Retirement Answer Man

Latest Episodes:

Dying Ain't Cheap: The Emotional and Financial Costs of End of Life Care Jun 24, 2015

Show notes

IS ANYONE THERE??? I ask because, no one wants to talk about dying or end of life costs. Seriously, when does one bring this subject up? At a family dinner?? Maybe on your Saturday date night??? Most likely the subject is broached when you bear witness to the devastating effects it has on someone you know. The Emotional and Financial Costs of End of Life Care

I've learned a lot about the devastating costs of end of life care lately. Over the last year, there's been a lot of death in my family. Last year my sister, Barbara passed away at age 51 and my aunt Nicola passed too. Now, at age 96, my grandmother is tiring out and is in hospice.

When someone you love is dying, it takes a toll on everyone close to them. If you're not careful the emotional and financial toll can be devastating.

In this episode,

We'll discuss:

How to manage the emotional cost of end of life
The role of family in end of life
The average cost of end of life care
The uncertainty of the end of life process
Ways to plan for end of life costs
The importance of good estate planning documents
How to write a family love letter

Listener Question
After listening to episode #69 I have had a question I have needed answered for a while.. .
Quick background Im 33yrs old have no retirement working on life/work balance.
Married 3 kids
Built my own business for last 8 years best profits have come last 2 years and current year.
I have no debt personally besides my mortgage.
I have some business debt im paying off over next 2 years.
My question is how much should I start investing in retirement vs reinvesting into my company to help it grow. Up until age 30 I have had the mindset that ill invest in my retirement later and building the company
Great question! I struggled with this question as well and work with many owners that have the some issue. We business owners tend to be very confident in our abilities and company. Most business owners have the majority of their assets tied to their business. Makes sense, since typically the best return on investment is investing in themselves.
If we're not careful, though, we can become addicted to fueling our business and fail to diversify our assets outside our business.We'll discuss:

The difference between a cash flow business and enterprise.
How to decide when to start diversifying your assets outside your business.
The difference between wealth creation and wealth preservation and growth.
The importance of not getting "addicted to the deal."
How to separate your business and personal finances.
The importance of "don't go broke" money.

Don't Miss Your Life While Planning for Retirement Jun 16, 2015

Show notes

You may die tomorrow. You may get sick. There's no way to predict it and there's nothing you can do about it. Yeah, It sucks, I know. I've got the same deal. As important as planning for retirement is, its just as important...no, more important....you make the most of the only life you have. The one that's happening right now!

The frailty of life is so easy to forget. We're so busy planning, worrying and doing we can miss enjoying the here and now. Lately, I've had lots of reminders of how important enjoying today is. Last year, my sister passed and aunt passed away, my grandmother (age 96) is in hospice and a old neighbor was just diagnosed with MS. I think of events like these as taps on the shoulder. God reminding me, that I was created to live NOW.

Don't just plan a great retirement. Not at the expense of living today. To create a great life, you need to find that balance between living well today AND planning for tomorrow. I know, it's a hard balance to achieve. It might be impossible. You still need to try though. And don't wait, as many do, for a health issue to force your hand. Start today to:

Dream up, plan out and begin living an amazing life.

In this week's episode, we here Amy's journey to retirement and how health issues helped bring into focus the need to find better balance between living today and planning for retirement? Lessons Learned From Amy's Story

Don’t postpone living. Tomorrow is promised to no one. Health issues can hit at any time.
Resist the urge to inflate your lifestyle as your income rises. Society has trained us to be consumers and it can rob us of our financial security.
Even after financial ruin, you can have a great life.

Who is Amy?

