Have you ever thought about your relationship with work? As retirement looms ahead, many people become fearful of the unknown that it brings. A common way to express this fear is to worry about money, but this fear goes beyond money. The real fear that people have about retirement is about how they will spend their time when they no longer have work to fill their days.
In 2017, Paul Millerd changed his relationship with work. After climbing the corporate ladder for 10 years he decided to slow down and become a freelancer. Listen to this conversation to hear what Paul learned from this experience and how his wisdom can help you prepare for retirement.
I often ask my clients to take a couple of weeks off of work before retirement to explore what they will be doing when they retire. I liken this exercise to a practice round of retirement. A sabbatical can be a similar experience, but it goes even deeper. The time frame of a sabbatical isn’t strictly defined and can extend anywhere from 2 weeks to 2 months or more. The biggest difference between a sabbatical and a vacation is that a sabbatical is more of a change in mindset.
Paul explains that vacations are packed full of activities, much like a workweek. People try to pack as much into a vacation as possible. However, a sabbatical is like taking a vacation without ever going into vacation mode. To try out a sabbatical, Paul suggests staying at an Airbnb and simply living there. Cook your meals rather than eating out, shop locally, and simply bike or walk around your new surroundings. Try to discover a state of non-doing. This can be challenging and can even become uncomfortable for many people. The result of this contemplative state is self-realization and a newfound curiosity.
Taking a sabbatical can completely change your way of thinking and may even disrupt your plans for retirement. We have worked so hard our entire lives for a future payoff, so it can be hard to stop delaying gratification. By taking a sabbatical, it allows people to take the time to explore the work and hobbies that inspire their passion. In doing so, people can get a better understanding of the ways that they can spend their time in retirement.
If you have been working your way towards burnout, perpetually delaying gratification, or even if you simply need a retirement trial run, you may want to try taking a sabbatical. Listen to this interview with Paul Millerd to hear how a sabbatical can provide you with a shift in mindset and truly prepare you for retirement.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
We’ve all been sitting at home for the past year and now everyone is getting the travel bug. That’s why today we’re kicking off the Summer Travel Series with an interview with Lee Huffman. Lee hosts a podcast called We Travel There and he writes a frugal travel blog at BaldThoughts.com. I’ve been curious about the world of travel hacking, so I have plenty of questions for Lee about using travel points, how to find the best travel resources, and, of course, where to travel. Check out this interview to help you plan your summer vacation.
The pandemic has left many of us homebound for over a year, so now that many people are fully vaccinated, everyone is ready to get on the road again. The big question is: how should we get started?
Lee recommends using the travel credits that you may have accrued from canceled vacations over the pandemic. Those credits and vouchers may have expiration dates, so be sure to check the fine print to ensure that you don’t lose out.
He also suggests getting your summer trips booked ASAP. The sooner you book, the sooner you’ll be able to find reward availability and lower prices. The more people begin traveling the higher the prices will rise.
Travel within the U.S. is on the rise, but people are also itching to travel internationally. Since the vaccine rollout has been different in each country, it is important to carefully investigate the specific travel rules for the country you wish to go to. Each country has its own pandemic rules and regulations. Some countries require negative Covid tests upon arrival and others may require you to be fully vaccinated. It is also important to remember that if you travel internationally, you will need a negative Covid test to enter the U.S. again, regardless of your vaccination status. Listen in to hear how many hotels in Mexico are helping travelers with this requirement.
You can earn travel points and rewards even when you are not traveling by using a credit card. Lee recommends the Capital One Venture Rewards card to get started. You can get cash back or earn extra miles with each purchase that you make. Listen in to hear how you can get started with the Capital One Venture rewards program to start traveling this summer.
Lee compares saving miles and points with saving for retirement. He states that the two best days to start saving your miles are 10 years ago and today. He also mentions the importance of using your miles periodically. You don’t want them to become devalued over the years.
There are more ways you can earn travel miles than just making purchases. There are apps that you can use like Dosh to help you earn extra miles on each transaction.
If you have had a travel rewards card for years but find it difficult to use, you won’t want to miss this interview with Lee Huffman as he explains how you can best use your hard-earned miles. He not only mentions how to use your miles, but he also includes fantastic resources that you can check out to help you find availability so that you can actually use the points that you have accrued.
Make sure to check out Lee’s podcast, We Travel There, to get inspiration for your next travel destination. He interviews locals to help his listeners understand how to get there, where to go, what to do, how to get around, and where to stay.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Nobody wants to think about becoming a widow or widower, but unfortunately, if you are married, there is a 50/50 chance that you could. In addition to the crushing grief that comes with losing a spouse, there are many details to take care of in that first year alone. This is why I want to share an article with you from NextAvenue.org.
The article, written by Anna Byrne, outlines 7 steps that you can take to help manage that first year on your own. Anna was only 28 years old when she lost her husband, so she has firsthand experience with this overwhelming stage of life. Her professional estate planning experience also lends practical tips to the article. Don’t miss this episode so that you know what you can do to help keep your head above water during that first year alone.
There’s no doubt that losing a spouse will cause overwhelming grief, but on top of that, there is so much to do in the wake of this personal tragedy. To help you wrap your head around all that there is to do, Anna Byrne from NextAvenue.org came up with 7 steps to help you through this challenging time.
Step 1 - Take care of immediate things. The small steps matter early on. You’ll need to notify family members and advisors right away. You’ll also need to make decisions about organ donation and funeral arrangements. Lean on family and friends if possible.
Step 2 - Find and organize key documents. Whether you want it or not, you are now in control of all aspects of your finances. You’ll need to find and organize important documents. Make sure to call your estate planning attorney if you used one since they will have the original will in their office. They will also have useful information to guide you through this process.
Step 3 - Take inventory of your financial situation. This is a good time to take inventory of your assets. You’ll want to create a list of all assets and debts owed by you and your partner. A good place to start is by looking at your tax returns since they detail itemized income and list the financial institutions. Look for bank accounts, retirement accounts, pensions, life insurance, real estate deeds, and Social Security information.
