Make Retirement Work

(Note: Today's episode sounds a little different as it was originally produced for the NebraskaLand Bank Podcast)

On this episode:

With a volatile market, rising interest rates, and high inflation, many people are worried about the state of the economy. On today's show, two economic experts, Senator & NebraskaLand CEO Mike Jacobson and Certified Financial Planner Marc Werkmeister join us to break down the trends we are seeing in the economy and what it all means.

More Details:

The current economic environment has many people worried. Interest rates are up, the stock market is volatile, bit coin has lost tremendous value, and inflation is up. So on today's episode, we want to sit down and discuss the economy and the future trends we should expect to see with two economic experts, Mike Jacobson and Marc Wekmeister. Mike Jacobson is the CEO of NerbaskaLand Bank and the Senator for District 42 and Marc Werkmeister is a Certified Financial Planner with PFA.

Inflation is when too much money is chasing too few goods and services. Looking at where we were with supply chain issue and the influx of money into the economy with stimulus checks, inflation was bound to happen. To combat inflation, the Federal Reserve raises interest rates, promoting people to stop buying and start borrowing and we are seeing this impact in the housing market already.

By a strict definition we are not technically in a recession yet. However, we are experiencing some of the signs of a recession. Whether we will end up in a full-blown recession isn't known yet. We'll explore some scenarios and what you should be doing to protect your wallet.

Join us today as we get into these topics:

• What causes inflation and what can be done to fix it?
• Why stocks and bonds are both experiencing volatility.
• What pre-retirees should be doing to protect themselves
• How the housing market is responding to the economy

Timestamps:

0:37 – Sorry to keep you waiting!

1:14 – We love Nebraska Day

2:56 – Welcome to our guests

3:28 – What is the overlook on the economy?

9:44 – Getting back to ordinary

12:58 – Are we in a recession?

15:00 – How would you protect your 401(k)?

18:38 – Bond-ladder investing and CD letters

19:40 – What is your advice to a hopeful homebuyer?

21:44 – What are we looking at with home lending?

25:59 – Making compromises with homes

27:31 – Figuring out what your long-term and short-term goals are

29:35 – What are some of the positives?

32:59 – Trivia: Current Events!

I was recently a guest on NebraskaLand Bank Podcast and spoke with hosts Ty Lucas and Danielle Remus. Today I'm sharing our conversation on my podcast. Here are some of the highlights.

What should people be thinking about with retirement planning?

As far as the end of year, a lot of it centers on capital gains, taxable events by mutual funds, maxing out retirement accounts, etc. All that stuff has to be top of mind before the end of the year.

We also talk to clients about making sure they're saving enough and have the right kind of insurance. You need to have a narrow plan about what you're trying to accomplish.

How does crypto work in today's financial world?

The crypto market changes so fast. From three years ago, my thoughts on crypto have done a complete 180. If you look out 20, 30, 40 years, there will still be crypto currencies out there.

They can be a diversifier, but they're still tied to the overall stock market as far as their correlation. I do think it has a place as an asset class.

Tell us about your connection to Dave Ramsey.

One of the guys in our office is one of Dave Ramsey's SmartVestors. Dave Ramsey's team vets and recommends local financial advisors to help his listeners.

Listen to the entire episode or click on the timestamps below to skip ahead to a particular question.

What we discuss in this episode:

3:12 – Professional podcaster

5:52 – PFA

7:47 – Where clients come from

8:24 – Retirement planning

11:28 – Spectrum of services

17:47 – Crypto

19:49 – Taxation with crypto

23:35 – Robinhood

28:47 – Dave Ramsey

30:02 – Railroad retirement

33:11 – Trivia game

For more, visit us online at https://makeretirementwork.com/

In today's mailbag, we're answering listener questions about how to retire early, whether to take a pension lump sum and if it makes sense to have two financial advisors.

