Retirement Answer Man

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Listener Questions From the Can Carl Retire? Webinar Feb 04, 2015

Show notes

WOW, your response to the Can Carl Retire? series in January and last Friday's results webinar were off the charts. I received so many kind comment and sharp questions from you. In today's episode, I'll answer a portion of your questions and will work to get to the rest of them in next week's episode. Please keep them coming. If you're wondering, no doubt thousands of others are too. Want to Watch the Webinar Replay?

The webinar replay will remain available until Sunday, February 8th (11:59 pm). You can watch it by clicking below.

rogerwhitney.com/webinar Listener Questions Answered in This Episode

From Ken "I didn't see you mention an emergency fund, why is that?"
From Ken "What provision is made to pay for taxes on his 401(k) plan when required minimum distributions are required since most of his wealth is in tax-deferred plans?"
From Randy "Quicken sells software, called "WillMaker Plus", to create "a Will, Health Care Directive, Durable Power of Attorney for Finances and other essential documents". Do you have an opinion on the value of such software?"
From Joe. "I appreciate the webinar yesterday; helps me in thinking thru retirement planning. The question came up around pensions and taking a lump sum vs. taking annuity payments. You said something to the effect of "99% of the time it's better to take the annuity." That's one of my central planning questions, as I have a company pension that I will eventually be drawing from.
From Ken. (Ken was getting into this) "I just listened to the replay and thought it was very informative and provided a nice example of the process. As you mentioned during the webinar, given Carl is lucky enough to have a healthy pension which is rare these days, it would be interesting to know what the equivalent lump sum in current investable assets would need to be to get him to the same answer if he did not have the pension."
From Dave. Good podcast and interesting information about Carl's situation. I am wondering whether your estimated returns for Carl were too aggressive. Where the estimated returns (8+%) that you were showing after tax returns? It just seems, while the portfolio would be a nice blend, that the return estimates were higher than I have been estimating in my personal returns. Regards, Dave

Question for You: What do you want next?
The Can Carl Retire? series really resonated with most of you. It's been exciting to see you participating and asking question.
What would you like me to focus on next:

Another real world example?
Case studies of plans I've worked through (good and bad)
What to do if you're behind on savings?
More webinars? If so, on what? Social Security Maximization, goal planning or understanding market returns are some topics that come to mind

Click here and let me know

Will You Leave a Mess When You Die? Step 4 of Can Carl Retire? Jan 27, 2015

Show notes

Don't Skip This Step!

One of the most heartbreaking things I've seen over 24 years advising families is a surviving spouse or family member dealing with an unorganized estate. Not having your affairs in order, puts a huge burden on your family and compounds the stress of there loss.

According to a recent survey, 61% of people don't have a will. Even those that have a will, have failed to organize their financial information to make it easy for their loved ones to act. Don't be one of them.

Leaving a big mess of your affairs and estate plan will make life suck for your family when you die. A messy estate can take major financial and emotional tolls on your family.

Take the simple steps outlined this week and give a beautiful gift to those you leave behind.

Here Are Your Action Items for the Week

Listen to episode 50. We discuss, the basics of organizing your estate.
Review these worksheets. These 3 worksheets will give you the basics to make things easier for your heirs:
- 9 Important Estate Planning Steps
- What Your Survivors Need to Know
- What to Do When A Loved One Dies
Compete these to give your spouse or family the gift of an organized estate.
- Organizing Your Financial Life
- Create an I.C.E. Plan
- Family Love Letter

Ask questions. If you're stuck or unclear about something, shoot me an e-mail. I'll do my best to answer your question. Simply click here and ask your questions.

Don't Miss Friday's Webinar

Don't forget to tune in to the Can Carl Retire? Results Webinar this Friday at 3:00 CST.

You'll watch live as Carl finds out whether he can achieve his ideal retirement.

Plus, you see live as I stress test Carl's plan against the most common worries in retirement:

Bad market returns
High inflation
Long-term care costs
Outliving his assets

I Want to Retire, But What About...?!?: How to Manage Risk in Retirement Jan 20, 2015

Show notes

Risks can rob you from living a great life. Focus too much on them and you can miss out on a full life. Ignore risks and you can destroy your family's financial security. If you've started planning for retirement, you're probably overwhelmed with all the things you should worry about. This week, we'll address, head on, some of the biggest risks during retirement and help you assess how to handle them.

Important Note: If you haven't listened to step 1 or 2 of Carl's Plan you'll want to start there:

Step 1 Imagine Your Ideal Retirement
Step 2 Identify and Organize Your Financial Resources

This week, you'll focus on identifying and managing some of the big risks we all face during retirement.