Step 4 - Pull the pieces together. Every state has different laws and procedures regarding wills and probate. Familiarize yourself with the probate process in your state. You’ll also want to have a good understanding of the value of your spouse’s assets at the time of death since this is how estate taxes are calculated.
Step 5 - Build a team of trusted advisors. Having a financial and legal advisor that you can count on will help you navigate this process and avoid difficulties down the road.
Step 6 - Plan for your immediate future. Create a new household budget and develop your own financial and retirement objectives.
Step 7 - Plan things for your loved ones. Now it’s time to get your own affairs in order. This is a good time to update your will, power of attorney, and health care directive. Update your beneficiaries and create trusts as needed.
Listen in to hear my own top two tips for a recent widow or widower. Stick around for the listener questions as Linda asks about the ACA subsidy under the American Rescue Plan.
Over the course of the summer, we’ll sprinkle in travel episodes among the usual retirement planning content. When I was working with my clients for their May tax planning, the number one non-tax-related topic on their minds was travel. Everyone is excited to start traveling again. This is why I’ve been reaching out to folks in the travel blogging space, so we can all learn tips and tricks to make the most out of travel. If you are looking for travel hacks, rewards programs, and budget travel make sure to tune in this summer.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Do you consider being rich and being wealthy the same thing? In the book by Morgan Housel, The Psychology of Money, the author argues that these words mean two different things. In this episode of Retirement Starts Today, we’ll explore the difference between rich and wealthy as well as the connotation of the word money.
I want to thank you all for helping me hit an exciting podcasting milestone. In May of this year (2021), we hit 1 million lifetime downloads. Wow! When I started this podcast several years ago I was thrilled to reach 100 listeners a month, so this kind of reach boggles my mind. Thank you for joining me on this journey.
To celebrate this milestone, I have an extra heaping helping of retirement headlines today. Both articles hail from the Wall Street Journal. The first article, written by Jason Zwieg, is a review of the book, The Psychology of Money, by Morgan Housel and it explores the different mentalities of the rich and the wealthy. The second article will reveal the best way to declutter your filing cabinet.
Have you ever thought about what money really is? Money is more than a way to show the value of things. Money is also a carrier of emotion, ego, hopes, fears, dreams, heartbreak, confidence, envy, surprise, and regret. There is so much of ourselves that we wrap up in the concept of money.
This is one of the central arguments in Morgan Housel’s new book, The Psychology of Money. The author juxtaposes two stories of two different men with two very different outlooks on money, and in doing so, he reveals that great fortunes can be built from old-fashioned values like delayed gratification.
Have you ever thought of money from a values perspective?
Housel explores the differences between those who are rich and those who are wealthy in his book. He describes being rich as having a high current income and being wealthy is having the freedom to choose not to spend money. He explains that many rich people aren’t wealthy because they spend much of their high income to show others how rich they are.
“The ability to do what you want, when you want, with whom you want, for as long as you want pays the highest dividend that exists in finance.” This is what many people are looking for in retirement. Most people think of retirement as a time when you stop working, however, retirement could mean, “the ability to do what you want, when you want, with whom you want, for as long as you want.”
What are you looking for in retirement? Are you ready to give up working completely or do you simply want more freedom and flexibility?
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Are you one of the many that are being held back from early retirement by the exorbitant cost of health insurance? If so, you won't want to miss this episode. This week’s retirement headline comes from Carolyn McClanahan at AdvisorPerspectives.com and it outlines the enhanced health insurance subsidies that stem from the American Rescue Plan (ARP).
You’ll want to stick around for the listener questions segment if you are a fan of retirement podcasts. I have a treat for you all as I crowdsource the answer to John’s question about asset location. Listen in to hear 4 different answers from voices that you may recognize.
The number one issue that holds back potential retirees from retiring early is how to find affordable health care before Medicare. If this sounds like you, then the American Rescue Plan may have the solution that you have been waiting for. Carolyn McClanahan's article is geared toward financial advisors, but we’ll take a look at it and see if the ARP could help you solve this common problem.
With the ARP, you may now be eligible for enhanced health insurance subsidies. The Affordable Care Act (ACA) subsidies have been limited to those with a modified adjusted gross income (MAGI) of less than 400% of the poverty level. However, the ARP has lifted these levels with a credit that is based on the cost of the second-cheapest silver plan available in any person’s given area. Unlike the previous credit under the ACA, it isn’t suddenly wiped out when someone’s income jumps over the income limit. Instead, it is phased out gradually.
To qualify, you must purchase your health insurance via www.healthcare.gov. The open enrollment period lasts through August 15, and the tax credits apply only for the months a person is using a plan from the ACA. Therefore, the sooner you apply, the more savings you will receive.
Additionally, anyone who has received even one week of unemployment benefits in 2021 and is without access to affordable insurance through a family member will qualify for a silver plan at no premium cost. They also will qualify for cost-sharing subsidies to help lower their deductible.
You can utilize the calculators at www.healthcare.gov or the Kaiser Family Foundation to determine your tax credit amount. States that have opted out of the healthcare marketplace may operate differently, so you’ll want to work with a local health insurance agent to help you navigate the process.
If you lose employer-based coverage due to job loss or reduction in hours, the ARP provides COBRA premium subsidies from April 1 to September 30, 2021. After that, you can continue coverage at full cost. It is important for you to weigh whether you should accept this benefit or choose an exchange-based plan. Will take advantage of the benefits offered in the ARP to retire early?
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
I’m sure you’ve all heard about the 4% rule for retirement planning. This rule is great for speculating your likelihood of success, but it isn’t always the best rule to follow in practice.
Druce Vertes at AdvisorPerspecives.com offers a different approach to implementing the original 4% Rule. On this episode of Retirement Starts Today, we’ll dive into his technical article which explores the idea of making the normally rigid 4% rule more flexible to maximize spending for different levels of risk aversion.
I’m always looking for innovative ways to help you turn your retirement portfolio into income and that’s exactly what we’re exploring this week. Tune in to hear how to tweak the 4% rule and maximize your spending in retirement.
The original 4% rule was theorized by Bill Bengen in the 1990s. This rule is handy for napkin math but doesn’t allow much flexibility and it may be overly cautious.
