Simplify Your Retirement

Guest Phil Graham | CEO @ The Beneficiary Liquidity Plan®

Phil Graham is the driving force behind the development and innovation of The Beneficiary Liquidity Plan®. Phil brings more than 25 years of financial services experience, with a focus on designing and distributing products through financial advisors. With the Beneficiary Liquidity Plan®, you can help ensure your loved ones have quick, easy access to the funds they need to settle your estate.

Many people have faced the burden of paying for a loved one’s funeral out of pocket, and in this episode, we explore ways to provide immediate financial relief for families through these tough times.

Sometimes it can take anywhere from 2 weeks up to six months to receive death certificates, which delays access to funds from financial institutions. For instance, in New Jersey, an 84-year-old widow had her joint bank account frozen after her husband died, as the bank required a state estate tax form and death certificate before releasing the funds.

Nearly everyone (close to 100%) wants their family to access funds for funeral costs, yet only about 8% have prepaid funerals. We recommend pre-planning (not pre-paying) to ease decision-making for beneficiaries.

Immediate Payment: The Beneficiary Liquidity Plan® allows for direct payment to the funeral home, eliminating financial stress for the family. For example, with a $25,000 allocation:

• Average funeral expenses (approx. $15,000) are covered.

• Remaining funds ($10,000) are deposited to the beneficiaries for immediate use.

For more information or questions on this topic, feel free to reach out to our team at 816.246.WISE (9473) or by email at [email protected]. If you’re not a client of Wise Wealth and lack a personalized financial plan, we offer a “Clarity Conversation” to help you get started. You can reach out via email, phone, or by taking our online quiz for a free copy of our updated book, “Simplify Your Retirement.” Our goal is to simplify your retirement planning so you can fully enjoy life.

816.246.WISE (9473) | [email protected] | www.wisewealth.com/book | www.wisewealth.com/contact-us

People often research financial products after hearing about them through various channels, but they may be swayed by either overly positive or negative information. This can lead to risky decisions, as news often highlights sensational or negative stories to attract readers and sell ads.

Algorithms amplify confirmation bias by continuously showing users articles that align with their previous clicks, which is why we advocate for principles-based financial planning—principles remain constant even as products and industry trends evolve.

While products and industry trends may change, principles remain constant, and we’ve emphasized these principles throughout our previous podcast episodes.

For clients of Wise Wealth, we provide continued education, and we were thrilled to host our Summer Education Series. This year’s theme, “Non-Traditional Investment, Income, and Inheritance Options,” which sparked many engaging discussions.

We’re focusing on non-traditional financial methods this season, including reverse mortgages, beneficiary liquidity planning, and digital assets, and we’ll be discussing these topics in upcoming podcast episodes. Understanding your options can help you find the best fit for your individual needs.

Having a plan is crucial because it allows for a thoughtful evaluation of various financial options, ensuring that each choice aligns with individual goals and needs. As fiduciaries, we are committed to presenting unbiased, well-researched information on diverse financial topics to help clients make informed decisions within the context of a comprehensive plan.

If you’re not a client of Weiss Wealth and lack a personalized financial plan, we offer a clarity conversation to help you get started. You can reach out via email, phone, or by taking our online quiz for a free copy of our updated book, “Simplify Your Retirement.” Our goal is to simplify your retirement planning so you can fully enjoy life. Thank you for joining us as we kick off the sixth season of our podcast!

816.246.WISE (9473)

[email protected]

www.wisewealth.com/book

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It’s often said that people spend more time planning vacations than they do for retirement. But just as you wouldn’t wing a vacation, retirement planning requires careful consideration.

With potential decades ahead, the time invested in planning is relatively short. Therefore, it’s crucial to approach retirement seriously, laying out all your desires to ensure they align with your vision.

A common mistake is solely focusing on the day you can stop working. While reaching this milestone is significant, the ultimate goal is not just retirement but retirement freedom.

Our goal is to guide individuals towards this state of financial freedom, not just reaching retirement but thriving through it. We aim to alleviate the fears and frustrations that often accompany retirement, enabling people to enjoy their golden years with peace of mind. And at the core of achieving this peace is having a well-thought-out plan.

Whether it’s the cost of healthcare, rising taxes, stock market volatility, or inflation, our personalized Retirement Freedom Plan™ covers all potential risks eliminating those fears and what-ifs.

In retirement, you want the freedom to pursue your desires without worrying about uncertainties or risks. Working with someone who understands this is crucial. Going it alone might work, but you could still face fear and frustration along the way.

