Retirement Reality Podcast

The government implemented multiple measures to assist Americans during this health crisis, and there are number of changes that investors and retirees need to know about. Mike is going to run through the key provisions so that you will have a better idea of how your retirement plan will be impacted.

Read more and get additional financial resources here: https://principalpreservationservices.com/ep-34-retirement-account-changes-for-2020/ 

Today's show schedule: 

1:17 – Are you and clients getting used to the virtual meetings?

2:06 – First thing Mike wants to do when quarantine is over?

4:44 – Give us the details of the changes made to retirement accounts and withdrawals. 

7:14 – 401k loans

7:54 – RMDs have been waived for 2020.

8:55 – Mike doesn’t recommend taking money out of retirement accounts.

9:49 – Are clients considering this option right now?

11:11 – Does Mike think these are good changes that will help people?

12:50 – Before you withdrawal any money, make sure you have a plan.

14:40 – Mailbag Question #1: I’m going to sell three rental properties but maybe all five. I have quite a bit of equity in these properties. What should I do with this money?

16:32 – Mailbag Question #2: I retired two years ago with more than a million dollars in my IRA, which I thought was more than enough at the time. It makes me nervous every time I withdrawal money from that account because I don’t want to run out of money. Am I worrying too much?

Okay, so there might not be such a thing as a ‘bad financial product’, but there are certainly inappropriate investments out there for people in certain situations. We’ll explore some examples of those kinds of situations on this episode and you might be surprised just how common it is for people to be invested in products that are ill-suited for their financial goals.

Read more and get additional resources here: https://principalpreservationservices.com/ep-33-are-you-in-a-bad-investment/ 

Today's show schedule: 

1:05 – A recent study found a bad savings trend for Americans.

4:04 – Does Mike agree that there aren’t bad financial products, mainly just bad fits for people?

5:15 – Mike shares the worst investments he remembers seeing from a client.

7:59 – Do clients have any idea how they got into these bad investments?

9:48 – There are usually ways to correct your mistakes and get into correct investments. Mike shares a story.

12:31 – Making changes can benefit you greatly and here’s another story about a past client.

14:45 – Mailbag Question #1: How much long-term care coverage is recommend? It seems there are hundreds of options out there.

17:45  - Mailbag Question #2: I’ve had the same financial advisor for 20 years but it seems like he’s phasing out and passing things on to a younger advisor in the firm. Should we stick with them or find somebody new?

Now that we’ve had a little time to process what we’ve been seeing in the stock market, let’s get an update from Mike on where we stand, how clients are handling everything, and what the next steps need to be for your finances.

Read more and get additional resources here: 

Today's rundown: 

1:16 – How is Mike and his team dealing with the quarantine?

2:43 – Mike’s usual seminars are on halt but virtual seminars are starting.

4:21 – Getting to Know Mike: What’s dumbest or most foot-in-mouth thing that you’ve ever said?

5:45 – Let’s turn to the market and get Mike’s perspective on what we’ve seen over the past two months.

7:44 – How have your clients handled everything so far?

9:36 – What about someone with a solid financial plan already, what adjustments can they be making?

12:07 - If you have the ability, now is the time to increase your contributions.

13:36 - It’s difficult in the moment to trust the process but look at some of the values out there.

15:26 - What about the people without a plan in place? What are their next steps?

17:37 – Mailbag Question #1: I haven’t wanted to pay off my house but I have the money to now so should I?

19:46  - Mailbag Question #2: I’ve heard I should be saving about 10% of my income towards retirement? Is that right?

Planning for retirement consists of many different steps, and a comprehensive plan will cover dozens of different areas of your finance over time. But that doesn’t mean you have to focus on everything at once. It’s time to really start honing in on your retirement when you reach your 50s and making sure everything is taken care of. On this episode, we’ll talk about what’s most important at each stage to help you prioritize.

