Retire With Style

By Wade Pfau & Alex Murguia

The purpose of Retire With Style is to help you discover the retirement income plan that is right for you. The first step is to discover your retirement income personality. Your hosts Wade Pfau, PhD, ... more

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How many episodes does Retire With Style have?

The podcast currently has 198 episodes available.

Retire With Style episodes:

April 16, 2024Episode 122 : Thinking Like A (Financial) Economist
In this conversation, Bob French interviews his father, Ken French, a professor of finance, about key concepts in economics and investing. They discuss the concept of marginal cost and marginal revenue, which helps individuals make decisions based on the balance between costs and benefits. They also explore risk aversion and how it affects investment decisions, as well as the winner's curse, which refers to the tendency to overestimate the value of winning bids or investments. Overall, the conversation provides valuable insights into economic thinking and decision-making. In this conversation, Bob and Ken French discuss the challenges of drawing inferences about the future based on past performance in the financial markets. They highlight the winner's curse and the noise in securities returns as factors that make it difficult to predict which asset class or active manager will outperform in the future. They also discuss the problem of overconfidence and the importance of accurate market prices. The conversation concludes with a discussion on the benefits of stock buybacks and the option value of investments. Listen now to learn more!

Kenneth French's Bio:
Kenneth R. French is the Roth Family Distinguished Professor of Finance at the Tuck School of Business, Dartmouth College. French is an expert on the behavior of security prices and investment strategies. He and his frequent co-author Eugene F. Fama have written many notable papers, including “The Cross-Section of Expected Stock Returns”, “Common Risk Factors in the Returns on Stocks and Bonds”, and “A Five-Factor Asset Pricing Model.”
French is a research associate at the National Bureau of Economic Research, an Advisory Editor of the Journal of Financial Economics, the Journal of Banking and Finance, and the Financial Review, a member of the Editorial Board of the Critical Finance Review, a former Associate Editor of the Journal of Finance and the Review of Financial Studies, and a former President of the American Finance Association. Professor French is also a Fellow of the American Finance Association and the American Academy of Arts and Sciences, Chair of the Valpo Surf Project’s Global Board of Directors, and a member of the Board of Directors of the Cato Institute, Grassroot Soccer, and the International Rescue Committee.
Professor French is a consultant to Dimensional Fund Advisors and a member of the firm’s board of directors.
Before joining Dartmouth, Professor French was on the faculty of MIT’s Sloan School of Management, the Yale School of Management, and the University of Chicago Booth School of Business. Professor French received his PhD in finance from the University of Rochester in 1983. He also earned an MS and an MBA from the University of Rochester and a BS from Lehigh University.

Takeaways
Understanding the concept of marginal cost and marginal revenue can help individuals make informed decisions based on costs and benefits.
Risk aversion is driven by the decreasing marginal utility of wealth, where the value of each additional dollar decreases as wealth increases.
The winner's curse refers to the tendency to overestimate the value of winning bids or investments, and it can be observed in various contexts, such as oil lease auctions and hiring decisions.
Considering these concepts can enhance economic thinking and decision-making in investing and other areas of life. Drawing inferences about the future based on past performance is challenging due to the winner's curse and the noise in securities returns.
Overconfidence is a common problem in investing, and people often overestimate their ability to pick winning investments or active managers.
Accurate market prices are important for allocating resources efficiently and signaling the value of different activities.
Stock buybacks can be beneficial for companies and society, as they can signal undervaluation and allow companies to allocate resources more effectively.
The option value of investments should be considered, as companies may choose to buy back stock when they don't have better investment opportunities.
Chapters
00:00 Introduction and Setting the Stage
09:19 Navigating Risk Aversion in Investing
31:46 Enhancing Economic Thinking and Decision-Making
45:39 The Importance of Accurate Market Prices
51:42 The Benefits of Stock Buybacks

Links:
Register for the webinar with Retirement Researcher and Kenneth French! 'Five Things I Know About Investing' Wed 4/24 at 2 eastern www.risaprofile.com/podcast