46 married 15 years
Two children, 19 and 20
Owned our own business, CPA
Teaches part time at a local university
Shares the same financial philosophy as her spouse
Very debt adverse

What Does Retirement Means to You?
“I enjoy working. I consider being a professor being retired from being a CPA.”
“I don’t see us every not doing anything.”
“We envision traveling and work camping to help pay expenses.”
“I am disabled and my mobility has gotten worse as I’ve gotten older.”
What Are You Most Excited About Retirement?
“Not having to worry about the money”
“Being able to travel”
“Retirement means being able to go do what I want to do.”
What Are You Most Worried About Retirement?
“My health.”
“It (health issues) kinda opens your eyes that you’re not promised tomorrow.”
How Do You Think You’re Doing?
“My grandparents were always a good role model.”
“Being a CPA and seeing a lot of people struggle. I didn’t want to structure.”
What’s the Worst Financial Decision You’ve Ever Made?
“One thing we both regret, as the careers were lifting off…you always think you’re supposed to have that next big thing. The Cars the boats, the house…So we traded in this really nice house for this big mammoth..house. We got into it thinking that is what we were supposed to have.”
What has been the Hardest Thing to Deal with Personally in Managing Your Finances?
“I think telling myself that we have enough….because we had nothing and I never we want to go back there.”
“For the past 40 years we’ve been accumulating and accumulating. It’s hard now to decompress and flip that switch.”
What Resources Have Had the Most Impact in Your Life?

It comes from your multitude of experiences.
Mr. Money Mustache
Financial blogs

How Do You Want to Be Remembered?
“Just a good mother, wife and someone that gave back.”
“I just want to be happy and for my family to be happy. That’s how I want to be remembered.”
I Need Your Help
Many of you have asked questions about Social Security benefits. Smart move. Your Social Security benefit may be the most important retirement assets you have. I'm in the process of creating educational materials on how to maximize your Social Security benefits. What are the 3 things you'd like to learn about taking your Social Security benefit?
Click here and let me know.

WARNING: Investment Talk Radio May Be Hazardous to Your Retirement Jun 10, 2015

Show notes

If you're working to build a great retirement, stop listening to weekend investment talk radio. The economics of these local shows encourage the sale of investment product rather than offering sound investment advice.

In this week's episode, I answer listener questions and talk about the difference between investment and investment product and why too much worry will rob you of your life. Brenda asks: "What do you think about those weekend radio shows where they talk about "no risk investing" and how their clients "never lose money"? Are they legit?" In my answer I discuss:

The economics of weekend investment talk radio.
Why you should be careful in responding to messages playing off your fear or greed.
The differences between investments and investment products.
How to make smarter investment decisions.

Janie Asks: Question: My husband and I are both self-employed. (I am 35, he is 40). I am paralyzed with stress about retirement. We save about $20,000 per year, max out Roth, remainder in mutual funds. In addition. we also save for college funds (3 kids) and paying $350/month extra towards 30yr fixed mortgage. (Really have only been able to save like this for past 5 years--prior to that paying off student loans, building business etc.) We have no credit card debt and no car payments. What stresses me out, is that I don't have a traditional 401K so I don't know what is "normal" amount saved. I guess my question is. . . . . is 20% the right amount? Is it WAY low? Way high? Frankly, I want to be safe. I had a very uncertain, unstable childhood. I've built a great life for myself but I find myself not being able to enjoy my efforts because I'm constantly worried about the what ifs. (Are you a financial planner and a shrink. . lol). In my answer I discuss:

Why Janie needs to STOP worrying and start living more (I say it with love).
Why Janie and her husband should be PROUD of their progress.
The dangers of constant financial worry.
How a having sound plan can help lessen financial worries.
How a good financial planner might bring needed perspective and structure to their financial life.

Want to Make Smarter Financial Decisions?
Get free access to resources to help you:

Create a net worth statement
Manage cash flow if you hate to budget
Understand the basics of Social Security

Click here and get access to these and over 30 other retirement resources.

Retirement Means the Freedom to What I Want, When I Want Jun 02, 2015

Show notes

Have you noticed how these Journey to Retirement stories have little to do with money? Each listener story has focused on freedom and experiences. Favorite Quote From This Week's Story

"It (retirement) means the freedom to do what we want, when we want and where we want.” Lessons Learned

It’s important to think about what financial situation your spouse will be in when you pass.
Pay attention to fees and make sure the fees pay are adding value to your financial life.
Brake the habit of using consumer debt. It can be a major drag on building wealth.

