The Retirement Solutions Show

This new episode of the Retirement Solutions Show begins with a discussion on Conventional Financial Wisdom (CFW). CFW leads us to believe many ideas about retirement that simply aren't true nowadays.

The guys discuss some of the most common retirement myths they see people falling victim to and how to educate yourself for a better retirement.

Here's what you'll learn in this segment:

• [1:20] There are several pieces of Conventional Financial Wisdom that, if followed, can lead you off course as you plan for retirement. We share some of the most common assumptions and myths.
• [6:12] CFW tells us that expenses will go down in retirement. Scott Stiegler challenges you to take a vacation and not go anywhere... will your expenses go down or will you get bored and seek entertainment ($$$)? Additionally, in retirement, your number of tax reductions can go down, making your expenses go up.
• [7:38] Ralph Hicks discusses the 3 phases of retirement (Go-Go, Slow-Go, and No-Go) and how factoring them into a written plan can alleviate financial stress.

More key takeaways from this episode:

• [9:05] Yahoo Finance warns that a market downturn in the last 3-5 years before retirement could "demolish" your portfolio, but we keep hearing that if we don't stay in the market, inflation will eat of our savings. The guys share advice about investing risk for people in their 50s and 60s.
• [11:34] The day you retire is a crucial time in your financial life because it's when your wealth is at its peak. It's also when you have the most probability of impacting your retirement, whether positively or negatively, based on how you start managing your money.
• [12:47] What happens if there is a market downturn in the next few years? We share tips for people in their 50s and 60s who could be impacted by this.
• [16:05] We give wealth management tips for people who would rather stay out of the stock market.
• [16:45] More people are turning to roboadvisors nowadays. We share some of the benefits a roboadvisor can offer, as well as some of their limitations.
• [19:03] Technology has changed the financial world. It has improved the ways people can manage their money. It has also allowed more people to get invested. However, more complexities arise as you approach retirement, and most roboadvisors aren't able to provide many benefits past that point.
• [22:57] Are all financial advisors the same? We share some of the key differences you should consider when selecting an advisor.
• [33:58] Attorney Matt Danner answers questions about estate planning. What is an estate plan? Do I need one? Are there any barriers to getting one? Hint: they're not just for rich people.
• [44:49] 70% of people responding to a Prudential survey say they are stressed about money. Will we ever reach a point where we don't have stress about our financial situation? David Hicks thinks so, and he shares how you can get there.

Links mentioned in this episode:

• Here's why the last 5 years before retirement are so critical
• 4 Strategies to Help Curb Your Financial Stress

Today's episode begins with a conversation on retirement optimism. Fifty-seven percent of people surveyed by CNBC say they feel "more confident" about their ability to retire than they did just three years ago. Why the sudden spike in optimism?

Kevin Hassett, chairman of the Council of Economic Advisers, thinks it comes down to two factors: income growth and a strong performance from equity markets.

In our first segment, we discuss whether this retirement optimism is justified and tips for navigating the current economic situation.

Here's what you'll learn from this segment:

• [1:53] Income growth and the strong performance of the equity market could be contributing to retirement optimism, according to Kevin Hassett, chairman of the Council of Economic Advisers. In addition, we are seeing more encouragement from the media to have a financial plan. Ralph Hicks believes having a plan gives you more confidence.
• [5:00] Should we be optimistic when looking at the current economic situation? Though optimism is great, Ralph suggests you remain realistic. Your financial life should not be driven by emotions.
• [8:49] We tend to follow crowds when it comes to complex situations like retirement planning. When the news tells us the market is booming, we want in. When we hear how well our friend's portfolio is doing, we want what they have. However, failing to account for personal factors like your age, risk tolerance, and financial goals could put your future in danger.

