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

Inevitably you will have some investments perform better than others in your portfolio. A normal, human response is to seek pleasure and avoid pain or sell the underperformer and buy what has done well. But does that make investing sense?

Listen to Kevin discuss critical concepts of diversification and probability and why process matters more than outcomes. Hear an example of this being applied in professional basketball and playing probabilities in blackjack.

In sticking to a good process, good outcomes are more likely to result. In focusing on outcomes, you are more at risk of stampeding over the cliff with the uninformed herd and wrecking retirement.

Check the four-part Your Investing Process Series, mentioned in this episode:

https://www.truewealthdesign.com/your-investing-process-part-1/

https://www.truewealthdesign.com/your-investing-process-part-2/

https://www.truewealthdesign.com/your-investing-process-part-3/

https://www.truewealthdesign.com/your-investing-process-part-4/

Timestamps:

0:43 - Defining Underperforming Investments

2:12 - Is The Investment Or Asset Class Underperforming?

4:32 - Metrics To Consider When Choosing Investments

6:57 - Getting Rid Of Underperforming Stocks

8:35 - Terminal Wealth Dispersion

12:32 - People Don't Invest Rationally

14:47 - Using Probability In Your Favor

20:38 - Planning For Different Outcomes

Contact:

True Wealth Design Website: http://www.truewealthdesign.com/

Call: 855-893-7526

Schedule: http://bit.ly/calltruewealth

What a year 2020 was. Pandemic. Contested elections. Civil unrest. Rollercoaster investment markets.

As Churchill wrote, "Those that fail to learn from history are doomed to repeat it." Listen to Kevin discuss investment lessons you can learn from 2020 to be a smarter investor and keep your retirement on track for years to come.

Timestamps:

2:04 - What Stood Out In 2020?

8:02 - The Market Is Forward Looking

11:53 - Make Sure You Are Diversified

13:22 - Politics & The Market

21:57 - Sticking To The Plan

Contact:

True Wealth Design Website: http://www.truewealthdesign.com/

Call: 855-893-7526

Schedule: http://bit.ly/calltruewealth

Most Americans donate to charity and many have distinct goals in their retirement plan to meet annual charitable donations. Most also give cash ...the easiest but also least tax-efficient way to give.

Hear Kevin discuss three ways to tax-optimize your charitable giving. Whether through in-kind transfers of appreciated stock, using a donor-advised fund, or via Qualified Charitable Distributions, each can help you gain a bigger tax break and meet your charitable goals in the Retire Smarter way.

Timestamps:

6:48 - Making Direct Gifts Of Stocks, Or Shares Of Mutual Funds

10:58 - Navigating Donor-Advised Funds

22:05 - Using IRA Money

26:29 - Two More Considerations For QCDs

Contact:

True Wealth Design Website: http://www.truewealthdesign.com/

Call: 855-893-7526

Schedule: http://bit.ly/calltruewealth

Pension lump sums will be much higher in 2021 than 2020. Listen to Kevin discuss timing considerations on how to optimize your pension benefits by understanding the key variables that determine your lump sum. Company pension plans specifically discussed include Akron Children's Hospital, Bridgestone, FirstEnergy, Goodyear, Mercy Health, and Rockwell Automation.

Whether you have a pension from your company or not, you'll benefit from this episode. Why? Anyone can invest money with an insurance company and receive a lifetime income in the form of annuity payments. So these considerations are universal in crafting your retirement income plan.

Want more information on pension claiming strategies? Listen to Episode 38. https://www.truewealthdesign.com/ep-38-pension-lump-sum-or-monthly-payment/

Check out Episodes 12 & 13 for more details about annuities. https://www.truewealthdesign.com/episode-12-behind-the-curtain-of-annuities-and-free-steak-dinners/

https://www.truewealthdesign.com/episode-13-beating-up-on-variable-annuities/

Timestamps:

2:58 - What Has Changed With Pension Lump Sums?

8:56 - Why These Changes Matter

10:33 - Segment Rates

16:11 - What To Expect In The Future

20:39 - Spreadsheet Story

25:04 - Closing Thoughts

Contact:

True Wealth Design Website: http://www.truewealthdesign.com/

Call: 855-893-7526

Schedule: http://bit.ly/calltruewealth

We're excited to make a big announcement on this episode of Retire Smarter. Kevin is joined by True Wealth Design's newest partner, Ron Wyatt, who brings more than 25 years of financial planning experience to the firm. A lot of existing listeners will be hearing from Ron for the first time, so we'll spend some time today getting to know his background and professional journey. And new listeners will also get to learn more about Kevin's experiences.

The two will also cover why they've chosen to join forces now, and why it's going to be a benefit for all current and future clients. Join us as we celebrate the growing of True Wealth's footprint from northeast Ohio and southwest Florida to Pittsburgh!

Timestamps:

1:11 - Introducing Ron Wyatt

2:21 - Ron shares a little about his background

5:58 - Kevin gives a brief review of his background, including his time as a high school physics teacher

8:23 - Kevin tells us about one of his first clients, Tom, and the lessons learned from an emotional meeting in 2009

10:55 - Ron explains why he and Kevin are joining forces at True Wealth Design

16:56 - How does this impact clients? How will their experience change or remain the same with this transition?