Who is Harold

Age 56
Retired Air Force
Current civil servant
Married 23 years
Goal to retire in 6 years

What Does Retirement Means to You?
"It means the freedom to do what we want, when we want and where we want.”
"Our big hold up is not having the time to do the things we love."
“Our time is limited and everything we want to do feels rushed.”
What Are You Most Excited About Retirement?
“I’m excited about…well, see above answer.”
“Traveling is our big thing.”
What Are You Most Worried About Retirement?
“My main worry is...if something happens to me that she is taken care of.”
“I used to assist widows and widowers upon the death of their spouse. I saw so many times when the main breadwinner died and they were in horrible financial straights. I want to assure my wife is not in the same boat.”
“I want to make sure she knows where everything is because I don’t want her to feel paralyzed if something happens to me.”
How Do You Think Your Doing?
“I’m feeling very good.”
Who Do You Use in Your Life to Help Make Smart Financial Decisions?
“I have not and I’ve come close on three different occasions.”
What Has Been Your Worst Financial Decision?
“I really don’t have a big financial mistake, but I have several small ones.”“Prior to my wife coming into my life, I was not at all bothered by carrying debt. After she came into my life, she put a stop to that quickly.”
“I never used to pay attention to fees on the mutual funds I would get into.”
What has been the Hardest Thing to Deal with Personally in Managing Your Finances?
“The 2001-2002 and 2007-2008 markets were very hard to watch the bottom fail out of the market.”
“Putting money in is easy to me. Taking money out (in retirement) I think will be mentally a little more difficult.”
What Resources Have Had the Most Impact in Your Life?
“The Truth About Money” by Ric Edelman
“Buckets of Money” by Ray Lucia
How Do You Want to Be Remembered?
“Well Roger, I’d like to think of myself as a loyal, kind family man.”

Intentional Decisions Can Lead to a Great Retirement May 29, 2015

Show notes

Ask anyone and they'll most likely say they want to have a great retirement. But looking at the day to day financial decisions of most people might tell a different story.

What you do speaks so loud that I cannot hear what you say.

Ralph Waldo Emerson

It's not enough to want a great retirement. You need to decide what it will look like, create a plan to work towards it and execute your plan day by day. In short, you need to live an intention life.

This was the message I heard loud and clear from this week's listener story. Favorite Quote From This Week's Story

"To this day, when I want something, I think through it and make sure I want it" Lessons Learned From Ken, Jr.

Intentional decision making helps you think ahead and avoid rash decisions.
Don't overthink investing. Patience is a key to success.
Parent's play a big role in shaping how kids think about money
Not letting your lifestyle creep up as your income grows is essential to wealth creation

Who is Ken Jr.

Ken, Jr. was a Corporate computer guy for almost 20 years
Married 20 years
No Kids
Average age late 40’s
Both retired

What Does Retirement Means to You?
“I think mostly the freedom to set my own schedule. To enjoy anything I want to do."
“I do computer consulting on the side.”
“I do volunteer presentations at senior centers on technology.”
“I loved my day job, its just I wanted all of my own schedule."
The truth is, I feel much busier now that I can’t catch up with all the things I saved up wanting to do.”
What Are You Most Excited About Retirement?
“Actually, part of it is the challenge of planning money over time.”
“I just like doing whatever we want to do that week we’ve planned.”
What Are You Most Worried About Retirement?
“The usual three things, investment return income, expenses and inflation and longevity.”
Who Do You Use in Your Life to Help Make Smart Financial Decisions?
“It’s been on my list to do”. I planned aggressively for retirement 8 years before I retired.”
“I need to…to give me a checkpoint, an alternative view and to help me check in every year or two.”
"Mine wasn’t how to get to retire, it’s how to manage the puzzle into the future.”
What Has Been Your Worst Financial Decision?
“Was not knowing about Total Market Indexes, 20 years ago.”
What has been the Hardest Thing to Deal with Personally in Managing Your Finances?
“It has been the fine tuning and optimizing…”
What Resources Have Had the Most Impact in Your Life?
”My parents led by example. They lived below their means. They lived on one salary. They tracked their spending every day.”
"My parents taught me patience."
"Clarke Howard"
How Do You Want to Be Remembered?
“As a whole, I just want to be a good, helpful person.”