Robo-advisors lack the human touch needed to address your unique concerns. While they can provide numbers and estimates, they can’t offer the empathy and experience of a human advisor. Trusting solely in automated assessments, like those from 401k providers, may not give you the full picture. What you really need is a financial planner who can guide you not just to retirement but through it, providing both expertise and empathy tailored to your needs.

Let’s create your Retirement Freedom Plan™, starting with the “Clarity Conversation”. Reach out to us at 816-246-WISE or email [email protected] to start the journey toward freedom.

www.wisewealth.com

In the pursuit of financial freedom, retirement planning often revolves around achieving a specific nest egg or net worth target. However, true fulfillment in retirement extends beyond mere financial security. It encompasses a holistic approach that addresses uncertainties, unforeseen circumstances, and the desire to leave a lasting legacy.

In this episode, we discuss the multifaceted aspects of retirement planning, highlighting the importance of proactive decision-making, essential documents, and specialized expertise to ensure a fulfilling and secure retirement journey. While many financial advisors often focus on reaching a specific nest egg or net worth target to support this goal, experience shows there’s a further peak to strive for beyond mere financial security. The reality is a lot of people plan for about 30 to 35 years preparing for the day they retire, but you need to have a plan for the 30 to 35 years after you retire.

When you get to retirement, now there are unknowns. How long are you going to live? How much is inflation going to impact you? Am I going to need long-term care?

As you get closer to retirement, the risk increase, and the stakes are higher. Mistakes have to be avoided and you need to work with an advisor who specializes in the retirement phase of life. Specific investments are tailored for generating income, while others are geared towards growth.

The choice of investment aligns with the intended financial plan. Beginning with an income plan, one progresses to an impact plan which encompasses legacy, insurance, and tax planning. Unforeseen circumstances such as incapacitation or illness can suddenly shift control away from one’s intended decisions.

This uncertainty can detract from the enjoyment of retirement, raising concerns about the distribution and management of assets, as well as the designation of decision-makers in times of need. The goal of retirement planning is to minimize fear, frustration, and risks to fully enjoy retirement. Essential documents such as powers of attorney, encompassing healthcare and financial matters, are crucial. A living will specifies directives for medical care in certain situations, relieving loved ones of difficult decisions. A traditional will dictates asset distribution, preferably through contractual arrangements. It’s essential to document specific wishes and have them legally endorsed to ensure desired outcomes, particularly for personal items with sentimental value, to avoid potential conflicts among beneficiaries after one’s passing. It’s crucial to ensure that beneficiaries listed on policies accurately reflect your wishes, as these designations override the instructions in your will.

Naming beneficiaries expedites the transfer of assets without the need for probate, streamlining the process. Trusts can be simple or complex, but legal expertise is often necessary for complex situations. While we offer assistance, we recommend consulting qualified attorneys to ensure validity and effectiveness.

We stress to clients the importance of leaving more than just money behind—a legacy of values, beliefs, and memories. Encourage sharing messages, beliefs, and family stories through videos or other means, ensuring that the true essence of their legacy endures beyond financial assets.

📅 SCHEDULE A CONSULTATION: 816.246.WISE (9473), [email protected], www.wisewealth.com

Tax Planning: A Lifetime Approach to Minimize Your Taxes

In today’s episode, we dive into the topic of taxes, drawing inspiration from Benjamin Franklin’s famous quote: “There are only two things certain in life, death and taxes.”

Considering the uncertainty surrounding taxes and the fear it can evoke, we emphasize the importance of having a plan in case of tax increases. While your current tax rate forms the basis of our strategy, we also incorporate a contingency for potential future tax rate hikes, stressing the need for preparation regardless of your decision to convert to a Roth or not.

Now, let me introduce Becca Ollar, whose unique background as a CPA with experience in financial planning sets her apart. Unlike CPAs in accounting firms primarily dealing with business and corporate returns, Becca’s focus within a financial planning firm revolves around individual planning.

In CPA firms or accounting firms, the work often happens behind closed doors with minimal interaction. Unlike the typical accounting firm setup where clients drop off tax documents in February and only reconnect in March or the following year, working with Becca involves more engagement and conversation throughout the year.

It’s rare to find a CPA focused on building meaningful relationships and actively helping clients achieve their goals, rather than just offering tax preparation services. This approach involves proactive communication, strategic planning before deadlines, and a partnership mentality, ensuring clients are well-informed and minimizing surprises come tax time.

The advantage of combining CPA and financial advisor services lies in seamless access to comprehensive records and consistent advice. The proactive approach, often lacking in traditional tax preparation services, is crucial for a positive client experience.

Interested in Tax Preparation? Call our office at 816.246.WISE (9473), or visit our website, www.wisewealth.com.