The 4% rule states that you can invest an equal amount in stocks and bonds and withdraw 4% of your starting portfolio during each year of retirement. As long as you adjust for inflation each year, you would never exhaust your money over the course of a 30-year retirement. Have you used the 4% rule to help you calculate the likelihood of financial success of your retirement?
Our retirement headline this week is titled Beyond the 4% Rule: Flexible Withdrawal Strategies Using Certainty-Equivalent Spending. It examines what would happen if we explored options beyond Bengen’s 4% rule. It asks, what flexible rules would maximize spending for different levels of risk aversion? The author used the programming language Python to maximize certainty-equivalent spending. This led him to three generalized rules based on one’s risk tolerance.
For those that are completely risk-averse, Bengen's 4% rule is the safest bet. The fixed constant withdrawal level never experiences a shortfall or reduction in withdrawals.
The next category is for those who don't mind plenty of risk in their portfolio. This is why this rule is not recommended for most people. It finds the withdrawal amount that historically maximized spending irrespective of market volatility. This risk-neutral category is for those that can tolerate reductions in spending or shortfalls in some years as long as they are offset by gains in other years.
For those that fall somewhere in between the two ends of the risk tolerance spectrum, different rules apply which trade off higher mean withdrawals against the risk of lower withdrawals.
Using some of these rules, a retiree could achieve more than the 4% expected withdrawal rate. All of these models are simplifications, but they are useful and allow you to visualize the choices between different rules that have varying levels of risk tolerance.
The author strived to create a simple model to help people understand strategies that may improve on a fixed withdrawal at varying levels of risk aversion. You can test out the different rules by using this online tool which allows you to try out and visualize each one.
It’s always refreshing to learn about new ways to live off your retirement savings. Vertes’ idea splits the difference between the 4% rule and a dynamic distribution plan. This hybrid plan would allow for higher spending in good markets and a scientific way to gradually reduce portfolio withdrawals when the market dips.
Listen in to hear how each of these rules could play out with concrete examples using actual numbers. You’ll also hear Joe’s question regarding multiple 401Ks.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
As you prepare yourself for retirement, you probably have a vision of your retired self traveling, spending more time on your hobbies, or with loved ones. Retirement will give you time for all that and more.
I read an article recently that describes the 6 phases of retirement. I had never defined it that way before, but this was an interesting way to delineate a natural progression of this time period. Press play to learn what these 6 phases are.
Have you ever thought about the natural phases of retirement? This week’s retirement headline is written by Andy Millard from AndyTheAdvisor.com. In the article, Andy mentions that much like the 5 stages of grief, retirement can also be broken into 6 identifiable phases. These stages don’t take the same amount of time and can vary from person to person.
Do you recognize these phases? Have you noticed them from your parents or older friends’ retirements? What are you most looking forward to in retirement?
Be sure to listen until the end of this episode to hear what to do if RMD rules violate your safe spending guidelines. I’ll also include links to the Guyton-Klinger rules in the Every Day Is Saturday newsletter. Head on over to www.retirementstartstodayradio.com/newsletter to sign up if you aren’t on the mailing list. The newsletter focuses on sending out relevant retirement information to educate you on your next phase of life.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Have you ever considered going back to school? Early retirement can be a fantastic time to explore new learning opportunities.
In this episode of Retirement Starts Today, we’ll take a look at a Market Watch article that describes the burgeoning culture of adult learning for those at or near retirement age. We’ll continue by exploring many higher education programs across the United States that are aimed at people aged 50 and above.
Make sure to stick around for the listener questions segment where I answer a question about using home equity as long-term care insurance. You’ll hear my opinion on the matter and learn how much home equity you may need to make this strategy work.
We all know that the market has had an incredible run this past year. Many people’s portfolios are up 30%. When you’re seeing these kinds of returns it can be especially difficult to take those earnings and put them into the calmer side of your portfolio, but as you approach retirement it’s a good time to edge closer to a 60-40 split.
If you are within a year or two of retirement, you should know where your first few years of retirement income are coming from. That means that this is the time to be prudent and squirrel away some of those profits in any boring type of account so that you can fund the first few years of your retirement without worrying about the ups and downs of the markets.
If you have ever had the inkling of going back to school early retirement is a great time to start. Many people are turning to higher education as a way to find fulfillment after long and successful careers.
The rise of Covid and the ease of learning through technology are augmenting this trend. The pandemic has caused stagnant enrollment rates in many colleges around the country. This has led those institutions to find new ways to make money. Many universities are turning to alternative programs and continuing education as a way to reach a broader audience.
There are learning opportunities offered through many different types of programs at different universities, private subscription programs, and even free online programs.
These are a few of the programs are offered by different universities:
You don’t have to turn to a university to continue your education. There are many types of subscription learning programs available as well.
If you don’t want to invest any money into continuing your education you can take advantage of free or low-cost programs through these websites:
There are so many amazing educational opportunities to enjoy. The pandemic has caused a giant leap forward in virtual learning. With modern technology, you can learn anything at any time from any place. Since people are living longer, retirement can last for 30 years or more. This leaves plenty of time for an encore. So, if you ever had the notion to go back to school to either pursue your options for a second act or simply to explore new educational opportunities, the world is your oyster. Have you ever considered going back to school? What would you want to study?
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Since 2020 was the year of working from home, you may be wondering how you can deduct your home office expenses from your taxes now that tax time is upon us. For this reason, we explore an article written by Jeffrey Levine at Kitces.com. Learn the home office deduction rules and discover if they will apply to your situation.
Many small business owners can claim a home office deduction as a tax break. However, not every person working from home can claim this deduction. For instance, the deduction is not accessible for employees who work from their own home offices. People owning partnership interests, on the other hand, are potentially eligible for this deduction. There are specific rules that need to be followed in order to determine whether your home office qualifies.
In order to claim the home office deduction, there are requirements that must be met.
The home office must pass the exclusive use test. This test dictates that in order to claim a home office deduction, the portion of the home that is deemed the home office must be used entirely for business purposes.