Yes, 27 Year Olds Think About Retirement Too May 17, 2015

Show notes

"The younger generation is ruining this country!" This was said about the baby boomers. Now it's said about the millennials. The fact is, each new generation brings a fresh perspective that helps our society and country renew itself. Recently I spoke with a "millennial" who, like you and I did, is working to raise a family and save for the future. Want to Learn How to Draw From Your Savings During Retirement?

I'll show you the system I use with clients during a free webinar on May 26th at 2:00 pm CST.

A free replay will be available to all that register.

CLICK HERE to register Favorite Quote

"My goal is to get compound interest on my side as quickly as possible." Lessons Learned From Jordan's Journey

Millennials are rejecting debt and working hard
There's a big difference between being frugal and cheap.
It's important not to rush into big purchases.
How important it is for couples to walk together as they manage their finances.

About Jordan

27 years old
Married, one child and one on the way
Very cheap or frugal
School teacher
Loves working with kids

What Does Retirement Means to You?
The idea if being a millionaire really struck me
That idea of being wealthy sounds good
The idea of traveling a lot is wonderful
What Are You Most Excited About Retirement?
What Are You Most Worried About Retirement?
Health, obviously
I think my biggest worry right now is will I have enough money. I think that’s what drives me to save.
The other thing that scares me….is the idea of inflation. What inflation will be like in 30, 40, 50 years.
My goal is to get compound interest on my side as quickly as possible.
How Do You Think You’re Doing?
“Based on where most people are, I’d give myself an A”
Do You Use a Financial Planner?
“I do but probably not as well as I should.”
What has Been Your Worst Financial Mistake?
Being cheap rather than frugal when buying their home.
What Do You Struggle With When Managing Your Finance?
She (my wife) just wishes we could spend a little more money and I ‘m just more on the frugal side.
…I wish I was a little bit less frugal, but then again I wouldn’t be in the situation I’m in now.”
What Resources Have Had the Most Impact on Your Life?
Dave Ramsey
Rick Edelman Podcast
How Do You Want to Be Remembered?
The most important thing to me is to be a good father and husband

Jen's Retirement Journey: Rising From the Ashes May 12, 2015

Show notes

We all screw up along the way to retirement. We blow all our earnings. We accumulate a pile of debt. We dig a hole so deep, we wonder if we can every get out and prosper financially.

In my 20's I bought a nice BMW and my wife and I built a fancy custom home. Both of us were earning good money and our prospects for future increases were great. I thought this adult career thing was easy. Projecting "normal" wage increases on our income, meant that we would be on easy street. I mean my income could never go down could it?

Lets just say I spent my 30's learning hard lessons and cleaning up the mess I made in our 20's. Jen's Journey to Retirement

In this week's journey to retirement story, we here from a smart lady that screwed up with debt, dug herself out of her hole and is now prospering.

If you're feeling like you're in a financial hole, listen to her story. She dug out and so can you. About Jen

Native Californian
Divorced
Mid-40’s (aka 29)
No children
Works in middle management

