The theme this week on the One Minute Retirement Tip podcast is: How To Recession-Proof Your Retirement.

Today, I’m talking about why having enough cash on hand is the key to recession-proofing your retirement. 

As I talked about yesterday, typical stock market drop lasts about 18 months. Even the massive stock market decline in 2008 only lasted about 18 months. When you have enough cash on hand to get you through the big drops without making the problem worse by withdrawing money from your portfolio when it’s cratering, you give your portfolio a better chance of recovering and recovering quicker. 

One smart way to deal with this problem is to add up the total portfolio withdrawals you anticipate needing for the next 1-2 years, and set aside that amount of cash so you can draw from it and won’t have to tap into your portfolio when the stock market is dropping and the economy is in the tank. 

Most of the time, 1-2 years worth of portfolio withdrawals in cash is enough to see you through, so consider sidelining some of your retirement portfolio in the later years of working and the early years of retirement to see you through a potential recession. 

That’s it for today. Thanks for listening!

Before you continue on with your day, please take a moment to leave a review for the One Minute Retirement Tip in Amazon. If you’re getting any value from these tips, it’s a great way to share the love. And thank you to those of you who have already taken the time to write a review.

My name is Ashley Micciche and this is the One Minute Retirement Tip.

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the One Minute Retirement Tip podcast is: How To Recession-Proof Your Retirement.

Today, I’m talking about how understanding what a typical recession and stock market downturn look like will help you gain some much needed perspective on trying to recession-proof your retirement. 

The last recession - the pandemic recession was the shortest recession on record. Although the US economy took a steep dive, the recession officially lasted only about 3 months. 

A typical, post-WWII recession lasts about 11 months, and they happen about every 5 years. In general, retirees tend to be better equipped to deal with receissions. You aren’t worried about losing your job, you typically have more equity in your house, and more money in your bank accounts which can help you weather the recession storm.

Where retirees get clobbered are in a couple of ways - the stock market during a recession takes a nosedive. Drops of 30% or more are common. A drop of 20% or more is known as a bear market. On average, bear markets have lasted 14 months in the period since World War II. The S&P 500 index has fallen an average of 33% during bear markets in that time. 

14 months is the average time between the top of the market and the bottom. It could take much longer for the stock market, and your portfolio to return to the previous value. 

Once you know what to expect, you can begin to prepare for probable scenarios. If you’re taking portfolio withdrawals and a recession and a bear market hit, you’ll want to be prepared to stop your portfolio withdrawals or have other options at the ready, which is what I’ll be covering in the remaining episodes this week. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the One Minute Retirement Tip podcast is: How To Recession-Proof Your Retirement.

Today, I’m sharing with you why you never want to enter your retirement years during a recession. A big drop in your portfolio in the early years of retirement can have lasting and serious consequences. In fact, it’s one of the most damaging strokes of bad luck you could ever experience with your finances. 

Why is a recession in the early years of retirement such a big problem? Think of your retirement portfolio as a large bucket of water. If a come by and pour out a quarter of the water in that bucket in the first few years of retirement, we have a problem.

That bucket of water needs to last you maybe 25-30+ years and I just skimmed off a lot of water! What if now, on top of that you dip your hand in the bucket and take out monthly withdrawals of water from your bucket. After all, that’s what you need to live. 

As the stock market recovers, more water will get added back to the bucket, but if you’re taking handfuls of water out, it may never recover enough to get back to a full bucket.

When your investment portfolio takes a big hit like that so early in retirement, all of a sudden you could be forced to make some tough decisions. Do you go back to work? Cut your expenses and stop your portfolio withdrawals? 

The withdrawals on top of the stock market downturn are what makes a recession in the early years a 1-2 punch. That and how much time you still need to rely on your retirement portfolio for income. Big drops and recessions are less bad 10-15 years into retirement, simply because you didn’t dump all that water out in the early years. You dumped the water out when you may only need to make your bucket of water last another 15-20 years, not 25-30 more years. 