Something that limits a person’s ability to claim a home office deduction, but not necessarily eliminates it, is the ability to claim a separately identifiable space within their home that is used exclusively for business purposes.
Another stipulation of a home office deduction is the regular use requirement. Occasional office use is not enough, even if the business is the only use for that particular space. It must be used regularly in order to qualify for the home office deduction.
Another requirement is that the home office must be considered the taxpayer’s principal place of business for a particular business activity. This means that this is the space where the majority of business is done. Deciding on this can be tricky if you have a home office as well as one in an office building. When deciding on a principal place of business, individuals should consider both the amount of time they spend at their various business locations, as well as the relative importance of the tasks performed at each location.
Because of the pandemic, many have had to shift work that they typically did in an office building to spaces in their homes. For the year 2020, people in this situation may be able to claim a home office deduction.
There are two ways that you can calculate the home office deduction. The regular method will calculate the actual expenses of using your home office space. The simplified method will calculate the square footage of your home office and multiply it by $5. The maximum deduction using the simplified method is $1500.
If you are considering using the home office deduction it is important to work with your tax professional to ensure that you are within the detailed guidelines. Make sure to click on through to the article to learn all the details about claiming the home office deduction.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
If 2020 has taught us anything it is that the future is not always certain. This has brought about feelings of insecurity and anxiety in some people. That’s why this week, I share an article from Harvard Business Review which describes how people can use micro-planning and biomimicry to combat feelings of uncertainty brought on by this post-pandemic world.
After the retirement headlines, I’ll answer two listener questions. John asks about maxing out his HSA after 50 and Val is trying to decide between a pension and a lump sum payment. Don’t miss out on the latest episode of Retirement Starts Today; press play now!
Did Covid-19 toss your 5-year plan out the window? Many of us have had our future plans shaken up due to the effects of the pandemic. The lack of control that the long-term insecurity creates can bring about feelings of unease.
One way to take back control of your life is by harnessing the power of adaptability through micro-planning. Micro-planning is a way to take a larger plan and break it down into yearly, quarterly, monthly, weekly, and daily check-in practices.
In tumultuous times, micro-planning is more manageable than big-picture planning, and it offers the sense of power and stability that we need. The idea behind micro-planning is based on biomimicry, a practice that learns from and mimics the strategies found in nature to solve human challenges. Biomimicry uses nature as a model to imitate or use as inspiration for designs or processes with the goal of solving human problems.
Prolonged stress can cause us to function at less than optimal levels, so it is important to mitigate stress when we can. These six elements of micro-planning can help us manage this stress, function at higher levels, and give us a sense that we are taking back control of our lives.
What have you been doing to help you feel more in control during the pandemic? Try implementing these steps to take command of your future. Make sure to press play to hear the details of how you can use micro-planning to improve your life.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Are you signed up for the My Social Security account from the Social Security Administration? In this episode, we’ll review a Kitces.com article written by Jeffrey Levine about this important resource. We’ll review the history of My Social Security, how to sign up for it, how its benefit calculations account for inflation, and how Americans can interpret its information in order to understand their social security benefits. Don’t miss this excellent opportunity to review a very important topic. Press play to listen.
From 1990 to 2011, the Social Security Administration mailed paper copies of Social Security statements to most American workers. These statements summarized their personalized retirement and disability benefits. However, budget cuts in 2011 paused these mailings, and now workers under age 60 no longer receive mailed statements at all. The only workers to receive Social Security statements by mail are those who were both 60 or older in 2017 and had not yet registered for an online SSA account.
The primary way Americans can access their annual Social Security statements is online via their My Social Security account. To set up a My Social Security account users will be required to provide some basic information on an online form. This information includes first and last name as shown on their Social Security card, Social Security number, date of birth, home address, and email address.
After filling out the form, individuals will be required to complete an identity verification process. They can either verify their identity using their smartphone to photo-capture their state-issued ID card, or they can type in their information into the online form. The second method of verification uses financial information such as credit card information, Social Security benefit amount information, a Form W-2 Wage and Tax Statement, or a Schedule SE from their most recent Form 1040.
Once you have set up your My Social Security account and can see your Social Security statements you should do a few things.
In the Social Security statements, there are three pages of important information, but most people are concerned with the information on pages two and three. Page two has a summary of your estimated retirement, disability, family survivors, and Medicare benefits. Page three of the statement lists earnings on file for each year from the time an individual began working. Listen in to hear why you should carefully check the income information from the past years.
Have you set up your My Social Security account yet? This is a great first step to get you on your way to creating your retirement plan. Make sure to listen to the listener questions segment to hear ways to create income in retirement.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Despite the economic downturn, 2020 turned out to be a fantastic year for charitable giving. In this episode, we’ll look at how people chose to give and you’ll learn about the efficiency of giving through donor-advised funds (DAFs).
In the listener questions segment, you’ll learn how to survive a bear market in retirement. We’ll investigate the length of the average bear market and see how you can prepare for the worst in your retirement years.
You would think that with the economic downturn of the last year that people would tighten their bootstraps and cease giving to charities, but it turned out that the opposite was true. The two largest brokerage firms, Schwab and Fidelity, recorded increases in charitable donations.
Donations were made in response to the Covid pandemic and the social justice protests that marked the year. The biggest recipients of these charitable gifts were organizations that provide food and other necessities
Fidelity Charitable and Schwab Charitable both use donor-advised funds as a vehicle for charitable giving. Donor-advised funds (DAFs) have become popular since they are simple and make for an easy way to give strategically. These charitable investment accounts allow a donor to make a charitable contribution, receive a tax deduction, and then distribute the money over time. Have you thought of changing the way that you make charitable contributions?
DAFs have become more popular in recent years due to changes in tax laws. The new standard deduction for charitable giving increased to $24,800 for a married couple. By creating a DAF, donors can contribute a lump sum every few years and then administer the funds to the charities they choose over time. Many advisors recommend donor-advised funds as a receptacle for their clients to strategically deduct charitable contributions. Listen in to hear a real-world example of how a DAF can be used.
