Retirement Starts Today

Do annuities give retirees a different attitude towards spending in retirement? In this week's retirement headlines, we'll examine an article that discusses the psychological benefits that retirees who shift their assets from savings to lifetime income enjoy. This group of retirees has more of a license to spend attitude and ends up gaining more enjoyment from their retirement savings.

Make sure to stick around until the end of this episode to hear my thoughts on the article. You'll also hear me compare the advantages and disadvantages of using Cobra instead of the ACA before Medicare.

Outline of This Episode

• [2:42] 3 need to know bullet points about annuities
• [6:52] What do I think about using annuities?
• [12:12] Cobra or the ACA?

Are you spending less than you should in retirement?

Are you having a hard time loosening the purse strings in retirement? If so, you are not alone. Many retirees find it challenging to shift from a savings mindset to a spending mindset, so they find it difficult to spend their hard-earned savings even on the things they most enjoy. As a result, many retirees end up spending far less in retirement than they could. David Blanchett and Michael Finke at ThinkAdvisor.com recently wrote an article about the shift in mindset that annuities can provide.

Why do people purchase annuities?

The biggest question in retirement is how much you can safely spend. Retirees are always at the risk of outliving their savings if they spend too much or they end up living a less enjoyable life if they spend too cautiously. For this reason, many decide to transfer the risk of an unknown lifespan to an insurance company that provides guaranteed income.

Do annuities provide a shift in the spending mindset?

The authors of the article reference a study that discovered that people don't spend more simply because they are wealthier, instead they spend more based on the form of wealth that they hold.

Households that hold more of their wealth in guaranteed income end up spending significantly more each year than those which hold a greater share of their wealth in investments.

Retirees end up spending twice as much each year when they have guaranteed income. Every dollar of assets converted to guaranteed income results in twice the equivalent spending compared to the money that is left invested in an investment portfolio.

Are annuities the only way to shift your spending mindset?

However, you don't necessarily need an annuity to change your spending mindset. Behavior management and accountability are the most important aspects of retirement planning. If you can hold yourself accountable and adjust your spending habits when necessary you can come up with a successful retirement plan.

To achieve that, you need a plan that you can have confidence in. If you can create a financial plan in retirement that you feel confident in then you will be able to spend with confidence. One way to increase your confidence in your retirement income is to defer Social Security for as long as possible. By waiting until age 70 you can increase your benefit amount by 32%.

What are you doing to create a successful retirement plan? Listening to this podcast can help you gain the knowledge and confidence you need to successfully plan your retirement.

Resources & People Mentioned

• Boomer Benefits - Don't miss out on the FREE 5 Easily Avoidable Medicare Mistakes download
• Boomer Benefits on Facebook
• Boomer Benefits on YouTube
• Think Advisor article on annuities
• Health and Retirement Study
• Guyton and Klinger original article

Connect with Benjamin Brandt

• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter

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The annual Social Security beneficiary report was recently released and just like every other year that they release it, it has caused people to worry about their future. Social Security is a crucial, foundational element of most retirement income plans, so when you read headlines that it will run out soon how should you react?

Should you go about changing your retirement plans altogether? Should you file for Social Security early to ensure you get the most out of your benefit? We'll explore these questions in this episode of Retirement Starts Today.

Outline of This Episode

• [1:52] Will Social Security run out in 12 years?
• [4:44] How to fix the Social Security math problem
• [11:20] What you should do to prepare for a Social Security pay cut

Covid has exacerbated the Social Security funding crisis

The recent report released by the government was unsurprising to anyone who has been paying attention. This year's statement revealed that the Social Security trust fund will 'run out of money' in 12 years which is one year sooner than previously anticipated. The time frame has been accelerated due to the Covid pandemic.

The issue of 'running out of money' is caused by a math problem. There are insufficient people entering the workforce to support the increasing number of baby boomers that collect Social Security each month. The record unemployment rates during the pandemic resulted in even fewer people contributing to the Social Security fund.

There is a myth that there are fewer people in the generations succeeding the baby boomers than there are in the baby boomer generation, but this myth isn't true. There are actually more people in each of the generations that follow the Baby Boomers. So, the problem isn't due to a lack of work-age people. It is due to a lack of funding.

