My Smart Retirement

Currently, people are feeling on edge with increased interest rates and inflation. Gas, food, and living expenses have changed significantly because inflation has increased at a faster pace than we have seen in the last 40 years.

We have had people ask us how inflation will impact their taxes. In this episode, we are going to answer your question and go over the various ways your taxes could be affected.

Here’s some of what you’ll learn in this episode:

• How wage growth has been affected by taxes. (4:12)
• Inflation might slow, but prices are very unlikely to go backward. (6:36)
• How inflation can impact our taxes. (9:53)
• The important things to note about how inflation affects capital gains. (14:43)

For more information: https://www.flemingfinancialservices.com/podcast

Just about everyone has a question, or ten, that comes up while planning for retirement. Should I delay Social Security? Am I saving enough? The list goes on.

We want you to go into retirement with peace of mind, so we are answering more of your questions today. These questions are ones we have gotten frequently, so listen up, because we just might share an answer you have been looking for.

Here’s some of what you’ll learn in this episode:

• Danny: I am going to work one more year and then I’m going to find part-time work for four more years to supplement my retirement income. Would it be better to work full-time for two more years and then retire? (2:28)
• Catherine: Should I use a program that will help me pay off my mortgage faster by splitting it into biweekly payments? (6:40)
• It’s a good time to be a little more defensive with your finances in today’s world. (9:43)
• Bill: Someone said I should save 15% of our income for retirement, but we are only saving 10%. Are we in trouble? (11:47)

For more information: https://www.flemingfinancialservices.com/podcast

We always talk about the money side of financial and retirement planning. But what about the mental aspect of that big life change? Today we’ll break down an article written by a Licensed Professional Counselor (Kate Schroeder) for Psychology Today, titled The Psychological Investment In Retirement.

Retirement can span 25-30% of our lives so we want to be as prepared for this next chapter as possible so the earlier we can embrace this side of planning, the more we’ll be able to fully enjoy retirement.

Here’s some of what you’ll learn on this episode:

• Why it’s so difficult to walk away from a life and routine that’s defined you for years. (4:04)
• Retirement is a time to embrace the person you’ve always wanted to be. (6:03)
• The actions you can take to be better prepared for this psychological side of retirement. (7:43)
• Some examples of ways our clients have found this meaning in retirement and what they’ve chosen to do. (11:58)
• Why it’s not easy to figure this out once you’re in retirement. (15:34)

For more information: https://www.flemingfinancialservices.com/podcast

Now that people are traveling more again, many of us are packing our bags and going through the process of thinking through what goes into each suitcase.

Believe it or not, this is much like financial planning. You probably haven’t paid much attention to it before, but we will explain why packing a suitcase is very similar to preparing for retirement. If you’ve ever lost a bag or had a suitcase damaged, you know that it’s important to make sure that you don’t lose everything you need.

From what bags you plan on taking to how you want to group all of your things, we’ll have some fun taking you through this analogy.

Here are some of the things you’ll learn on this episode:

• How to be prepared for losses through diversification. (2:05)
• Why you need to organize things in different groups or bags. (5:18)
• Greed can impact investing decisions negatively. (7:35)
• Why you should be constantly evaluating your plan. (9:20)

If you’d like to learn more, visit us online and let’s set up a time to talk --> https://www.flemingfinancialservices.com/ 

One of the things we love about financial planning is that there are many different solutions for the same scenario. You have to weigh all the different factors for an individual’s situation to determine what their best outcome might be.

Today we’ll touch on a little of that as we open up the mailbag to find out what’s on your mind. The topics we’ll cover include conservative investing allocations, taking a loan out from your retirement account, lump sums or monthly payment, and handling planning on your own.

These things we talk about are just opinions based on a short scenario that came in through the mailbag. When you have a question, we need to gather a lot more information because every situation could have multiple solutions. Planning takes time and we need to get as many details as possible to help provide the best possible answer for your position. But we hope our answers help explain the things we’re thinking through to give you a general idea of how to proceed.

Here are some of the things you’ll learn on this episode:

• The story of Wrigley gum and mass marketing. (0:50)
• Is having 80% of your money in a money market fund too conservative? (5:01)
• Where to draw money from if most of your savings are in retirement account. (10:00)
• Should you take your sick leave payout in a lump sum? (15:11)
• Can you have a successful retirement without a financial advisor? (17:43)

If you’d like to learn more, visit us online and let’s set up a time to talk  https://www.flemingfinancialservices.com/

We make education a key focus of what we do and we always make sure clients understand how things work before taking the first step in planning.

We understand that financial education isn’t provided to everyone and there are some common areas where people often get misled into believing something that they shouldn’t. This can lead to you innocently assuming certain people or companies are looking out for your best interest.

On this episode, we’re going to share some of the things we wish people knew when they first came into our office to meet with us.

Here are some of the things you’ll learn on this episode:

• What’s the motivation behind the information you find online or on tv? (7:28)
• An example of how annuities are used out of context. (3:35)
• Why a big brand or company isn’t always the best option for you. (5:23)
• Why we want people to be in a position for informed consent. (7:29)

MORE INFORMATION:  https://www.flemingfinancialservices.com/podcast

You’ve most likely heard plenty of “rules” you’re supposed to follow to retire successfully. Some of these rules are stated so confidently, you’d be crazy not to immediately accept them as fact.