You’re also moe likely to not have a recession and a big market downturn hit you as bad further into retirement, since you’re more likely to have less in stocks at that point and maybe your portfolio only drops 10-15%, not 25-30%, simply because you’re more conservatively invested at that point. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

Welcome to a new week here on the One Minute Retirement Tip Podcast. I’m your host Ashley Micciche, co-owner of True North Retirement Advisors, an independent financial advisory practice managing $325 million in client assets. I’m a Chartered Retirement Planning Counselor, and I started this podcast because I love helping people just like you gain clarity and make a plan for the retirement you envision. 

The theme this week on the One Minute Retirement Tip podcast is: How to Recession-Proof Your Retirement. 

If history is any guide, then you’re likely to live through a recession in retirement. I mean it’s pretty much inevitable. The word “guarantee” is a no-no in the financial world, and you should be suspicious of anyone who uses it, but I can safely say I pretty much guarantee that a recession will happen to you in retirement. 

So this week, I’ll talk about 

• Why recessions in the early years of retirement can be so problematic and scary
• What you need to know about recession cycles and why it’s important
• How to Protect Your Investments In A Recession
• Why Cash Reserves Are The Key To Recession-Proofing Your Retirement
• How To Have More Control Over Your Finances In A Recession 

I hope what I have to share with you this week will help you make smart and thoughtful decisions with your retirement. And while I am careful to not lead you astray, personal finance is not an exact science. There is no one-size-fits-all solution for everyone, so I encourage you to disregard anything I say that may not be helpful for you, and to consult your own financial, tax, and legal advisors regarding your own individual situation. 

That’s it for today. Come on back tomorrow, where I’m explaining why retiring during or just before a deep recession can be one of the worst case scenarios that ever happens to your finances. 

Thanks for listening! My name is Ashley Micciche...and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

It’s Sunday, which means...It’s time for the recap and bottom line. I’m tying everything together and sharing the most important takeaway from this week’s theme: 

Are You A Money Hoarder? 

In case you missed any episodes, here’s what we covered in each episode this week: 

• I confessed my own money hoarding tendencies. If I’m being honest, I needed to tell myself the lessons of this week’s episodes and apply them to my life, just as much as you might needed to hear them yourself if you find yourself crossing the line from saving to hoarding
• Then we talked about the key difference between saving and hoarding
• Why many Americans today are guilty of hoarding with a $17 trillion cash stockpile just laying around doing nothing
• I also shared with you the real reason why you and I hoard, which is often fueled by fear and insecurity about the future
• And lastly, I talked about how to fix your money hoarding tendencies with specific actions to counteract your money hoarding compulsions. 

Here’s the bottom line: If you’re serious about saving money, it’s easy to cross the line from saving to hoarding. It’s important to be on guard about tendencies towards hoarding that you have, because you and I can never accumulate enough to make that feeling of insecurity go away, and it is only likely to get worse if we keep giving in to our hoarding tendencies. But there is hope for those of us who like to keep lots of cash on hand or save when we have gone well past the point of having enough - and that is to counteract the hoarding tendencies with a bit more guilt-free spending, regular giving, and getting clarity about whether you’re on the right path financially by doing some financial planning and retirement projections. 

Tomorrow, come on back, because we’re starting a brand new theme: Recession-Proof Your Retirement. One of the worst things that can happen in the early years of retirement is retiring during or just before a really bad recession and a big downturn in the stock market. So next week, I’ll share with you how you can insulate yourself from the inevitable recessions in retirement and what you should do if you’re unlucky enough to have a really bad one hit in the early years of retirement. There is hope, especially if you’re not caught off guard. 

Thank you so much for listening this week! Please leave a review on Amazon, Apple Podcasts or wherever you listen to podcasts. I really appreciate your feedback, and reviews also help new people discover the show.  

My name is Ashley Micciche and I hope you have a blessed Sunday.

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the One Minute Retirement Tip podcast is: Are You A Money Hoarder? 

Yesterday, I talked about why most of us hoard money, which is driven primarily by fear and insecurity about the future. That fear and insecurity can drive some of us to accumulate much more than what we need, and cross the line from saving into hoarding.