24: 53 - Big picture: becoming a "bigger small firm"

Contact:

True Wealth Design Website: http://www.truewealthdesign.com/

Call: 855-893-7526

Schedule: http://bit.ly/calltruewealth

The purchase price of your car is one factor to consider. But the Total Cost of Ownership -- adding in costs for insurance, fuel, maintenance and repairs, as well as the residual value upon sale -- is a better way to evaluate financial aspects of a car purchase. In doing so, the cheapest vehicle is often more expensive than initially perceived.

Same too goes for selecting investments. Many solely use the expense ratio to determine what fund to buy. But while the expense ratio is important and easily observable, it does not tell the whole story. In fact, it may tell only a small part.

Listen to Kevin describe total investment costs and related factors to consider when choosing your investments. Having a more complete view will help you make smarter decisions.

Timestamps:

0:53 - The Election

8:55 - Kevin’s Burrito Story

12:51 - Expense Ratios

17:24 - Securities Lending Revenue

21:16 - Helping A Client Understand This Process

24:49 - How Do You Reach A Conclusion?

Contact:

True Wealth Design Website: http://www.truewealthdesign.com/

Call: 855-893-7526

Schedule: http://bit.ly/calltruewealth

Healthcare is a primary concern, especially for retirees. Transitioning from employer-provided coverage you've been on for decades is stressful. Now you have more complexity and choices than ever before. And, yes, costs may seem sky high after retiring and before Medicare.

Listen in to hear Kevin and health insurance expert Zig Novak discuss health insurance options from the time you retire to before you can begin Medicare at age 65. Should you take COBRA? What types of plans and are available for Affordable Care Act (ACA or Obamacare) plans, and how much do they cost? How do ACA tax credits work, and how valuable are they? Get informed.

Get destressed. Know what you need to about this important topic to Retire Smarter.

Timestamps:

4:00 - Pre-65 Healthcare Planning

8:15 - Floating Cobra

14:27 - ACA Plans

26:00 - Tax Credits

31:37 - Verifying Your Income

Contact:

True Wealth Design Website: http://www.truewealthdesign.com/

Call: 855-893-7526

Schedule: http://bit.ly/calltruewealth

Healthcare is a primary concern, especially for retirees. Transitioning from employer-provided coverage you've been on for decades is stressful. Now you have more complexity and choices than ever before.

Listen in to hear Kevin and health insurance expert Zig Novak discuss Medicare-related topics. What will it cost? How may costs change as you age? What are the pros and cons of supplemental and advantage plans, and how do you decide which may be better for you?

Get informed with useful information to help you Retire Smarter.

Timestamps:

2:56 - Special Guest Zig Novak

5:18 - Alphabet Soup Of Medicare

8:09 - The Costs Of The Different Parts

21:28 - Services That Medicare Doesn’t Cover

23:24 - Advantage Versus Supplemental Plans

33:25 - Switching Between Plans

Contact:

True Wealth Design Website: http://www.truewealthdesign.com/

Call: 855-893-7526

Schedule: http://bit.ly/calltruewealth

Proper investment diversification works ... even when you don't want it to. With the US stock market and particularly large technology stocks having the wind at their backs recently, many are eschewing diversification to chase these high flyers.

As the saying goes, if we forget history, we are doomed to repeat it. In that spirit, hear Kevin tell a tale of two decades.

First is the Lost Decade of the 2000s when, after the Tech Bubble burst, US investors lost money for an entire decade from 2000 to 2009. Second is the recent decade from 2010 to 2019 where US stocks screamed. The two are starkly different and instructive. Combining the entire 20 years allows you to clearly see the benefits of discipline and diversification.

What will the 2020s hold? Only time will tell, but today resembles the late 1990s in some ways. Importantly, in retirement, you can't afford to have a Lost Decade.

Timestamps:

6:15 - The Problem With Stock Splits

13:41 - Our Current Environment Is Similar To The Late 1990’s

18:50 - Areas That Are Not Doing Well

22:11 - The Way Diversification Works

25:12 - Avoiding Recency Bias

Contact:

True Wealth Design Website: http://www.truewealthdesign.com/

Call: 855-893-7526

Schedule: http://bit.ly/calltruewealth

Biden or Trump? Republicans or Democrats? Who will be better for the economy and your investments? These are questions many are asking with the election quickly approaching.

Many let their political beliefs influence their investment strategy, but should they? Hear Kevin discuss what the evidence shows and how our political beliefs may influence our perceptions of reality. Get ready to check your alternative facts at the door and get real.

Timestamps:

6:24 - Keep Politics Separate From Investing

10:47 - Pew Research Poll

14:33 - Perception Becomes Reality

19:49 - Peter Schiff Making The Right Economic Call, But Not The Right Investing Call

29:39 - We Have Beliefs, But 200 Years Of History Is More Insightful