More key takeaways from this episode:

• [10:30] According to the Motley Fool, one of the lesser-known facts about Social Security is that the program is designed to pay you the same amount of lifetimes benefits, regardless of when you file your claim. Is this true? Ralph says there are a number of factors to consider before deciding whether to take your Social Security benefits.
• [13:14] Ryan Gilmore advises you not to look at your retirement accounts in isolation. Instead, you should look at how all the pieces fit and work together.
• [15:14] There can be a lot of moving parts that make up your retirement plan. It is important to have an advocate who will help you make the right decisions.
• [18:30] Democrats and Republicans are working together on something good. It's called the SECURE Act, and it's a bill that, among other things, will allow you to save for retirement longer by pushing back age for required distributions. The guys share some of the high points of the new bill, as well as some of the possible issues it could encounter.
• [25:35] How much money do you waste each month? A survey from TD Ameritrade says the average baby boomer spends $638 per month on non-essentials. Ralph emphasizes the importance of developing a spending plan that works towards your goals while allowing you to have fun with your money. Ryan shares the story of how saving a few hundred dollars extra a month helped one couple drastically improve their probability of success in retirement.
• [38:22] If you are over 50 and still working, there's a 56% chance you're going to be laid off before you retire, according to a recent study by ProPublica and the Urban Institute.

• [45:16] Inflation is a real risk to retirement. It needs to be built into your strategy and woven into your plan. Social Security has a built-in inflation strategy, but does your pension or your 401(k)?
• [47:25] Have you heard of the bucket approach to managing your money? This approach encourages you to have 3 types of money: liquid, conservatively invested, and aggressively invested. The guys share whether this is a smart approach to retirement planning and how it could work as a tax strategy, as well.

Links mentioned in this episode:

• Trump advisor Kevin Hassett attributes rise in retirement savings optimism to strong economy and stock market
• David Hicks' market update webinar
• Why 1 Common Social Security Strategy Might Backfire on You
• How This New Bill Could Impact Your Retirement
• 42% of Baby Boomers Are Putting Their Retirement at Risk With This Mistake
• Forced Retirement: Getting Upright When Your World Turns Upside Down

 

Time and again, we hear stories about people who are afraid of retirement. It's not always financial fears that scare them. Rather, it's emotions that get in the way.

Many workers equate their career with their identity. These people find themselves feeling a bit lost when they finally leave the workforce (whether by choice or by force).

Having placed so much weight on their work over the past 50 years, they don't know who they are anymore.

One of the best pieces of advice we've ever heard is, "Don't retirement from a job. Retire to something else."

That's why, on this new episode of the Retirement Solutions Show with Oakmont Advisory Group, we discuss finding meaning in life beyond work.

Key takeaways:

• Why the fear of the unknown keeps people from retirement
• Have a retirement date in mind and work mindfully towards it.
• Live life as you go, because there are no guarantees in life.
• Find an advisor who will be a partner on your journey and will take your financial situation personally.

Other topics discussed:

• [9:38] The cost of waiting to seek help with retirement planning. Why you should take action sooner than later.
• [11:53] How retirement planning has evolved of the past 45 years.
• [19:48] The importance of having a written financial plan.
• [25:00] Drunk shopping and other common financial mistakes we see far too often.
• [29:15] What you need to know about taxes and your Social Security benefits.
• [34:40] Attorney Matt Danner on how easy it can be to go from an "OK" legacy plan to a "GOOD!" estate plan.
• [42:45] Understanding fees on your retirement accounts.
• [47:47] Why two-income couples are often less prepared for retirement.

Many of us assume that we'll be in a lower tax bracket when we retire. But, in our new retirement reality, that's not always the case.

On this week's episode of the Retirement Solutions Show, we discuss the variety of factors that can either lower or increase our tax obligations in retirement.

Key takeaways:

• Things like Social Security, Required Minimum Distributions, and Pensions can affect your tax obligations because they are seen as "ordinary income" in the eyes of the IRS.
• Taxes are "on sale" right now due to the Trump Tax Plan, but they will likely increase in the future.
• An understanding of investment conversion opportunities and timing can greatly impact your tax obligations.

Other topics discussed in this episode:

• [9:23] Steps we can take to "spring clean" our investments.
• [17:39] How we help clients feel confident that their savings will last the duration of their retirement.
• [23:48] How to plan for an enjoyable retirement when you don't have a huge income.
• [30:10] We share some big retirement goals we've helped our clients achieve.
• [36:26] Attorney Matt Danner on the importance of choosing a planner with a team-based approach.
• [48:08] Why healthcare is something you need to prepare for.

Peter Lynch ran the Fidelity Magellan Fund between 1977 and 2000. During that time, the fund was up an impressive 2700%!

Lynch appeared on a TV commercial telling us how easy it is to be an investor.