How to fix the lack of Social Security funding

Before I continue, I need to address the wording that everyone uses surrounding the shortage in Social Security funding. It is commonly stated that Social Security will run out of money. However, Social Security cannot run out of money while workers continue to pay into it. The issue is that there won't be enough income coming in to support the money going out to the beneficiaries. This means that there will be a reduction in benefits rather than a complete lack of funds.

There are two ways that Congress could alleviate the Social Security funding problem. They could increase payroll taxes beyond the current $142,800 cap or they could increase the percentage of the 12.4% payroll tax that comes from each worker.

What you should do to prepare for a Social Security pay cut

Hopefully, now you aren't worried about the complete elimination of the Social Security program, but you may still be concerned about getting a Social Security pay cut in retirement. Many people feel pulled to file early so that they can get into the program as soon as possible. However, if there is a reduction in Social Security benefits those people will be taking a cut on an already reduced benefit.

If you wait until age 70 to collect your Social Security payment you will receive 132% of your original benefit. So if there does end up being a reduction in the Social Security program, then you will end up taking a cut on an increased amount.

What would you prefer--taking a cut on a cut or a cut on a larger amount?

Don't let sensationalist headlines dictate your retirement plans. Create your retirement plan based on your own unique needs. By maintaining a long-term focus you could end up saving hundreds of thousands of dollars in opportunity costs.

Resources & People Mentioned

• Boomer Benefits
• Boomer Benefits Youtube channel
• Boomer Benefits Facebook Group
• CNBC article on Social Security
• US News article on Social Security

Connect with Benjamin Brandt

• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter

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Have you been feeling the pull to retire? This feeling isn't constrained to those nearing retirement age; many people have been feeling the desire to quit their jobs lately. So many workers are considering a job change that this wave of people has begun what is called "The Great Resignation." I read about this phenomenon on The Guardian website in an article written by Elle Hunt. Elle considers 17 questions that you should ask yourself before you make the leap into the unknown. If you have been contemplating retirement or a job change you won't want to miss this episode.

Outline of This Episode

• [2:02] 17 questions to ask yourself if you are ready to quit your job
• [4:53] What do you actually want to do?
• [8:08] What could you gain by quitting your job?
• [12:55] You can't bootstrap your mortgage

Attitudes surrounding employment are changing

A recent survey indicated that over 40% of people have considered a job change this year. This trend could be a byproduct of stress brought on by the pandemic, but it could be due to a global shift in mindset which has led to a changing shift in employment priorities.

Have you considered retiring early or leaving your current job? If so, you'll want to make sure that you ask yourself these questions before making any rash decisions.

17 questions to consider if you are ready to quit your job

1. What are your frustrations? Before you up and quit, you'll want to ask yourself why you really want to quit. What are the underlying causes of your dissatisfaction? Make sure to go deep in your thinking since your first thought is rarely the true reason for your unhappiness. To explore this question further write down every thought and feeling you have surrounding your job for 10 days.
2. How did you get to where you are now? Reflect on what led you to your current job and what brought you to it in the first place
3. How long have you been feeling this way? Were you unhappy before the pandemic or is the feeling more recent? Consider whether your feelings are pandemic related. If so, this could mean you are actually seeking more control over your life. You may simply feel burned out and need some time off.
4. What do you actually want to do? How do you want to live your life? Who do you want to be? These questions cut to the core and ensure that you explore your values. You may find that your unhappiness runs deeper than your career choice.
5. How would your perfect day be different than it is now? Coming up with your perfect day can also help you explore whether you are ready to eliminate all work-related activities. If so, you may be ready to retire.
6. What do your friends and family say? Use your support system as a sounding board for your thoughts.
7. What would you be giving up by quitting? If you are thinking of retiring early, think about the costs of healthcare before Medicare and other stabilizing factors that your job brings.
8. What would you gain by quitting? Try to steer clear of revenge retirement. It may lead you to a situation that you can't come back from. Your negative feelings might pass, so don't box yourself into a corner.
9. Have you explored every option with your employer? Try negotiating. You may be able to work out reduced hours, higher pay, or other changes in your workplace.
10. Should you wait until you're back in the office to make a decision? Be clear with your own needs and desires when considering this question.
11. Should you quit due to a toxic boss? It can be challenging to see a toxic relationship while you are in the thick of the situation. A toxic work environment could mean that it is time for a change.
12. When should you quit over stress? Is stress causing you to lose sleep, enjoy time with your family, or negatively affect your downtime? If your job adversely affects your life and health then you'll want to assess why you feel stress.
13. Are your expectations realistic? Can you actually leave your job?
14. Can you afford to cover your expenses? If you can't, then you may need to stick it out a bit longer.
15. Could caring less help? Try setting boundaries in your workday. Define your values and step away from work when needed. and define values.
16. Is now the right time? You can empower yourself by filling in the gaps.
17. Why can't you make a decision? Set a decision date so that you don't let your indecisiveness drag on.