We must all pay our taxes, but we never want to overpay -- no one wants to leave the taxman a tip. If you are charitably minded, a donor-advised fund is an excellent way to implement a multi-year tax strategy and take advantage of the standard deduction. Think about how lump sum giving every few years could change your tax situation. It pays to plan your taxes ahead in retirement.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
If you’ve been working from home over the past year you may wonder why you feel even more exhausted than normal. This could be due to Zoom Fatigue.
In this episode, we’ll explore an article from CNBC that references a Stanford study about this phenomenon. In the listener questions segment, I’ll answer questions about RMDs and Roth conversions. Let’s get to the bottom of your exhaustion--press play now.
Over the past year, many of us have been using Zoom and other video conferencing applications to replace in-person meetings. The constant video conferencing has led to increased fatigue at the end of the day and a researcher with Stanford University wondered why. Jeremy Bailenson researched this issue and recently published a paper about how video conferencing affects people on a psychological level.
Jeremy concluded that there are four different contributors to Zoom Fatigue:
To alleviate these issues, Bailenson has the following tips:
Zoom fatigue is a new version of burnout that is important to mitigate. You want to retire when you are ready rather than because you are feeling burnt out due to video conferencing. Try using these tips to help you combat the exhaustion you feel after video conferencing.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
You have fraud protection on your bank accounts and your credit cards, but what about your retirement accounts? Today we’ll explore an article from the Wall Street Journal outlining a case of cyber fraud in a 401K account. We’ll also discuss ways for people to safeguard their savings.
In the listener questions segment, I’ll answer a question about buying an RV in retirement and we’ll wrap up this episode with a question from Hal about whether to make Roth conversions or pay off the mortgage. Press play to get started on this episode of Retirement Starts Today.
Our retirement headline this week is titled Retirement Planning Gives Bigger Role to Theft Prevention as Risks Lurk Online. This article warns us against cyber fraud of retirement accounts. The laws regarding retirement income were enacted well before the internet, so they don’t address who should be responsible for this type of crime. We often have more money saved in our retirement accounts than in our checking accounts, so this kind of theft can be life-changing.
Retirement account cyber fraud used to be typically perpetrated by members of one’s own family, but in the past few years, strangers have played a bigger role in committing these types of crimes.
The article highlights one particular case where the account owners were shocked to discover that ⅔ of their retirement savings had been transferred to an unknown account. The couple then had to postpone their retirement indefinitely.
If you don’t want to have this happen to you there are steps you can take to protect yourself from cyber fraud.
Thieves always want to be ahead of us and the regulators so we have to stay on our toes. Listen in to hear the tips on how you can protect your hard-earned money and retire comfortably. You’ll also hear the answers to 2 relevant listener questions.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
If you have listened to the news at all lately, you probably know what our Retirement Headlines segment will cover. The American Rescue Plan is all any financial news is talking about these days, so in today’s episode, we’ll explore what you need to know about this recent piece of legislation.
Then in the Listener Questions segment, I answer the question: should having a pension change the way we invest the rest of our portfolio? Press play to find out.
The American Rescue Plan is all over the news lately, but the article that I am referencing is written by Jeffrey Levine from Kitces.com titled The American Rescue Plan Act Of 2021: Tax Credits, Stimulus Checks, And More That Advisors Need To Know!
The most talked-about part of this tax legislation is, of course, the $1400 stimulus checks which will be soon sent to eligible Americans to provide economic relief from the ongoing pandemic.
Not only are the checks more generous, but there are also key eligibility changes from the previous rounds of stimulus checks. Eligibility in this cycle has been expanded from including only children under the age of 17 to include all dependents in the household.
However, just because you got a stimulus check last time does not mean you will receive one this time. The income limitations of this package mean that there is a narrower margin of income eligibility. While the beginning of the phaseout starts at the same level of income, $75,000 for individuals and $150,000 for married couples, it phases out much more quickly. The cap for individuals is $80,000 and couples is $160,000.
If your income is close to that income cap and went down this year then you’ll want to file your taxes as soon as you can. However, if you are one of the lucky few whose income rose in 2020 compared to 2019 and are near or above the phaseout range then hold off on filing your income taxes until after you receive your stimulus payment.
The stimulus checks weren’t the only thing included in this $1.9 trillion bill. Another significant change included is a significant increase in the child tax credit. This credit has been increased from $2000 to $3000 and $3600 for children under the age of 6.
It is important to note that not everyone with children age 17 and under will qualify to receive the enhanced 2021 child tax credit amount since the phase-out ranges will be at significantly lower income amounts than the standard child tax credit.
Listen in to find out what else was included and what wasn’t included in the American Rescue Plan and stick around to hear the listener question.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Enrolling in Medicare can be extremely stressful and confusing. There are so many choices to make, there are different rules to follow, and timelines to be met. Additionally, there is so much information out there that it merely adds to the confusion.
On this episode of Retirement Starts Today, I share with you an article written by Joanne Giardini-Russel from Advisor Perspectives entitled, 5 Tips to De-Stress the Entry into Medicare. If you are starting to dive into the Medicare enrollment process you won’t want to miss these 5 tips.
Make sure to stick around for the listener questions segment to hear a question about enrolling in Medicare as an expat as well as whether you should be doing Roth conversions if your income will decrease. You’ll also learn why it has taken me a year to get around to answering some listener questions!
If you are approaching age 65 you may have noticed all the literature surrounding Medicare that has come in your mail. Rather than help you answer the questions you have about Medicare, they often add to the confusion. The whole process can be overwhelming, but these 5 tips can help you understand what to do to enroll.
Secure a good Medicare guide. Contact several different agencies and agents before turning 65. Prepare a list of questions for them and make sure to check their Google reviews. When selecting an agent you’ll want to make sure to choose one who will stick with you over time and provide follow-up support.
Try not to get overwhelmed by the Medicare enrollment process. Begin your research before you turn 65, and spend time finding a good agent or agency who will be there to support you over the long haul. Educate yourself with available government resources so that you can make informed decisions.
Check out the Boomer Benefits YouTube channel in April to see me on a 3-part series with Danielle Roberts. Make sure that you are subscribed to the Every Day is Saturday newsletter to receive a direct link when it comes out.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
How long have you been saving for retirement? Are you hesitant to break into your retirement funds and start living it up once you retire?
