With 2022 starting out with a lot of volatility, a lot of people are rethinking their portfolio approach. Maybe you are ready for a new advisor or perhaps you are reaching out to a professional for the first time. In any case, how do we go about finding unbiased and independent advisors in such a large industry? On today’s episode, we’ll discuss some of the key components a balanced and competent advisor should have. 

Retirement planning is about a lot more than investment performance. Through the years we’ve identified 6 key areas of risk when it comes to retirement planning and you need to have an interconnected plan that addresses those risks, as we do through the Redefining Wealth Process℠. It’s important to seek out an advisor that is transparent about the process they follow, their professional designations and responsibilities, and how they are paid. At the end of the day, you’ll want an experienced advisor that cares about you and your financial goals.

Further reading mentioned in today’s show: https://www.thebalance.com/are-independent-financial-advisors-unbiased-2388432

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Timestamps (show notes):

2:48 – Solely focused on investment performance 

5:44 – Transparency about how they are paid 

11:26 – Questions to ask your new advisor 

13:52 – Breaking down the hourly model 

18:03 – Why do you need a guide?

20:35 – Top things to look for in a new advisor

One of the most important components of everyone’s retirement plan is their personalized income plan. So, on today’s episode, we are going to break down the advice of two experts in the financial industry: Wade Fouad and Michael Kitces. Determining how to efficiently tap into your lifelong savings is one of the most important life decisions you are going to make. Choosing an income strategy that mirrors your preferences is key to the Redefining Wealth Process℠. 

When you enter retirement, you don’t know what the market is going to do. You have to be able to balance safety and returns, structuring your financial plan around reliable income. Having the right balance between the money you need to patrician and the money you’ll rely on for income comes with our Life Art Planning System, which leans heavily on adaptive goal-based planning. Join us today as Laura and Michael discuss the best strategies for drawing income, preparing for the possibility of longevity, and what return you need to have to be successful in retirement.

Receiving a personalized income plan and gain access to the Life Art Planning System:  https://redefiningwealth.info/schedule/

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How to Connect:

redefiningwealth.info

lswealthmanagement.com

Schedule a Review: https://redefiningwealth.info/schedule/

Timestamps (show notes): 

0:13 – Breaking down income planning

4:53 – Market returns versus safety 

8:11 – Having the right amount of balance

12:18 – The flexibility to respond versus commitment 

20:40 – Planning for longevity in retirement 

24:57 – What returns do you need to be successful? 

While the data shows a healthy economy (job growth, consumer spending, and business investments are all up) the market is still on a downward trajectory. So, what is causing this decline? Is it Russia’s fault, inflation’s fault, the Fed’s fault, or some other factor? On today’s episode we are going to break down why the market is going down and the key indicators you need to keep your eye on to ensure you are on the right financial planning path while following the Redefining Wealth Process℠. 

While we hope this is a normal correction, preparing for the possibility of a recession is necessary. The cost of making money is to be able to endure these moments. Limiting drawdowns, preserving your capital, and ensuring the six core pillars of the Redefining Wealth Process℠ are established within your plan will be necessary to withstand current and future market turns. Within the Redefining Wealth Process℠, we unpack these elements with our clients, evaluating and ensuring they are on the right strategic path that protects them and their investments.  

If you’d like to read the Financial Advisor Magazine article discussed on this episode, click here. 

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redefiningwealth.info

lswealthmanagement.com

Schedule a Review: https://redefiningwealth.info/schedule/

Timestamps (show notes):

2:22 – The economy is still doing well 

5:00 – What is going on and will it continue?

12:58 - History is a good indicator of what we can expect 

17:06 – Are we in a correction or extended bear market?

21:33 – Protecting your capital in the retirement redzone 

25:08 – Being able to build expectations through the Redefining Wealth Process℠

Everyone has in their mind the concept of designing an ideal retirement savings portfolio, but should you be blindly following the same methods that people have always used? Large institutions have been telling people for decades to pump money into their tax-deferred retirement accounts, keep cash in the bank, and get your mortgage paid off. But will these status quo methods help you achieve the financial security you dream about?

The Redefining Wealth Process℠ is all about taking a comprehensive approach to building your portfolio through an income blueprint. Laura and Michael will dispel many of the common planning strategies that are always promoted and break down the process we use to identify the proper financial framework through out proprietary Redefining Wealth Process℠. 