Longevity risk--Will you live to 100? Here's a calculator to estimate our chances
Inflation risk--What could the cost of living be 15 years from now? Find out here
Market risk
Tax risk
Health care risk
Long-term care risk

Here's Your Action Items for This Week

Make sure to listen to the episode. I discuss each one of these retirement risks and provide some insights into how you can plan for them.
Review Carl's health care cost estimates. This will give you some insight into what you can expect.
Review worksheets. Review the Facing the Complexities of Medicare and Choosing Long-Term Care Insurance worksheets. These will give you the basics on how to address each area.
Complete the Will I Live to 100? calculator. The odds might be greater than you think.
Complete the Retirement Health Care Cost Estimator (optional). If you submit it, you'll receive a free personalized estimate of your retirement health care costs to help you plan for the future.
Finally, ask questions. If you're stuck or unclear about something, shoot me an e-mail. I'll do my best to answer your question. Simply click here and ask your questions.

In week 4, we'll discuss how to organize your affairs and set a gifting strategy for those you love. Want Access to the Free Resources to Plan Along Side Carl?
It's Not Too Late to Create Your Ideal Retirement
Sign up (rogerwhitney.com) and you'll receive:

All the retirement planning resources from week 1 and 2
This week's resources
Access to next week's webinar to find whether Carl is positioned to achieve his ideal retirement.

Step 2 Identify and Organize Your Financial Resources Jan 13, 2015

Show notes

Well, Were You Able to Dream Up Your Ideal Retirement? It can be hard to think big. Hopefully, you stretched yourself. No worries, if you're not finished. Your life is always a work in progress.

Important Note: Sign up late? If you'd like the resources from week one, replay and let me know.

This week, you'll focus on identifying and organizing your financial resources. In this step you'll create a clear snapshot of your current financial situation. This is a critical step. Don't get bogged down in getting every number right. You can fine tune things later on. Just focus on getting a read on your current financial picture.

For some, this can be hard to look at. If that's you, please relax. We've all walked a similar road (including me!). If you've made mistakes (maybe BIG mistakes), forgive yourself. The fact that you're receiving this e-mail proves, you are working to create the best life you can. Here's Your Action Items for This Week (To get assess to these resources sign up at rogerwhitney.com)

Make sure to listen to the episode. There are a number of subtle points made that will help you as you plan. For example, Carl made an important statement early in our talk. He said "Retirement planning should be about running to something, rather than running away from something."
Review Carl's cash flow summary and net worth statement. This will give you a snapshot of what the end result can look like.
Watch the short video. In it I give quick tips on how to think BIG about your retirement.
Complete these worksheets. It might take a little homework to get the estimated value of your social security, pension, assets and liabilities. It's worth the effort. Your net worth statement will be the key document you use to track your financial life.

Estimate future retirement income sources
Build your net worth statement
Manage your current lifestyle and cash flow

Finally, ask questions. If you're stuck or unclear about something, shoot me an e-mail. I'll do my best to answer your question.

In week 3, we'll discuss some of the financial risks during retirement and ways to decide what to do about them. It's Not Too Late to Create Your Ideal Retirement
Sign up (rogerwhitney.com) and receive weekly e-mails with all the resources we've covered.

Step 1 Identifying My Ideal Retirement Jan 04, 2015

Show notes

Are you ready to dream up your IDEAL retirement? This is week one of the Can Carl Retire? virtual retirement planning event. If you signed up for the free resources, you should an e-mail with all the items you need to complete this first important step. Haven't signed up yet??? No worries, there's still time. Click here and learn how you can plan along with us. Dream Up Your Ideal Retirement

In this episode, you'll listen is as I help Carl clearly defines his IDEAL retirement.

This is the week you get to think BIG about your future too. Don't worry about getting it all right. Your goals will change countless times. Focus on identifying what you care about right now. We'll discuss a process later, on how to adjust them as your life unfolds. Your Action Items for This Week

Make sure to listen to the episode. There are a number of subtle points made that will help you as you plan. For example, Carl made an important statement early in our talk. He said "Retirement planning should be about running to something, rather than running away from something."
Review Carl's Ideal Retirement Summary. This will give you a snapshot of what the end result can look like.
Think BIG. Not thinking big enough could rob you of your dreams. Suspend your reasonable attitude and focus on what "having it all" might look like. There will be time later to see what is actually possible. For now, focus on creating your IDEAL.
Watch the short video. In it I give quick tips on how to think BIG about your retirement.
If you're married, include your spouse. Each of us have our own dreams of the future. You're spouse's may be similar but different. Now is the time to hear each others dreams and to create dreams together. This way, the two of you will be in harmony about the future. This is crucial to a great marriage and a great retirement.
Complete the worksheet. Start off using scratch paper and go crazy with your dreaming. No filters here. Then, identify the goals that truly mean something to you. Don't forget to rate them as described in the worksheet. This will be important later on.
Finally, ask questions. If you're stuck or unclear about something, shoot me an e-mail. I'll do my best to answer your question. Simply hit reply to the e-mail I sent you with the resources.