This week I share two Retirement Headlines articles. The first is called Right-Sizing Retirement and it comes from the Financial Planning Association. In this article, the authors pose an important question: why save for retirement if you're not going to spend it?
We’ll also check out another article from Wharton Magazine entitled The Economics of Living to 100. Is your retirement plan ready for you to live until 100? Listen to this episode to understand how you can best combat the uncertainty that retirement brings.
David Blanchett and Warren Cormier recently wrote an article for the Financial Planning Association in which they explore the first 10 years of retirement. What they discovered from the RAND Health and Retirement Study is that early retirees tend to underspend. The authors wanted to find the underlying reasons for why we are seeing this trend in America. This research explores the retirement consumption gap and considers both the wealth available to fund retirement and spending before and after retirement.
Retirees can be broken down into 2 main categories: those who have saved enough to cover their levels of pre-retirement spending and those who did not. Interestingly, both of these types of retirees tend to underspend in early retirement but for different reasons.
Only 18 percent of households in America have enough wealth to cover their pre-retirement spending during retirement. This tells us that most households will not be able to maintain their pre-retirement lifestyle in retirement because they don’t have enough money.
You may think that only those that don’t have enough saved cut their spending in retirement, however, the data shows that most households that have saved more than enough to fund their lifestyles in retirement also decrease their spending in early retirement.
Many well-funded households could increase consumption but don’t. So, why does this group of retirees spend less during early retirement? Potential reasons include the desire to leave a legacy, uncertain medical expenses, or an uncertain life expectancy. There also could be psychological or other reasons not easily discerned from survey data.
The main reason for this lack of spending in the first 10 years of retirement is uncertainty. Does the uncertainty that retirement brings give you pause to live out your retirement fully?
One way to combat this unpredictability is with contingency planning. If you’re listening to a retirement podcast then you probably have a retirement plan, but do you have a plan B? What will you do if life throws a wrench in your plans? Listen in to hear what you can do to combat the uncertainty that retirement brings.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Have you heard of the Monte Carlo retirement projection analysis? It is being used more and more by advisors and even popular retirement planning websites. Today, in the Retirement Headlines segment, I offer some insight on an article from Kitces.com that argues that using the Monte Carlo projection, a 50%probability of success rate is good enough. Then in the listener questions segment, I answer the question: what should you do if you plan on never retiring? Don’t miss out on my 5 step plan for those that plan on never retiring.
The Monte Carlo analysis is increasingly becoming the most common method of conducting retirement projections for clients. I use it in my own practice and many online retirement calculators such as Vanguard and Fidelity use it too. This risk management technique was actually developed by an atomic nuclear scientist in 1940 to analyze the impact of risks of a project and had nothing to do with retirement.
You may hear financial advisors discussing a client’s probability of success to describe their retirement portfolio. Reflecting on your grades in school, you probably aren’t comfortable with anything less than 70% since anything below that would be a failing grade. However, in his article, Derek Tharp argues that a probability of under 70% is still realistic for clients who are willing to make some spending adjustments.
Your retirement isn’t static, it’s a constantly changing dynamic picture that should use a dynamic strategy that fits your unique situation and shifting goals. If you are willing to make the needed adjustments on your path to retirement, then when you hear the news that you have a 50% (or even lower) probability of success, don’t panic, you may actually be in better shape than you may realize as long as adjustments are made.
The Monte Carlo simulation is a useful planning tool but it has its drawbacks. Like many retirement tools, it doesn’t do a great job of modeling human behavior in retirement. If the markets start dropping most people adjust their spending habits accordingly. Guyton’s Guardrails are a better tool for predicting how people might behave as the markets rise and fall. You can learn more about Guyton’s Guardrails in episodes 153, 149, and 93. Stick around until the end of this episode to hear my 5 step plan for those that never plan to retire.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Have you wondered why the markets had such an amazing year in 2020 when the economy was a mess and everyone was stuck at home? You aren’t the only one. That’s why in this episode, we’ll look at a New York Times article that examines this question.
We’ll also answer some listener questions directly from our newsletter readers. Dave asks about dividend investing in retirement and Brian asks about how to pivot away from target-date funds after retiring.
Recently the New York Times investigated Why Markets Boomed in a Year of Human Misery. This article analyzed the income, spending, and savings levels from March through November of 2020 and during that same time period in 2019. The comparison between these two vastly different years illustrates how policy, markets, and the economy intersect. Ultimately, the article reveals a sharp distinction between the haves and have-nots during the pandemic.
It may be hard to believe, but the study that the article referenced shows that salaries and wages only fell 0.5% during the nine months of the Covid pandemic. This is due to the fact that the millions of people no longer working were disproportionately in lower-paying service jobs while higher-salary jobs were largely unaffected.
Due to the CARES Act, most households received $1200 stimulus checks. That coupled with an expansion in unemployment insurance programs prevented an income collapse. It turned out that Americans’ cumulative after-tax personal income was actually $1.03 trillion higher from March to November of 2020 than in 2019, an increase of more than 8%.
While Americans were earning more in 2020 than in 2019 they ended up spending less. Spending on services like restaurants and travel fell by $575 billion, or nearly 8%. Instead, that money went to spending on durable and non-durable goods. Overall, American spending decreased by $535 billion.
Since Americans were earning more and spending less that meant that savings rates increased dramatically. From March through November 2020, personal savings was $1.56 trillion higher than it was in 2019 -- a rise of 173%! Before the pandemic savings rates were at 7% and spiked to 33.7% in April. This was its highest level on record, dating all the way back to 1959.
These findings are quite unexpected during this time of worldwide crisis. If there is a lesson to be learned here it’s that when the world expects the stock market to zig more often than not it will zag. Remember that the next time the world throws us an economic curveball.
Tune in to find out the answers to our listener questions!
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Has the Covid-19 pandemic cut into your vacation plans? It seems like everyone’s travel plans have changed over the past year. But what does that mean for employees and companies? Anne Steele and Chip Cutter examine the effects of Covid-19 and vacation taking in a recent Wall Street Journal article that we’ll look at today.