The status quo will have you believe there’s nothing more to learn and tries to convince you that trusting others is you best path to success. But just because you haven’t heard of an investment, or a product, doesn’t mean you should close your mind to it. You also need to incorporate a process.  

There are ways to design an ideal portfolio to include certain features you desire while maintaining the balance you need. The biggest challenge is remaining open-minded and consider the fact that there might be a better way.

Join us for episode 104 of the Retirement Talk Podcast as we help you understand how to create the ideal retirement savings through our Redefining Wealth Process℠. 

If you’d like to read the Kiplinger article discussed on this episode, click here. 

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How to Connect:

redefiningwealth.info

lswealthmanagement.com

Schedule a Review: https://redefiningwealth.info/schedule/

Timestamps (show notes):

1:12 – Background on the article

1:58 – What is the perfect investment? 

3:30 – Ways to design an ideal portfolio  

5:15 – Story about a recent meeting  

8:29 – Examples of mistakes

10:50 – Accumulation tools

14:33 – Relying heavily on tax-deferred contributions 

17:40 – Storing too much money in the banks 

21:55 – Pay off the mortgage or not?  

24:13 – Understanding your investment vehicles 

We spend so many years of our lives working to save and accumulate assets to create financial independence for ourselves, but most people don't realize you must plan on how you will spend during retirement.  Transitioning from accumulation to the preservation and distribution phase can be a challenge.  Do you have the ability to shift your financial mindset from saving to that of income?  Having a custom income plan is critical to long-term success and sustainability throughout retirement.

 

To better understand the key risks, listen as Laura and Michael breakdown the elements necessary for a strong income plan. Why it is essential to have a purpose with knowing your retirement number and not just randomly taking income. 

 

Join us for episode 103 of the Retirement Talk Podcast as we make sure your income plan is constructed to face these retirement risks head on.

 

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https://podcasts.apple.com/us/podcast/retirement-talk-podcast-with-laura-stover/id571347188

 

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redefiningwealth.info

lswealthmanagement.com

Schedule a Review: https://redefiningwealth.info/schedule/

 

Timestamps (show notes):

1:20 – Background on our topic

3:21 – How the 4% rule started

4:43 – Results of a MetLife study

8:10 – Sequence of distribution

14:11 – Longevity risk

18:14 – Allocations

25:05 – Formulating a process to cover the key risks

28:48 – Our process for determining percentage to withdraw

31:15 – How much are you communicating with advisor?

32:28 – Security concerns

With rising inflation and now an inverted yield curve, are we headed towards a recession? The interest rate paid on our short-term debt has exceeded the interest paid on our long-term debt of the same quality. So, what does this mean for investors? On today’s episode we’ll unpack the inverted yield curve, the concerns investors should be aware of, what to anticipate for the remainder of the year, and the strategies you can implement to protect your plan now and in the future. 

This inverted yield curve and a contraction in the market could indicate a coming recession, but this is not absolute. We are in a unique situation as we usually don’t see rising interest rates and a contraction in the market at the same time. Typically, when markets contract on the equity side we can find safety in bonds but with rising interest rates that might not be the case this time. However, it’s always important to keep your perspective in check and prevent yourself from making quick, emotional reactions to the market. 

The best move to make right now may to be make no move at all. We want to take a long-term view when it comes to our plan. Don’t let news cycles scare you into making poor decisions. If a recession does happen it doesn’t ensure the U.S. stock market will underperform but it’s still important to be prepared. With this volatility, it’s essential to have a balanced portfolio that outpaces inflation while simultaneously withstanding market turns. 

Review the article mentioned in today’s show >> 

 

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Prices have been steadily climbing for some time now. What is driving this unprecedented increase in inflation and how can you insulate your financial future from these black swan events? Many retirees are aware of risk and volatility within the market, but inflation itself can be a silent killer that lowers your future buying power when it comes to things like gas, groceries, and health care costs. 

We have recently hit a 40-year high with inflation at 8.5%. Most experts still expect us to be facing high inflation rates a year from now, some are even predicting the possibility of a recession. Unpacking inflation and how it can impact your investments and retirement future is essential. If you aren’t incorporating this into your future income plan you may find yourself taking too much risk on in the future to make up for those losses. Bonds and fixed income are also subject to the risk of inflation as they are inversely related to interest rates and an increase in rates can result in a drop. So, how do we make sure our portfolio has the right amount of balance? 

