Joel talks about the seven habits that the most successful retirees use to protect their wealth.

Main Questions Asked:

What are the seven habits of highly successful retirees?

Key Lessons Learned:

Estate Plan

• You have to have an estate plan or all your assets could be tied up in court and subject to immense fees and taxes.
• An estate plan makes sure that your assets are spent in a way to aligns with your values while minimizing taxes and protecting your assets.
• Even if you have done this five years ago, you should probably review your plan.

Financial Plan

• You need to have a thoughtful and comprehensive financial plan.
• Your plan should be coordinated with inflation, social security, and all your other retirement income sources.
• Your financial plan needs to be kept up to date and it should reflect the changes in your life.

Diversification

• Successful retirees diversify their income streams instead of focusing on just having a large portfolio.
• The younger you are the higher your life expectancy so you need to plan for a longer retirement and minimize your risks along the way.
• You should adjust your income sources and amounts depending on your circumstances and that means reviewing your plan on a regular basis.

Risk

• Your portfolio should match your tolerance for risk, and your risk tolerance is not going to always stay the same.
• If you feel bad about your financial situation when it comes to the market, your portfolio probably doesn’t match your risk tolerance.
• It’s important to stress test your portfolio frequently.

Tax Strategy

• If you are tax efficient you can save thousands of dollars in retirement.
• A good plan is customized to your exact situation.

Health Care

• You need to have money set aside for health care so you don’t get wiped out by an unexpected health care emergency.
• The average cost in an assisted living facility is $47,000 but it can also be much higher.
• A gifting strategy that protects your assets and long term health insurance are components of a good plan.

Inflation

• A small inflation percentage may not seem like much but over time can be very destructive.
• “Inflation is as violent as a mugger, a frightening as an armed robber, and as deadly as a hitman.” Ronald Reagan
• You need to have plan that protects your assets from inflation.

Links To Resources Mentioned

Money Map Retirement Review

1-800-757-0436

Thank you for listening!