Keen on Retirement

"50% of small businesses close."

How many times have you read some variation of this headline, or heard that number thrown around in casual conversation? You might have even used this "conventional wisdom" to talk yourself out of starting your own company. Fifty percent makes it sounds like your odds of success are on par with flipping a coin and guessing heads or tails.

But that's the tricky thing about numbers: taken out of context, they can be deceiving.

Let's dig into that 50% a little deeper and ask, "Why do half of small businesses close?"

According to the Small Business Administration, the number one reason, yes, is a lack of revenue.

Number two? The owner retires.

Number three? The owner sells the company.

So, two of the top three reasons that most small businesses close aren't necessarily negative! They might even represent a lifetime of fulfilling work leading to a profitable exit for the business owner!

Recently, you might have come across some big numbers related to our economy that have you nervous about your nest egg. On today's show, we dig into those numbers as well to separate the facts from the hype.

In March of 2009, the markets bottomed out in the aftermath of the housing crisis and bank collapses. Gigantic financial institutions teetered on bankruptcy and scrambled for government support. Millions of ordinary folks lost their homes or their jobs, and all saw their retirement savings decline in value. In the moment, it was hard to imagine how our economy would get back to normal.

And yet, 10 years later, despite some ongoing volatility, the economy is once again trending positive. On today's show, we talk about what the bottom of the financial crisis looked like, how the markets turned around, and the lessons that are most important to you, an investor preparing for or in retirement.

There's never a dull moment in the world of finance!

In just the past six months or so the markets have passed some amazing historical milestones. We've reflected on one of the true revolutions in financial services, had a couple complicated runs of volatility, and the country made it through the contentious midterm elections that were fought against the background of some major economic challenges at home and abroad.

With so many big picture topics to discuss, it's been a while since we opened up our mailbag. So, on today's show, we answer questions submitted by listeners that touch upon issues that many folks will have to deal with at some point during their retirement.

When Dr. Daniel Crosby was in his 20s, he had a fateful conversation with his father about what he should do for a living. Dr. Crosby's father was a financial advisor, but young Daniel didn't think finance was a good fit for his interests and skill set.

"I remember saying to him, 'Dad, but I'm a people person. I like to study human behavior and you just think about math,' Dr. Crosby says. "He laughed and said, 'Read these books and tell me if you don't think that emotion and human behavior plays into finance.' And there was no turning back after that."

Today, Dr. Crosby is the chief behavioral officer at Brinker Capital. He's also a psychologist, a New York Times bestselling author, and a behavioral finance expert who really understands what's happening at the intersection of our minds and the financial markets.

On today's show, we talked to Dr. Crosby about his latest book, "The Behavioral Investor," and the four psychological tendencies that he has seen prevent folks from building a bigger and better nest egg.

I know that retirement is just around the corner for many of my regular listeners and readers, and for many of our clients at Keen Wealth. In fact, some of you may have started 2019 with a resolution to make this your last year of full-time work. Once you've decided to retire and that reality starts to sink in, the scope of this life change can be daunting.

Well, we've got you covered with this special episode of Keen on Retirement. I went back into past podcasts and blog posts to put together a primer on five ways you can prepare to "retire right" and smooth your transition into retirement. And for those of you that are already retired, this episode will be a nice checklist for things to review and consider along your journey in retirement.

Earlier this year, Vanguard announced the passing of founder John Bogle, one of the best investors of our time and also one of the true innovators in the financial services industry.

Bogle founded Vanguard back in 1974, and one of the very first products they offered was revolutionary: a mutual fund that tracked the S&P 500. Before Vanguard, it was nearly impossible for an individual investor to monitor and invest in the 500 top companies that the Standard and Poor's index tracks and weights based on performance. Bogle's fund created a new way for investors of all sizes to tap into the wealth-building power of the markets that other firms have been emulating and refining ever since.

On today's show, we dig a little deeper into how indexing works in 2019, the differences between passive and active investing strategies, and the key things you need to know if you're thinking about adding an index to your portfolio.

If you've started to receive 2018 tax info from your financial institutions and can already feel a sense of dread building, let me try to put a more positive spin on this process. At Keen Wealth, we like to remind clients that, to some extent, taxes are a problem of prosperity. Sticking with disciplined savings and investment strategies, even during volatility, could help generate wealth and security for your family in the long run. Taxes are just part of the price tag that comes with achieving that dream retirement scenario.

However, there are mistakes that you could make when you're filing taxes that can add up to a bigger bill than necessary, especially if you miss out on a particular strategy or deduction.

On today's show, we discuss how to avoid four common tax preparation mistakes, possible ramifications of the new tax laws, and why meeting with a fiduciary advisor shouldn't feel like spending time in a jail cell.

At our 21st Annual Holiday Breakfast in December 2018, we presented "Forecast 2019: Anticipating Change." You can listen to Matt's presentation in this podcast, or you can watch full video of the presentation, including data slides, at KeenonRetirement.com.

At our 21st Annual Holiday Breakfast in December 2018, we presented "Forecast 2019: Anticipating Change." You can listen to Bill's introduction in this podcast, or you can watch full video of the presentation, including data slides, at KeenonRetirement.com.

The stock market has recently been acting like that old saying about the weather, "if you don't like it today, just wait for tomorrow."

The past few months have been very bumpy in the stock market. Down big one day, up big the next, rinse and repeat.

With this bumpiness, we thought it would be a good idea to kick off the 2019 edition of Keen on Retirement by discussing the current state of the markets, how today's volatility compares to historical norms, and how our planning process helps clients stay on course through turbulent stretches.