial plan as needed.

• Pay attention to proposed legislation and tax policies that may impact your retirement savings and benefits.

• Reach out to the team of fiduciary advisors at Abrahamco.com for personalized guidance and support in getting your retirement plan right.

Inflation Understanding the effects of inflation on retirement planning and wealth preservation is crucial for retirees. Inflation risk refers to the decreasing value of the dollar over time, affecting purchasing power and potentially diminishing the value of retirement savings. Individuals should always be aware of the potential risks associated with ever-changing inflation rates and make informed decisions accordingly. Proactive financial planning that takes inflation into account is essential in maintaining a stable retirement fund and ensuring financial security for years to come. Darrin McComas and Shon Peil emphasize the importance of addressing inflation risk in retirement planning throughout the episode. They discuss the current economic landscape, characterized by high inflation rates, and stress that a comprehensive plan must factor in the potential for the dollar to lose value over time. The hosts provide useful insights and strategies to tackle inflation risks and ensure a comfortable retirement for their listeners.

You need to understand what's going on in the country. Not only is it affecting our schools and everywhere you look, but it's also going to have a dramatic effect on your money. - Shon Peil

Podcast website

Abraham and Co. website

In this episode of Getting Retirement Right, hosts Darren McComas and Sean Peele discuss the pressing issue of longevity and liquidity risk and provide insight on how to protect your hard-earned nest eggs for a secure retirement.

In this episode, you will be able to:

• Discover novel approaches to combat longevity risk in retirement planning.

• Unlock the secrets of managing liquidity effectively for a worry-free retirement.

• Master the art of balancing concentration risk with a diversified investment strategy.

• Uncover the hidden impacts of Social Security timing on total retirement income.

• Harness the power of financial professionals for a tailor-made retirement plan.

Key moments in this episode are: 00:02:03 - Understanding Longevity 00:05:09 - Perfect Storm of Longevity Risk 00:09:05 - Social Security Timing 00:11:33 - Understanding Liquidity Risk 00:13:50 - Longevity and Liquidity Risks 00:15:48 - Commercial Real Estate and Liquidity 00:16:59 - Dealing with Liquid Assets Company Website:

www.abrahamco.com

Podcast Website:

www.gettingretirementrightpodcast.com

Market risk and concentration risk are two types of risks that investors and businesses face in the financial markets. On this week's episode of Getting Retirement Right, hosts Darrin McComas and Shon Peil dive into these two risks and how to identify and understand them in your investment portfolio.

Market risk refers to the risk that an investment will lose value due to changes in the overall market conditions or factors that affect the entire market. For example, changes in interest rates, currency exchange rates, inflation, or political instability can all impact the value of an investment. Market risk is often referred to as systematic risk because it affects the entire market and cannot be eliminated through diversification.

Concentration risk, on the other hand, refers to the risk that an investor or business faces due to holding a large proportion of their investments in a single asset or a few assets in the same sector or industry. Concentration risk can arise from a variety of factors, such as over-reliance on a single customer, supplier, or geographic region. The greater the concentration of investments, the higher the risk that any adverse event affecting those assets will have a significant impact on the overall portfolio or business.

It's important to note that market risk and concentration risk are different types of risks, but they can both affect an investor's or business's portfolio. Mitigating these risks often involves diversification, where the portfolio or business is spread across different assets or sectors to reduce the impact of any single event. It's also important to regularly monitor the portfolio or business to ensure that it remains diversified and that the risk profile is appropriate for the investor's or business's objectives and risk tolerance.

www.abrahamco.com

Podcast Website:

www.gettingretirementrightpodcast.com