Read more and get additional resources here: https://principalpreservationservices.com/ep-31-where-you-should-focus-during-each-stage-of-retirement/ 

Today's rundown:

1:26 – How’s the office handling everything and what kind of conversations are you having with clients?

3:38 – Let’s talk stages of retirement.

4:16 – 15 years out (about 50 years old) what do you need to be focusing on?

6:41 – Now you’re about 10 years out, where does your attention turn? 

8:17 – You cross into your 60s and you’re closing in on retirement. Here’s what you need to do.

10:06 – You’ve reached retirement. What’s the one essential thing you need to take care of?

12:28 – After retiring, there’s still work to do.

15:54 – Mailbag Question #1: We had kids later in life than most people so they’ll be in college when we’re ready to retire. Should we make them take out student loans instead of trying to come up with the money to pay tuition?

18:51 - Mailbag Question #2: We’re both 63 and haven’t saved much at all for retirement. We’re about to sell our farm and that will net about a million dollars. What should we do with the money?

As we’ve seen over the last month, a market downturn can happen quickly and it causes many people to evaluate their financial situation. As you’re doing that, pay attention to the lessons that can be learned in times like these. On this episode, we’ll talk about five financial truths that are even more evident now than they were to start the year.

Read more and get additional resources: https://principalpreservationservices.com/ep-30-5-financial-truths-you-can-rely-on/ 

Today's rundown: 

2:17 – Today’s topic is on financial truths.

2:49 – 1st truth: TV can be your biggest enemy.

4:04 – 2nd truth: It’s important not to react emotionally.

5:15 – 3rd truth: The market will always go in cycles.   

6:48 – 4th truth: People aren’t ask risk tolerant as they think they are.

9:01 – 5th truth: There is no magic bullet when it comes to retirement planning.

13:56 – Mailbag Question #1: Is it wise for me to own some gold in my portfolio? What percentage?

14:58 – Mailbag Question #2: The coronavirus scare has me convinced the market will keep crashing again and again. I’m ready to move everything to cash right now. Is there any reason to wait?

We talk all the time about how people need to give their dollars purpose or set goals for their retirement and even specifically for certain investments. But let’s dive deeper into what different goals look like for various folks approaching retirement. How do you determine if a goal is realistic or out of reach? We’ll tackle that conversation with plenty of examples on this episode.

Read more and get additional resources here: https://principalpreservationservices.com/ep-28-setting-financial-retirement-goals/ 

Today's rundown: 

1:35 – It’s a busy time around the office.

3:33 – What general goals can everyone shoot for when building a plan?

5:30 – Not having a plan is planning to fail.

5:55 – You don’t have to completely understand finances to build a plan and set goals. That’s what we’re for.

7:26 – How do you help someone determine what their goals are?

8:46 – What unrealistic goals have you heard from people?

11:35 – How can you know if your financial goal is realistic and achievable?

13:19 – Mike shares a client story about underestimating expenses.

14:50 – Mailbag question: I just looked at Social Security estimate and see how much I’d get at 62, 66, and 70. I’m blown away by how much more I’d get at 70. I’m inclined to wait as long as possible to start it event though I’ll retire around 66. Is that the best option for me?

With taxes at historically low levels, many people have turned to Roth conversions as a planning strategy. Is this a smart option for you? What all should you consider when it comes to conversions? Let’s breakdown the pros and cons and explain how the process would work for you.

Read more and get additional resources here: https://principalpreservationservices.com/ep-27-understanding-roth-conversions-as-a-planning-strategy/ 

Today's rundown: 

1:18 – Roth conversions are a topic we talk about a lot in the planning process.  

2:37 – What is a Roth conversion?

3:33 – Why might this be especially helpful for high-income earners?

5:04 – Mike explains tax considerations for a Roth conversion?

6:09 – What are the common mistakes people make with a Roth conversion?

7:25 – Who is someone that might benefit from this strategy?

8:48 – This is a great way for people wanting to leave money to their kids through a retirement account.

