Welcome back to our much-anticipated April 2024 edition of “Retirement Planning Headlines,” where we save you the hassle of combing through endless financial articles. This month, we’ve even had listeners chime in with topics for our deep-dive discussions.
Articles Discussed in this Episode
5 Investing Mistakes Anyone Can Make | Morningstar
“Do as I say Not as I do” by Christine BenzWhere she falls short of following the advice she knows and often givesToo much cash, too few bonds, slow to make contributions, too much employer stockThe New Math of Driving Your Car Till The Wheels Fall Off
With the cost of car ownership going up the case for driving a car until the wheels fall off has grown strongerUS vehicle average hit a record high of 12.5 years in 2023 – increasing for the sixth straight yearNewer models have become expensive to repairUnloading your vehicle when repair costs 10% more than what you would pay for a new one.Americans can’t stop ‘spaving’ — here’s how to avoid this financial trap
Spending more to save more – SpavingThis can lead to excessive spendingExamples:Limited time dealBuy one get one freeFree shipping after spending a certain amountSpaving is us justifying our desire to buy more – KlontzTeams of scientists have figured out how to extract more money from youWays to AvoidQuiet the noise – delete shopping apps and unsubscribe from newslettersPay with Cash – Less likely to part with dollarsDo the math –Steer clear of temptation –order online instead of browsing in-store.Don’t go to the grocery store hungryCreate shopping “hurdles”Delete payment details to make purchasing harderDon’t create accounts buy as a guestSet time rules24-hour rulesDWS – Lots of bad math, too… retailers just re-word how they are pricing to make it seem like a deal
Managing Health Care Costs in Retirement
Maintain a healthy lifestyleBoost your retirement savingsUtilize a Health Savings AccountConsider your retirement age62 vs 65Live like you are already retired “Nobody survives open heart surgery better than the guy who didn’t need the procedure in the first place.”
Men Who Are Truly Happy In Their Retirement Usually Adopt These Daily Habits
As author Ethan Sterling puts it:
You see, happiness in retirement isn’t about having a bulging bank account or an endless holiday. It’s about how you live your everyday life. Here’s what he found in men who successfully retired
Embrace routineStay activeKeep LearningStay socially connectedPractice mindfulnessCherish their relationshipsMake time for self-careEmbrace changeLive with gratitudeRetirement Age 65, Most Workers Retire at 62
Most Americans believe they will work until age 65Research shows that the majority step back from work far earlier, and not by choiceThe median age is 627-10 stopped working before 651/3 cited health issues or disabilityOnly 2 in 5 did so because they could afford itConsider liquidity, convenience, safety4 Finacial Worries to Cross Off Your List
Take things that might happen but are remote possibilities off the list of things you worry about:Estate taxGift taxThat you’ll need hard assets to buy things (economic death spiral)That the government will start taxing Roth IRAsGeneral takeaway: if it requires everything to go badly at once, or (like tax changes) political willpower to hurt the bulk of the American middle class, take it off the list. Also if it requires extreme irreversible actions (like fancy trust to avoid estate tax or buying physical gold)Remember to subscribe and follow our podcast for monthly updates packed with practical advice to guide you through your financial future with clarity and confidence. Stay tuned and stay informed!