It's Not to Late to Plan Alongside Carl
Click here

Lady J Can Help You Get Unstuck in 2015 Dec 31, 2014

Show notes

It's New Year's Eve and I've got two important items to help you create a great year in 2015. So let's get to it.

Item 1 Get Your Retirement On Track

Starting January 7th, I'll be creating a retirement plan for a listener, "Carl", of the Retirement Answer Man Podcast ON THE SHOW.

The best part is, you can plan along with Carl and I!!! Click here to find out all the details. Item 2 Start Making Your Dream a Reality (with Lady J)

Tonight a special lady, Jevonnah Ellison, is hosting her book launching party. On January 19th, her book, You Have What It Takes: How to Finally Start Making Your Dreams a Reality, hits book stores.

If you're feeling stuck and want to jumpstart your 2015, please listen to our talk and consider buying her book. She has an amazing message and spirit that just might start you on your journey.

You can visit her blog and get a free worksheet to help you discover your purpose here. THANK YOU

A big thank you, for all your e-mails, phone calls and messages. You're encouragement and content suggestions are great. I've got a lot of cool stuff planned for 2015 to help you find that balance between living well today and securing a great tomorrow.

See the Retirement Planning Process in Action Dec 29, 2014

Show notes

One of the most common comments I get from readers is how hard it is to get straight answers to their most important retirement planning questions. "When can I retire?" "What lifestyle can I expect?" "Will I run out of money?" What am I missing???"

Starting January 7th, I'll answer these questions for a fellow reader (Carl). You'll get to listen in as we create his retirement plan each week, culminating in a LIVE webinar where you (and Carl) will hear the results for the first time.

NOTE: check out the bottom of this post for an opportunity to plan alongside Carl

Who is Carl?

51 years old
Married 27 years with a 19 year old child
29 year corporate executive

What He Wants From the Plan:

When can I get out?
Will I run out of money?
How do I plan for worst case scenarios?
How do I handle healthcare?

During the webinar, you and Carl will watch LIVE as I stress test Carl's plan against the most common retirement worries:

Bad market returns
High inflation
Long-term care costs
Outliving his assets

Here's the Schedule

January 7th Defining Carl's ideal retirement
January 14th Reviewing Carl's financial resources
January 21st Identiflying risks to Carl's plan
January 28th Reviewing Carl's estate and giving wishes
January 30th LIVE webinar presentation giving Carl his results

Weekly summaries of Carl's plan
Free worksheets and checklists to plan alongside Carl
Free video tutorials to help you in each step of the process
Registration to the LIVE webinar on January 30th

Go to www.rogerwhitney.com/rpl

How to Launch Yourself to a Great Retirement Dec 23, 2014

Show notes

"Why won't someone give me a straight answer?" This is the comment I get most from listeners trying to find answers to their most pressing retirement planning questions. In 2015, I'm stepping up my game to help you find the answers to your most pressing retirement planning questions. Announcing Retirement Plan Live

Want to find the answers to the most common retirement planning questions?

Can I retire?
What the risk is that I'll run out of money?
What lifestyle can I expect during retirement?
What risks could blow up my plan?

Starting January 7th, you'll get the chance to listen in as I work with a fellow listener, "Carl" , to answer these very questions as we create his retirement plan.

You'll listen in, as I walk Carl through each stage of the planning process culminating with a LIVE webinar in which I present the results of Carl's plan.

Who is Carl? Carl is a listener to the show. He reached out to me earlier this year with a fantastic idea. He said, "What if, you work with me to create a retirement plan and recorded the whole process so listeners can hear how it works?" "BRILLIANT", I said, "I don't think it's ever been done". So we did it.

Carl and I have never met and have only interacted for this project. Each week, we'll play our meeting for each stage of the planning process. On January 30th, we'll have a LIVE webinar where you can watch and listen as I present the results of Carl's plan. Frankly, I haven't done the analysis yet, so even I don't know the results.

This is your chance to get a demonstration of the retirement planning process and hopefully see how your most important retirement questions can be answered. Want to Create Your Plan Along with "Carl"?