Resources & People Mentioned

• Boomer Benefits
• Ready to Quit Your Job from the Guardian

Connect with Benjamin Brandt

• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/
• Follow Ben on Twitter: https://twitter.com/retiremeasap
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In retirement, you have all the time in the world, but are you using your time wisely? I recently read an op-ed article from CNBC about the power of delegation and it got me thinking about the way we spend our time.

On this episode of Retirement Starts today, we'll explore that op-ed article, I'll share what I learned about inherited IRAs this week, and I'll answer a listener question about retirement planning beyond the 4% rule.

Outline of This Episode

• [2:22] What I learned in my office this week
• [5:24] An inherited IRA example
• [6:35] The value of paying others to do services for you
• [10:55] A question about episode 193
• [14:52] Check out my retirement guardrails video

What is the highest use of your time?

Are you planning to live your best life in retirement? If so, you may want to consider delegating various tasks that could be better handled by someone else. Even if you have lived a life of frugality you should ask yourself if doing certain tasks is the best use of your time. You may receive a better return on investment and return on your health by hiring someone else to do certain services for you. Use your time to enjoy life rather than by doing menial tasks.

Tasks that may be best done by others

If you can afford it, consider hiring someone to complete these tasks for you.

1. Hire a lawn care service - Not only will having someone else care for your lawn save you time, but it could also save your energy, and maybe even save you from heatstroke, or worse.
2. Use a travel agent for vacation planning - A professional travel agent can help keep your vacation costs down and save you time on research. A travel agent can also assist you with problems during your trip which can be extremely valuable when traveling abroad.
3. Grocery pick-up, delivery, and ready-made meals - Many of us discovered the magic of grocery pick-up or delivery services during the pandemic. Choosing a grocery pick-up or delivery service can help save you time on meal prep and also alleviate any COVID-19 related fears associated with shopping in person.
4. Hire a business coach - A business coach can help you overcome hurdles that stand in the way of your personal and professional goals. They can also help you navigate career options and even reduce stress.
5. Quit doing your own taxes - Leaving the tax prep and planning to a professional can save you time and money.

Which of these services would best serve you?

How will you spend your time in retirement?

Even though you will have more time on your hands in retirement, it still makes sense to use your time wisely. Think about the highest and best use of your time. What could this extra time mean to you? Would it bring an improvement in your quality of life? Could you plan your bucket list or how to leave your legacy? Retirement is all about the what if, so what if you could take some of these tasks off your plate?

Make sure to listen to hear what I learned this week about inherited IRAs and you won't want to miss a listener question about using retirement guardrails. This episode is packed full of information so press play now to get started.

Resources & People Mentioned

• Boomer Benefits
• My Retirement Guardrails Video
• Op-Ed article from CNBC
• Ed Slott's IRAHelp.com
• Episode 193 - Improving the 4% Rule

Connect with Benjamin Brandt

• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter

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Since travel is on many soon-to-be retirees' must-do lists I have created this summer travel series with various travel experts. Danielle Desir from the Thought Card podcast joins me today to discuss how to travel to any destination on a budget. Recognized by Flight Network as one of the best travel hackers in the world, Danielle has figured out how to travel to bucket-list destinations on a dime. Are you ready to learn how to plan your next big trip on any budget? Listen in to discover how.

Outline of This Episode

• [1:22] Danielle's journey to bucket list budget travel
• [3:23] Identify the things that you value
• [7:21] Take an individual approach
• [10:53] Danielle's top destinations
• [12:32] How to choose to repeat a destination
• [15:41] Jet lag tips
• [20:47] Where to learn more about travel hacking with Danielle

If you're on a budget, don't settle for inexpensive destinations, think big!