Read more and get additional financial resources here: https://makeretirementwork.com/make-retirement-work/podcast.html

What we discuss on this episode:

2:11 – Retiring early

6:21 – Pension

8:25 – Two advisors

Today we're sharing some potential red flags you should be aware of in your finances. How would you answer these questions?

Can you name all of the investments in your portfolio?

It's not a red flag if you can't name them all, but you should know generally what you own. If you can name them all, you might not be very well diversified. If you don't know how your money is invested, maybe you're not diversified enough or maybe you're taking too much risk or not enough. You have to pay attention to how your money is invested.

How often do you meet with your financial advisor?

You're paying someone to give you advice, so you need to be in touch with them regularly. Meetings don't always have to be long and detailed. Sometimes a 15-minute conversation is all you need to check in.

Are your account balances constantly moving up and down?

Most people are OK with volatility when they're trying to accumulate funds. It can be to your advantage because you can buy when the market drops. Retirees, on the other hand, don't like the ups and downs of the market. You need to meet with your advisor and know more about your investments and the big picture.

How much income will you need in retirement?

If you are close to retirement and you don't know how much you'll need in retirement, that's probably a red flag. Everyone spends different amounts, but you need to know, generally speaking, how much money you need in your bank account each month.

Listen to the entire episode or click on the timestamps below to skip ahead to a particular question.

3:12 – Name your investments 5:26 – Meeting with your advisor 7:31 – Account balances 10:14 – How much income you'll need 12:40 – Retirement plan

Read more and get additional resources here: https://makeretirementwork.com/make-retirement-work/podcast.html

Marc is on the hot seat with this financial and retirement quiz. Play along and see how you do as well.

Read more and get additional financial resources here: https://makeretirementwork.com/1399/ep-28-test-your-financial-knowledge/

What we discuss on this episode:

2:30 – Scary retirement

4:22 – Scary coming year

9:10 – Tax bracket

11:24 – Money in retirement

14:16 – Wish you had more

We're changing it up today with some funny financial planning jokes and what we can learn from the humor.

Read more and get additional financial resources here: https://makeretirementwork.com/podcasts/

What we discuss on this episode:

1:57 – Credit cards

4:52 – Buying bonds

8:02 – Check my balance

11:23 – Long-term investment

13:27 – Stock market crash

17:07 – Retire at 64

Common sense is actually quite uncommon, especially when it comes to financial planning. Here are some common sense money approaches you need to know.

Read more and get additional financial resources here: https://makeretirementwork.com/1372/ep-26-learning-through-uncommon-sense/

What we discuss on this episode:

1:43 – Buy low, sell high

5:36 – Don't pay more in taxes than you have to

8:47 – Keep costs low

11:11 – Don't put eggs in one basket

14:06 – Marketing timing

People often have questions about life insurance. It's not a sexy topic, but it is an important one. We'll explain why.

Read more and get additional financial resources here: https://makeretirementwork.com/1350/ep-25-do-you-really-need-life-insurance/

What we discuss on this episode:

1:50 – Dirty word

3:33 – Do you need it?

4:48 – How much?

7:50 – Strategic uses

11:54 – Term, whole and universal

On this episode of Make Retirement Work with Marc Werkmeister, we'll explain how financial planning is like basketball. You might be surprised how much they have in common.

Read more and get additional financial resources here: https://makeretirementwork.com/1331/ep-24-what-basketball-teaches-us-about-retirement/

What we discuss on this episode:

2:54 – Shot clock

6:08 – Double dribble

9:37 – Personal fouls

13:24 – Coaching

Today, we're answering your most pressing financial questions about 401ks, mutual funds and inflation. Let's jump into the mailbag.

Read more and get additional financial resources here: https://makeretirementwork.com/1321/ep-23-mailbag-401ks-mutual-funds-and-inflation/

What we discuss on this episode:

2:41 – Can I leave 401k to son?

6:57 – Worry about inflation?

10:30 – Mutual funds

15:13 – Rental property