Thrive Retirement Planning Podcast

In this episode of the Retirement Transition Podcast, host and retirement planning specialist, Carl Woolston,  discusses eight critical steps to help you prepare for the retirement jump. He emphasizes financial security, peace of mind, and ensuring you truly enjoy your retirement.

This article summarizes much of the discussion. Listen to the audio for the complete show.

1. Have a Comprehensive Retirement Plan:

2. Know How to Replace Your Income:

3. Make Smart Social Security Decisions:

4. Give Every Asset a Job:

5. Lower Your Lifetime Retirement Tax Bill:

6. Understand Medicare and Extended Healthcare Options:

7. Begin with Your Legacy in Mind:

8. Recognize That Retirement Is About More Than Money:

To ensure a smooth transition into retirement, take action now:

Start preparing for your retirement journey by reaching out to a retirement transition specialist. With a tailored plan in place, you can ensure financial security, emotional well-being, and the freedom to enjoy your retirement to the fullest.  To get started, visit the Thrive Retirement Planning website https://thriverp.com/  to schedule a consultation and begin your journey to a secure and enjoyable retirement.

Remember, retirement is about more than just money; it’s about embracing a new, fulfilling chapter in your life.

Join us on the next episode of the Retirement Transition Podcast for more valuable insights into preparing for your retirement. 

In this episode of the Retirement Transition Podcast, host and retirement planning specialist, Carl Woolston, addresses the challenges and misconceptions faced by individuals preparing for retirement. This episode highlights the importance of giving every asset a specific job in retirement planning, moving beyond the single-minded goal of asset growth. Carl discusses a process called the Retirement Transition Blueprint, which aims to help retirees navigate the transition successfully. He discusses the seven crucial jobs for retirement assets, emphasizing that a well-thought-out approach can ensure financial security, a fulfilling lifestyle, and peace of mind during retirement.

This article summarizes much of the discussion. Listen to the audio for the complete show.

Protection:

Income:

To ensure a smooth transition into retirement, take action now:

Consult a retirement planning specialist who can guide you in giving every asset a specific role. By taking these steps, you can safeguard your financial future, enjoy a fulfilling retirement, and minimize stress about market fluctuations. To get started, visit the Thrive Retirement Planning website https://thriverp.com/  to schedule a consultation and begin your journey to a secure and enjoyable retirement.

In this episode of the Thrive Retirement Planning Podcast we explore three crucial pre-retirement mistakes that can significantly impact your financial future. The transition to retirement can be filled with uncertainty, worry,  and complexity.  Making mistakes in the process can lead to running out of money, excessive tax payments, and market losses. Discover how to minimize these risks and secure your retirement.

This article summarizes much of the discussion. Listen to the audio for the complete show.

To ensure a smooth transition into retirement, take action now:

1. Develop a comprehensive retirement plan that covers income, expenses, and financial goals.

2. Don’t procrastinate; start planning early to maximize your retirement options.

3. Seek out a retirement planning specialist to guide you through this critical life transition.

Remember, your retirement should be a time to enjoy your freedom and health, not a source of stress and uncertainty. Plan wisely and retire with confidence. For personalized assistance, visit https://thriverp.com/ to schedule a consultation to discuss your specific situation. Your financial peace of mind is worth it.

What are your Medicare options? When should you sign up? Do you need to sign up? What’s the difference between Medicare Part A, B, C, and D? How much does Medicare cost, and how does it work? My guest Andrea Dover, CPA, lends her Medicare expertise to the podcast. This show breaks down common Medicare questions into three areas: 

If you would like to reach out to Andrea Dover, CPA about your specific questions and situation you can call or text her at 801-382-7450 or [email protected]. 

Required Medicare Disclaimer for Andrea Dover: I do not offer every plan available in your area. Any information I provide is limited to those plans I do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE (TTY users should call 1-877- 486-2048) 24 hours a day / 7 days a week to get information on all of your options.

Reverse mortgages can be a financial tool to use during retirement in some situations. Technically, reverse mortgages are called Home Equity Conversion Mortgages or HECM by HUD, and have changed over the years, which has led to misinformation and some skepticism. My guest today is Alan Blood, a mortgage professional in Bountiful Utah, who has extensive experience with reverse mortgages, how today’s products work, and when they might be beneficial.

This article summarizes much of the discussion with Alan Blood. See the audio the complete discussion.

Alan Blood is the owner and Lending Manager at CFG Home Loans. Alan has helped homeowners throughout Utah understand and obtain great mortgage financing. He graduated from the University of Utah College of Law with an emphasis in environmental and real estate law and holds a BA in Economics from Brigham Young University. Alan has been working as a mortgage broker since 1996 and served as the president of the Utah Mortgage Broker’s Association and a national delegate to the National Mortgage Broker’s Association.

Those who are heading toward or are close to retirement might be feeling additional stress because of all the negative news because that is what is getting attention. The reality is that the market isn’t as negative as people think and there is still a lot of opportunity for those who are wanting to make a move or explore different financing options. 