In addition to our Retirement Headline, I’ll answer two listener questions. One is about Medicare before age 65 and the other about investing in bonds. Grab your favorite listening device and join me to help you get retirement ready.
We have discussed the importance of taking vacations on Retirement Starts Today before. And if you have listened in the past you know that vacations actually increase worker productivity and boost morale. However, this past year, the Covid-19 pandemic has changed most people’s travel plans. Many have decided to postpone taking their vacation days until a time when they can travel more. But with the stress over the pandemic and the changes brought about by working from home, people should be taking time off now more than ever.
Whether it is because people feel like they can’t or shouldn’t take vacation time right now, companies are becoming increasingly concerned. However, different companies are taking different approaches to the issue. Some are relaxing their vacation policies and allowing the vacation time to roll over while others are forcing their employees to use the time now to try and fend off burnout. Have you used your vacation time over the past year?
As you approach retirement, it is even more important to take those vacation days. The free time that vacation days offer you an opportunity to explore and practice what you will be doing in retirement. If you have postponed your vacation, consider taking a staycation to practice for retirement. Take this time to explore new hobbies and act out what you would do during your retirement.
Press play now to listen to the Retirement Headlines segment plus get the answers to our listeners’ questions. Have you signed up for the Every Day Is Saturday newsletter yet? If not, what are you waiting for? Follow this link to get the latest in retirement news in your inbox every Thursday morning.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Has the news about the ups and downs in the market lately got you a bit worried? You aren’t the only one. Many people are even thinking about pulling their money out in case there is a market correction. Does this sound like you? If so, you’ll definitely need to listen to this episode.
When you press play you’ll hear what would happen if you only invested at the market peaks, what to do with an inherited IRA, and what the benefits are of an umbrella insurance policy.
Have you ever wondered what would happen if you invested at all the wrong times? Our retirement headline this week is from Ben Carlson who reflects in his widely read 2014 piece, What If You Only Invested at Market Peaks? In his newest article with the same title, Ben introduces a video illustration to turn his story of the world’s worst market timer into a timely cartoon about the rewards of patience and long-term thinking.
Ben responded to the pushback he got from the original article by explaining that while there are risks involved with any investment strategy, the most effective way to combat those risks is with a long-term investment mindset. Long-term thinking will give you the biggest margin of safety when investing.
The current market volatility has many people looking for an exit strategy. While I share their concern over the rapid growth we have seen over the past several months, this is why we have an investment strategy. Overvalued markets are no reason to deviate from your investment plan.
A properly invested retirement portfolio should already include a contingency plan for a market downturn. If you are worried about the market then now is a good time to consider your investment plan. You may want to dial back your stock exposure back a few percent to help you sleep at night. If you are within a few years of retirement, you should already be close to a retirement income portfolio of about 40-50% in bonds and cash. Are you worried about a market correction?
One listener writes about her daughter who inherited a 403B account. She would like to know what the best plan is for this unexpected inheritance. She could either take a lump sum or roll the money into an inherited IRA account which must be withdrawn over a 10 year period.
The answer to this question depends on her income. If she has a high income then she should spread the money over the 10 year period taking about 1/10 each year. If her income is not too high then taking the money now and paying the taxes on it shouldn’t be too much of a burden tax-wise. What would you do with such an inheritance?
If you have any questions for me, want to hear more about retirement planning, or would like to be first in line for free book copies from the authors that I interview, click here to subscribe to my Every Day is Saturday newsletter. This weekly newsletter is delivered every Thursday morning to remind you that every day is Saturday in retirement.
Subscribe to Retirement Starts Today on
Are you setting yourself up for a single-ply retirement? Do you find yourself trying to save money out of habit rather than necessity? Listen to the retirement headlines segment to find out why this may not be the best idea in retirement.
In the listener questions segment, I actually have a listener answer. I asked the subscribers of my Every Day is Saturday newsletter what they were doing to combat Zoom fatigue and Ann replied with a detailed answer. After that, we’ll analyze Social Security claiming strategies and discuss retirement rebalancing strategies.
Do you find yourself making money-saving decisions out of habit? Are you like Tim Ferriss and who still buys single-ply toilet paper after all his success? Oftentimes our frugality stems from our upbringing rather than from necessity. To kick the default frugality habit, it helps to look at your formative years. Did your parents instill this habit in you or does your frugality serve a purpose? There is a time and a place for frugality, however, automatic frugality isn’t always the smartest choice.
If you are automatically frugal how do you decide where to trim and where to spend? If you are the type of person who is thrifty by default, these decisions can be tough until you realize that survival level spending habits aren’t always the smartest choices.
One way to analyze whether your frugality is automatic or purposeful is to define your spending habits. Create an inventory of your spending. What indulgences did you make that were worthy last year? Which extravagances would you repeat? In what areas can you spend money to create more joy in your life? Learn to build a higher-quality life and become frugal by choice rather than by default by listening to this episode of Retirement Starts Today.
Over the past year, many of us have become very familiar with working from home. Although working from home allows us more flexibility, studies show we are working more than ever. With so much time spent in front of a screen, we can burn out quickly.
Ann enjoyed the freedom of taking 3 day weekends last year. She has learned to slow down, enjoy her time off, and practice self-care. She also learned to stand up for herself and be intentional about how she takes her vacation time. What can you learn from Ann?
If you describe yourself as a workaholic, then now is the time to consider what to do in your downtime. If you want to make the most out of your retirement, you’ll need to become comfortable with having free time. What are you doing to practice self-care and make the most of your downtime?
Listen in to hear all of this plus the effects that claiming Social Security early or late could have on the total benefits between spouses and how to balance your portfolio in retirement.
Subscribe to Retirement Starts Today on
Apple Podcasts,Stitcher,TuneIn,Podbean,Player FM,iHeart, orSpotify
I figured that you all may be a bit sick of hearing the news lately which is why this week’s episode will focus only on listener questions without the Retirement Headlines segment. I’ve got 2 listener questions that will pique your interest.