Watch or listen to the full episode to hear Stephen’s perspective on paying taxes upfront on the seed, rather than navigating the uncertainties of future tax rates and amounts during the harvest. Also learn other tax strategies such as:

By incorporating these insights into your tax planning, you can make informed decisions that align with your financial goals.

In this insightful conversation, Stephen Stricklin discusses the complexities of financial planning, focusing on the contrasting viewpoints regarding investments in the stock market and insurance planning.

Leveraging his extensive industry experience, Stricklin underscores the significance of crafting a comprehensive plan that seamlessly integrates both aspects.

There is an imperative need for objective advice, especially from a firm like Wise Wealth which can objectively navigate the intricacies of both insurance and investments. Many biased financial advisors may favor one approach due to licensing, affiliations, or personal preferences.

Wise Wealth’s approach involves tailoring recommendations based on a thorough understanding of clients’ needs, initiated through a “Clarity Conversation,” followed by the “Possibilities Meeting” – exploring diverse avenues for achieving financial goals.

It’s important to understand that by investing in insurance you are transferring the risk to the insurance company which can lead to financial peace of mind.

Stephen and his co-host, Paul Brock talk about the significant financial risk associated with long-term care, the complexities of Medicare, and the role of life insurance.

In conclusion, it is crucial and imperative to adopt an objective and fiduciary approach when making decisions related to insurance.

Key Topics Discussed:

CONTACT US:

www.wisewealth.com

Email us at [email protected], or give us a call at 816.246.WISE (9473).

To request your copy of our book, Simplify Your Retirement, email us at [email protected], or visit our website www.wisewealth.com/contact-us.

Investment Planning: The 2 Key Ingredients to Success

Ever wondered what it takes to be a successful stock market investor? In this episode, Stephen Stricklin from Wise Wealth breaks down the two essential ingredients for success: time and discipline.

🔍 Key Takeaways:

• Time & Discipline: The foundation of successful stock market investing.

• The Three-Bucket Approach: Learn how to allocate your assets strategically.

• #GSEL Mission: Discover Wise Wealth’s mission—Give, Serve, Enjoy Life.

• Seven Areas of Financial Planning: Gain insights into comprehensive retirement planning.

Stephen explains the significance of the three-bucket approach – liquid, income, and growth – and why the growth bucket is a key component for long-term success in stock market investing.

The episode provides insights into the five-year rule, a fundamental principle that dictates only taking diversified risks with money not needed for at least five years. Stephen emphasizes the role of the growth bucket in beating inflation, addressing healthcare costs, and managing taxes. He explains why having as much money as possible in the growth bucket provides financial flexibility and serves as “fun money” for retirees.

Throughout the conversation, Stephen emphasizes the importance of staying disciplined and not making impulsive investment decisions based on short-term market fluctuations.

Tune in to gain valuable insights into the growth bucket strategy and learn how it contributes to financial peace, confidence, and the freedom to enjoy life in retirement.

CONTACT US:

To request your copy of our book, Simplify Your Retirement, email us at [email protected], or visit our website www.wisewealth.com/contact-us.

Income Planning: Smart Investment Allocations for Maximum Peace of Mind

We understand that when retirees have a well-thought-out plan, they are more likely to experience true freedom. The ultimate goal of our retirement planning efforts is to achieve this freedom, enabling individuals to give, serve, and enjoy life without constraints.

Once a plan is established for each of these six areas: liquidity, income, growth, tax, legacy, and insurance, true freedom becomes attainable.

Our concept of freedom planning perfectly aligns with the mission of Wise Wealth, encapsulated by the hashtag #GSEL (give, serve, and enjoy life). To realize this vision, meticulous planning is necessary.

One of the most pivotal questions to ask in financial planning is, “What does retirement look like to you?” This question is crucial as the answer varies for each individual. Retirement, for some, entails serene moments in a rocking chair or spending time with grandchildren, while for others, it means constant travel and never staying at home. There’s no right or wrong answer, but an answer is essential.

The response to the question “What does retirement look like to you?” not only carries an emotional aspect but also a numerical component. When we discuss income planning, we are essentially determining that number.

At Wise Wealth, one of our guiding principles is that the plan determines the products. Using our easy-to-understand “3-Bucket Approach” we identify the purpose of the money—whether it’s for liquidity, income, or growth. and we firmly believe that a single portfolio cannot effectively serve all three purposes.

We believe a single portfolio cannot effectively serve all three purposes. Aligning investments with their intended purposes simplifies decision-making and enhances peace of mind.