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"
...more
55min
April 09, 2024Episode 121: The Importance of Adult Daycare Centers with Jackie Smiertka
Jackie Smiertka, the owner of Quality of Life Adult Daycare Health Care Center, shares her journey of opening an adult daycare center and the importance of providing purpose and meaning to individuals as they age. She emphasizes the need for a medical model daycare that offers both medical care and engaging activities. Jackie also discusses the challenges faced by caregivers and the importance of providing them with a break and social interaction. She provides insights for individuals looking for a daycare center, highlighting the importance of finding a center that offers meaningful activities and individualized care. The conversation explores the benefits and unique aspects of the Birdhouse Project, a daycare center for individuals with dementia. The social model of the center emphasizes group activities and giving individuals a sense of purpose. The center provides choices and autonomy to its participants, allowing them to make decisions and engage in enjoyable activities. The center also focuses on holistic care, advocating for the physical and mental well-being of its participants. The conversation touches on the importance of early intervention and the positive impact the center has on the longevity and mental sharpness of individuals with dementia. The conversation concludes with a discussion on the challenges of finding quality daycare centers and the importance of having conversations with loved ones about the need for respite care. Listen now to learn more!

To learn more about Jackie, view the information below:
Jacquelyn K. Smiertka, RN, Center Director
The Quality of Life Adult Day Health Care Services Center
3252 University Drive, Ste. 140
Auburn Hills, MI 48326
Phone: 248-364-4064
website: http://www.qualityoflifecenter.net/index.html
Facebook page: https://www.facebook.com/p/Quality-of-Life-Adult-Day-Healthcare-Center-100063594492637/

Takeaways
Adult daycare centers can provide purpose and meaning to individuals as they age.
A medical model daycare that offers medical care and engaging activities is important for the well-being of the participants.
Caregivers also need a break and social interaction to prevent burnout.
When choosing a daycare center, look for one that offers meaningful activities and individualized care. The Birdhouse Project is a unique daycare center for individuals with dementia that focuses on providing a sense of purpose and autonomy through group activities and choices.
The center emphasizes holistic care, advocating for the physical and mental well-being of its participants.
Early intervention and engagement in enjoyable activities can have a positive impact on the longevity and mental sharpness of individuals with dementia.
Finding quality daycare centers for individuals with dementia can be challenging, but it is important to have conversations with loved ones about the need for respite care.
Chapters
00:00 Introduction and Background of Jackie Smiertka
01:38 Inspiration for Opening an Adult Daycare Center
06:12 Projects and Activities in the Daycare Center
08:58 Supporting Caregivers: The Need for Breaks and Social Interaction
11:54 The Impact of Isolation and Keeping Participants Busy
16:04 The Medical Model and In-Home Healthcare
23:35 The Birdhouse Project: Providing Purpose and Autonomy
29:14 Holistic Care and the Importance of Early Intervention
31:14 The Positive Impact of Engaging Activities
33:39 Challenges in Finding Quality Daycare Centers

Links
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips
...more
57min
April 04, 2024 Episode 120: The Role of IMOs with Dennis Mattern
In this episode, Wade Pfau and Alex Murguia interview Dennis Mattern from Creative One about the role of Independent Marketing Organizations (IMOs) in the financial industry. They discuss the difference between captive and independent advisors, the services provided by IMOs, and the importance of infrastructure for advisors. They also explore the marketing support and business partnership that IMOs offer to help advisors engage new prospects and expand their businesses. In this conversation, Dennis Mattern discusses various marketing approaches and strategies for financial advisors. He emphasizes the importance of understanding social media preferences and recognizing the different generations. Dennis explains how Creative One helps advisors grow their business through strategy sessions and the development of 30-60-90 day plans. He also highlights the significance of setting realistic expectations and finding marketing tools that align with an advisor's strengths. Dennis discusses the effectiveness of dinner seminars, educational events, and virtual webinars. He concludes by discussing the role of compliance and the importance of authenticity in marketing. Listen now to learn more!

Takeaways
IMOs provide support and resources for financial advisors, including marketing, product selection, and case design.
Choosing the right IMO is crucial for advisors, and they should ask the right questions to ensure the IMO can meet their needs.
IMOs can help advisors engage new prospects and expand their businesses through marketing strategies and advertising support.
IMOs serve as a business partner for advisors, offering guidance, expertise, and access to a wide range of insurance products and solutions. Understanding social media preferences and recognizing the different generations can help advisors tailor their marketing strategies.
Setting realistic expectations is crucial for both advisors and clients.
Different marketing approaches, such as dinner seminars, educational events, and virtual webinars, can be effective in reaching and engaging potential clients.
Working with an IMO that has a broker dealer or an RIA can streamline the marketing and compliance process.
Authenticity and finding marketing strategies that align with an advisor's strengths are key to success.