Many people think that if they are on a budget they can only travel to budget-friendly places, but Danielle Desir takes a different approach. As a travel hacker, Danielle has learned how to make travel to bucket-list destinations more affordable. She describes using an abundance mentality as a way to make affordable travel work. She recommends getting creative when planning, "take what you have and make it work."

Identify what matters to you

The first step in becoming a financially savvy traveler is to identify what you value in travel. Is it important to you to be comfortable on a flight? Do you like to eat out and try the best local cuisine? Do you want to see everything you can in one location? Do you prefer luxury accommodations?

Once you have identified what the most important aspects of travel are to you then you will understand where you can be flexible in your spending. If eating out isn't important to you then you can save money by packing a sack lunch each day. If a fancy hotel room isn't important then you could save money by staying in a hostel or an inexpensive Airbnb or motel.

Understanding what you value in travel will help you save money and ensure that you have an amazing time on your trip.

Make a game of saving money

Another way to save money is to gamify your planning experience. By making a game of saving money you can compete with yourself to see how much money you can save each time you travel. You can cut costs in a variety of ways by looking for inexpensive accommodation, saving on flights, or by using travel points. Gamifying your travel costs allows you to get creative and save more.

Communication is key when it comes to couples' travel

When traveling with your significant other it is important to take into account what they value as well. Make sure to communicate with them so that you are both on the same page. They may value different things about travel so it is important not to skimp in the areas that matter to them.

You should also be understanding of your partner's travel experience. There may be one partner that is more travel savvy than the other. That means that the travel-savvy partner needs to be patient and explain the importance of the things that you do to save money when traveling.

It is also important to remember that traveling in retirement will be much different than traveling for work. You are out there to have fun. Listen to this episode with travel expert Danielle Desir to hear how you can travel to any destination affordably.

Resources & People Mentioned

• Boomer Benefits

Connect with Danielle Desir

• Thought Card Podcast
• How To Save Money In Iceland
• How Much Does A Four Day Trip To Iceland Cost
• Iceland: Nature, Nurture and Adventure

Connect with Benjamin Brandt

• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter

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Do you have bond funds in your portfolio? Many people understand the way that bonds work, but they may not know how bond funds work. El has written in to ask this question which I will answer in the listener questions segment.

Before we get to that retirement question, we'll take a look at a MarketWatch article titled Are You in Retirement Hell? It was such a catchy title that I had to check it out.

The article expresses the author's struggle with finding challenge and meaning in retirement. You won't want to miss the ways that you can avoid your own retirement hell.

Outline of This Episode

• [2:32] Are you in retirement hell?
• [5:38] How to prevent retirement hell
• [6:56] How do bond funds work?
• [12:53] What are alternative options to bond funds?
• [16:52] Does John have enough money to retire?

Are you in retirement hell?

Retirement is a time of fun and relaxation. You no longer have exhausting work schedules, long commutes, or alarm clocks waking you up every morning. Every day is yours to do as you wish.

Passing the days pursuing leisurely activities like playing golf or visiting the grandkids may be just perfect for some laid-back retirees, but for those looking for more challenging pursuits, these carefree days could quickly turn into retirement hell.

You can recognize if you are in retirement hell if you are feeling lost and vulnerable. You may even sink into a depression as the activities that you once enjoyed feel empty and meaningless.

How to fix (or prevent) retirement hell

In the article, the author mentions that he didn't break out of retirement hell until he finally sat down and defined his concept of fine.

Contentment is an important part of retirement, it's so important that I even discussed it once in a previous episode with Fritz Gilbert. When you're done listening to this episode, pop back over to that one and have a listen.

I always like to say that you shouldn't be retiring away from something, instead retire to something. It's important to consider what you will do with those extra 40 hours a week that you now have at your disposal.

You don't want to wait until you are in the thick of retirement hell to figure this out. Try creating a practice retirement with some of your vacation time. Take a couple of weeks off and don't go anywhere or do anything exciting. Instead, try passing the days as you would like to when you retire.

How do bond funds work?

A bond fund is similar to a mortgage, but you have a group of investors and a company instead of the mortgage lender and home buyer.

Bonds can be purchased individually and held to maturity or they can be traded. Bonds are similar to stocks in that they can go up or down in value but they have different interest rates and different rates of maturity.

To spread out the risk of buying individual bonds, most investors choose to invest in a basket of bonds or a bond mutual fund. The risk is spread in the same way that you spread out the risk in your stock portfolio.