9:39 – Who else should not consider a Roth conversion?

10:49 – A common mistake we see people make relating to RMDs.                                                       

11:48 – Every situation is different and you need a personal plan.

13:16 – Mailbag question: I have several thousand in company stock that I want to cash in and put towards land to build a vacation home. Is there any reason I shouldn’t do that?

With so much uncertainty in the market right now, we want to get Mike’s opinion on what we’re seeing with the coronavirus and the impact it’s having financially. We’ll then spend the rest of the show discussing ways in which you get lost in retirement. It doesn’t take much to get off track but there are always ways to regain your retirement compass.  

Read more and get additional resources here: https://principalpreservationservices.com/coronavirus-upda…st-in-retirement/ 

Today's rundown: 

2:17 – What does Mike make of the coronavirus and its impact on the market.

3:42– This is scary if you’re in retirement.

5:20 – You have to know where you are in your retirement planning process.

6:49– Long term we’re not worried.

8:07– Let’s shift to our main topic today on getting lost in retirement planning.

8:31– The first way to get lost is having bad tools.

10:13– The next way is getting poor directions from someone.

12:52– If the first two don’t get you, then you might get lost due to lack of attention.

14:36– How can we get back on track? Let’s start with determining exactly where you are.

15:51- The next thing you need to do is decide where you want to go.

17:27- Don’t be afraid to get help along the way.

When you think about retirement, are you someone that pictures yourself working for as long as you can or do you want to hang it up as soon as financially possible? Everyone has a different level of desire when it comes to retiring and we’ll span the full spectrum on this episode.

Read more and get additional resources here:  https://principalpreservationservices.com/ep-26-whats-your-level-of-desire-to-retire/ 

Today's rundown: 

2:48 – Getting to Know Mike: What’s your favorite sport?

5:21 – Moving into our main topic on desire to retire.

5:41 – Level 1: ‘I don’t see myself retiring. I love what I do.’

6:49 – Level 2: ‘I guess I could retire but they pay me pretty well and I don’t hate it. So I might as well keep working.’

7:35 – Mike shares a story about a trip to California and a retirement conversation he had.

8:52 – Level 3: ‘I’d like to retire in a few years but I’m not really sure when I can.’

11:05 – Level 4: ‘I always pictured myself working for a few more years but the idea of retirement is looking better and better.’

13:28 – Level 5: ‘I want to retire tomorrow and if I don’t quit this job right now, they might have to put me in an asylum.’

16:28 – Here’s how you can start the planning process regardless of your level.                                 

17:54 – Mailbag question: It appears I’m now able to contribute more to my 401k this year than I was allowed to last year. Is it safe to assume I should put in the extra amount?

The SECURE Act took effect at the beginning of 2020 and it brought significant changes to retirement accounts. Let’s break down the new legislation and explain what it means to your plan.

Get the show notes and additional resources here: https://principalpreservationservices.com/ep-25-what-does-the-secure-act-mean-for-your-retirement/ 

Today's rundown: 

0:56 – Here’s what we plan on talking about today.  

1:34 – Most of our clients don’t know the details of the SECURE Act and we’re discussing it with them quite a bit.

2:32 – In the News: Study shows student loans have tripled since 2006 and now stands at $1.6 trillion. How serious is this problem?

6:00 – The SECURE Act got passed at the end of 2019. Here’s an overview of what it means to you.

8:26 – How does the delay in taking your RMDs impact retirees?

9:45 – Two more big changes that came with the SECURE Act involving contributions and Stretch IRAs.

12:17 – If you plan on leaving money behind to your children, what’s the best way to do it?

13:54 – A couple extra tidbits involving the SECURE Act.                                                                         

16:04 – This is significant legislation and it’s a great idea to meet with an advisor.  

16:47 – Mailbag question: I’ve worked with a couple different advisors over the years and like them both. Should I stick to just one or is okay to work with both?