We recommend really analyzing your budget and understanding what you are getting for your dollar. This allows you to move into a diversified investment strategy that can garner you a return that will make your budget work during an inflationary period. If you are invested in bonds, think about asking your advisor about the various tools you can use to protect your plan. Find the best rotation of investment tools fit for you. On today’s episode, we’ll break down inflation, its impact on your money, and how you can protect yourself now and in the future.

More Reading on Today’s Topic >>

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redefiningwealth.info

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Could Joe Biden’s new tax proposal impact you and your retirement plan? On today’s episode, we’re breaking down Joe Biden’s proposal of a 20% billionaire tax, the looming financial crisis, and what you can do to protect yourself and your future against rising taxes. The billionaire tax proposal is expected to reduce the deficit over the next decade. However, this is coming after a $3.9 trillion dollar spending bill, meaning the proposed reduction from the billionaire tax would only be a tiny percentage.  

Deficit spending continues to rise but capitalism proves to be the best way to move forward and pay off our national debt. While this proposal is called the “billionaire tax” it would impact anyone with more than 100 million directly. They will pay a minimum of 20% each year on their capital gains. Yet, it’s quite possible average Americans could also feel these effects when it comes to their assets on a granule level. 

Along with rising interest rates this proposal could be alarming for many reasons. Your asset value is probably growing, meaning you’ll likely be subject to paying more taxes. Gains in the stock market have provided for countless retirees, improving their quality of life and protecting longevity in their plans. This proposal could incentivize these investors and threatened many Americans' retirement plans. Therefore, we need to insulate ourselves regardless of what the government does moving forward. Join us today as we discuss these issues and the solutions that can mitigate these possible impacts on your financial future. 

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redefiningwealth.info

lswealthmanagement.com

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Anywhere from 50% to 60% of Americans don’t have a will. Does this surprise you? However, more and more people are becoming more aware of the 6th pillar of the Redefining Wealth Process, estate planning. On today’s episode, we are continuing our conversation on estate planning and why it’s so important for you and your family. We will explore the key documents you need to consider when building out your estate plan and the types of trusts that may be applicable to your situation. 

 

Your Power of Attorney is really the starting point for a sound estate plan. This document is essential for everyone, whether you have a trust or will. You’ll need a Power of Attorney for both your finances and healthcare. You need someone that can step in if incapacitation has occurred. Even with legal documents, sometimes custodians request an order from probate or their own documents. If you’re doing estate planning yourself rather than with a financial professional and attorney, these are the nuances you’ll probably be missing. 

 

State laws seem to change rapidly, so you must review your estate plan on an annual basis. Courts can challenge and scrutinize these documents if they aren’t up to date. Furthermore, giving an agent broad legal authority over principles of property with very little detail instructions may lead to an abuse of power. The Power of Attorney is used for specific circumstances, but is of great value in conjunction with a revocable living trust which can protect you, your family, and your property against these dangers. Join us as we further discuss the documents, trusts, and, professionals you need to be working with to stay protected and safe, financially and beyond. 

Further reading mentioned in today’s show >> 

 

Rate & Review and Subscribe to the Podcast:

https://podcasts.apple.com/us/podcast/retirement-talk-podcast-with-laura-stover/id571347188

https://redefiningwealth.info/98-the-importance-of-an-estate-plan-part-2/  

Links

redefiningwealth.info

lswealthmanagement.com

Schedule a Review: https://redefiningwealth.info/schedule/

No matter your age, having an estate plan is something we all need to think about. On today’s episode, we’ll explore the importance of having an estate plan and some things you may not be considering when it comes to that plan. 

Over the past few years, we’ve certainly seen that things can change quickly. Keeping our essential documents updated is more important than ever. A will is a legal document that spells out your wishes when it comes to the care of your children or the distribution of your assets. While many people establish one when their children are born, most of us forget to update it later on in life.  

Estate planning isn’t just about your assets, living documents impact you if you become ill as well. It can be costly, time-consuming, and stressful for your loved ones if these documents are not in place. It’s not all about you, don’t leave a mess for your loved ones! Join us today as we explore the importance of an updated will, the difference between a will and a trust, some of the estate planning assumptions you should avoid making. 

Further reading mentioned in today’s show >> 

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https://podcasts.apple.com/us/podcast/retirement-talk-podcast-with-laura-stover/id571347188

Links

redefiningwealth.info

lswealthmanagement.com

Schedule a Review: https://redefiningwealth.info/schedule/