Chapters
00:00 Introduction and Background
01:49 Understanding IMO and FMO
03:42 The Role of IMOs in the Financial Industry
05:13 Captive vs. Independent Advisors
06:39 The Importance of Infrastructure for Advisors
08:59 The Evolution of IMOs
12:19 Choosing an IMO and Asking the Right Questions
14:03 Services Provided by IMOs
16:13 The Role of IMOs in Product Selection
22:48 Marketing Support from IMOs
24:01 The Importance of Business Partnership with IMOs
28:46 Engaging New Prospects and Marketing Strategies
31:25 Social Media Preferences
32:09 Recognizing Generation X
32:29 Cutting Through the Noise
33:19 Helping Advisors Grow Their Business
34:10 Setting Up a Strategy Session
34:37 Creating a 30-60-90 Day Plan
35:08 Realistic Expectations
36:17 Marketing Tools and Strategies
37:26 Different Approaches to Marketing
38:43 The Effectiveness of Dinner Seminars
39:23 Educational Events and Seminars
40:07 Virtual Events and Webinars
41:12 Considerations for Marketing Approaches
42:40 Benefits of Classroom Events
43:11 Leading with Value in Education
44:25 Virtual Events and Expanding Footprint
45:50 The Role of Compliance in Marketing
48:11 Consolidation and Differentiation in the Industry
49:25 Setting Realistic Expectations
51:09 The Role of an IMO
51:39 Facilitating the Fulfillment Process
52:09 Setting Up a Flywheel for Bringing in New Clients
55:07 Authenticity in Marketing
56:12 Considerations for Evaluating an IMO
57:11 How to Start

Links
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"
...more
1h 1min
April 02, 2024Episode 119: Options for Funding Long-Term Care Expenses (Part 5)
In this episode, Alex and Wade discuss options for funding long-term care expenses. They start by clarifying that Medicare is not a long-term care funding option, as it is for health-related issues. The four main funding options they cover are self-funding, Medicaid, traditional long-term care insurance, and hybrid policies. They focus on self-funding in this episode and discuss factors to consider when choosing a funding strategy, such as age, health, family health history, wealth levels, legacy objectives, risk tolerance, and the costs and benefits of different insurance policies. They also emphasize the importance of involving family members in the long-term care plan and considering the fungibility of assets. The episode concludes with a discussion on the impact of long-term care expenditures on one's standard of living and potential beneficiaries. This conversation explores the concept of self-funding for long-term care and the various factors to consider when making this decision. The chapters cover topics such as volatility and spending flexibility, the impact on inheritance and flexibility, insurance for long-term care, estimating reserves for self-funding, the probability of long-term care events, the ideal persona for self-funding, target date funds for long-term care, using QLAC as a planning tool, self-funding with annuities, spending guilt and behavior change, unpaid informal caregivers, and self-funding with annuities. Listen now to learn more!

Takeaways
Medicare is not a long-term care funding option; it is for health-related issues.
The four main funding options for long-term care expenses are self-funding, Medicaid, traditional long-term care insurance, and hybrid policies.
Factors to consider when choosing a funding strategy include age, health, family health history, wealth levels, legacy objectives, risk tolerance, and the costs and benefits of different insurance policies.
Involving family members in the long-term care plan is important to avoid misunderstandings and ensure support.
Money is fungible, and assets can be used to fund long-term care expenses, including the house, investment portfolio, and life insurance cash value.
Consider the impact of long-term care expenditures on your standard of living and potential beneficiaries.
Chapters

00:00 Introduction and Overview
02:58 Medicare and Long-Term Care
06:57 Costs and Considerations
09:59 Choosing a Funding Strategy
16:12 Involving Family Members
21:54 Funding Sources for Self-Funding
23:05 Impact on Standard of Living and Beneficiaries
23:19 Volatility and Spending Flexibility
24:15 Impact on Inheritance and Flexibility
25:45 Insurance for Long-Term Care
26:33 Estimating Reserves for Self-Funding
27:05 Probability of Long-Term Care Events
27:36 Ideal Persona for Self-Funding
28:33 Target Date Fund for Long-Term Care
29:23 QLAC as a Planning Tool
30:12 Self-Funding with Annuities
32:09 Spending Guilt and Behavior Change
36:18 Unpaid Informal Caregivers
41:02 Self-Funding with Annuities