Sign up for weekly e-mail updates and launch yourself towards a great retirement. Each week during the month of January you'll receive a worksheet along with an instructional video to walk you through each step of the process. How to Launch Yourself to a Great Retirement with Stacking Benjamins

My favorite financial podcast (besides my own ;-) ) is Joe Saul-Sehy's Stacking Benjamins. It's informative, fun and often times just goofy. To quote his site, " In a world of hard-hitting, deep-thought financial stories, SB’s goal is lighter, more relaxed entertainment about money."

In this episode, Joe and I discuss his recent white paper, "Why You Shouldn’t Follow Dave Ramsey, Suze Orman or the Motley Fool".

Joe doesn't argue that you shouldn't follow a money guru, just that it's important you follow the right one. The right one depends on what stage you're your at in your money journey.

He says there are three stages of your financial journey and an appropriate guru for each stage.

Stage One (Launch) Getting off the ground
Stage Two (Orbit) Achieving financial freedom
Stage Three (You could die) Build serious wealth. Create an awesome legacy

To get a copy of his free white paper click here.

Stop Watching the Market and Create a Great Life Dec 16, 2014

Show notes

Seriously, does watching the market and comparing your investment performance to some benchmark help you create a great life??? Of course it doesn't. So stop. Stop worrying about "keeping up with the market" and get down to the important work of creating a great life. INVEST WISELY Segment

If you are investing without trying to achieve some greater goal, you're setting yourself up for disappointment.

Comparative investing is a losers game. It can:

create a never good enough mindset
cause you to over trade and chase investments
make you susceptible to product sales pitches
cause you to take too much investment risk (for no reason)
increase your stress
cause you to become disillusioned with investing

Last week, I asked a recently retired couple what they wanted. Did they want to keep up with the market or have confidence that they could maintain their lifestyle? You guessed it, they didn't care about the market, they cared about their life. Smart ones, they are.

PLAN WELL Segment

During working years a lot of our purpose comes from our job, but once we stop working nothing will automatically replace them. Unless we are intentional and planful, retirement can feel like a big let down.

John Knowlton, CFP just launched beerandpeanuts.net to help you avoid this big letdown. He's created resources in 3 areas that research has shown are critical to a healthy retirement:

Purpose (a reason to get out of bed)
Meaning (what if leisure isn't enough?)
Social contact (people to connect with)

Listen to our great conversation for key insights into how to create your own fulfilling retirement. Want to Learn to Retire with Confidence?

Get ready for a special never before seen event coming in January. Get Ready for Retirement Plan LIVE. Sign up at rogerwhitney.com for free updates on this special month long event.

7 Super Simple Tasks to Complete Before You Rock in the New Year Dec 09, 2014

Show notes

Yeah, there are lots of articles this time of year talking about year-end tasks to complete, but mine are Super Simple ones. Okay...maybe it's just my way of trying to sound different. Still, these ARE 7 relatively simple tasks that could make a big difference in your financial life (so indulge me). Invest Wisely When Should I Rebalance My Portfolio?

Today I read an article on market watch titled "The Hidden Truth About Rebalancing Your Portfolio" on marketwatch. The article discussed a recent study that argues that rebalance can actually increase the risk in your portfolio. In this episode, I discuss my observations on their conclusions and my "best practices" for rebalancing a portfolio during retirement. Plan Well 7 Super Simple Tasks to Complete Before You Rock in the New Year

Pay your real estate tax bill, before year-end if you want to deduct it on your 2014 taxes.
Get your RMD done. If you are over 70 1/2 or have inherited an IRA you need to do this before year-end to avoid a huge IRS penalty. Click here to learn more.
Identify opportunities to harvest tax losses. If you have realized gains for the year, look for current positions with losses that you can use to offset your gains. I discuss a few strategies for doing this.
Conduct an annual beneficiary review. Even if you know the primary beneficiary is correct, you still need to make sure you have contingent beneficiaries. There is a worksheet to do this in the Retirement Toolbox
Consider year-end giving. You can give $14,000 to any individual without tax consequence. If you have charitable intent, consider making charitable gifts before yearend.
Change your important passwords. Changing your passwords is like locking your door at night. It's just common sense. This is so important and almost no one does it. The holidays are a perfect time to do this. I use a password manager (1Password) to create and track complex passwords.
Consider diversifying your tax liabilities. The pressure to save on taxes each year can cause you to save too much in tax-deferred accounts. It's important that you have assets in taxable, tax-deferred and tax-free account. When you retire, you'll have more flexibility to manage your cash flow and tax bracket. If all you do is save in tax-deferred account (like most people), you could end up staying in a high tax bracket during retirement

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