What are alternative options to bond funds?

If you aren't happy with the bond funds that you have now try Googling portfolio immunization. Portfolio immunization means that you match your retirement liabilities with your retirement assets.

The way to do this is to purchase a bond in advance so that it matures the year that you need the cash flow. The specific benefit of this strategy is holding the bond until maturity. By holding the bond until it matures you remove the interest rate risk.

Make sure to stay tuned until the very end where I answer John's question about whether he has enough money to retire. You may be surprised by my recommendation.

Resources & People Mentioned

• Boomer Benefits
• MarketWatch - Are You in Retirement Hell?
• Episode 146 with Fritz Gilbert
• Contentment episode with Fritz Gilbert
• Retirement Manifesto
• The infamous mullet episode
• Guyton's Guardrails episodes 153, 149, and 93

Connect with Benjamin Brandt

• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter

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Are you preparing for a successful retirement? If you are, you'll need to consider more than just your finances because 80% of a successful retirement has nothing to do with money. However, when people focus on retirement planning, money is often the only thing they focus on. In the retirement headlines segment this week, we'll check out an article from Financial Advisor Magazine titled Right Way Retirement. This article takes a look at the non-financial aspects of retirement that many financial advisors miss when it comes to retirement planning.

In the listener questions segment, I answer a question from Majid about working while collecting Social Security. Make sure to tune in until the end to hear how to complete the earnings test so that you will understand how much you can earn and how to avoid Social Security penalties.

Outline of This Episode

• [2:12] To plan for retirement you need to stay ahead of the curve
• [4:00] 6 items to focus on in retirement planning
• [8:03] Will income from a part-time job affect the amount of Social Security I receive?

Retirement isn't only about the money

Robert Laura recently published an article in Financial Advisor Magazine about doing what it takes to create a successful retirement. The author noticed that most financial advisors that help people get ready for retirement focus solely on the financial aspect of this life change. However, retirement isn't all about the money. He has noticed that advisors often have a blind spot for the areas of retirement that aren't financially related. To truly prepare for retirement, people need to take a more holistic approach.

6 ways to create a successful retirement

1. Replace your work identity. Many retirees feel like they lose a significant piece of their identity when they leave the workforce. To combat this sense of loss, identify the specific areas of your career that you get fulfillment from. Then think of ways that you can parlay that area of fulfillment into your life in retirement. A couple of ways that retirees choose to carry on their former work identity in retirement is through mentoring or consulting.
2. Fill your time with meaningful tasks. Once you retire you'll have a 40-50 hour space to fill in your week. Creating a retirement routine can help combat boredom. Try filling the gap with an active and healthy lifestyle. This will not only leave you fulfilled but healthier as well.
3. Stay relevant and connected. When you leave work behind you also leave much of your social network. Retirement can be an opportunity to re-establish old connections and create new ones.
4. Keep mentally and physically active. You can do this by creating healthy routines.
5. Express your spiritual beliefs. Not everyone is religious, so if you're not, you could work on improving your mindset by cultivating a gratitude practice.
6. Feel financially secure. If you've been listening to this show for a while, hopefully, you are well on your way to meet this goal.

Create a plan to gain the most fulfillment from your retirement

Creating a retirement plan that addresses all 6 of these areas can help you create a greater sense of satisfaction with your life in retirement. You don't want to get into the thick of retirement and discover that there is something missing from your life. Start a more holistic approach to retirement planning now so that you can create a meaningful life in retirement.

Make sure to tune into the listener questions segment to hear about receiving Social Security while you are still working. You'll learn just how important it is to know your full retirement age and how the Social Security Earnings test can help you keep the most from your benefit.

Resources & People Mentioned

• Boomer Benefits
• Full Retirement Age from SSA.gov
• Exempt Amounts for 2021
• Right Way Retirement from Financial Advisor Magazine

Connect with Benjamin Brandt

• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter

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Do you have a case of frugality syndrome? Many of us are so used to saving and living frugally that we have a hard time pivoting from the accumulation stage of retirement planning into the distribution stage.

A recent retirement headline from Advisor Perspectives titled Overcoming the Frugality Syndrome caught my eye. This article discusses the difficulty that some retirees have in switching from saving to spending. I wanted to share this with you all since so many of you are diligent savers.