“Everyone can do well in the stock market, ” he said. “You have the skills, you have the intelligence, it doesn’t require any education. All you have to have is patience, do a little research, and you’ve got it.”

Is it really that simple?

On this week’s episode of the Retirement Solutions Show, we discuss the realities of investing in the stock market.

Key takeaways:

• Human involvement accounts for the majority of market losses.
• “Forgetful Investors Performed Best” (Fidelity study mentioned by Ryan)
• Steady pace wins the race.

Other topics discussed in this episode:

• [9:40] How to guard against exhausting your nest egg.
• [21:37] A Texas man is getting attention for planning to spend his retirement in a Holiday Inn – what does this say about long-term care in retirement?
• [24:12] Tax-savings ideas you could be taking advantage of.
• [36:48] Simplifying estate planning.
• [46:25] Money questions to ask before deciding if you’re ready to retire.

There’s a lot of talk in Congress about forcing wealthy Americans to pay more in taxes. The latest example of that is a bill that would impose a new tax on all stock trades.

But, could these things actually end up costing all of us more?

On this episode of the Retirement Solutions Show, we discuss whether we should be concerned about these new tax proposals.

The bottom line

A proposal is just a proposal. Worrying about it now could lead us to make fear-based decisions, which never ends well. If tax changes are made, we can adapt to them (if necessary) at that time.

Other topics discussed in this episode:

• [7:18] How do we know if the amount we’ve saved for retirement will match the amount we need?
• [13:15] The general age at which we can best benefit someone.
• [19:15] Could a market crash be considered an opportunity?
• [25:49] How to prepare for challenges that might force you to retire earlier than planned.
• [34:16] How to start the estate planning conversation
• [44:52] Advice for those inheriting retirement accounts

 

On this episode of the Retirement Solutions Show, we share lessons we should take away from the 2008 financial crisis

What we learned from the 2008 financial crisis:

• Learn how to capture your gains.
• Utilize safe strategies and risk strategies.
• Stress-test your portfolio to see if it could withstand another market crash.
• Uncover your Risk Tolerance.

Other topics discussed in this episode:
[8:30] What should investors pay attention to in the news?
[10:15] The cost of waiting to act on your finances.
[18:10] Steps to take when you're 10 years, 5 years, 1 year, and 3 months away from retirement.
[32:00] How to let go of doubt and fear when retirement planning.
[47:40] What sort of factors to consider as you think about where you want to live in retirement.

Once you set an actual date for your retirement, there are a lot of things you need to do. MONEY magazine says the most important one is to “map out” your future expenses.  Ralph Hicks and David Hicks discuss how to craft a successful retirement spending plan.

After that, we hear a lot of talk these days about a “retirement crisis.”  Former U.S. Senator Heidi Heitkamp tells CNBC too many people expect the government to solve the problem, when there’s really not much that Congress can do. Instead, you may need to rely solely on your own savings. We share how you can start converting your savings into regular retirement income. 

Then, when it comes to retirement, we all dream about having “financial freedom.” But sometimes we’re not sure how to achieve that.  So, we asked for some advice from Jocko Willink, a former Navy SEAL commander and author of the best-seller “Discipline Equals Freedom.”  And we share how we help our clients with financial discipline. 

And thirty-seven years ago, we were all amazed when Sony introduced us to a brand-new way of listening to music… but now, most stores have dropped CDs because streaming has made them obsolete.  Do retirement strategies ever become obsolete, or are they generally pretty good at standing the test of time?

 

That and more on today's episode of the Retirement Solutions Show with Oakmont Advisory Group.

One of the tricks to making your nest egg last is to withdraw enough money to enjoy yourself, but not so much that you run out. So, how do you come up with the right number? We share a few withdrawal strategies to consider.

Then, in October 187,000 people with Fidelity retirement accounts opened their quarterly statements to find that they were 401(k) “millionaires.” Unfortunately, nearly a third (29%) of those same people opened their most recent statements to find that their balance has dropped below the million-dollar mark. Is that what we have to look forward to in retirement – a nest egg that bounces up-and-down to the whims of the market? 

After that, we share our thoughts on trying to minimize taxes in retirement. 

Then, we get a physical once a year and we go to the dentist twice a year, but what about your retirement plan? Does that need regular check-ups, too?

That and more on this week's episode of the Retirement Solutions Show with the guys at Oakmont.