Links

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips
...more
47min
March 26, 2024Episode 118: Long-Term Care Planning: Nursing Homes and CCRCs (Part 4)
In this episode, Wade and Alex continue their discussion on long-term care, focusing on nursing homes and continuing care retirement communities (CCRCs). They also touch on hospice care and the importance of having a power of attorney in place. They highlight the need to carefully review contracts and consider the financial strength of CCRCs. Listen now to learn more!

Takeaways
Nursing homes provide 24-hour care for individuals who need significant help with daily activities and medical issues.
Hospice care focuses on providing comfort and pain relief for individuals with terminal conditions.
CCRCs offer multiple levels of care within one community, allowing individuals to transition as their needs change.
It is important to review CCRC contracts with an elder law attorney and consider the financial stability of the facility.
Upcoming topics will include funding options for long-term care and interviews with experts in the field.
Chapters

00:00 Introduction and Correction
00:31 Continuing Care Retirement Communities (CCRCs)
10:02 Hospice Care
25:52 Considerations for CCRCs
30:38 Upcoming Topics and Conclusion

Links
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"
...more
34min
March 19, 2024Episode 117: The Continuum of Long-Term Care Planning (Part 3)
In this episode, Alex and Wade discuss the continuum of long-term care, focusing on the different levels of care and the importance of planning for aging in place. They explain the distinction between skilled care and custodial care, and the role of geriatric care managers and care coordinators in navigating long-term care decisions. The hosts also highlight the concept of aging in place and the modifications that can be made to homes to support this. They touch on the potential use of reverse mortgages and the importance of ensuring the safety and comfort of individuals receiving long-term care. This conversation explores various aspects of aging in place and the different options available for seniors. The importance of creating a safe and accessible living environment is emphasized, including the use of smart home technology and wheelchair accessibility. The benefits of social interaction and the potential risks of social isolation are discussed. The conversation also touches on the role of adult daycare and community centers in providing care and support for seniors. Finally, the episodes concludes with a discussion on assisted living facilities and the considerations involved in choosing the right one. Listen now to learn more!

Takeaways
Understanding the continuum of long-term care is crucial for planning and making informed decisions.
Skilled care refers to medical intervention, while custodial care involves assistance with daily activities.
Geriatric care managers and care coordinators can provide valuable support in navigating long-term care decisions.
Aging in place is a growing movement that aims to enable individuals to stay in their homes and receive in-home care.
Modifications to the home, such as walk-in showers and single-floor living, can facilitate aging in place. Creating a safe and accessible living environment is crucial for aging in place.
Smart home technology can enhance safety and convenience for seniors.
Social interaction is important for maintaining cognitive function and overall well-being.
Adult daycare and community centers can provide support and stimulation for seniors.

Chapters

00:00 Introduction to Long-Term Care Continuum
06:02 Transitioning to Different Levels of Care
09:21 Skilled Care vs Custodial Care
11:46 Geriatric Care Managers and Care Coordinators
12:44 Home Care and Aging in Place
24:05 The Importance of Aging in Place
24:47 Reducing the Risk of Falls
25:08 The Benefits of Smart Homes
26:05 Wheelchair Accessibility and Levered Handles
27:09 Good Lighting and Low Cabinets
28:08 The Importance of Social Interaction
29:06 Adult Daycare and Community Centers
29:22 Reducing Hazards to Falling
30:14 Assisted Living Facilities

Links
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips
...more
52min
March 12, 2024Episode 116: Costs and Prevalence of Long-Term Care Planning (Part 2)
In this episode, Wade and Alex discuss the costs and prevalence of long-term care. They explore the probabilities of needing long-term care and the average lengths of care for men and women. They also differentiate between any long-term care needs and paid long-term care needs. The conversation provides insights into the importance of planning for long-term care and highlights the need for realistic expectations and budgeting. This conversation explores the financial implications of long-term care, including the distinction between unpaid and paid care. It highlights the impact of unpaid care on caregivers' lives and the need for paid care. The discussion also delves into the gender differences in long-term care needs and the higher costs associated with women. The Genworth Cost of Care Study provides insights into the average costs of various long-term care options. The conversation emphasizes the importance of considering inflation and demographic trends when planning for long-term care expenses.