What Does Retirement Mean to You?
“I do believe that as we’re exposed to new ideas…our values shift”
“I didn’t realize how much debt could be shackles to your future”
“Retirement is freedom for me. Freedom in terms of my determining where I want to spend my time”
“Maybe for me it’s not really retirement, it’s financial freedom and independence”
What Are You Most Excited About Retirement?
“That ability to make spur of the moment decisions”
How Would You Have Changed Your 20’s?
“I would not have lived what I thought a typical american lifestyle was. I would not have lived beyond my means.”
What Are You Most Worried About Retirement?
“That I’m not going to make it and if I do my health won’t be there.”
“What am I missing now since I’m deferring so much for this date in the future.”
“The fact that maybe it’s too late. That I won’t be able to make that catch up date.”
“Retirement is the language I grew up hearing. We all work until we’re 65 and then we collect Social Security”.
“I don’t want to be that person that I have to augment my retirement.”
“You can’t bank on the fact that you have good health in retirement and that you’ll be able to work”
How Do You Think You’re Doing?
“I would love it if someone could look into their crystal ball and say I’m okay.”
Do You Use a Financial Planner?
“I’m afraid I’m going to choose someone that is inexperienced or has dealt with a situation similar to mine”
What is the Worst Financial Decision You’ve Ever Made?
“Oh there are SO many”
The decision to be a self employed individual and I was ill prepared with what that meant”.
“I got into something like $40,000 of credit card debt”.
"“I understand depression. When you wake up and there’s nothing and there is nothing I can do to get out of this mess.”
What Has been the Hardest Thing to Deal With Personally in Managing Your Finances?
“There’s a fear that any moment now my good fortune could disappear.”
What Resources Have Had the Most Impact on Your Life?

The Little Engine That Could
Young, Fabulous and Broke, by Suzi Orman
Why you need FU money, Jlcollinsnh.com
Mr. Money Mustache

How Do You Want to Be Remembered?
“I’m hoping who ever I meet…that I impact them positively.”

Rick's Journey to Retirement: Steady as It Goes May 03, 2015

Show notes

Despite what the media and some financial advisors tell us, preparing for retirement isn't about fancy strategies or the best investment. This week listener "Rick" shares his story of how he became a 401(k) millionaire by using a simple but powerful strategy.

"Rick" was the first listener to share his story. Rick isn't his real name and in order to present you a better image of who he is, I asked him what his financial "spirit animal" was. After an awkward pause he replied tortoise and after hearing his story, I thought it was perfect!

As you listen to Rick's story, you may feel like I did...a little jealous. Rick grew up with a sound financial basis from his parents. As you heard last week, I didn't. In fact, I think most of us didn't. If you're like me, don't worry. Regardless of where you are, you can begin a journey towards financial independence. About "Rick"

Age 59
Has worked for the same company for 30 years
Married 30 years
Same House 30 years
3 grown kids
Shares hobbies with spouse

What Does Retirement Means to You?
“I found it a little bit frightening"
“I love my work…though I;m caught between the parts I like and the parts I don’t like”
“I’ve always had a big lazy streak…work has so much structure and so many demands that it keeps me going”.
What Are You Most Excited About Retirement?
“The lack of stress!"
"That I’ll have time to do the things I like to do”.
What Are You Most Worried About Retirement?
“I think it would be health issues”.
“I’ve seen a lot of healthy people get hit with significant deseases out of the blue.”
“Nobody lives for every but I’d love to have 20-30 years of health left in my life.”
How Do You Think Your Doing?
“We probably have saved 20% of more of my pay since day 1.”
“Even in the early years when my income wasn’t anything special we saved.”
“We’re 401k millionaire now.”
“Money doesn’t come into our lives just so we can get as many toys as possible, it’s there to help people.”
“If you don’t save it, it doesn’t matter what your rate of return is, you’ll never have much.”
What Has Been Your Worst Financial Decision?
“I didn’t make many money mistakes because my parents were kinda Dave Ramsey people, long before Dave was born.”
"When we first got enough money to afford cars, we bought new cars”.
What has been the Hardest Thing to Deal with Personally in Managing Your Finances?
“I really don’t know an answer to this one.”
What Resources Have Had the Most Impact in Your Life?

How to Win Friends and Influence People. "That ability to communicate and sell my ideas had as much to do with my intellect when it came to the success of my career.”

