Retirement Answer Man

Latest Episodes:

Living a Heroic Retirement: What Is a Hero? Aug 03, 2022

Show notes

You may be planning a peaceful retirement, an active retirement, or an engaged retirement, but have you ever thought about living a heroic retirement? Over the course of the next several episodes, we’ll explore what it means to live a heroic retirement with Michael Balchan from Optimize.

In this series, you’ll learn how to build a framework to lean into the kind of person you want to be every day. I’m excited to bring this teaching that we already use in the Rock Retirement Club to you. Listen to this episode to learn what a hero is and how you can be the hero of your own retirement. Michael Balchan understands the search for meaning

Michael Balchan is 36 and not approaching retirement. However, he is working on his second act. His first career was as a commodity options trader and after achieving all of the outward trappings of success he had to reassess his life. He recognized that he had achieved everything he set out to achieve yet he felt that his life was a bit hollow. This led him to explore what would give him true satisfaction.

Michael understood that the default path that he had fallen into brought wealth, fame, and popularity. These extrinsic goals were not bad goals to have, but they gave him no inner fulfillment. He then began to recognize that a deeply meaningful life comes from expressing the best version of himself in service of something greater than himself. What is a hero?

Oftentimes, people’s second act steps away from the outward displays of success. They shift from a “what can I get” mentality to one that explores “what can I give?” This is why we are exploring the concept of the hero.

The word hero comes from the Greek word and means the protector, but not necessarily in the way that you think. Greek heroes are protectors of the values and community that they hold most dearly. Heroes do the hard work by taking courageous action with their secret weapon: love.

Heroes live a life of deep meaning by intentionally expressing the best versions of themselves in service of something greater. You can be a hero in your own life by looking for the places where you fall short and taking courageous action to improve them. Lean into the amazing abilities that you already have. Consider how you can help or connect with others. How to find your purpose

The top tier in Maslow’s Hierarchy of Needs is self-actualization, however, it is said that there is actually a level beyond self-actualization: self-transcendence. We can go beyond self-actualization in service of something bigger than ourselves.

However, being a hero doesn’t mean that you have to set out to save the world. You get to choose your sphere of influence. Being a mentor, a great neighbor, a grandparent, or a spouse are all ways that you can serve others. The size and scope of your impact is up to you.

Upon retirement, you may not know your reason for waking up in the morning. Your purpose gives you energy and vitality so it is important to think about what lights you up. To find your purpose it can be helpful to look back at what you have done in the past. Look at your past experiences and consider what brought you meaning.

Find the ways in which you already make an impact in what you are doing. How are you already creating purpose and meaning in your life? Start to look for other opportunities to make contributions in the lives of others.

Make sure to come back next week to learn the core virtues you can use as guideposts to build intentionality into your retirement. If you found this episode helpful, make sure to share it with a friend! OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT

[6:00[ What is a hero?
[18:48] You get to choose your sphere of influence
[21:05] How to find your purpose

LISTENER QUESTIONS

[30:08] How long does it typically take to recover from a bear market?
[35:55] Should Bill’s wife take Social Security now or wait for Bill’s delayed benefit?
[38:31] How should Steven allocate his mom’s savings?

TODAY’S SMART SPRINT SEGMENT

[43:40] Find the ways in which you already make an impact in your life

Resources Mentioned In This Episode
LTCI Partners
Holding Out for a Hero by Bonnie Tyler
BOOK - The Second Mountain by David Brooks
BOOK - Flourish by Martin Seligman
BOOK - The How of Happiness by Sonja Lyubomirsky
William Damon
Heroic App
Maslow’s Hierarchy of Needs
Rock Retirement Club
Roger’s YouTube Channel - Roger That
BOOK - Rock Retirement by Roger Whitney
Roger’s Retirement Learning Center

Dealing with Post-Pandemic Burnout Jul 27, 2022

Show notes

Dealing with a bear market after the trials and tribulations of the past 3 years may have you feeling like you are being punched while you are down. Many of us are feeling burnt out and are wondering when the punches will ever end.

In this episode of Retirement Answer Man, we’ll discuss how we can deal with this issue. Kevin Lyles joins me in the Coach’s Corner to offer his perspective on dealing with burnout. I’ll also answer some fantastic listener questions that range from how to decumulate during a bear market to how to plan for retirement with a disengaged spouse. Don’t miss this episode especially if you feel like you might soon be down for the count. It seems like the world keeps punching us while we’re down

The past 3 years have dealt us one blow after another. Covid took us all by surprise in March of 2020 and was followed quickly by the fastest bear market in history, a total economic shutdown, quarantines, work-life disruptions, and so much worry about our health and the state of the world.

