Kitchen Table Finance

S3E45 – November Retirement Planning Headlines

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We read the news so you don’t have to!

Welcome to The Kitchen Table Finance Podcast, the show where we explore the big questions, trends, and stories shaping our lives.

Today, we’re diving into the key retirement headlines from November. Retirement isn’t just about money—it’s a major life transition, and this month’s stories highlight the emotional, social, and financial challenges that come with it.

We’ll cover:

  • The identity shift of leaving work behind—Who will you be without your job? Americans are deeply tied to their work identities, and we’ll explore strategies like “identity bridging” to navigate this transition.
  • The pitfalls of poor planning—From underestimating healthcare costs to taking Social Security too early, we’ll review common mistakes retirees make and how to avoid them.
  • Long-term care fears—With only a fraction of retirees covered by LTC insurance, we’ll discuss innovative solutions like the “4th bucket” strategy and what to do if you’re unprepared.
  • Finding purpose after retirement—Whether it’s hobbies, social connections, or even continuing to work, we’ll look at how to stay fulfilled and avoid the dreaded mid-retirement slump.

    • And of course, we’ll dig into a cautionary tale of retirees falling for high-risk investments, showing why financial literacy is more important than ever.

    Retirement is about more than leaving work—it’s about reimagining your life. Let’s dive into these stories and uncover what it takes to retire without regrets.

    https://youtu.be/wvhLx5FNQFE

    The Headlines We Discuss in This Episode
    Harvard prof who spent 10 years studying retirees: How to ensure a ‘smooth transition into a satisfying retirement life’
    • Important to ask yourself  Who will I be without my work?
      • Americans tend to identify closely with their work
      • What to do if you can’t fully answer the question
        • Ask yourself, Would I be more likely to say that my work is what I do or my work is who I am?”
        • List core self-identities as they are currently and how you want them to be “identity bridging”
          • This retiree accepted an investment broker’s invite for dinner at Ruth’s Chris — the decision cost him $158K
          • A story as old as time?
          • While investors like Wilson earned a whopping 9% monthly return, brokers were earning up to 8% in commissions from GWG.
            • Planning Your Retirement: What Not To Do
            • Underestimating health care costs – LTC
            • Overspending
            • Taking Social Security benefits too early
            • Miscalculating your RMD
              • Worried About Long-Term-Care Expenses? Let’s Do Something About It.
              • Worrying about a potential LTC need keeps retirees from maximizing spending or making gifts to loved ones or charities
                • 59% say they are concerned about running out of money to pay for LTC – AARP
                • #2 on the list of retirement worries according to the Society of Actuaries
                • Only $7Mil out of 75 mil over age 60 are covered by LTC Insurance
                • 4th bucket as a strategy to solve LTC
                  • How much to put in – Genworth LTC study, age of needing care average (81)
                  • What types of investments to use: based on the age of likely use as a starting point
                  • Where to hold the funds (IRA, ROTH, after-tax)
                  • Back-up plan
                    • Reverse mortgage
                      • Retire Without Regrets
                      • Huge life transition
                      • Irene age 64 technical writer shifted easily and wished she’d left earlier
                      • Lawrence struggled after a few months and ended up in rehab
                        • Retirement is a transition that involves several key phases: making the decision to stop working; detaching from work; experimenting with new relationships, activities, and social groups; and establishing a new, reasonably stable life structure
                        • Research found satisfied retirees demonstrate four key behaviors through the phases of the four A’s
                          • Alignment between self and life structure
                            • your central identities, needs, values, preferences, motivations, personality dispositions, and even health
                            • Awareness of the interplay between the two
                            • Agency in making changes in the self or life structure
                            • Adaptability in the face of events out of their control
                            • Use the three other A’s to find alignment between self and life structure
                              • Awareness – getting a clear view of your self and life structure
                                • We use the ideal day/week/year
                                • Agency – take control
                                  • Ask yourself these two questions:
                                    • What minor tweaks or major changes can I make in my life structure to have better alignment
                                    • Is there anything I want to change about my current self to improve alignment – getting healthier to be able to try more things
                                    • Adaptability
                                      • Accept, adjust & adapt
                                        • List two events (one good one bad) that might alter your life structure and think about how you would solve them. What resources do you have, etc?
                                          • How To Have A Happy Retirement: 4 Secrets From Research
                                          • In year 1 of retirement healthy retirees rate overall quality of life higher than those still working
                                          • Between 1 and 2 we see retirees hit a low point with dropping quality-of-life ratings
                                          • Retirement is new and poorly defined
                                            1. Have a plan beyond finances – how will you invest your time?
                                            2. You may want to keep working – Just because everyone retires at 65 doesn’t mean you have too
                                            3. Get a hobby – Find something you are passionate about
                                            4. Get social – replace your coworker’s social group. Have friends and see them often
                                              5. Stay Connected:

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                                              Shotwell Rutter Baer is proud to be an independent, fee-only registered investment advisory firm. This means that we are only compensated by our clients for our knowledge and guidance — not from commissions by selling financial products. Our only motivation is to help you achieve financial freedom and peace of mind. By structuring our business this way we believe that many of the conflicts of interest that plague the financial services industry are eliminated. We work for our clients, period.

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                                              Kitchen Table FinanceBy David Shotwell CFP(r) and Nick Nauta CFP(r)
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