Today, I’m talking about the fix for money hoarding tendencies. Now, let me clarify first that when I talk about money hoarding, I’m talking about it from the standpoint of someone who does not require a medical diagnosis and treatment. Money hoarding can be a disorder, but for many of us who suffer from money hoarding tendencies and not a diagnosable medical condition, there are some important steps you can take to work through your money hoarding tendencies. 

Many times, all you might need is a little more clarity about the future. Going through the process of a retirement projection to see if you’re on the right path and you have enough for retirement is enough to ease your mind, and slow your money hoarding train. If you want to access my retirement success forecaster to find out if you’re on the right path to a comfortable retirement, you can access the tool and find out if you’re saving enough by going to www.truenorthra.com/retirementsuccess. You’ll fill out a 2 page questionnaire, then submit it for your personalized results. 

If hoarding cash is a problem, then you can overcome hoarding tendencies by picking a prudent amount to leave in cash that you would be comfortable with for emergencies and earmarked savings, and make a plan to invest the rest over the next 6-12 months. Set up an auto-investment so you don’t have to think about it again. 

A number of other adjustments can fix hoarding tendencies - if you have issues with parting with funds, set up a mad money account where you earmark funds for carefree spending each month, and set up a regular, monthly donation to a charity. If you struggle to spend money on vacations or eating out even though you have enough, practice ordering the more expensive entree or the Airbnb that seems too expensive. 

Money hoarders often have problems making decisions with money, so if this applies to you, then consider applying a timeline for making a decision about the next important financial decision that comes your way. Maybe you’ll decide within a day or a week of facing your next financial decision, forcing you to move forward out of the paralysis of indecision. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the One Minute Retirement Tip podcast is: Are You A Money Hoarder? 

Today, I’m talking about the primary reason you and I hoard money. If you’re anything like me, you’ll know when you have crossed the line from being a good saver into being a money hoarder when you start to experience anxiety about spending money, or when you save for the sake of saving more, not for the purpose of saving for a specific purpose or goal. 

One of the main reasons why we can easily cross the line from saving to hoarding is that we all have insecurities and fears about the future. The future is uncertain, and there’s no way to make yourself 100% secure financially. Yet, most of us strive for financial independence and security that will be enduring. 

And those insecurities and fears about the future may cause you to hoard money in an attempt to reach the point of full insulation from any threats from the outside world. You may not rest until you’re like The Bubble Boy in Seinfeld - completely protected from anything that could harm him, yet completely miserable and anxious all the while. 

That’s it for today. Tomorrow I’m going to talk about the remedy for money hoarding tendencies and to cure your bubble-boy syndrome. 

Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the One Minute Retirement Tip podcast is: Are You A Money Hoarder? 

Today, I’m talking about the $17 trillion cash stockpile. 

Although money hoarding may be an acute problem for some, there’s actually evidence that money hoarding is a real issue for many Americans and small businesses today, primarily driven by a steep increase in cash due to Covid. 

You may have heard about this in the news...I come across articles from time to time that discuss the stockpiling of cash held by Americans who have kept their jobs through Covid, had their bank accounts bolstered by stimulus checks and PPP loans in the case of small businesses, and because of continued uncertainty around Covid, simply haven’t spent any money. 

Earlier this year, I talked about data showing that the savings rate among Americans was around 30% of income. Many of us are stockpiling cash, and a recent article in MarketWatch cites data from the Federal Reserve indicating that the cash stockpile among American households and small businesses continues to rise in 2021. 

This all makes sense when you consider that making travel plans is still frustrating with the Delta variant, supply chain issues making it difficult to spend money on everything from dishwashers to laptops, and new restrictions in several states makes it difficult to spend money on eating out. 

So the bottom line is that cash has exploded from a pre-pandemic $12 trillion to the current $17 trillion, indicating that many of you listening are likely part of the current cash hoard. If this is you, remember that it’s unnecessary to keep more than 3-6 months of savings in cash for emergencies + a little bit more if you’re retired. If you’re sitting on much more cash than that, it’s likely detrimental to your long-term portfolio value as an investor. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the One Minute Retirement Tip podcast is: Are You A Money Hoarder? 

Today, I’m talking about the distinction between saving and hoarding money. According to an article in Smart Capital Mind by Malcolm Tatum: “While the lines between [saving & hoarding] may at times appear somewhat fine, there is one important distinction that revolves around the intent or reason for the accumulation of financial reserves. 

Depending on the reason for that accumulation, the activity may be considered responsible and productive, or be extremely detrimental to the well-being of the individual or family involved.”

Here’s the distinction according to Tatum: “When saving money, there is normally a specific purpose or intent in mind.” Maybe you’re saving up for a vacation, for emergencies, and upcoming car purchase or home purchase...if you’re listening to this podcast, then you’re obviously interested in saving for your retirement.. The point here with saving is that you’re saving for a specific reason. The saving has a purpose. It’s the responsible thing to do. 

“In contrast, according to Tatum, “hoarding money has no other purpose than to accumulate financial resources. There is no intended goal for the funds that are set aside, and no plans to make use of the money at some future point in time. People who engage in hoarding money will often forgo necessities in order to add a little more to their savings account.”

An important tell-tale is the person who saves far beyond what is enough for a comfortable retirement, hates their job, but continues working anyways, all in the name of saving more for retirement. 

Another tell-tale sign is the person who forgoes necessities to save a little bit more. In an extreme scenario, it’s the person who saves 90% of their income, yet drives an unreliable and unsafe car. Doesn’t buy life insurance or health insurance, and would rather not eat anything on the day they forgot to bring their lunch to work, rather than spending any money on eating out. 

So if you save just to accumulate more with no specific purpose, or you have vastly oversaved, yet are still making tremendous sacrifices, then you might be a money hoarder. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

The theme this week on the One Minute Retirement Tip podcast is: Are You A Money Hoarder? 

Today, I have a confession to make: I am a money hoarder. How do I know this? I hate spending money. I mean I really hate spending money. Even though I have always lived well within my means, I fret about spending every single dollar. It doesn’t matter if it’s a $30 toy for my son’s birthday, a nice meal out, or a new washer and dryer that I needed to buy after my other dryer stopped working this past summer...it causes stress to hit “buy now”. 

One of the signs of having money hoarding tendencies is anxiety when spending money. I’ve always been that way. When I was in college and working minimum wage jobs, I would save every last penny and take months to decide what I was going to purchase with my funds, preferring instead to stash my cash hoard in a box in my bedroom. 

Once I started working, I made tremendous sacrifices and trade offs in my 20s so I could max my 401k savings. I was acutely aware with my finance background that I needed to start saving early and often to have flexibility and freedom in retirement, and I gave up the flexibility and freedom in the present moment, by not eating out and barely traveling when I was younger. 

Looking back, especially now that I have 3 young children, I wish I would have been more balanced in my approach to saving earlier in life. It sure would have been nice to travel Europe or lay on a beach peacefully with a margarita, without asking my 7 year old for the 12th time to get over here so I can reapply sunscreen. And if you’ve ever tried to board an airplane with 3 young children in tow + a stroller, 2 car seats, and wondering if the airbnb is a death trap for an exploring infant, it may not sound like much of a vacation to you...trust me, it’s not. 

When looking at the signs that I might be a money hoarder, I definitely don't check all the boxes… Money hoarders often have difficulties organizing and keeping track of saved funds, constant indecision about money, deep suspicion of the motivations of others when it comes to money matters, and deep fears about losing hard-earned savings.

When I look at these other common characteristics of money hoarding, the only other tell-tale that applies to me is the deep fear of losing hard earned savings. The more I accumulate and save, the less likely that I’ll lose it all and have to start over. More money = security, but that’s not always healthy and there’s a fine line between saving and hoarding for security. 

So if any of this sounds like you, I encourage you to tune in each day this week. I still struggle with a tendency to hoard, so I’m talking to myself this week as much as I’m talking with you about how to overcome money hoarding tendencies. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance