Retire Smarter with Kevin Kroskey, CFP® & Tyler Emrick, CFA® CFP®

You've perhaps heard the 4 percent rule, that if you take 4% out of your investment account each year, you'll never outlive your money. Kevin talks about where this idea came from, and pokes some holes in this strategy in this third installment of Rules Gone Awry.

This is the fourth of a five-part series we're revisiting on Retirement Rules Gone Awry. 

What we discuss in this episode:

1:40 - What is the 4% rule?

4:00 - Why this rule became widely adopted? 

5:35 - Major problems with this rule

11:12 - What is the right answer?

14:53 - Example of someone we've worked with 

18:07 - Final thoughts

Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/ 

There's a "rule" that says you should take 100, subtract your age, and the result tells you how much of your money you should invest in stocks. It would be awesome if retirement planning was that simple, but simple isn't always effective and that's the problem with the Rule of 100. Take a listen to find out about better ways to invest and plan for your financial future.

This is the third of a five-part series we're revisiting on Retirement Rules Gone Awry. 

What we discuss in this episode: 

1:40 - Today's rule  

5:29 - Measuring risk  

10:32 - Simple isn't always better 

Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/ 

There's an old school of thought that says you should take social security as early as you can so that you can get the most out of it. But this is another one of those retirement rules gone awry that we enjoy picking apart on the podcast. Kevin will tell us why this retirement "rule" needs to be scraped and give us the proper lens through which to view the social security problem.

This is the second of a five-part series we're revisiting on Retirement Rules Gone Awry. 

What we discuss in this episode: 

1:52 - Background on this Social Security rule

4:05 - The common approaches people take to SS

5:27 - 'I won't live long enough.' 

6:59 - 'I don't want to wait to spend money.' 

9:21 - Worry about SS funding issues 

14:29 - Different ways you can take SS

Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/ 

Walter was being nosy recently and asking his mom about her retirement plans. When she told him she was planning on living off of 80% of her current income during her retirement years, it raised a red flag. How did she come to that figure?

You guessed it, she didn't really have an exact answer for why she picked that number.

So Walter turns to Kevin on this week's podcast to understand how that "80% Rule" worked its way into the retirement planning vernacular and why we'd all be wiser to ignore it.

This is the first of a five-part series we're revisiting on Retirement Rules Gone Awry. 

What we discuss in this episode: 

1:40 - Backstory on this topic

4:28 - How do you determine the amount?

6:03 - Where does it vary from person to person?

10:40 - Why this rule falls apart

15:07 - Building customized plans

17:13 - Final thoughts

Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/ 

Listen as Kevin completes the podcast series discussing the book What Retirees Want (WRW) by world-famous "Age Wave" expert Ken Dychtwald, Ph.D. 

Should you stay or should you go...

While many Boomers intend to not move but age in place, an increasing amount are making a change.

Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/ 

What we discuss in this episode:

0:42 - Current market volatility

3:28 - Where will you call home?

5:23 - Book passage that ties into this discussion 

8:57 - Age in place or move?

10:48 - Reasons retirees decide to stay

12:53 - Where are people moving to?

17:03 - Retirement regrets

18:52 - Discussing this with clients

20:18 - Continuing Care Retirement Communities

24:41 - Closing thoughts

What do retired Boomers say is the key to retirement happiness? Think about what you would say and then take a listen to learn this and more on the show.

Listen and learn as Kevin continues the podcast series, discussing the book What Retirees Want (WRW) by world-famous "Age Wave" expert Ken Dychtwald, Ph.D. 

Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/ 

What we discuss in this episode: 

0:31 - Tom Brady retiring

1:34 - Recap on what we've discussed so far

3:25 - What makes us happy

5:50 - Stress in retirement

8:58 - The idea of leisure

12:28 - Top priorities for Boomers

18:33 - Retirement destinations

25:02 - Final thoughts and action plan

Listen as Kevin discusses the book What Retirees Want (WRW) by world-famous "Age Wave" expert Ken Dychtwald, Ph.D. Learn why your expectations of how long you'll work will likely vary substantially from how long you'll actually work and why this matters.

Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/ 

What we discuss in this episode: 

1:50 - What we're focusing on today

4:31 - Survey found retirees leaving earlier than planned

6:43 - 3 reasons why expectations don't match reality

9:28 - Don't rely heavily on those later earnings

10:54 - Why people are still working in retirement

13:19 - Client story

14:18 - Giving back/mentorship

18:03 - Takeaways from this discussion

21:10 - Having a plan

Listen as Kevin discusses the book What Retirees Want (WRW) by world-famous "Age Wave" expert Ken Dychtwald, Ph.D.

Learn how increasing wealth and longevity have transformed retirement and will continue to create more "Time Affluence."

Hear why Work, Leisure, Health, Home, Family, Finances, and Purpose are key zones impacted by this new idea of retirement and how to better think about and prepare for the softer side of retirement.

Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/ 

What we discuss in this episode: 

0:42 - Holiday recap

1:48 - Business growing

3:20 - The book we read

7:05 - The idea of retirement through history

11:52 - Retirees today

13:08 - My grandfather's retirement

16:14 - Time affluence and its influence

18:32 - Final thoughts

Many early retirees find they must utilize Affordable Care Act (ACA or Obamacare) policies to bridge the gap from employer-provided health insurance to Medicare at age 65. ACA policies are expensive but even affluent families may be able to obtain significant tax credits -- often more than $10,000 yearly -- to offset premiums.

Hear Kevin discuss Premium Tax Credits and how to plan to obtain them. With a recent law change, these credits are even more sizable and accessible at higher income levels for 2021 and 2022 and maybe longer with pending tax legislation.

Read more and get additional financial resources here: https://www.truewealthdesign.com/ep-87-how-pre-65-retirees-can-get-a-huge-healthcare-tax-credit/ 

What we discuss in this episode: 

1:30 - The article that inspired this conversation

3:49 - Background on healthcare and tax credits

5:41 - Insurance costs and a real-life example

13:58 - Summarizing the numbers

15:07 - Planning strategies to take advantage of the credit

18:58 - Changes for 2022

22:56 - Final thoughts

Do you know what it costs to live your lifestyle? Many successful people don't. They haven't had to worry about money, live below their means, and save diligently.

1:12 – Elf on the shelf

5:00 – Cash flow, measuring, and monitoring

11:52 – Kevin’s story about cash flow

15:02 – Tyler’s story about cash flow

20:44 – Cash flow like a mortgage pre-approval

22:03 – Tax importance with cash flow

23:12 – The fourth quarter for retired clients

28:25 – Common concerns

Resources: 

https://www.truewealthdesign.com/ep-68-my-journey-as-a-financial-planner/