Takeaways
The probability of needing long-term care is higher for women than men, primarily due to their longer life expectancy.
On average, men need long-term care for about 2.5 years, while women need it for about 3.6 years.
About 56% of individuals will likely need to plan for long-term care in their retirement.
Planning for long-term care should consider both the probability and length of care needed, as well as the potential costs involved. Unpaid care can have a significant financial and personal impact on caregivers, often disrupting their own retirement plans.
Women tend to have longer long-term care needs and higher costs due to their longer life expectancy and caregiving roles.
The Genworth Cost of Care Study provides estimates of the average costs of different long-term care options.
Long-term care expenses are likely to grow faster than the overall inflation rate, making it important to plan for higher costs.
Chapters

00:00 Introduction and Personal Updates
05:12 Probabilities and Length of Long-Term Care Needs
10:32 Probability and Length of Any Long-Term Care Event
18:59 Unpaid Care vs. Paid Care
19:37 The Financial Impact of Unpaid Care
20:23 The Cost of Paid Long-Term Care
21:11 Lower Probability of Needing Paid Care for Longer Durations
22:18 Long-Term Care Needs and Gender
23:08 The Impact of Unpaid Care on Women
24:05 Lifetime Expenditures for Long-Term Care
25:18 Inflation and Long-Term Care Expenses
26:35 Triggers for Long-Term Care Needs
28:18 Gender and Long-Term Care Planning
29:01 Genworth Cost of Care Study
31:05 Inflation Rate for Long-Term Care Expenses
32:02 The Progression of Long-Term Care Needs
33:27 State-by-State Differences in Long-Term Care Costs
38:01 Considering Alternative Care Options
39:46 The Growing Need for Long-Term Care

Links
Join the waitlist for the next Retirement Income Challenge by visiting risaprofile.com/podcast
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"
...more
45min
March 05, 2024Episode 115: Intro to Long-Term Care Planning
In this episode, Wade and Alex introduce the long-awaited arc on long-term care planning. They discuss the importance of planning for long-term care and the impact it can have on retirement. They define what a long-term care need is and explain the activities of daily living (ADLs) that determine eligibility for long-term care benefits. They also highlight the distinction between ADLs and incidental activities of daily living. The episode concludes with a preview of the next episode, which will cover the costs and prevalence of long-term care. Listen now to learn more.

Takeaways
Long-term care planning is a crucial aspect of retirement planning, as it can have a significant impact on financial security and the well-being of individuals and their families.
A long-term care need is defined as requiring assistance with activities of daily living (ADLs) for more than 100 days. The six common ADLs include bathing, continence, dressing, eating, toileting, and transferring.
Cognitive impairment, such as dementia, may also trigger the need for long-term care, depending on the policy's definition.
It is important to distinguish between ADLs and incidental activities of daily living, as only ADLs typically qualify for long-term care benefits.
The next episode will cover the costs and prevalence of long-term care, providing further insights into planning for this important aspect of retirement.
Chapters

00:00 Introduction to Long-Term Care Planning
03:01 Personal Experiences and the Importance of Long-Term Care Planning
08:58 Budgeting for Long-Term Care
14:12 Determining the Amount to Set Aside for Long-Term Care
21:36 The Demographics and Increasing Need for Long-Term Care
26:39 Defining a Long-Term Care Need
27:56 Activities of Daily Living (ADLs) and Cognitive Impairment
32:46 Incidental Activities of Daily Living
36:53 Summary and Next Steps

Links
Join the waitlist for the next Retirement Income Challenge by visiting risaprofile.com/podcast
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips
...more
41min
February 27, 2024Episode 114: RWS Live (not really): Answering Your Safe Withdrawal Rate & Annuity Questions (Part 8)
In this episode, Alex and Wade answer questions on safe withdrawal rates, annuities, and retirement planning. They discuss the considerations for investing in a Qualified Longevity Annuity Contract (QLAC) and the difference between immediate and deferred annuities. They also explore the use of Single Premium Immediate Annuities (SPIAs) in combination with Fixed Index Annuities (FIAs) and the benefits of buffer assets in reducing sequence risk. Additionally, they address the challenges of finding automatic options for equity investments and provide insights for individuals who are considering retirement but are unsure about their options. Listen now to learn more.