2021 wasn’t much better with the political polarization of the election, Covid’s continuation, mask and vaccine questions, and more

2022 brought raging inflation, rising interest rates, war, and worldwide instability. And still, Covid rages on.

Our normal rhythm of life has been disrupted. Without that rhythm, it's hard to create stability to ground yourself. No wonder so many of us are feeling burned out. We have more than our fair share of dents in our armor. Incremental changes are often the best course of action

It makes sense if you are feeling worn out, but how you respond to these stressors is important. It may seem like drastic action is the best action to take, but during challenging times, often incremental changes are the best course of action. Small changes can help you avoid major unforced errors.

You may want to take a cue from Muhammad Ali and take the punches while you are pinned against the ropes and conserve your energy until you have the opportunity to react. Steps you can take to deal with burnout

If you are feeling the effects of the past 3 years weighing down on you conserve your energy and then see if you can take these steps to take action.

Acknowledge what you have been through. Give yourself some grace for all that you have suffered.
Bring past successes to mind. You have the capacity to get through hard things. Think about your past experiences to remind yourself of your resilience.
Reexamine those around you. Search for people who are doing what you want to do. You won’t be able to follow their exact path, but you could find ways to integrate some of their strategies into your life. Walk with the wise to become wise.
Surround yourself with support. Surround yourself with people who encourage you and are supportive of your journey. This includes your network of friends and acquaintances as well as the media you choose to consume.
Build the confidence to punch back. Take care of yourself and your energy. Simple self-care is important when you are getting pummeled. Exercise, practice gratitude, and help others. Self-care will help ground you when you are burned out.

Make sure to check out next month’s series on how to build a heroic retirement. Don’t forget to reply to the 6-Shot Saturday newsletter if you have any advice for Anna on planning retirement with a disengaged spouse. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT

[1:30] We have all been taking a beating over the past few years
[7:23] Rhythms ground us
[11:25] Steps to take to deal with burnout

LISTENER QUESTIONS

[19:38] Should I reallocate during a bear market?
[28:50] How to decumulate during a bear market
[34:17] How to decide between taking a pension in a lump sum or monthly payments
[38:46] How to deal with a disengaged spouse

COACH’S CORNER WITH KEVIN LYLES

[46:21] Reframe your negative thoughts to find a positive outlook

TODAY’S SMART SPRINT SEGMENT

[55:14] Acknowledge how much you’ve been on the ropes this year

Resources Mentioned In This Episode
Boomer Benefits - check them out at no cost to you!
BOOK - The Expectation Effect by David Robson
Rock Retirement Club
Roger’s YouTube Channel - Roger That
BOOK - Rock Retirement by Roger Whitney
Roger’s Retirement Learning Center

Will My Social Security Benefit Be Impacted by My Divorce? Jul 20, 2022

Show notes

Does navigating this bear market in retirement terrify you? If so, you are not alone. No one can (or should try to) predict what will happen next.

A financial advisor’s advice during bear markets is often ”stay the course,” however this can leave one feeling powerless. On this episode of The Retirement Answer Man, Tanya Nichols and I analyze what you can do if you are feeling terrified in a bear market, you’ll also learn how to navigate Social Security and an ex-spouse, and how to use retirement funds to self-insure long-term care. Press play to hear Tanya and I answer these listener questions and more. What to do when you are terrified about your financial future

It is easy to be terrified about the future when every day you watch the value of your accounts drop precipitously across the board. Everywhere you look the markets are getting worse: the Nasdaq, the S&P 500, and even bonds are plummeting. The vision of the future that seemed so bright just months ago is no longer so optimistic. The words “I’m terrified” are not an overstatement when you are no longer working and you’re living on your life’s savings. What you can do in a bear market besides “stay the course”

Tony is worried about the current market volatility and wants to do something besides “stay the course.” He understands that markets bounce back, but he also realizes that his time horizon may be shorter than it takes for the market to bounce back. He feels his dream retirement slipping further and further away.

Unfortunately, no one can predict what the future will bring, so it is important to try not to beat the system during a bear market. If you jump out of the market at the wrong time your accounts may never recover.

Instead of trying to calculate what will happen, it is important to build a framework to navigate these difficult financial situations. When you are confident in the framework you have built you’ll be able to think through challenges thoughtfully and avoid overreacting one way or the other.

Your framework can help you map out where you want to go and how to get there. If you are feeling terrified, now is a good time to revisit your plan of record. Is it feasible? Is it resilient? Making small iterations while sticking with your carefully laid out process will ensure that you make it through these unsettling times. Doing something during a bear market provides a sense of agency

Creating an action item can help give you a sense of agency when you have so little control of the big picture. That action item could be something as small as canceling Netflix, checking your net worth statement, or even reassessing your risk tolerance. However you choose to take action, remember to consider how that action fits into your overall financial plan. Using retirement funds to self-fund long-term care

Long-term care insurance is expensive which can make planning for a long-term care event challenging. As with any financial plan, it is important to plan for long-term care in an organized way. Rather than writing off long-term care insurance as too expensive, consider all the options. One resource you can use to explore the various possibilities is LTCI Partners.

Listen in to hear Tanya’s guidance on rebalancing, Social Security, and tax rates. Don’t miss the answers to all kinds of listener questions. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT

[2:08] Feedback from my recent conversation with Amy Bloom
[6:48] Why I’m terrified

LISTENER QUESTIONS WITH TANYA NICHOLS

[15:40] Claiming Social Security based on an ex-spouse’s benefit
[17:24] What to do when you are terrified about the future of retirement
[26:18] A tax rate question
[28:21] What to do with a CD to pay for a parent’s assisted living
[30:19] On using retirement funds to self-fund long-term care
[37:17] Guidance on rebalancing

TODAY’S SMART SPRINT SEGMENT

[44:38] Review your net worth statement and think about what you can do

Resources Mentioned In This Episode
LTCI Partners - take the long-term care insurance questionnaire!
Align Financial
Behavior Gap with Carl Richards
Vanguard white paper on rebalancing
Episode 442 with Amy Bloom
Rock Retirement Club
Roger’s YouTube Channel - Roger That
BOOK - Rock Retirement by Roger Whitney
Roger’s Retirement Learning Center

Should I Prepay the Mortgage on My Rental Property Before I Retire? Jul 13, 2022

Show notes

This month we are answering your listener questions. If you have a question that you would like answered on the show you can jump the line a bit and take the fast track by submitting an audio question. Head on over to RogerWhitney.com/AskRoger and hit record to submit your question.

Today I answer questions on a broad range of topics from paying off a mortgage on a rental property to determining the right balance for investment when there is a significant pension to whether to use a loan to pay for life while the market picks back up. Listen in to hear my thoughts on these questions so that you can not just rock retirement but rock life as well. Update your net worth statement (even if it is painful to look at)

How often do you update your net worth statement? It is important to do so annually or every 6 months. I recommend this exercise because your net worth statement is a fantastic tool that shows you the financial impact of the decisions you make.

However, due to the recent market volatility, opening your monthly investment statements isn’t as much fun as it used to be. Regardless of this fact, it is still important to understand where you stand financially so that you can work to improve your financial decisions. Should Tyler pay off his rental property mortgage?

Tyler is still young, has no debt besides his rental property, and is a great saver. He is wondering if he should pay off the mortgage on his rental property. The traditional wisdom is to keep the mortgage. Since he has a low-interest rate, mathematically it doesn’t make much sense to pay it off. But that doesn’t mean he shouldn’t pay it off.

These types of decisions are rarely about math. It is important to factor in personal feelings as well. Tyler needs to consider all the factors involved and come to a decision that is uniquely his own. There is no wrong answer to this question. What is most important to consider is which choice will give him peace of mind. Should all of Adam’s investments be in equities since he’ll have a pension?

Adam will soon retire from the military with a $70,000 per year pension. He feels that the traditional 60-40 retirement portfolio won’t be aggressive enough since he has such a large pension. So, he is wondering if all his investments should be in equities.

Instead of building your portfolio first, start by creating a retirement plan of record to forecast what you need to live a great base life. Consider your income from social capital (Social Security, pension), financial capital (investments), and human capital (work).

Once you understand how much financial capital you will need, then you can build your pie cake which consists of an emergency fund and a secure income floor with 5 years of spending. Since you have 5 years of prefunded income, then you can invest as aggressively as you would like. This system is a fantastic way to help guide your spending in retirement. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT

[2:25] Opening your monthly statement isn’t as fun as it used to be

LISTENER QUESTIONS

[5:00] Should Tyler pay off his rental property mortgage?
[9:40] Should all of Adam’s investments be in equities since he’ll have a pension?
[16:50] Is there a method for deciding the best location to move to in retirement?
[23:44] Using a loan vs. cashing out on stocks during a bear market
[29:40] On reframing old age
[31:38] Pros of cons of timing retirement

TODAY’S SMART SPRINT SEGMENT

[37:00] Update your net worth statement

Resources Mentioned In This Episode
Boomer Benefits
Ted Lasso
Episode 412 - What Is a Retirement Plan of Record?
Episode 310 - Investing in Retirement: The Pie Cake
Rock Retirement Club
Roger’s YouTube Channel - Roger That
BOOK - Rock Retirement by Roger Whitney
Roger’s Retirement Learning Center

Can I Count on Average Returns and Inflation for Retirement? Jul 06, 2022

Show notes

Many people are concerned about markets and inflation right now, but rather than focusing on this in today’s episode, I’ll answer your investment strategy questions. I choose to focus on strategy because if you can create a feasible, resilient retirement strategy, you’ll be able to weather all kinds of economic uncertainties.

Make sure to stick around until the end to hear an interesting interview that may challenge you to rethink your preconceived ideas. You won’t want to miss it if you are open to hearing different perspectives.

If you are looking for a fast pass to get your retirement question answered, record an audio question at RogerWhitney.com/askroger. Unfortunately, you won’t win retirement

I have some bad news for you. You aren’t going to win retirement. There is no way you will figure everything out because there is no right answer.

Despite this fact, you will be okay. By intentionally working through your decisions you’ll be able to enjoy retirement to its fullest. Not everything will turn out the way you want, but if you work through the decision-making process with the spirit of a scientist, you’ll continually improve. When faced with the results of a poor decision, take time to dissect what went wrong so that you will be able to improve your decision-making the next time around.

Learning from your mistakes instead of stressing over them will help you improve your decision-making process so that you’ll achieve better results in the future. How to account for uncertainty in retirement?

When creating a retirement plan, any room for error is scary. Even a 1% uncertainty can be unsettling. So what kind of market returns should one anticipate when using retirement calculators?

The problem with retirement calculators is that you can’t believe the calculator. None of the scenarios that the calculator proposes will actually happen. This makes long-term planning hard to predict.

It doesn’t matter how much you analyze your future spending, more accuracy will not improve precision.

You can’t know what your spending will be in 10, 20, or 30 years, which means that you can’t make life decisions based on an imagined future. Rather than trying to completely remove uncertainty, make reasonable assumptions to manage that uncertainty. Managing uncertainty is the essence of retirement planning. A feasible, resilient plan will see you through retirement

Once you figure out the basis that you need to live a great life in retirement then you can organize a feasible plan around that great life. Give yourself optionality by making your plan resilient. With your feasible, resilient plan you can use long-term calculations to plan for the short term.

By creating a resilient plan you’ll create slack in the system so that you can change your mind as you change over time. Managing uncertainty instead of trying to eliminate it will give you agency and build confidence in your retirement plan.

Listen to the answers to all sorts of retirement strategy questions and make sure to listen until the end to hear the riveting interview with Amy Bloom. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN LISTENER QUESTIONS

[4:50] Should Jennifer count on an average market in retirement?
[13:52] Should I worry about poor investment returns or look for alternatives?
[23:42] What about using laddered ETFs rather than a bond ladder?
[25:07] On my language usage
[26:40] On using a 72T before age 59.5
[30:45] Should Dan continue to hold a life insurance policy if his house is paid off?
[35:03] How to leave behind your life story

INTERVIEW WITH AMY BLOOM

[40:16] Why did Amy choose to share her story?
[43:00] When did Amy and Brian approach this topic?
[50:25] How to be helpful with a life-changing diagnosis
[51:27] On how to approach this situation
[54:30] How they navigated the logistics
[1:01:26] How did the family react?
[1:04:43] What did Amy learn from this experience?