After the retirement headlines, we move on to our listener questions segment. Wendell is concerned about having all his eggs in one custodian's basket and Stella would like to learn about rolling a 401K into a Vanguard target-date fund.

Outline of This Episode

• [1:22] What is frugality syndrome?
• [4:18] 3 tips for overcoming frugality
• [8:55] A question about target-date funds
• [14:49] Should you consolidate accounts into one financial firm?

Can too much frugality be a bad thing?

Rick Kahler at Advisor Perspectives recently wrote an article about the problems that can arise from too much frugality. He uses one particular example to make his point: the FI/RE movement. FI/RE stands for financial independence/retire early and those that try to achieve this goal often do so by becoming exceedingly frugal.

Many of you have been amazing savers over the years which is why you are on track to achieve your retirement goals. However, while your frugality can help you achieve your retirement goals, a long-term focus on constantly saving can make it hard to stop being thrifty and start spending.

Over the long-term, frugality becomes a habit and thriftiness becomes ingrained in one's being. This mindset makes the act of switching to the distribution stage of retirement a challenge for many people. Rick offers 3 tips on shifting gears from accumulation to decumulation.

3 ways to shift gears from accumulation mode to distribution mode

1. Recognize that frugality syndrome is normal. First, it is important to congratulate yourself on your financial achievement. Once you do so, then you can give yourself the grace and understanding that the transition from saving to spending will be a challenge.
2. Create a spending plan. A spending plan with set limits can help you overcome any anxiety that you may feel about overspending your carefully saved money. This will also help to ensure that your money will last and that you aren't squandering away your financial future.
3. Get a financial checkup. Consider consulting a fiduciary financial planner a year or so before your target retirement date. You may also look into seeing a Certified Financial Therapist or Certified Financial Transitionist. These financial professionals can help prepare you for the mindset shift that comes with this monumental life change.

Creating a retirement plan can help you spend confidently

Don't think of frugality as a light switch that you can turn on and off. It will end up being a mindset that you have to ease out of.

Early planning can help with the emotional aspects of shifting your financial mindset. Creating a thorough retirement plan can help you to spend confidently. I like to set retirement guardrails that help to safeguard a person from market risk. These set limits protect against sequence of return risk as well as helping with one's financial mindset.

Resources & People Mentioned

• Advisor Perspectives article
• Episode 94 - Set It and Forget It

Connect with Benjamin Brandt

• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter

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How's this for a headline? I'm 62, unemployed, living off my savings, and waiting on Social Security — 'Can I go fishing for the next 25 years and forget about work? It naturally caught my eye since there was fishing in the title!

Today we'll check out this MarketWatch article and answer the headline's question as well as explore the additional recommendations the article mentions on ways to make retirement savings last.

In the listener questions segment, I'll answer a complex question about borrowing against your home for a gift for a child. Once you're done listening please head on over to our annual listener survey to make sure you voice your opinions on the trajectory of the show.

Outline of This Episode

• [1:22] Can I go fishing for the next 25 years?
• [4:58] Financial advisors weigh in on this question
• [14:20] Should I take out $150,000 of my IRA to help my family buy a house?
• [19:35] Make your voice heard--go check out our listener survey!

Is it time to forget work and go fishing?

A recent Market Watch article caught my eye since it had fishing in the headline. The article opens with a question from a reader about his decision to quit his job early and go fishing for the rest of his life. The recent retiree did a great job saving for retirement and the MarketWatch author and I agree--he is absolutely ready to go fishing for the rest of his life.

I enjoyed reading this article since it included other experts' responses, so I thought I would dig in and explore them a bit further and add my own 2 cents.

The dangers of leaving 'moldy money' lying around

One commenter pointed out that the writer had a substantial amount of money in a savings account. He warned of the dangers of inflation by leaving that money in a low-yielding savings account.

I agree with these concerns. Unless there is a specific reason, you need to be wary of leaving 'moldy money' lying around in low-yielding accounts. This money will end up losing purchasing power over time due to inflation.

If you do have a substantial amount of money that isn't invested consider converting a portion of that savings into a Roth IRA. Listen in to hear how I disagree with one advisor's approach to investing for retirement.

Why the bucket approach works

Another advisor suggested the bucket approach for asset allocation. This approach requires you to divide your assets into categories based on your withdrawal timeline.

The super-conservative category is the first bucket you'll dip into. The less conservative bucket has a longer time horizon, and the aggressive bucket won't be touched for a long time.

