In this  episode, James emphasizes the importance of having a well-thought-out financial plan for retirement, rather than relying solely on the size of your investment portfolio. Financial security doesn't come from a specific portfolio number but from having a comprehensive plan.

Using a listener's question, James walks through a step-by-step approach to assessing retirement readiness. He discusses aspects like income planning, investment strategies, tax optimization, and protection through insurance and estate planning.

Shifting your mindset from a saving mentality to a spending mentality in retirement allows you  to fully enjoy your savings. Learn how to determine if you'll be financially secure in retirement and how to optimize your financial resources to enhance your overall retirement experience.

Questions Answered:
How do you assess your retirement readiness?
How can you optimize their retirement plan to enhance their overall retirement experience?

Timestamps:
0:00 Intro
1:26 Listener question
4:03 The bills
6:03 Alternative strategy
10:36 The first thing we looked at
12:55 How to maximize
15:35 Your investments
18:58 Risk capacity
21:05 Deductions
23:19 Big picture consideration
25:28 Outro

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In this episode James explores signs that may indicate it's time to move on from a current financial advisor and discusses the professional and respectful ways to handle this transition. There are three core aspects to consider when contemplating the change:

Deciding to Leave:
The first step involves recognizing signs that it may be time to move on. 

Telling Your Advisor:
James provides two scripts for notifying your financial advisor about your decision.

Handling Logistics:
After the decision to switch advisors is made, there are several logistical considerations.

James highlights that making the decision to switch advisors can be emotionally challenging, but ultimately, it's a crucial step in securing your financial future.

Questions Answered:
How do you decide if it's time to leave your financial advisor?
What's the best way to tell them that you're leaving?
How do you handle the logistics? 

Show notes links:
When Should You Work with a Financial Advisor?
https://www.youtube.com/watch?v=1V1X-dovlF4

Script: Break up with your Financial Advisor
https://docs.google.com/document/d/1IwYM5DDcvm0FEtkc99Lf9sy840wmGfhLm62-o7NmMpg/edit

Timestamps:
0:00 Intro
1:18 How to decide
7:00 How to tell them
8:10 Script 1
9:09 Script 2
11:03 Script 3
15:28 The logistics
17:54 Outro

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One of the most ironic things about retirement spending is that the people who have saved the most money are often the same ones that have the most difficult time spending that money. 

We often think that if we save up enough money or build up enough of a portfolio that in retirement it will open up unlimited fun and enjoyment.

The reality is, for those who have saved well, one of the hardest things you'll find about retirement is the difficulty you'll likely face trying to spend some of that money. 

James discusses how you how you can shift your savings mindset to a spending mindset.

Questions Answered:
Why is it so difficult to go from a savings mindset to a spending mindset?
How do we start making the shift with our mindset? 

Timestamps:
0:00 Intro
4:57 James' perspective
7:48 Example
10:47 We need to realize this
14:52 How do we reframe?
16:58 Pillar 1
18:38 Pillar 2
19:19 Pillar 3
20:36 Pillar 4
22:25 Pillar5
24:34 Summary
27:18 Outro

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The majority of people who participate in some level of charitable giving in retirement aren't getting a tax deduction for any of it. While external reasons should drive charitable giving, you should absolutely look to maximize the tax effectiveness of any giving you're already doing.

In this episode, James covers how to optimize your tax benefits, detailing donor-advised funds, an often-overlooked tool for maximizing your tax benefits. 

Learn about when to write off cash contributions, gift appreciated securities, and how your mortgage can play a role in the deductibility of your giving. 

Questions answered:
What should you do differently with your tax strategy when making charitable donations?
When does a donor-advised fund make sense for you?

Timestamps:
0:00 Intro
1:28 Deductions
4:02 Why it matters
6:15 Donor advised fund
11:03 Important information
14:16 When does it make sense?
17:43 When does it not make sense?
23:09 Outro

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By the time you get to retirement, it is not uncommon to have many different accounts at multiple different institutions. You may be wondering, "How do I begin the process of consolidating everything without paying a bunch in taxes or penalties?"