TODAY’S SMART SPRINT SEGMENT

[1:09:19] Reassess your relationship with the internet and news

Resources Mentioned In This Episode
LTCI Partners
Dignitas
BOOK - In Love by Amy Bloom
Episode 441 - How to Leave a Lasting Legacy
Fidelity Retirement Calculator
Fidelity 72T calculator
Dan Miller
Rock Retirement Club
Roger’s YouTube Channel - Roger That
BOOK - Rock Retirement by Roger Whitney
Roger’s Retirement Learning Center

When Is It Time to Switch Advisors and More of Your Questions Jun 29, 2022

Show notes

If the market outlook has you feeling uncomfortable, you are not alone. This discomfort may cause you to want to change course, but consider that moments of extreme discomfort are often reverse indicators. Extreme discomfort can mean that you are on the right track to grow in a new direction.

On this episode of Retirement Answer Man, I answer your questions about choosing a financial advisor, how to weather tumultuous financial markets, and using a Roth 401K. Learn what you can do in the midst of an uncertain future by pressing play. Is this the big one?

Weathering market downturns can be like weathering a storm. When you are in the thick of it you may wonder if this is the big one that will wreck your home and change your life. Should you just hold on tight and hope that everything will all work out?

No. No one can hold your hand and assure you that your finances will recover. The rules of investing change in retirement

The rules of investing when you are in the accumulation period of life don’t work the same in when you are decumulating assets.

Since you are nearing or already into retirement you don’t have a 40-year investment timeframe to work with, so you may not be around for the next market upswing. You're in a period of life where you will need money from your investments in a short time frame.

This is why you’ll need a well-thought-out strategy that can help you to stay agile. As the situation unfolds, you can make little adjustments as needed. Staying agile will help you maintain flexibility and retain agency.

In a situation that feels out of your control, it is important to find ways to retain agency to do what you have to do to control the things that you can. You don’t want to feel powerless, so focus on what you can control. Watch out for false prophets

No one can predict what will happen in the future. However, there are many out there that claim that if you follow them they will lead you down the right path.

We have to accept our own uncertainty and refrain from trying to figure it all out. Instead of trying to predict the future or following false prophets, it is important to create a plan that you can follow to actively navigate through these tumultuous waters which will see you through any eventuality. How to know when it is time to switch advisors

How can you know if your financial advisor is doing a good job? What are some red flags that indicate that you should reevaluate your relationship with your advisor?

One listener is concerned about his financial advisor since they had two misunderstandings in the last two years and is wondering if he change advisors.

When researching financial advisors look for a specialist that can advise you through your specific financial situation. Consider whether they have the skillset and expertise to handle the problems and opportunities of your specific situation. Do they focus on what you need?

Is your advisor an active thinker that makes decisions or do they simply follow a checklist? Since the decisions that you are making aren’t crystal clear, it is important to have a process to think through decisions in an organized manner. Does your advisor help you with this? Do they walk you through the pros and cons of each decision?

Is the advisor product-focused or process-focused? If they are product-focused then this is a red flag. Another red flag is if they focus on trying to predict what the markets will do. Since no one can predict the future, it is important to find someone who will focus on the things that are within your control.

Listen in to hear what else you should consider when choosing a financial advisor and when to consider finding a new one. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT

[3:23] Moments of extreme discomfort are reverse indicators

COACH’S CORNER

[7:38] Kevin wants to give to the kids while they're still here
[12:15] On giving money without strings attached
[17:25] Kevin is relearning to show his true colors

LISTENER QUESTIONS

[19:39] How to know when it is time to switch advisors
[34:05] What gives us the confidence that we will recover this time?
[41:50] Should Jen switch to a Roth 401K?
[48:23] What to use as a yield for net present value calculations

TODAY’S SMART SPRINT SEGMENT

[50:07] Experiment with digital minimalism for a week

Resources Mentioned In This Episode
BOOK - The Checklist Manifesto by Atul Gawande
Boomer Benefits
Rock Retirement Club
Roger’s YouTube Channel - Roger That
BOOK - Rock Retirement by Roger Whitney
Roger’s Retirement Learning Center

Leave a Lasting Legacy: How to Create Your Legacy Strategy Jun 22, 2022

Show notes

We all want to leave a legacy to those we love, but leaving a legacy doesn’t mean simply making a will. To create a lasting financial and nonfinancial legacy you need to have a strategy that you can rely on. Today you’ll learn the steps to take to create a lasting legacy. Leaving a legacy is different from estate planning

Often times we read about a hot investment or retirement planning tip in an article or hear some equally savory advice in a podcast and we jump to take action on it rather than thinking about how it could fit into our overall plan. I call this letting the tail wag the dog.

