Nobody likes to experience the uncertainty that a bear market brings, but it’s an even more challenging experience to weather when you are a recent retiree. It’s easy to lose sight of your goals in a bear market which is why I found an article outlining some lessons that you can remember during a bear market.
Listen to this episode to hear some wise words of wisdom that may help you keep your wits about you during this bear market. Stick around until the end to hear my thoughts on tax-loss harvesting.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
It’s no secret that we’re living longer than ever. People are living so long that we may soon be seeing 6 generations in a single-family.
With people living such a long time it makes retirement planning even more challenging than ever before. Understanding the 4 stages of retirement can help understand the different approaches to money management in each stage. Listen in to learn the 4 stages of retirement and how they can help you plan your retirement.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Inflation is weighing heavy on the minds of retirees right now, so when I came across this article on WSJ.com from Cristin Lourosa-Ricardo, I knew I had to share it with you. Listen in to try and find the silver lining of inflation.
If you are a financial advisor fan of this show, make sure to stick around until the very end for a special announcement.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
It’s true, money can’t buy happiness. But does how you choose to spend your money affect your happiness? Today we’ll discuss one article that challenges that old adage. We’ll also discuss a multifaceted question from a listener who just accepted an early retirement package. We’ll help her consider whether to rollover funds into an IRA and figure out what to do with her target-date funds. Listen in to hear the answers to this question and to consider whether money could actually buy happiness.
For more information, visit the show notes at https://retirementstartstodayradio.com/money-cant-buy-happiness-or-can-it-ep-148/
Unless you’ve been living under a rock, you've probably noticed a bit of an issue with the stock market lately. This can be distressing for any retiree, but when the declines in stock prices are coupled with high inflation and rising interest rates, then you have a triple threat to your retirement plans.
Today we have a special guest joining the show. Joseph Hogue, CFA from the Let's Talk Money! YouTube channel, is here to help us understand what the heck is going on with the stock market. If you have been trying to figure out what you should be doing with your portfolio you won’t want to miss this interview with Joseph Hogue
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
We’ve all heard of the 4% rule, but did you know that the creator’s recommendation for it has changed over the years?
I recently discovered an article from ThinkAdvisor.com that included an interview with the father of the 4% rule, Bill Bengen. In the retirement headlines segment, we’ll take a close look at the article and learn directly from Mr. Bengen’s perspective and then I’ll offer my own. Don’t miss out on this glimpse into the mind of the creator of the 4% rule.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Are you planning on enjoying an active retirement? If so, it may cost you more than you think.
On this episode of Retirement Starts Today, I interview Thatcher Taylor, the financial advisor behind ProPathFinancial.com. Thatcher and I discuss how to prepare financially and mentally for an active retirement.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
If you are looking to ease into retirement by transitioning into a part-time role first, you won’t want to miss this episode of Retirement Starts Today. In the retirement headlines segment, we’ll explore an article by Anne Tergesen at the Wall Street Journal which outlines topics to consider when phasing out your retirement before retiring fully.
Make sure to stick around for the listener questions segment to hear a question from Scott about how to evaluate COLA options on a pension. Press play to start planning your amazing retirement.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
If you have received an inherited IRA or think you will in the future you won’t want to miss this episode. In the retirement headlines segment, we’ll take a look at the proposed changes in regulations regarding inherited RMDs based on the Secure Act of 2020.
In the listener questions segment, we’ll hear from Jim who has a question about rebalancing retirement income buckets. Make sure to stick around until the end so that you understand the best way to manage your buckets in retirement.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
How much thought have you given to your future self? This week’s retirement headline explores the concept of nurturing your future self now so that you can increase your health, happiness, and financial security.
Over in our listener questions segment, I’ll answer a question from an anonymous listener about increasing their spending in retirement. They are looking for advice on whether they can afford to substantially increase their spending this year. Listen in to hear the Retirement Starts Today version of Suze Orman’s “Can I Afford It.”
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
If you are heading into retirement you probably have a bucket list that you want to work on. While just about everyone has heard of a bucket list, not many are familiar with the concept of reverse bucket lists.
On this episode of Retirement Starts Today, we’ll explore this concept by referring to an article from Jeff Stein at Inc.com. You’ll learn how a reverse bucket list could help you manage your wants versus your needs.
Stick around for the listener questions segment to hear which assets to look at when doing a Roth conversion. You’ll also hear a question from Paul about the logistics of retirement withdrawals.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart
Do you wish you could have more freedom at work yet still earn a paycheck? Remote work and flexible scheduling may help you ease into retirement rather than plunging in all at once.
In our retirement headline segment today, we’ll explore an article from the Wall Street Journal that discusses a new phenomenon that is a direct result of the Covid-19 pandemic.
Additionally, I’ll answer Frank’s question about using the bucket time segmentation strategy in retirement. Listen in to hear details about what those buckets might look like and how to time withdrawals from each bucket.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
When people begin retirement planning they usually have 3 main questions. We cover the questions about what to do about healthcare before Medicare and should I pay off my house regularly on this show. However, the third question, what do I do if I still have kids at home, is not one we regularly address. That is why I’m excited to have Bobbi Rebell, author of the new book, Launching Financial Grown Ups on the show today.
Bobbi is here to discuss the growing phenomenon of adult kids living with their parents and how that can impact your retirement plan. You won’t want to miss this episode if your kids are not completely launched. Listen in to hear Bobbi’s fantastic advice for creating an exit strategy to get your children off the payroll.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Have you been hesitant to retire this year because of all that is going on in the world? On this episode of Retirement Starts Today, we’ll explore a retirement headline from Maurie Backman at The Motley Fool called 3 Reasons Why 2022 May Be a Bad Year to Retire, but then you’ll hear my rebuttal to each of her 3 arguments.
If you have been on the fence about whether you should take the plunge and retire now, you won’t want to miss this episode. Make sure to stick around until the end of the episode to hear an anonymous question about how to be certain that you won’t owe interest and penalties on a Roth conversion.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
With the news that January’s inflation rate was a staggering 7.5%--the highest level in 40 years–everyone has inflation on their minds lately. Many retirees are reassessing how they can protect their nest eggs.
On this episode of Retirement Starts Today, we’ll explore a WSJ headline, “There’s No Perfect Way to Inflation-Proof Your Investments,” by Anne Tergesen. If you have been wondering how you can best use your investments to hedge against inflation in retirement, don’t miss out on this episode to hear the pros and cons of several different options. Make sure to listen to the end to hear how long you might have to hold on to gold so that it keeps pace with inflation. (Spoiler alert–it’s a lot longer than you think!)
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Many people begin retirement with the question: what’s next? That question can plant the idea of starting a second chapter whether it be a new business, a side hustle, a passion project, or a consulting business. The question then becomes, how to get started?
Gabe Nelson, the host of the Solopreneur Money podcast, is here to discuss how you can start a business in retirement. In this episode, you’ll learn tips on how to get started, how to decide what to charge, how long it should take to become profitable, and so much more.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Tax season is here. This yearly duty is something that a good portion of citizens put off until the last minute, with some even requesting an extension to file later. However, today I have 8 reasons for you to consider filing your taxes early. Listen in to discover why you might want to bite the bullet and file your tax return early this year.
This is a great list to encourage people to get started on their taxes. I’ve had my thoughts on tax planning for a while now that I’m cohosting the Retirement Tax Podcast with Steven Jarvis. Check it out if you are interested in tax planning strategies in retirement.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
You may be worried about money in retirement, but are you worried that you won’t spend enough of it? Today’s retirement headline comes from Neil Templin over at Barrons.com and it examines how people’s core spending and saving habits from their working years continue in their retirement years.
Listen to this episode to hear the author’s suggestion for how to rectify this issue and whether or not I agree with him.
Why do people continue to save in retirement when they are expected to be spending? Retirees Aren’t Spending Enough of Their Nest Eggs, Here’s Why, an article written by Neil Templin, examines the reasons why some people don’t plan to spend down their assets in retirement. These retirees' portfolios remain the same or sometimes even grow at a time of life when they should be diminishing. The author looks into why this phenomenon is happening.
One study even revealed that ¾ of participants had seen their assets remain the same or grow in retirement. There are numerous reasons why this could happen.
The robust stock market over the past ten years could contribute to a steady or growing portfolio. However, even with strong returns, some people may not feel comfortable enough to loosen their purse strings and spend their savings in retirement. Templin lists these reasons for reluctant spending habits in retirement:
It is difficult to change the core values that people have about spending. Saving is a habit developed over time and retirees are discovering that they can’t simply flick a switch and turn it off.
The author next examines research on retirees with pensions. The research showed that those who received more than half of their income in regular payments spent much more in retirement than those who received less than half of their income regularly.
The article concludes that creating a pension-style income or regular paycheck by using annuities could be a solution for retirees who are reluctant to spend in retirement.
My concern with purchasing annuities to solve this problem is that this solution eliminates the freedom to choose. With a flexible spending strategy, retirees can spend confidently. They understand that when the market doesn’t behave ideally that there is always a plan b to fall back on. This flexible spending strategy relies on education and knowledge to give retirees the peace of mind they need to spend confidently. Listen in to hear how Guyton’s Guardrails could inspire confidence in your retirement spending strategy.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Do you know where you’ll live when you retire? Deciding where to live in retirement is one of the biggest retirement decisions that you’ll make. There are so many factors to consider that it can be overwhelming with the myriad choices.
On this episode of Retirement Starts Today, we’ll explore a headline from J.D. Roth at GetRichSlowly.org that reveals a new tool from The New York Times which helps people find places to live that suit their lifestyles.
You’ll also hear the answer to Frank’s question about the inflexibility of safe withdrawal rules for those who choose to delay taking Social Security.
If you have been considering moving in retirement, don’t miss out on this episode to discover how this fun tool could help you narrow down your choices.
Today’s retirement headline, A Useful New Tool to Help You Pick a Place to Live, comes from J.D. Roth’s blog GetRichSlowly.org. In the article, the author explores a new interactive tool from The New York Times that could help you decide where to live based on your lifestyle choices.
The interactive quiz uses 35 different factors which can help you narrow down the 17,000 cities and towns across the country they have to choose from. These factors include choices like population density, climate, racial diversity, political affiliation, the average cost of living, and many more. Users can even emphasize which qualities matter most to them.
After exploring a few options, users can compare their favorite choices in an easy-to-read table. Although the tool, isn’t the end all be all in deciding where to live, it may be able to accurately narrow down some areas for you to consider.
Since the tool comes from the New York Times, it is behind a paywall you may be blocked if you have already read your free articles for the month. If you haven’t, spend some time exploring the variables to see which places look good to you.
Many retirees choose to buy a second home in retirement, and I work with several clients that have considered this option. When purchasing a home in retirement, it is important to remember a few rules.
Oftentimes, people don’t realize that after leaving their career behind it can be very challenging to get a mortgage. Since qualifying for a mortgage depends on income rather than assets, many recent retirees discover that they may not qualify for a mortgage even when they have the assets to purchase the home outright.
One way to prevent this issue is by massaging your portfolio income to a level that the bank would approve to secure the loan. After closing on the mortgage, then you can reset your portfolio withdrawals back to normal.
If you are considering purchasing a second home or moving to a new area in retirement, don’t be afraid to rent first. By renting for several months in the city you would like to move to, you’ll be able to explore the town and understand where the desirable (and undesirable) areas are. Renting first could save you from a mistake that could cost hundreds of thousands of dollars.
Learn more about moving in retirement and how using Guyton’s Guardrails could help you set up flexible, safe withdrawal rates in retirement on this episode of Retirement Starts Today.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
On this episode of Retirement Starts Today, we’ll examine an article by Darius Foroux that asks, Are You Saving Too Much Money? After the retirement headlines segment, I’ll answer a question from CJ about using a donor-advised fund to offset the last year of high income before retirement. Get ready to ask challenge yourself and explore your financial decisions as you press play.
Today is the most important day that you have to live. If you are saving too much money you may not be able to enjoy today to its fullest. There are people that save up to 70% of their income while planning an early retirement, but this type of habitual frugality can get in the way of enjoying life in the present. Although saving a high percentage of your salary could give you confidence about your future, it can be difficult to unwind that practiced frugality to truly enjoy life.
If you’re constantly asking yourself on a daily basis how much things cost, you might be saving too much. Try not to calculate your spending down to the penny. Instead, be more conscious of how you spend your money. The is a balance between spending your entire paycheck and over saving is fluid and complex, so it is important to analyze your situation to understand the best saving situation for you.
There are several factors to consider when analyzing your savings patterns:
Understanding the answers to these questions can help you recognize whether you are saving too much.
So, how do we balance living in the present and making the most of our lives today while, at the same time, being responsible stewards for our future selves? A good place to start is by coming up with a financial strategy that incorporates your values. Once you do that, you can use the free tools available on the internet to help you determine how much you need to save.
Self-reflection is important to understand whether you are truly living your best life now or if you are waiting for some arbitrary future date to pursue happiness. Are you living your best life now? If not, what are you waiting for?
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Tax scams are as old as taxes themselves, so are you doing everything you can do to avoid them? In this episode of Retirement Starts Today, we’ll explore what the IRS labels, ‘the dirty dozen’ tax scams. You’ll learn who is targeted by the various scams and then you’ll discover what you should do to protect yourself from scammers. Make sure to stick around until the end of this episode to hear what you should avoid doing so that you don’t fall prey to tax scammers.
Every year the IRS publishes its list of the 'dirty dozen’ tax scams that citizens should be on the lookout for. This year’s list comes directly from the IRS website in an article called Americans Urged to Watch Out for Tax Scams During the Pandemic. The article breaks up the 12 types of schemes into 4 categories based on who carries them out or whom they affect.
The scams can be described as pandemic-related scams, personal information cons, ruses that focus on unsuspecting victims like seniors and immigrants, and schemes that persuade taxpayers into performing unscrupulous actions. The IRS urges everyone to stay aware of scams and scammers, especially during tax season.
This first category of the dirty dozen is related to the pandemic-related stimulus payments from the government which are still under threat from identity thieves.
Look for these warning signs to spot identity theft scams. Any text messages, random incoming phone calls, or emails inquiring about bank account information or requesting recipients to click a link should be considered suspicious and deleted without opening. Remember that the IRS will never initiate contact with taxpayers by phone, email, text, or social media asking for a Social Security number or other personal or financial information related to economic impact payments.
Be alert to mailbox theft by checking your mail frequently and reporting suspected mail losses to the post office. It is also important to remember that IRS.gov is the agency’s official website for payments, refunds, or other tax information.
Stay vigilant about receiving receipts of unemployment benefits that you did not actually receive since this could be a sign of identity theft. This is yet another way that identity thieves try to steal stimulus payments. Taxpayers should look out for a form called 1099-G which reports unemployment compensation that they did not receive.
If you do receive this form, the IRS urges you to contact the appropriate state agency for a corrected form. If a corrected form cannot be obtained in time for taxpayers to file a timely tax return, they should complete their return claiming only the unemployment compensation and other income they actually received.
This year the IRS made its IP PIN program available to all taxpayers. In the past, this program was only available to victims of identity theft. The IP PIN will help prevent fraudulent filings from identity thieves by serving as a key to unlock a taxpayer’s tax account. In addition to the IP PIN, the IRS is further working to reduce fraud by strengthening tax software password protocols, asking for driver's license numbers as a way to prove identity, limiting the number of tax refunds going to bank accounts, and making personal information from tax transcripts.
It is important to stay one step ahead of scammers so that you can protect yourself from fraud. Remember that the IRS will never ask you for your personal information via phone, text, or email.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
Do you have gold as a part of your investment portfolio? Several years ago there were loads of infomercials about investing in gold, but after today’s retirement headline you may want to think twice about complicated investment strategies.
Don’t miss out on this real-world cautionary tale which provides an example of how and why owners of IRAs with assets invested in nontraditional means need to follow strict guidelines. Press play to listen.
If you have been wondering how you can submit your own listener question, make sure to head on over to my website RetirementStartsTodayRadio.com and simply click the ask a question button.
Another way to submit a question is by responding to my weekly Every Day Is Saturday newsletter which is delivered every Thursday morning. By joining the newsletter not only will you be reminded that in retirement every day is Saturday (even Thursday mornings), you’ll also get links to articles and resources that were mentioned on the show.
How’s this for a headline? A Couple Stored a Gold IRA at Home. They Owe the IRS More Than $300,000. Today’s retirement headline was written by Laura Sanders at WSJ. The article discusses a scheme that was promoted years back when ads extolled the benefits of using IRA assets to buy silver and gold coins to store at home or in a safe deposit box. However, the IRS has made it clear that there are strict rules that must be adhered to regarding IRA investments, and the couple failed to follow those rules.
Many people don’t realize that retirement investment accounts don’t have to invest the assets in typical securities like stocks, mutual funds, and ETFs. The law actually gives retirement plan investors many options on how they invest funds, as long as it’s not in collectibles such as artwork. Retirement accounts can hold investments in real estate, litigation funding, deeds of trust, and even cryptocurrency. One thing to watch out for with these kinds of alternatives is if your investment asset isn't liquid you could be in for some trouble around the time of your 72nd birthday when RMDs start.
The article emphasizes that savers who have decided to invest in alternative assets must follow strict rules so that they are not considered self-dealing. Investors who do not follow the rules closely are risking financial catastrophe. Listen in and click through to the article to hear the details of the case so that you can understand how to avoid this type of costly situation.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify
You may have noticed how the spirit of giving changed your mood this holiday season. That is because giving can actually increase your happiness. This week’s retirement headline from BigThink.com is titled How Generosity Changes Your Brain, and it discusses recent research on how giving to others promotes happiness. On this episode of Retirement Starts Today, you’ll learn how acting on your generosity creates numerous psychological and physiological benefits in your body.
If one of your goals for 2022 is to be more generous or even if you simply want to reflect on the acts of gift-giving that you experienced over the holiday season, don’t miss the retirement headline segment. Then make sure to stick around until the end of the episode to hear my favorite retirement resources.
Can spending your money maximize your happiness? We’ve all been told that money can’t buy happiness. However, new research suggests that the opposite is actually true: spending money can bring joy.
Rather than buying things to increase happiness, researchers have found that sharing wealth with others is what creates long-lasting contentment. New research has been able to scientifically measure the ways that giving can improve joy. Giving actually releases neurochemicals like oxytocin and endorphins in your brain that are known to increase happiness. Have you noticed this phenomenon whenever you give to others?
In addition to giving money and gifts to others, giving the gift of time increases happiness as well. During the working years, donating time can be a challenge with all the other commitments that people have. This issue disappears in retirement.
Volunteering can even improve health. Science shows that generosity can increase longevity. Researchers found that retirees who volunteer were less likely to die over the course of a 5-year study. The results of the study showed that volunteering boosted people’s overall well-being. Regular volunteering is even more beneficial to health than giving financially. Do you have plans to make volunteering a regular part of your retirement?
Making a habit of generosity is a great way to improve your happiness and health in retirement. Whether you choose to give financially or donate your time, the results will benefit you.
Now that you know that giving can increase your joy, you can find ways to maximize that happiness. One way to ensure that you are optimizing your giving is by giving consciously rather than setting up an automated gift to charity each month.
If you do automate your giving, looking at your bank statements each month to see how much you spend on yourself and comparing that with your spending on others can also increase your contentment.
Have you thought of giving your time or money in retirement? Volunteering or donating money in retirement can also give you a renewed purpose. Think about ways that you could increase giving in ways that align with your values. Listen in to hear my favorite volunteer opportunity.
Subscribe to Retirement Starts Today on
Apple Podcasts, Stitcher, TuneIn, Podbean, Player FM, iHeart, or Spotify