Today, our focus shifts to the income bucket. We’ll discuss the rules governing how much should be allocated to this bucket and the investment options it offers.

Many individuals approaching retirement, particularly those who have managed their finances independently or worked with advisors focused on asset growth, may find this transition challenging. They are accustomed to growing their assets, often through 401(k) investments.

However, in retirement income planning, the dynamics change, requiring consideration of liquidity, safety, income, and growth.

Many people mistakenly believe they only have these two extreme options, either taking no risk and accepting minimal returns (barely keeping up with inflation) or risking everything with potential losses as the market fluctuates. The downside is that this type of strategy doesn’t lead to freedom or peace of mind. Individuals find themselves in constant fear, tied to market fluctuations, questioning every financial decision.

There are alternative options in the middle ground, that are less risky and more cost-effective, giving a more balanced approach.

Upon reaching retirement age, individuals should protect the portion of their money needed for an income stream. The rules for the liquid bucket involve determining your income number, solving for the gap by subtracting guaranteed income sources, and figuring out the least amount of assets needed to guarantee the required level of income.

Almost everybody has an income gap, and the income gap formula is straightforward. Take your income need in retirement, subtract any guaranteed income sources, and start with a clear budget. To determine your income need, write it down—request our complimentary retirement worksheet at [email protected].

Our goal as planners is not to sell annuities or CDs but to have as much money as possible growing for our clients while protecting their income needs. We advise individuals, even up to the first 5 to 10 years in retirement, to start allocating assets today to solve for that gap 10 years from now.

It’s never too early to start planning.

To request your copy of our book, “Simplify Your Retirement, email us at [email protected].

In planning for retirement, creating a budget is crucial for ensuring financial security and making work optional. The simplified approach involves dividing assets into three buckets: one for liquid expenses, another for income, and the third for growth.

The budget, a formal plan for managing monthly income, helps avoid overspending and provides the freedom to enjoy retirement.

Key points on budgeting for retirement:

Living Expenses vs. Lifestyle Expenses:

Distinguish between essential living expenses (e.g., housing, utilities, food) and desired lifestyle expenses (e.g., travel, recreation). Guaranteeing living expenses is crucial.

Start with the Basics:

Ensure a secure retirement by covering the necessities. Just as parents promise a roof, food, and clothes for their children, retirees should guarantee their own living expenses.

Healthcare Costs and Inflation:

Estimating healthcare expenses is a significant concern in retirement. A reasonable starting point could be $450 per person per month. Account for inflation in estimating future expenses. Regularly monitor and adjust the budget as circumstances change.

Customization is Key:

While there’s no one-size-fits-all solution, everyone needs to identify their unique retirement number. Use a budget worksheet, estimate high, and adjust for inflation over time. Six months before retirement, start living on the budget to ensure its feasibility. Adjustments can be made based on the real experience.

Remember, the goal is to retire with confidence, peace of mind, and the freedom to enjoy life without financial constraints.

📅 SCHEDULE A CONSULTATION:

816-246-WISE (9473) | [email protected] | www.wisewealth.com/contact-us

Liquidity Planning: How to Plan for Short-Term Needs and Where to Invest

Liquidity is important for everyone, no matter what phase of investing you are in. If you anticipate needing your money within the next five years, it should be readily accessible. The primary objective is to ensure the protection of your income stream and have assets at your disposal.

It’s impossible to grow your income, draw an income stream, and keep it liquid all in one portfolio.

In our 3-bucket approach, funds are distributed into 3 categories: liquid, income, and growth. Anything in the liquid bucket will not be available for growth or income.

There are two reasons someone may want to have liquid assets:

1. Emergency Fund: The recommended amount for an emergency fund may vary depending on your current investment phase.

2. Short-Term Expenses: These are expenses you anticipate in the next five years, such as buying a new car, funding house repairs or renovations, or taking trips.

The objective here is to safeguard this money from market risks. If your financial goals are within 1-3 years, there may be an alternative investment to consider besides a checking account. These could include cash alternatives such as CDs, money market accounts, fixed annuities, or specialty savings accounts. Most people think that having money liquid means it doesn’t earn anything. That is not the case with these alternatives.

Contact our team of professionals for more information about the current return on specific accounts that could benefit you.

816.246.WISE (9473) or [email protected]

With our Simplify Your Retirement Plan® Process, your income stream will be guaranteed and the plan ultimately leads to financial peace of mind so you can live the retirement you always dreamed of.

Wise Wealth is an education-based financial planning firm that specializes in retirement.

📅 SCHEDULE A CONSULTATION:

816-246-WISE (9473) | wisewealth.com/contact-us | [email protected]