Instead of letting the tail wag the dog, think about your actions first. Stop for a moment and think about how that new shiny idea or product would fit into your overall retirement plan. When you have a goal-based plan in place, it allows you to think through decisions in an organized way. You’ll want to use similar methods to build a plan to create the most impactful legacy that you can. How to begin creating your legacy plan

There are a couple of steps you can take to begin creating a strategy that will allow you to develop a lasting legacy.

The first step is to consider what you can afford to do. You can do this by determining how much excess capital you have. This can be a tricky number since there are so many unknowns to consider. These unknowns make it hard to determine how much you will have at the end of your life.

Consider what is feasible considering your resources and your projected spending. You can gain a better understanding by using a plan of record. If you have never used a plan of record, keep your eyes open for this week’s 6-Shot Saturday newsletter to get a free template. If you aren’t signed up for the newsletter, head on over to RogerWhitney.com to fill out the form and subscribe. What are your legacy goals?

Now that you have determined what is feasible given your life vision and resources you can move on to step 2. Consider what kind of financial and nonfinancial impact you want to have. What do you want to accomplish?

Do you want to be able to contribute to your children’s retirement savings? Or maybe you want to help them buy their first home.

Do you want to create a nonfinancial impact by developing the tradition of having a weekly family dinner? Do you plan on being an exemplar and coaching them through tough choices?

Create intentionality with your legacy strategy by framing it in financial and nonfinancial ways and considering the impact you want to have during and after your life.

After these first two steps, you can begin to create your strategy. You’ll want to think about maintaining flexibility with your strategy since markets won’t always cooperate with your plans. Your legacy should be built with discretionary money. The tactics will come easy if you focus on creating a strategy first. Listen in to hear how to build your lasting legacy. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT

[2:43] Doctors don’t want you to engage and ask questions
[8:00] Leaving a legacy is different from estate planning
[13:17] What impact do you want to have during your life?
[18:09] Take time making large stake decisions
[25:50] The tactics are easy if you take these previous steps first

LISTENER QUESTIONS

[27:22] The differences between the representative payee program and advanced designation in Social Security
[32:20] How to create a discount factor using a household balance sheet
[40:09] My thoughts on taking Social Security at 68 instead of 70
[41:25] How the IRMAA brackets work
[45:30] Reimbursing your Medicare Part B premiums from your HSA

TODAY’S SMART SPRINT SEGMENT

[47:05] Map out what kind of financial and nonfinancial legacy that you want to leave

Resources Mentioned In This Episode
BOOK - Retirement Planning Guidebook by Dr. Wade Pfau
SSA.gov/payee
SSA-44
How to Be a Better Advocate for Your Health
LTCI Partners
Rock Retirement Club
Roger’s YouTube Channel - Roger That
BOOK - Rock Retirement by Roger Whitney
Roger’s Retirement Learning Center

Leave a Lasting Legacy: How to Leave a Nonfinancial Legacy Jun 15, 2022

Show notes

When you think about leaving a legacy do you immediately think about passing on your assets?

What may be more important than passing on money is leaving behind a nonfinancial legacy to those that you love. Have you considered how you will do this?

If you would like to leave more than just a trust fund to your family then you won’t want to miss this episode of Retirement Answer Man. You’ll learn about setting a nonfinancial legacy objective, plus strategies, tactics, and more. Should you panic about a bear market?

I just want to acknowledge that it can be challenging to have confidence in your retirement plan right now. We are now in a bear market which means that stocks are down 20% from their highs. That can give you plenty of anxiety, but since that bear market is paired with decreasing bond prices, this can lead to outright panic.

Now is the time to reflect on your retirement plan. If you have created an objective-based agile retirement plan you will be able to weather this storm. Have confidence in your strategic plan. What is the objective of leaving a nonfinancial legacy?

It will be nice to leave money for your loved ones but wouldn’t you like to leave more?

To truly leave a legacy you need to be an exemplar. An exemplar is defined as one who serves as a role model or an example.

Even if there is a gap in where you are in life and where you would like to be, your children and grandchildren are learning how to navigate the world based on your example. They emulate you, so being an exemplar is the best nonfinancial legacy that you can create.

The more you can encourage others the better exemplar you will be. To encourage means to give courage to someone else. Give your loved ones the courage to lead their best lives. Help them on their journey to be their best selves. You can use finances to help others on their journey but encouragement is even more important. Strategies to use to leave a nonfinancial legacy

Life is full of the mundane, the day today. But the peaks, pits, and transitions are the flagship moments that we remember. These are the moments that influence how we view the world. If you can help someone during one of these moments in their lives, it may go a long way in transforming their future.

You can help your community by looking out for these moments in their lives and accentuating them. During the peaks, help them to put an exclamation point on that moment in time so that they can look back and reflect on that high.

You won’t be able to fix their pits, but you can show up and help them through.

An encouraging word can help mark transitions in ways that you may not predict.

Fill in the pits. Mark the transitions. Celebrate the peaks. This is how to leave a lasting legacy.

Listen in to hear how you can help your loved ones be the best versions of themselves through your nonfinancial legacy. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT

[3:22] What is the objective of leaving a nonfinancial legacy?
[9:05] Strategies for leaving a nonfinancial legacy
[17:55] Tactics for creating a nonfinancial legacy

LISTENER QUESTIONS

[20:52] How to use a solo 401K
[28:28] Should you buy one $10,000 Ibond or multiple smaller amounts?
[31:02] The pro-rata rule and Roth conversions
[35:35] How can non-sporty people add exercise into their lives?

TODAY’S SMART SPRINT SEGMENT

[39:37] Listen to somebody with full presence

Resources Mentioned In This Episode
BOOK - The Power of Moments by Chip Heath
BOOK - Giftology by John Ruhlin
BOOK - Tiny Habits by BJ Fogg
IndividualK.com
Check out Boomer Benefits, their services are free to you!
Rock Retirement Club
Roger’s YouTube Channel - Roger That
BOOK - Rock Retirement by Roger Whitney
Roger’s Retirement Learning Center

Leave a Lasting Legacy: How to Leave a Financial Legacy Jun 08, 2022

Show notes

We all want to leave a legacy behind after we pass. The legacy you chose to leave is up to you. This episode is part of a 5 part series on leaving a lasting legacy. Today’s episode focuses on leaving a financial legacy. Make sure to look out for the next episode so that you can learn how to leave a non-financial legacy. Subscribe to 6-Shot Saturday

We also have the answers to several listener questions on this episode and many others. To submit your own questions for me to answer on the show simply hit reply to the 6-Shot Saturday newsletter. If you aren't subscribed, consider signing up to receive a weekly summary of the show along with any helpful links or tidbits that I find interesting and want to pass along. The difference between estate planning and financial legacy

Estate planning and leaving a financial legacy are not the same. There is a difference between the two. When you pass away you will leave behind property, financial assets, and maybe some liabilities. Estate planning is the official process of closing the books on your financial life. If you leave behind more assets than liabilities then those assets will have to go somewhere. The probate process spells out how that will work.

You get to decide how to distribute your assets. When deciding who will receive your assets it is important to analyze the outcomes you are trying to achieve. This process is the way to leave your financial legacy. Planning the outcomes

If you are married, it is important to ensure that your surviving spouse financially secure. That is usually the first consideration in leaving a financial legacy.

Those that have children often choose to leave their legacy to their children, others choose to leave their bequeath to friends or charitable organizations. It is important to remember that if you don’t approve of the financial trajectory that one of your children is on, you don’t have to enable their poor behaviors. You get to choose who to bless with your assets and how. You do not have to support behaviors that you don’t want to support. There are strategies you can use to help your family while at the same time protecting them from themselves.

There are obstacles that could stand in the way of achieving the financial legacy outcomes that you desire. Our culture makes discussing money a taboo subject. This could stand in the way of the outcome you seek. Many people avoid planning their legacy and choose to ignore this type of plan. A lack of planning will mean that you won’t achieve the outcome you seek. Strategies and tools to leave a financial legacy

When you pass you’ll want to transfer your assets as efficiently as possible. While a will is the first tool that you should have in place, many people are surprised to realize that a will is not that efficient since it must pass through probate. There are other ways that you can pass your assets on to those you love without having to go through the probate process.

A living trust is a revocable trust that bypasses probate. The trust document not only states who receives the assets, but it can also define how those assets are managed.