As human beings, when the boat begins to rock, we often hold and become paralyzed with fear. At times, inaction can be a good thing, but it can be a major mistake. We can mistakenly say that I shouldn’t do anything until everything is ok. Opportunity can exist, even in the midst of uncertainty and chaos.

Doing nothing can be a good solution, as long as it is part of a plan and not the default. A great solution can be the decision to do nothing but far too often people don’t really look at options or take action because they are paralyzed with fear. 

Some people may only have their Social Security and their home, but very few other financial assets. One of the options for a reverse mortgage is to supplement income in a situation where limited fixed income exists. Clearly inflation and the cost of living is increasing faster than most fixed income sources. Those who rely on fixed income from Social Security may be getting squeezed tighter and the budget that worked two years ago isn’t working today.

For someone in retirement and on a fixed income, a reverse option may be a financial tool to consider. You can use a reverse mortgage to create a supplemental income source and make it so that you have non-taxable income each month, depending on your situation. You can also use the reverse mortgage as more of emergency fund, if the water heater breaks or other repairs are needed.

Also, if the mortgage is not yet paid off and you’re in a fixed income situation, refinancing into a reverse mortgage can free up the need to make a monthly mortgage payment. 

To begin, all reverse mortgage loans are not HECM (Home Equity Conversion Mortgage) loans, which go through HUD. Some reverse mortgages that are not HECM, could have negative components that are undesirable. Because it is a complex financial instrument, you need to be well informed.

Today, we’re talking about a HUD reverse mortgage. It’s a program where you can use the equity in your home to service debt or create monthly income. 

With the mortgages we are most familiar with you get a loan from the bank and then make monthly payments to the bank to service the mortgage. You then use your income or your assets to pay the loan. 

With a reverse mortgage, instead of using your income or assets to pay the debt, you’re using the equity in the home. So instead of the loan balance going down over time, the loan balance will increase, because you aren’t making a payment. 

You own the house and can choose what to do with your home over time. For most people, a large portion of their assets are tied up as the equity in their home. This creates a tool to facilitate using the home as a retirement tool.

With a reverse mortgage, you don’t have to make the monthly payment, but you still have to pay taxes and insurance, just like you would with a home that is free and clear. If your house is paid off, you still have to pay insurance and property tax. If you’re in an HOA, you’ll still have those fees. You just don’t have to service the loan with your cash flow.

You also are required to do reasonable maintenance. Reasonable maintenance is that the house isn’t getting condemned. As long as you keep the house in the condition that it meets the minimum base standard, you’ve met that requirement.

From a cash flow perspective, a reverse mortgage is exactly like owning your home free and clear. A reverse mortgage can give you housing for life without a payment.

Like with any other mortgage, when someone passes away, someone will be responsible for the house and will have to pay off the mortgage. The difference with a reverse mortgage is that once all whose names are on the mortgage have passed away or have decided to move out of the home and are not longer living there, the mortgage is due within six months. 

This give heirs an opportunity to sell the home. In some cases, an heir could buy the home and refinance it. Once it sells, any equity is dispersed just like any other mortgage.

A reverse mortgage is not a short-term financial tool. It can be fairly expensive to get into and can be more expensive than a typical mortgage loan. Typically, these fees are simply applied to the loan.

You really need to ask yourself, before looking at a reverse mortgage, if the home you’re in fits you during your retirement years. Can you see yourself staying in this home for a prolonged period of time? A reverse mortgage is not meant to be a short-term solution. 

A reverse mortgage is not the right tool for everyone. See a mortgage or financial professional for advice about your specific situation.

This article summarizes much of the discussion with Alan Blood. Click the audio for the complete discussion.

If you would like to reach out to Alan Blood (NMLS# 1003895-3146) and CFG Home loans you can reach him at 801-298-5887 or [email protected]. 

Do you have a retirement plan? Do you understand your plan? How much confidence does your plan give you? If you don’t have a retirement plan, consider working with a comprehensive fiduciary advisor who can help you with Social Security claiming strategies, creating an income plan, and reducing your taxes through proactive planning. These differences can add more than $100,000 to some retirement plans.

Do you want to work with a firm committed to helping achieve your goals financially and with your family and fulfillment? You can set up an appointment by calling 801-810-8434 or visiting Thrive Retirement Planning at thriverp.com. At thriverp.com, click on the “Get Started” tab and schedule a time to talk.

The stock market in 2022 has been volatile due to rampant inflation, Russia’s invasion of Ukraine, and the Federal Reserve’s first interest rate increase since 2018. Knowing how to structure a retirement plan that works in volatile markets is key to your success. Creating a strategic plan that works in up and down markets can be life-changing. Timing the market or even overhauling investments every time the market and economy change isn’t a long-term solution. Taking all your money out of the stock market and creating a massive taxable event can be financially devastating. In this episode, I’ll share my market outlook for 2022, how a strategic plan can reduce financial risk, and my favorite method to create a retirement plan, whether the stock market is bullish or bearish.

The market is attempting to catch its breath as the first quarter of 2022 ends. There was no shortage of events for the market to navigate, including the Federal Reserve’s first interest rate increase since December 2018, Russia’s invasion of Ukraine, and stubbornly high inflation pressures. The outlook calls for current market themes to last throughout most of 2022. The Federal Reserve expects inflation pressures to ease as the year progresses, but there is a risk inflation will remain elevated longer than forecasted due to rising energy prices.

There are many moving parts to pay attention to in the coming months. Investors will be monitoring economic data releases, corporate earnings, and geopolitical issues in eastern Europe for clues about the market’s next move. This year’s U.S. midterm elections will add another dimension as campaign season swings into gear over the coming months.

In your primary earning years, you’re in the accumulation phase. The goal in the accumulation phase is to put away money in 401(k), IRAs, or other retirement accounts and let them grow. As you approach retirement, you’ll be moving into the distribution (spending) phase. In the distribution phase, the goal is not to exclusively increase your money but to limit significant and catastrophic losses.

If you lay down at night to sleep during retirement and the stock market is keeping you up at night, you haven’t passed the pillow test. The pillow test is to be able to be comfortable with the impact outside forces are having on your money. While I believe in the economy and markets, growing your investments is just one of eight parts of a comprehensive plan. Often those who are within a few years of retirement become increasingly uncomfortable with stock market volatility the closer retirement becomes.

A typical instrument I use with clients to help them pass the pillow test is a three-bucket approach to planning. The first bucket is where guaranteed sources of income are allocated, such as Social Security and pensions. The second bucket is where the money used for income in the next 5-10 years, on top of Social Security and pensions, will be drawn from. Bucket two money is money that is invested or positioned with much less risk than growth-minded investments. One of the purposes of bucket two money is to reduce the sequence of return risk. Another purpose the bucket two is to reduce overall risk in a portfolio and utilize investments and products that are more conservative. There are numerous investment and insurance-based solutions for bucket two, and clients can weigh the pros and cons of each before making decisions.

Bucket three is used for money that a client wants to grow and most likely won’t be needed for ten years or more. Bucket three can be used later in life for health care expenses such as assisted living and nursing care. Money in bucket three can also be used to pass on to children or refill bucket two money later in retirement if necessary. Money in bucket three can also be converted to Roth IRAs strategically before Required Minimum Distributions are taken; often, between ages 60-72 are optimal.

If you’ve prepared for retirement and have nice-sized balances in your retirement accounts, and you’re within a few years of retirement, it can be powerful to start to reduce the risk on your portfolio. While each person’s risk tolerance and goals are unique, my experience is that most people I sit down with that are close to retirement say they are conservative and want to limit large losses but are out of alignment and are invested for growth.

As you’re nearing retirement, now is the time to reduce your risk (bucket two) while still utilizing the market to grow your portfolio (bucket three). You don’t want to experience 2008 right before you retire and have to either work longer or retire on less. A good income and investment plan customized to your goals and risk tolerance can put you in a position to weather market volatility with confidence. While nobody likes to see balances go down in investment accounts, if it is money you don’t need for ten years or more, you’ll likely be much less emotional about the market swings.

While none of us can control the economy and market forces around us, the optimal retirement plan, in my opinion, is not about market timing but rather about creating a strategy built for both up and down markets. Using powerful income planning principles makes it possible to reduce risk with a portion of your portfolio and have money participating in market growth.

I suggest you revisit your plan once or twice a year and adapt your strategies based on internal factors (e.g., goals, health, retirement lifestyle) and external factors (e.g., stock market, economy). By making regular adjustments, you can reduce your anxiety, have the confidence that you are on track, and be prepared for a fulfilling retirement.

Do you have a retirement plan? Do you understand your plan? How much confidence does your plan give you? If you don’t have a retirement plan, consider working with a comprehensive fiduciary advisor who can help you with Social Security claiming strategies, creating an income plan, and reducing your taxes through proactive planning. These differences can add more than $100,000 to some retirement plans.

Do you want to work with a firm committed to helping achieve your goals financially and with your family and fulfillment? You can set up an appointment by calling 801-810-8434 or visiting Thrive Retirement Planning at thriverp.com. At thriverp.com, click on the “Get Started” tab and schedule a time to talk.

Retirement can be an opportunity for a new phase of life. In retirement, you’ll most likely have more freedom than you’ve ever experienced. You get to live life on your terms with no boss and no limit to vacation time. In addition, as you transition into retirement, you’ll literally get to redefine what retirement means to you. This can be both overwhelming and incredibly fun. Below you’ll find 25 ways to thrive during your retirement years (by no means is this list exhaustive).

For most Americans, Social Security will be a foundational piece of their retirement income. How does it work and when should you take it? When is the earliest you can start Social Security and why would you want to delay? In this episode, I’ll answer some of the top questions about Social Security.

Do you have questions about when to take Social Security and how to maximize your benefit? Take our free online Social Security Masterclass by going to thriverp.com/ss.