But we don’t mind the threat of being called crazy, so Nancy and Sean will dive into some of the most popular retirement “rules of thumb” to see if they truly lead us down the path of good financial guidance or run a chance of leading us astray.

You’ll always want to consult with your financial advisor for each of these rules because your situation might be different than someone else and you want the best plan for your future.

Here are some of the things you’ll learn on this episode:

• How the rule of 100 is used to determine risk but not always perfect for each situation. (7:28)
• The rule of 72 is a great way to determine how long it will take your money to double based on the rate of return you’re generating. (12:31)
• Why dollars and percentages aren’t the same and example of how to view this. (14:02)
• How to apply the rule of 5 about bear markets to investing. (15:45)
• The rule of 10 tells us to have 10x our salary saved by the age of 67 but is this appropriate? (17:06)

MORE INFORMATION:  https://www.flemingfinancialservices.com/podcast

One of the toughest things many people face in life is divorce, and it can weigh heavily on your financial health on top of all the emotional stress you experience. We understand how difficult this process can be but want you to know that there are people that will help you make it through it.

While everyone’s situation will be different and there are more factors that you might consider when it comes to sorting through the financial side of the divorce. We want to open your mind and give you some things to think about if you are going through this or might be in the future.

It’s easy to want to take the path of least resistance to just get everything over with, but a financial advisor can help you make the best decisions for yourself and your retirement.

Here are some of the things you’ll learn on this episode:

• Why keeping the house might not be the best financial outcome for you. (2:42)
• Are you factoring in the tax implications of all the assets getting distributed out? (5:06)
• An important thing to remember about Social Security benefits after divorce. (6:14)
• How the pension can be split if one spouse will receive one in retirement. (11:27)
• This highly emotional process usually often sways decision-making and outcomes. (14:35)

MORE INFORMATION:  https://www.flemingfinancialservices.com/podcast

On today’s episode, we’re going to explore the 4 phases in life, each being 8,000 days or 22 years: the honeymoon phase, the big decision phase, navigating longevity phase, and the solo journey phase. While they can be interchangeable each plays a special part in our lives and we have very similar phases in retirement.

The Honeymoon Phase (65 to 74)

This is where you are typically just entering retirement (while some people may retire earlier). These are your healthy years. You have an average of 20 more healthy years. Everything’s changed because you are retired, but physically not much has changed.

What are you going to do with your time? Will you travel? Or will you spend time exploring hobbies? A lot more people are considering working into retirement as the definition of retirement evolves. These are the go-go years.

The Big Decision Phase

This phase is characterized by more free time and you end up making more big decisions. The worries of work have faded from your mind and now you’re stuck making decisions about everyday life. Where are you going to live? How will you cope with housing repairs? Housing is a continuum rather than just somewhere you live while raising a family. Deciding what to do with the house is one of the biggest decisions a retiree makes.

Navigating the Longevity Phase

This is where the logistics of health planning and long-term care planning really become important and time-consuming. With increased appointments, prescriptions, and the possibility of limited mobility we need to consider how we’ll manage healthcare in our later years. The cost of healthcare becomes a lot more expensive after the age of 65.

The Solo Journey Phase

If your spouse passes away, are you prepared financially? The average age of widowhood is 59, so these phases aren’t chronological. The divorce rate over 50 has also doubled. While the kids are likely out of the house, you still need enough to support yourself if you find yourself on the solo journey.

Check out the full episode or use the timestamps below to hear a specific segment.

1:22 – Phases of life and retirement

5:11 – Honeymoon phase

8:58 – Interested in still working?

12:52 – The big decision phase

15:42 – Access to community

18:05 – Navigating longevity phase

22:32 – We live a long time

25:00 – The solo journey phase

29:40 – Seeing our own mortality

32:26 – Trust yourself!

For more, visit us online at http://flemingfinancialservices.com 

Let’s put retirement planning and preparation under the microscope. On today’s episode, we’re going to do a retirement planning pop quiz. Follow along and test your retirement planning skills and knowledge!

At what age should you start saving for retirement?

A. When you begin working

B. After you buy your first home

C. After you pay off all your debt.

Actually, the best time to start saving is now! The quantity you put away will change on your circumstances and age. Practicing this habit early helps with saving larger portions down the road.

Which of these is the best estimate of how much income you’ll need in retirement?

A. 50% of your current income

B. 85% of your current income

C. 100% of your current income

D. None of the above.

Generally speaking, we look at the amount of money coming into your bank account each month. Which is a piece of your current income. But the bills you have now may not be the same bills you have in retirement. For example, the mortgage may be paid off by then. What will you do with that extra income?

Join us today as we explore these questions and more!

Check out the full episode or use the timestamps below to hear a specific segment.

1:32 – Enjoying the summer

6:47 – At what age should you start saving for retirement?

9:27 – How much income will you need in retirement?

11:50 – Which of these are the best examples of diversification?

15:55 – Which of these do retirees fear the most?

17:18 – What percent should you withdraw from your portfolio each year?

For more, visit us online at http://flemingfinancialservices.com