Keen on Retirement

Headline writers love superlatives: the "biggest" drop, the "highest" inflation rate, the "most" pessimism, and so on. Those words might generate clicks and keep you glued to cable news. But they don't tell the full story of where our economy has been, where it is right now, and where it's probably headed.

On today's show, we look to history for perspective on our current challenges and discuss some important opportunities that many investors should be thinking about during this market correction.

Last year, when the Social Security Board of Trustees released its annual report, there was quite a bit of handwringing. The economic hardships of 2020 had depleted reserves quicker than anticipated and projections were showing that Social Security could run out in 2034, one year ahead of previous estimates. By then, Social Security would only be able to pay approximately 78% of expected benefits to retirees.

As we discuss on today's episode, this year's report, released on June 2nd, is a bit more optimistic. But the ongoing social, political, and economic challenges that will affect your benefits in retirement mean it's critical that folks understand how these funds work, maintain realistic expectations, and work with an advisor to plan ahead.

For me, it's the anxiety I felt as a boy, sitting in my father's apartment, waiting for his unemployment check to hit our mailbox. He suffered at times from anxiety and depression, which wasn't understood very well back then, so steady work was always a challenge for him. I remember buying him lunch at a malt shop once I started working -- not because I was trying to show how grown up, I was, but because we really needed the five dollars.

Those formative experiences drove me to a career that taught me how to take care of my own finances and help other people do the same. After nearly 30 years in financial services, I'm positive that there's a real connection between money memories, good financial habits, and mental health that influences our relationships, our emotions, our careers, and our progress towards a safe and secure retirement.

To help me explore these important intersections, I'm thrilled to welcome Dr. Megan McCoy to today's episode. Dr. McCoy is a licensed Marriage and Family Therapist and a Certified Financial Therapist-I. At Kansas State University, she's a Professor of Practice and Director of the Financial Planning Masters Program and key faculty in the Financial Therapy Certificate Program. Dr. McCoy is also an Executive Board member for the Financial Therapy Association and the Associate Editor of the Journal of Financial Therapy.

Market volatility. Inflation. Supply chain issues. Midterm primaries. War. Record gas prices. Rising COVID cases.

There's a little something to make everyone nervous about our global economic picture right now. That's why I thought it was important to devote another episode of our podcast to answering some of the questions that we've been fielding at Keen Wealth.

I hope that our perspective on these important issues will provide counterbalance to some of the headlines you might be seeing on social media and cable news. That's not to say everything is rosy right now in our economy. But if you step back and take in the whole picture, there are some positive indicators flying slightly under the radar and, potentially, some opportunities that could be advantageous for your long-term financial planning.

Whether you're an early retiree or a senior in the more traditional 65+ age range, my team at Keen Wealth understands that you have questions about navigating this major life transition.

But, as we discuss on today's episode, very few retirement questions have simple answers.

Arriving at the best decisions for you, your family, and your money is rarely as easy as following a rule of thumb or crunching your numbers one more time. A financial plan should be designed to provide for every aspect of your life. And as your life changes, a good plan should be ready to change with it.

Let's dig into some listener questions and examine where general planning principles meet the personalized, comprehensive planning process we use at Keen Wealth.

Last month, our leaders in Washington did something that felt almost unprecedented nowadays: they agreed on something!

The Sunshine Protection Act passed the Senate unanimously. If it gets passed by the House and signed by President Biden, turning our clocks back and forth will be a thing of the past and daylight savings time will be permanent starting in 2023.

All kidding aside, there is a slightly more pressing issue that's drawn broad bipartisan support in recent years: revamping retirement planning. In 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act passed the House 417–3 and the Senate 71–23. Its pending sequel, the Securing a Strong Retirement Act, aka SECURE Act 2.0, just passed 414-5 in the House. Those majorities should tell you just how serious the government is about encouraging folks to take more ownership over their long-term financial planning.

On today's show, we (briefly) debate the pros and cons of leaving our clocks alone before digging into the details of SECURE Act 2.0 that could affect retirement if this new bill is passed.

A common talking point when we're having our internal team meetings at Keen Wealth is that we want our clients to be confidently living their best lives. I believe that if you don't have that confidence at every stage of your life, particularly in retirement, then there's something off about your financial plan.

Often, folks who go it alone overlook some key technical factors that a professional advisor would have been able to help them address. But there's also an emotional side to financial planning that can be much more important than any number in your portfolio. Folks who don't work to understand their feelings about money might not necessarily be setting themselves up to fail. But they could be missing out on ways to optimize their plans, their money, and their lives.

On today's episode, we discuss why some financial plans fail and how working with an advisor who cares about more than just your money can help.

Effective financial planning is all about looking ahead. That's true for both people who are working towards retirement, and for my team at Keen Wealth. I believe that our ongoing commitment to educational events, learning, and professional development is essential to the work we do for our clients. And as the founder and CEO, I'm also committed to growing Keen Wealth into a firm folks can trust and count on today, tomorrow, and into the next generation.

On today's show, I discuss some takeaways from the 2022 Barron's Independent Summit in Louisville, as well as a glimpse into the future of Keen Wealth with our Chief Investment Officer and President, Matt Wilson.

None of us can control a war, inflationary concerns, natural disasters, or market volatility. If you're worrying about how global events are going to affect your financial plan, try to focus on things you can control. As we discuss on today's show, right now that means efficient tax preparation so that you avoid some common filing mistakes before Tax Day on April 18th.

But the reality is that understanding how the markets react to geopolitical issues is part of being a responsible investor, especially as the battlefield expands into the economic arena in unprecedented ways. I hope that today's episode will give folks some important perspective on these issues even as we're all mindful of the larger stakes.