What Do You Want to Be Remembered By?
“I think really all I really want is my kids to remember me a certain the way, like I remember my parents.”
“Someone that is honest, generous and was a loving father.”
Want to Share Your Story?
Tell me below. I'll send you the questions and details on how it will work.
As a thank you for contributing to the community, you'll receive a free 30 minute consultation to address any financial planning issue you want.

Aaron Walker Wants You to Be Extraordinary Apr 30, 2015

Show notes

There are plenty of people around today that will offer their services as a “life coach” or “business coach.” Few have the demonstrated history of success as businessman, family man and friend to man as Aaron Walker. Register for May 26th's Webinar: How to Manage Cash Flow in Retirement

Click Here to Register

In this episode, Aaron shares his Journey Towards Retirement. Below are some notable quotes from our talk. Aaron Walker's Journey to Retirement What Does Retirement Means to You?

“I won’t ever retire. I may slow down but I love building…”

“Retirement means, I just want to be safe because I may not be able to work”

“I don’t want to quit, but I do believe we should have common sense” What Are You Most Excited About Retirement?

“I’m excited I’m able to help ordinary men become extraordinary….pouring knowledge and whatever little bit of wisdom I have into others” What Are You Most Worried About Retirement?

“What creeps up sometimes is the fear of not being healthy”

“Recently I started paying attention to my health…I’ve lost 40 lbs since November 1st” How Do You Think You're Doing?

“I’m a big real estate guy, 75% of my retirement is in real estate”

“I wish I’d saved a little more cash”

“I worry sometimes if I’m balanced properly”

Who Do You Use in Your Life to Help Make Smart Financial Decisions?

“For the most part, I’ve done it for myself, that’s the reason I’m not as balanced as I should be” What Has Been Your Worst Financial Decision?

“I’ve never blown money, I work to hard to make it”

“Its simultaneous with one of my biggest successes. It was when I was 27 years old and I sold my business”

“Looking back now, I think I probably could have parlayed that into something larger”.

“I didn’t know I was going to get bored as fast as I did”

“I came from a very poor family…when to opportunity came along, it was the most money I could ever imagine” What has been the Hardest Thing to Deal with Personally in Managing Your Finances?

“In managing my finances, I’m self reliant and I probably should have been looking outward more and seeking more expert advice” What Resources Have Had the Most Impact in Your Life?

Essentialism: The Disciplined Pursuit of Doing Less
How to Win Friends and Influence People
The Bible
TED Talks
Mastermind groups “absolutely a game changer for me”

What Do You Want to Be Remembered for?
“I want to be remembered as the guy that helped other achieve their goals and dreams”
‘I want to be remembered as the guy that stops waiting to talk and fully engages”
Free Resources From Aaron Walker to Help you Find Meaning
Click Here to Get Aaron's Free Resources

A Personal Assessment
What Do I Want?
Steps to a Productive Day

Tell Your Money & Retirement Story Apr 21, 2015

Show notes

At the end of day, all that matters is what retirement means to you. Forget what the commercials say. Forget what the brochures say. Forget much of what your advisor may say. You don't have a "number", you have a life that you get to define and live.

This week, I'm starting a new series called Retirement to Me, where you, the listener, get to share the lessons you've learned along your journey and what retirement means to you. Your Story is Important.

Each of you have unique experiences, knowledge and perspective about money and retirement. By sharing your story, you can have a positive impact on other's journey and help them view retirement from a fresh perspective. My guess is, by telling your story you'll learn more about yourself as well. Here's How it Works

I'll interview willing listeners for approximately 20 minutes about their money and retirement story.
Our conversation will be just that: an informal conversation (no fancy interview structure).
I'll ask the same 10 questions (see below).
You'll get the exact questions beforehand.
Our talk will be prerecorded to allow for review and editing before publishing on the podcast.
You can share as much or as little as you're comfortable with. In order to protect your identity, you can change your name and/or elements of your story.
As a thank you, any participant whose talk is aired will receive a 30 minute planning call with me to address any financial issue they'd like to discuss.

Interested? Let me know here (remember to include your e-mail!) I'll Go First
To start things off, here is my money and retirement story.

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