In this episode, James covers three types of taxes you're likely to encounter when consolidating: ordinary income, capital gain, and early withdrawal penalties. He also explains strategies to sidestep these taxes and penalties and how to decode your current allocation to pinpoint your income needs.

Questions answered:
What is a good strategy for consolidation?
How do you ensure you won't get penalized for consolidating?

Timestamps:
0:00 Intro
1:55 The situation
5:18 Capital gains
8:46 Income taxes
14:03 401k plans
17:31 Allocation 
21:21 Alternatively
23:45 Outro

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It’s common knowledge to have a different portfolio allocation before retirement than you actually have in retirement. But how and when do we actually go about making that change?

This episode is based on a listener question: Alan, has a portfolio mix weighted too heavily in stocks. As he shifts into retirement, he is looking to have a new allocation strategy. 

James discusses how to shift into a different allocation, when the right time to do that is, and what makes the most sense for Alan’s situation.

Questions Answered:
How do we shift into a new allocation strategy?
When should you begin that process?

Timestamps:
0:00 Intro
3:08 The framework
8:41 Where should you hold assets?
14:14 What’s the timing?
18:14 In summary
19:11 Outro

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Are short-term savings using an adjustable rate mortgage worth the risk of rate hikes? In this podcast, we cover how adjustable rate mortgages (ARMs) work, how they differ from fixed-rate mortgages, and the reality of their adjustment periods. 

James uses a real-life scenario to dive into the comparison of adjustable and fixed-rate mortgages. Learn how to plan for the worst-case scenarios and evaluate the benefits and drawbacks of each option. 

Questions answered:
Is it better to get a fixed rate mortgage, or is it better to get an adjustable rate mortgage? 
What is the risk versus reward?

Timestamps:
0:00 Intro
3:10 Buying a home
5:18 How ARMs work
7:24 Why use an ARM?
10:11 What's the risk?
14:07 When not to get an ARM
16:15 When to get an ARM
18:50 Other considerations
20:21 Analysis
21:06 Outro

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How can rising interest rates impact your pension value?

In this week's episode, we analyze a real-life scenario from our listener, Mark, who is weighing the pros and cons of an early retirement, a higher lump sum, or a commit to an annuity. 

Learn how to calculate the imputed returns of an income annuity and how to determine if taking the lump sum and investing it would be the better option. 

Questions Answered:
What considerations and calculations can be used to decide between a lump sum payout or an annuity?
Are you working against yourself by continuing to work?

Timestamps:
0:00 Intro
2:40 Mark's question
4:24 Unpacking it
7:38 Don't do your analysis this way
14:09 Here's how to do your analysis
18:54 Risk
19:58 Planning
20:50 Takeaway
24:47 Outro

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If you’re retired, you can’t wait around for the next bonus or stock to vest when you have a large expense. When you’re on a fixed income it’s more important than ever to find the best way to pull funds for large expenses. 

In today’s episode, James explains how to find the best way to pay for large expenses in retirement while answering a listener’s question.

Questions Answered: 

Should you use IRAs (or other assets), cash, or finance to pay for large expenses with today’s high-interest rates?

What considerations should you take into account when planning for a big expense in retirement?

Timestamps:
0:00 Intro
3:48 Cashflow 
8:46 Taxes
10:52 Timing
13:14 Example
20:58 Investment
27:04 Legacy
30:32 Outro

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How much of your portfolio is safe to hold in one individual stock? 

While 5% or 10% is typically recommended, rules of thumb like these are often irrelevant and harmful. The right answer depends upon your specific situation.

James explains the right way to determine how much individual stock you should hold based on your situation.

Questions Answered:
How much is okay to have in an individual stock?
What conditions make owning individual stock acceptable or unacceptable?


Timestamps:
0:00 Intro
2:02 Monica's story
3:30 Individual stocks
5:02 Example 1
7:45 Conditions
10:18 Technicalities
12:37 Example 2
14:34 Emotional implications
16:11 Framework
19:43 Portfolio size
21:49 Time best spent
22:50 Underperforming
25:07 Why diversify?
27:01 Outro

Create Your Custom Strategy ⬇️

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Join the new Root Collective HERE!