Another way to efficiently manage your financial legacy is through beneficiary designations. By designating your beneficiaries in your IRAs and 401Ks these assets will bypass probate and flow to your chosen beneficiaries. Make sure that you revisit your beneficiaries regularly to ensure that they are up to date.

Listen in to hear tactics you can use to leave your legacy both during your life and beyond. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT

[3:20] Estate planning and leaving a financial legacy are not the same
[6:13] What outcomes do you want?
[10:45] Obstacles to the outcomes
[12:14] Strategies and tools to use to leave your legacy
[17:48] Tactics to use to leave a legacy during your life
[23:12] The ways you could give

LISTENER QUESTIONS

[26:08] Dave’s question on investment classes
[35:44] What exactly is the market?
[40:11] Carl’s question on selling a large position in one stock

TODAY’S SMART SPRINT SEGMENT

[44:15] Be courageous. Act in the presence of fear

Resources Mentioned In This Episode
LTCI Partners
Make sure that you are signed up for the 6-Shot Saturday newsletter!
Rock Retirement Club
Roger’s YouTube Channel - Roger That
BOOK - Rock Retirement by Roger Whitney
Roger’s Retirement Learning Center

Leave a Lasting Legacy: What Is a Legacy? Jun 01, 2022

Show notes

Have you considered the legacy you will leave to those whose lives you touch? Does leaving a legacy need to be financial or something more?

This month we explore how to leave a lasting legacy in an organized way. You’ll learn the ways that you can leave an enduring legacy during your life and beyond.

Today we are defining legacy and noodling on what that means both financially and non financially. Next week, we’ll discuss the different strategies that you can use to leave a financial legacy, the following week we’ll explore non-financial legacies, and in the 4th episode of this series, you’ll learn how to create your own legacy strategy. Live a life true to yourself

Some people are spurred into retirement because they have trouble compartmentalizing work and so it bleeds into other areas of their lives. They choose retirement to escape the pace of a grueling work life.

However, many high performers experience a lot of guilt upon retirement. They may feel an obligation to their team or their clients to continue working and feel held back by other people’s expectations, but living a life true to yourself means letting go of others’ expectations.

Learn how to not just survive retirement, but gain the confidence to rock retirement. Sign up for the 6-Shot Saturday newsletter to receive a weekly email with a summary of the answers to the questions from the show, plus links, tools, books, and other resources that will help you on your retirement journey What do you think of when you hear the word legacy?

When you hear the word legacy do you simply think of money or does legacy mean something more?

My mom died young–she was only 48 when she passed. When I think back on her legacy I don’t consider the check I received from the lawyer a few months later. Instead, I am reminded of our conversations and debates on how best to live life. You could say that this podcast is an indirect result of her legacy.

Mom insisted on living a life of delayed gratification so that she could save for the future–a future that she never got to enjoy. I argued that living life in the present was the way to go. However, finding a balance between living well today and delaying gratification is the best way to live a life without regret. Ultimately, that is what this podcast is all aobut. What does legacy mean?

The dictionary defines legacy as money or property given in a will, or something handed down from an ancestor.

When you die you will leave a legacy. What you choose to leave behind is up to you.

A nonfinancial legacy includes lessons, memories, and experiences that you share with others. How are you actively working to build a nonfinancial legacy in retirement?

A financial legacy could be money, property, or other mementos that generally come to your loved ones in a sterile way. A financial legacy could give your heirs the financial fuel they need to get started or continue on their journey through life. Make sure to tune in next week to hear what tools you can use to build your financial legacy. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT

[5:35] What do you think of when you hear the word legacy?

LISTENER QUESTIONS

[14:48] A Daily Stoic blog post
[16:14] Responses to Wendy’s question about postponing travel
[19:03] A Roth conversion question from Joel
[22:22] Joe’s question on planning for inflation
[27:12] What should Joe’s CFP be doing in response to the current market conditions?
[33:02] Where I learned to fly fish in Colorado

TODAY’S SMART SPRINT SEGMENT

[34:17] Expand your thinking on legacy

Resources Mentioned In This Episode
Legacy Is Not for You from the Daily Stoic blog
Boomer Benefits - check out their FREE 6-day mini-course!
Episode 429 - Should I Retire Earlier If I Have Health Issues?
IRS Publication 505
Rock Retirement Club
Roger’s YouTube Channel - Roger That
BOOK - Rock Retirement by Roger Whitney
Roger’s Retirement Learning Center

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