The bucket approach is a great idea and allows you to visualize your near-term assets and distinguish them from your longer, more volatile investments.

Recognizing the difference between the boring short-term assets from the more exciting long-term assets will help you keep your sanity when the market starts misbehaving.

To delay Social Security or not

The next area that the article discusses is Social Security. The letter writer plans to wait until full retirement age in order to receive 100% of his Social Security benefit, but there is the possibility of delaying even longer until the age of 70.

Generally, my suggestion is to wait until age 70 to receive the maximum benefit, however, in this case, I don't think it is as important. Listen in to hear why.

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Resources & People Mentioned

• Boomer Benefits
• IRS page on gift taxes
• MarketWatch article
• Annual Listener Survey

Connect with Benjamin Brandt

• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/
• Follow Ben on Twitter: https://twitter.com/retiremeasap
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What do you think about senior living communities? Would you want to move to one? According to a recent WSJ article, occupancy in senior housing is on the decline despite the fact that baby boomers are aging and more of these communities are springing up all over the country. In the retirement headlines segment, we'll take a look at the reasons for this phenomenon.

But before we get to the retirement headlines I also want to share a conversation I had with a client about how to plan sales of his company stock. Make sure to listen in if you have a significant amount of stock in your company. You'll want to hear what you should consider before selling.

Outline of This Episode

• [1:22] Identify you pain threshold when selling company stock
• [5:58] Boomers want to stay home
• [10:38] Who will win?
• [11:40] How does long-term care insurance play into this equation?
• [13:03] Don't forget to answer our annual listener survey!

Boomers want to stay home

It may not be a surprise to you that seniors want to stay in their homes for as long as possible. A recent WSJ article investigates these low occupancy rates in senior housing developments. People born during the Depression and World War II are moving into senior housing, but baby boomers plan to stay in their homes longer. Even though boomers would like to age in place, the oldest of this generation will start reaching their mid-80s within the next decade which is the age when many people start moving into senior housing.

Why are senior housing occupancy rates falling?

There are a couple of reasons that senior housing occupancy rates are in decline. One reason is that improved health has led to people entering senior housing later in life than in years past. People are not only living longer, but they are also staying healthier longer.

Another reason for the senior residency decline is technology. There are several new technologies that can help the elderly stay in their homes longer than in the past. Seniors can remain independent for an extended period with technologies like Uber, self-driving cars, and grocery delivery services.

The article also mentions more innovative examples of how technology can help the elderly. One example is LifePod Solutions, a voice remote monitoring platform that can identify seniors' needs and send care when needed. An architectural design firm, Gensler is using technology to redesign senior-friendly homes that can adapt to the elderly's changing needs. Tolent Construction in the U.K. has designed a mixed-use development that includes senior-friendly homes which will allow the elderly to age in place longer. Innovation is responding to demand and creating myriad ways to help the elderly stay in their communities with friends and family for as long as possible.

Who will win?

The commercial real estate market has been betting big on the idea that aging baby boomers will be needing senior housing, but improved technology that can help the elderly stay home longer may change this reality. The beauty of capitalism is that competition will drive the best solution. I see a very bright technology-enabled future for our aging population.

How will long-term care insurance play into this equation?

With all of these improvements in technology, will our aging populous still need long-term care insurance? Or will long-term care insurance legislation need to change? One way this insurance could adapt is to allow policies to pay for home upgrades that use technology-based solutions that allow elderly homeowners to age in place. Only time will tell how the technology, real estate, and insurance industries will adapt to baby boomers' needs.

Before you go, be sure to chime in on what you think of Retirement Starts Today by filling out our annual listener survey. I produce this show with your needs in mind and want to ensure that I am addressing the issues that you find most important. Any changes in the coming year will be based on the results of this survey, so make sure your voice is heard!

Resources & People Mentioned

• Boomer Benefits - my go-to Medicare planning experts
• Medicare Basics series - start here to listen to Danielle Roberts walk through the basics of Medicare
• WSJ article on senior housing
• LifePod Solutions
• Gensler
• Tolent Construction
• Annual Listener Survey

Connect with Benjamin Brandt

• Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com/
• Follow Ben on Twitter: https://twitter.com/retiremeasap
• Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter

Subscribe to Retirement Starts Today on

Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify