The theme this week on the One Minute Retirement Tip podcast is: 5 inspiring quotes about money and investing. 

Today’s quote comes from Thomas Edison. He said: “Opportunity is missed by most people because it is dressed in overalls and looks like work.”

Have you ever seen those ads on Facebook or YouTube that feature 20 somethings who have it seemingly all figured out. They’re living life in a tropical locale, fully embracing the 4 hour workweek, and telling you all about how you too can achieve passive income. 

There are plenty of people who are wealthy who are making passive income through their businesses, their dividend paying stocks and/or their real estate portfolio, but I can certainly tell you that it didn’t come from hacking the system and earning a passive income stream straight out of the gate. 

Building wealth is years and years of hard work and sacrifice. Warren Buffett, at the age of 90, he has accumulated just over $100 billion in net worth through patience and shrewdness. But what most people don’t know about Buffett is that the vast majority of his net worth was earned after the age of 65. He has been at it so long and putting in the time and effort and hard work, that his wealth has exploded in the last 25 years compared to the previous 60. 

A lot of that is from the power of compound interest. He has been an investor for so long, and the doubling of his money happened a few more times because he has been investing actively for over 70 years now. 

So I think Edison is right….“Opportunity is missed by most people because it is dressed in overalls and looks like work.” We all want the easy button, but it just doesn’t work that way and it’s not a sustainable wealth to earning and keeping wealth. 

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

---------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

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: 5 inspiring quotes about money and investing. 

Today’s quote comes from Abraham Lincoln. He said: “A lawyer who represents himself has a fool for a client.” 

I like this quote because: 

• Too many people try to DIY everything from house flipping to cleaning their gutters to managing your finances. The problem when you don’t hire a professional is that you have blind spots and biases and that can do some serious damage. 
• Whether it’s cleaning your gutters or drafting your estate plan or doing your taxes or planning for your retirement, I’m a big believer in hiring the best help you can afford. Not everyone can pay top dollar for the best professionals, but there’s a reason why the wealthy people do it and don’t DIY - it’s because they know they’re going to be better off in the long-run by just focusing on what they do best, and outsourcing everything else they can. 

I’ve seen some pretty dramatic mistakes made when people try to DIY it with their money. These mistakes can be costly and irreversible. That’s the real danger here. If I try to DIY a kitchen backsplash and it looks like my 3 year old did it. That’s ok. I will have wasted money and will have to spend even more money having it fixed by a professional, but it’s reversible. Most money mistakes can’t be reversed, so I encourage you to pay for the best help you can afford, which is different for everyone. 

If you have more than $500,000 in your investment portfolio, then you can probably afford a financial advisor who can manage your money for you, and provide financial advice that’s tailored to you. Their expertise will likely far outweigh their fee in the long run because they are not just picking your investments. They’re looking at the big picture, rebalancing your portfolio, helping you make the right social security decision, keeping you invested when the stock market is in freefall, and not letting you invest in Bitocin at $60,000, and a lot more. 

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

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

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: 5 inspiring quotes about money and investing. 

Today’s quote comes from Theodore Roosevelt. He said: “The only man who never makes mistakes is the man who never does anything.”

I like this quote because: 

• So many times with decisions, we can be so overwhelmed with the choices in front of us, that we often choose to do nothing. 
• Sure you can avoid mistakes if you don’t make a decision, but we weren’t meant to live in our comfort zone all the time. We were made for greatness and to reach our full potential as humans, which means sometimes making big mistakes. 
• Do you remember the first time you decided to save and invest your money in the stock market? It was probably scary to part with your money and risk losing it, but if you did it, you saw that it wasn’t so bad and you actually made money most of the time. If you put it all in the bank or under your mattress instead, you never lost money but you didn’t gain much either and that’s a much bigger problem in the long-run. 

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

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

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

Welcome to a new week and a new theme 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 $300 million in client assets. I’m a Chartered Retirement Planning Counselor, a frequent speaker, radio and podcast guest, and I love talking to anyone who will listen about making a plan for the retirement you envision. 

The theme this week on the One Minute Retirement Tip podcast is: 5 Inspiring Quotes About Money and Investing. I’m sharing my favorite quotes about money, many of which are more about life in general than money, but their application to managing your finances is very instructive. So I’ll share with you quotes by Teddy Roosevelt, Abraham Lincoln, Thomas Edison, Benjamin Graham, and Mark Twain, and why these quotes resonated with me and more importantly why I think these quotes can help you be a better manager of your money and your investment portfolio if you can apply the message to your life. 

I hope what we have to share with you this week will help you make smart and thoughtful decisions for your retirement. And while I research each week’s topic and I am careful to not lead you astray, I am not infallible (and according to my husband and kids and pretty much everyone else in my family... I am wrong all the time). 

Personal finance is complex, and 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...

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

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

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

It’s Sunday, which means...It’s recap time! 

The theme this week on the One Minute Retirement Tip podcast was: Setting Your Retirement Budget

Making a realistic plan for how you will spend your money in retirement is one of the most important steps you can take in the years leading up for retirement. 

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

• We started with understanding your various income sources in retirement. 1st we gotta figure out where the money is coming in from, and then we can get to work on spending it.
• Then we moved on to the spending part...I talked about how to go about calculating your essential and non-essential living expenses, why you need to separate those out, why health care costs deserves it’s own line item in your budget, and then how to plan for those expected and unexpected spikes in spending during retirement. 

I hope that I helped you think about both sides of the spending coin - money coming in and money going out and provided you with some useful guidance on how to begin the process of setting your retirement budget. 

Tomorrow, come on back, because we’re starting a brand new theme: 5 inspiring quotes about money and investing. Theodore Roosevelt once said “The only man who never makes mistakes is the man who never does anything.” I’ll talk about why I love that quote along with several others, and how it applies to making good decisions with your money in next week’s episodes. 

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 comments, and reviews also help new people discover the show.  My name is Ashley Micciche and I hope you have a blessed Sunday.

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

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: setting your retirement budget. 

Today, I’m talking about planning for spikes in your spending

Talking points:

• Your spending, like life, isn’t a slow moving lazy river. There’s going to be bumps along the way, rushing rapids, and maybe a couple waterfalls. 
• You will have a new car to buy every 5-10 years. Your roof may need replacing. Your house will need to be painted. You may have a child who is getting married or one of the most important goals is to help pay for your grandchild’s master’s degree, or take your kids and grandkids to Hawaii all on your dime. 
• Whatever your planned or unplanned expenses are, there needs to be room in the budget for these spikes in spending. 
• Much harder to budget for these. You may buy a car 2 years earlier than planned out of necessity. 
• First - plan for them. Write them down and in what years you’ll expect to have the added expense
• Then you’ll need to see if your income sources that we talked about earlier in the week will cover that adequately
• Lastly, it’s wise in retirement to keep a little bit more in cash on hand. I’ve talked about this before but it’s not just for these extra expenses. It’s so you can maintain your spending even if the stock market has another 2008-like year during retirement. 
• I use the formula of 3-6 months of your essential living expenses in the bank + another 12 months worth of whatever your portfolio withdrawals are. This will cover most emergencies and extras without needing to sell your portfolio at a bad time. In all, it shouldn’t be much more than about 5-7% of your overall portfolio in retirement, which is not an excessive amount of cash to keep on hand

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

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

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: setting your retirement budget. 

Today, we’re talking about budgeting for healthcare costs in retirement, and why you’ll want to budget for those separately and not just lump them in with your regular monthly expenses.

Talking points: 

• Most people lump in healthcare costs in with their general budget for the month
• Break it out differently, because healthcare costs can vary widely, even if you’re covered by medicare
• Inflate differently - go up at a rate that’s likely going to be much higher than the cost of your other expenses. 
• Use a calculator to estimate this - there’s a few I like online. Nerdwallet and Fidelity both have good cost calculators online. Varies based on where you live, your income, how healthy you are, whether or not you’re retiring before you’re covered by Medicare, and which supplemental plans you buy to tack on to basic medicare coverage
• I find that many of my retired clients pay at least $1000/month, sometimes a lot more than that for healthcare coverage in the form of premiums and out-of-pocket expenses, and that’s after you’re covered by medicare 
• You may also be paying premiums for a long-term care policy and it’s wise to account for some long-term care expenses, especially in your later years of life. 

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

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

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: setting your retirement budget. 

Today, we’re moving on from adding up your income sources in retirement and discussing your monthly & annual living expenses. 

Talking points: 

• Start with the basics first - leave out the travel and the golf membership and all the fun stuff, because you need to know what it takes just to cover the basics with not too much extras. 
• Extremely important that this is accurate. Perception vs. reality is often very different.
• What’s included in basic:
• • Food - groceries and eating out (essential)
  • Gas
  • Mortgage
  • Cell phone bill
  • Utilities
  • Insurance
  • Donations - this is my own personal bias, but I believe it belongs here. You may disagree and that’s fine. It can go in the discretionary category that I’ll come back to in a minute
  • Small amount of entertainment (Netflix)
  • Clothing & shoes - basic - if you like to shop at Neiman Marcus, that goes in the discretionary category
  • Taxes - don’t miss this one! Taxes need to be included in your spending budget, but since it’s a irregular thing, many people forget about it
• Leave health care out for now - we’ll get there tomorrow 
• Once you accurately determine your basic expenses, you’ll want to add in the more discretionary purchases like travel, subscriptions, memberships, non-essential clothes, eating out, coffee runs. This will also usually include some non-essential expenses that may be important to you, like helping to fund a child or grandchild’s education.

Not sure all the line items to include on your spending budget for both essential and non-essential spending? Not to worry..I’ll send you my favorite worksheet to use for creating your retirement budget. Just email me at [email protected]. And I’ll send you the worksheet to help make budgeting easier and provide more clarity for all the spending categories you’ll want to include in your budget. . 

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

---------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

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: setting your retirement budget. 

Today, I’m talking about understanding the income side of your budget, which is money coming in.Yesterday we talked about accounting for the fixed and more reliable line items of your retirement income. 

Today, I’m covering the more variable and harder to set up portion of your retirement income, which is the income that can be generated from your portfolio. This can take the form of dividends, interest, selling investments for portfolio withdrawals or a combination of all 3. 

How do you figure out how much you can withdraw from your portfolio each year to provide for your needs and the lifestyle you desire in retirement without running out of money? That’s one of the hardest questions to answer in personal finance and it’s an impossible one to answer for most people. 

Because you can always run out of money in retirement, but you’re less likely to if you follow a few guidelines. One that you may have heard of that I’ve talked about many times on the podcast is the 4% rule. In most cases, if you can keep your portfolio withdrawals to 4% or less of your portfolio, it’s unlikely that you’ll run out of money.

The 4% rule is deeply flawed - it’s based on a number of assumptions that don’t reflect reality for most people, but it is very useful in that it’s a great place to start, at least for creating your initial retirement budget. 

I recommend a monte carlo analysis which will live your retirement 1000 different times and provide a better estimate of your sustainable withdrawal rate in retirement...most financial planners and advisors can do this for you. We do it all the time with our clients and it provides a lot of clarity to the income that your portfolio can generate for you reliably in retirement. 

For the sake of figuring out your income for your budget, let’s use the 4% rule as a starting place. If you have a portfolio of $1 million, and you withdraw 4% of your portfolio value in year one of retirement, that’s $40,000 of income. It’s not perfect, but it’s a reasonably accurate starting point. 

Now, you just need to add up all of your income sources that I covered yesterday, include the portfolio withdrawals and you’re all done with the income side of the budget for year one of retirement. 

Tomorrow, things are getting a little more interesting...We’re moving over to the expense side of the budget to look at your spending, now that we’ve taken inventory of all of your income sources. We’ll talk about taxes too, which many people forget to include. 

Just a quick reminder, all this week if you email me, I’ll send you my favorite worksheet to use for creating your retirement income and spending budget. Just email me at [email protected]. And I’ll send you the worksheet to help make your budgeting easier. 

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

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

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: setting your retirement budget. 

Today, I’m talking about understanding the income side of your budget, which is money coming in. And I want to focus on the more reliable streams of income that are fixed. These would include social security and pension payments and to a lesser extent, rental income and part-time employment in retirement. 

Talking points:

• Take inventory of all of your sources of income - understand and account for all of your income sources
• • SS, pension, alimony, rental property income, annuity income, part time income in retirement 
  • Leave out investment portfolio income since that will vary more...I’ll cover that tomorrow
• Important to categorize and line item (rather than bunching all income sources together)
• • Also need to understand how long income payments will continue for any Example - PT income for 5 years
• Email me for a free budget worksheet

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

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

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