Chris asks about long term care insurance. What is the difference between hybrid and traditional policies and when can someone self insure? And Janet wants to know about the tax benefits of life insurance to fund your retirement. Don’t miss the answers to these complex questions, press play now!
The question of how to pay for long term care comes up when creating every retirement plan. It is extremely difficult to plan for long-term care due to the myriad unknowns. Will you even need coverage? This question can be difficult to answer since the duration and level of long-term care varies from person to person. This is why we look at the statistics. A person turning 65 today has a 70% chance of needing some sort of long-term care service in their life. And 20% of people will need it for longer than 5 years.
Since 70% of people end up needing long-term care service, it is prudent to be prepared. But how much money will you need? The average stay for a nursing home resident is 28 months and the average stay for assisted living is 27 months. When you consider that nursing homes cost $225 per day for a semi-private room and assisted living costs half that, and you take the average length of stay you can round the total cost to $200,000.
Now that we have analyzed the 3 parameters surrounding the issue of long-term care -- the likelihood of needing long-term care, the length of stay, and the cost -- we can analyze how to cover this cost. There are a couple of different ways to tackle this problem. You could self insure or purchase one of the many types of long-term care insurance policies. Long-term care insurance may give you peace of mind, but is it worth the cost? Self-insuring may be easier than you think if you can handle the market risk. Listen in to hear an option for self-insuring that you may not have thought of before.
The shakier the stock market feels, the more we’ll hear about alternative investing strategies. Janet was curious about how life insurance could be used as a tax-saving strategy since all of her assets are in tax-deferred accounts. What she is referring to is overfunding a life insurance policy and living off the proceeds tax-free for decades. Does that sound too good to be true? If so, it probably is. Listen in to hear why life insurance is not as special as it sounds, you’ll want to hear how this strategy could backfire on you and ruin your retirement.
If you have a question that you’d like answered on the show you can ask in one of two ways. The easiest way to ask me a question is to simply reply to the Every Day Is Saturday newsletter. The second way is to visit the Retirement Starts Today website and click the Ask a Question tab.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
I’m feeling optimistic this year and I want to continue to spread that optimism. That’s why I want to focus several shows on travel. Most people’s travel plans were foiled by covid in 2020, so 2021 will be the year of the vacation! We’ll be interviewing experts and discussing the mental and physical health benefits of travel. We get started on that road today with a Retirement Headline from Harvard Business Review.
You have probably heard that without recovery periods, your ability to perform tasks effectively diminishes significantly. However, this is in direct conflict with the common practice of powering through work without a break.
The Harvard Business Review performed a study with the US Travel Association to help understand the relationship between wellbeing and taking time away from work.
They discovered that there has been a significant decline in vacation days over the past 2 decades. In 1996, Americans averaged 21.1 vacation days per year and in 2016 that number fell to 16.1 vacation days per year.
Although productivity has increased due to technology, our inability to unplug has offset those gains. In fact, our inability to step away from technology has even led to bad vacations. According to the article, poorly planned vacations do not improve energy levels or reduce stress, effectively eliminating the time away. Learn what you can do to make the most of your vacation time by listening to this episode of Retirement Starts Today.
People who took fewer than 10 of their vacation days per year had a 34.6% likelihood of receiving a raise or bonus over a three-year period of time. Whereas, people who took more than 10 of their vacation days had a 65.4% chance of receiving a raise or bonus. So, double your chances for a raise and take a vacation!
Seth’s mom insists that she doesn’t need the money in her $500,000 401K until it’s time to start taking RMDs. He wants to help her understand what she should do with the money.
My first question is why doesn’t she need it? Many people are worried about having enough money to last the rest of their lives. Is she underspending to make her money last longer? After understanding her reasons, there are a few things she can do.
Long term tax planning is key here. You may be surprised to learn that sometimes it is better to pay more in taxes now to help save on your lifetime tax bill. Listen in to learn how long-term tax planning can affect retirement planning.
Subscribe to Retirement Starts Today on
Apple Podcasts,Stitcher,TuneIn,Podbean,Player FM,iHeart, or Spotify
Would you want to raise your standard of living for half of what you live on now? Tim Leffel did, which is why he chose to uproot his family from their life in Nashville to move to a small city in Mexico. Tim is the author of the book A Better Life for Half the Price and he joins me today to discuss the pros and cons of living abroad.
Don’t miss the opportunity to learn how you can save money by living abroad. Tim is an expert in the subject and has written extensively about this topic. Listen in to hear this interview.
Tim and his wife have traveled extensively and even lived in Seoul, Korea, and Istanbul, Turkey when they were young. When they had their daughter they knew that they didn’t want to live in the far flung reaches of the world but they still wanted the experience of living abroad.
Mexico was close by and easy to travel to, plus they liked the culture and the food which made it an easy choice to settle on. They chose to live in the central Mexican town of Guanajuato which is a mid-sized city of 200,000 with pleasant weather all year round.
Tim chose to rent for a year first before taking the plunge and purchasing a home. He remarks that buying a house abroad is not like it seems on those popular house hunting TV shows.
There is a lot you need to think about when buying a home abroad. The zoning laws aren’t the same as in the U.S. and it can be hard for a foreigner to understand what things are worth without living there first. Tim recommends putting in the time and effort to truly understand the market value before purchasing a home.
It’s no secret that living in Mexico is less expensive than living in the U.S. Rent in the United States can easily cost $2000. In Mexico, you can find a house to rent for a fraction of that.
Healthcare expenses are notoriously high in the U.S. and in Mexico, Americans are shocked to find how easy it is to pay for those expenses out of pocket.
Tim finds that his total monthly expenses in Mexico are roughly equivalent to what he paid in rent in the U.S. Not everything is cheaper in Mexico though, listen in to hear about what costs more in Mexico.
You would think that you need to be fluent in the language before moving abroad, but there are some places in Mexico where you can get by being monolingual.
Tim still doesn’t consider himself fluent, although he is learning the language. Since his daughter went to school in Mexico, she had the opportunity to become fluent. Would you want to learn the language before moving abroad?
Subscribe to Retirement Starts Today on
Apple Podcasts,Stitcher,TuneIn,Podbean,Player FM,iHeart, or Spotify