Takeaways
Consider the insurance aspect of annuities and view them as a way to protect against longevity risk and provide guaranteed income in retirement.
When deciding between investing and buying a QLAC, focus on the insurance benefits and peace of mind rather than potential investment returns.
SPIAs and FIAs can be used in combination to provide both guaranteed income and growth potential in retirement.
Buffer assets can help reduce sequence risk and allow for a higher withdrawal rate from an investment portfolio.
Retirement decisions should not be solely based on financial considerations, but also on personal fulfillment and well-being.
Chapters

00:00 Introduction and Q&A on Safe Withdrawal Rate and Annuities
02:06 Considerations for Investing in a QLAC
04:16 Viewing Annuities as Insurance Products
06:07 Choosing Between Investing and Buying a QLAC
08:45 Using SPIA and FIA in Combination
16:59 Using Safe Withdrawal Rate and RMDs
21:37 Buffer Assets and Sequence Risk
24:47 Automatic Options for Equity Investments
28:40 Considering Retirement Options

Links
Registration for the next Retirement Income Challenge is OPEN: Learn more and join us for this LIVE 4-Day event starting on March 4th-7th, 2024 from 12:00 -2:00 PM ET each day by visiting risaprofile.com/podcast
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"
...more
40min
February 20, 2024Episode 113: RWS Live (not really): Answering Your RISA and Asset Allocation Questions (Part 7)
In this episode, Wade and Alex discuss various topics related to retirement planning and investment strategies. They address questions about reconciling portfolio structure when spouses have different orientations, allocating between growth and value stocks, estimating healthcare expenses in retirement, investing in high-yielding stocks, using closed-end funds for retirement income, and implementing a reverse glide path for early retirement. We'll also discuss various retirement planning topics, including managing the sequence of returns risk in early retirement, blending time segmentation and total return strategies, balancing safety first and commitment orientation, and the impact of RMDs on immediate annuities. Listen now to learn more.

Takeaways
When spouses have different orientations, it's important to find a middle ground that considers risk preferences and liquidity needs.
The RISA framework helps determine retirement income strategies but doesn't provide specific guidance on asset allocation decisions.
Estimating healthcare expenses in retirement should be part of the overall budget and doesn't require a separate reserve.
Investing in high-yielding stocks or funds can be risky and may not provide the desired income or diversification.
Closed-end funds may not be an efficient or recommended strategy for retirement income due to concentration and leverage risks.
A reverse glide path, starting with a lower stock allocation and gradually increasing it, can help manage sequence of returns risk in early retirement. When retiring early, managing sequence of returns risk can be achieved by using a lower withdrawal rate, which may reduce the need for a reverse equity glide path.
The glide path can be a way to blend time segmentation and total return strategies, such as using a bond ladder for the start of retirement and gradually increasing equity allocation.
Balancing safety first and commitment orientation in retirement planning involves considering contractual protections, such as annuities, while not going overboard with them.
RMDs and immediate annuities: The Secure Act 2.0 allows the excess income from an immediate annuity to be applied towards other RMDs, providing more flexibility for retirees.
Chapters

00:00 Introduction
03:07 Reconciling Portfolio Structure
09:02 Allocation Decisions
13:05 Healthcare Expenses in Retirement
20:13 Allocation Decisions: Growth vs. Value Stocks
31:12 Investing in High-Yielding Stocks
36:21 Using Closed-End Funds for Retirement Income
39:24 Implementing a Reverse Glide Path
40:31 Managing Sequence of Returns Risk in Early Retirement
42:27 Blending Time Segmentation and Total Return
44:54 Balancing Safety First and Commitment Orientation
45:25 RMDs and Immediate Annuities

Links
Registration for the next Retirement Income Challenge is OPEN: Learn more and join us for this LIVE 4-Day event starting on March 4th-7th, 2024 from 12:00 -2:00 PM ET each day by visiting risaprofile.com/podcast
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips
...more
54min

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How many episodes does Retire With Style have?

The podcast currently has 198 episodes available.

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Retirement Answers by Jacob Duke, CFP®

Retirement Answers

105 Listeners