Retirement Reality Podcast: Recent Episodes
Mike Kojonen
Weekly financial and retirement planning guidance with Mike Kojonen of Principal Preservation Services. Mike serves western Wisconsin and the Twin Cities areas of Minnesota. He's the co-author of Momma's Secret Recipe for Retirement Success and will impart financial wisdom each week on this podcast.
For some people, the idea of retiring and then getting another job is detestable. For others, they can’t sit still and have to go find some other job. In this show, we discuss the benefits of taking on side gigs during retirement and explore five practical ideas that can help retirees stay engaged and financially secure.
Here’s what we discuss in this episode:
0:00 - Intro
1:52 – Consulting
2:43 – Teaching
3:48 – Selling Items Online
5:30 – Pet Sitting
7:03 – Retail
8:40 – How it impacts planning
Our website: https://principalpreservationservices.com/
Phone: (855) 987-8888
Contact our team: https://principalpreservationservices.com/wisconsin-minnesota-financial-services/
Get your exclusive first chapter of Mike’s books: https://principalpreservationservices.com/books/
Check out our downloadable guides: https://principalpreservationservices.com/useful-financial-guides/
Check us out on YouTube: https://www.youtube.com/channel/UCJ6RRiWvkInUm_E3lg38T2g
The five love languages were made popular by author Gary Chapman. If you’re not familiar with them, they include acts of service, quality time, words of affirmation, gifts, and physical touch. In the spirit of the month of love, let’s take a look at how you may encounter the love languages when it comes to financial planning.
Here’s what we discuss in this episode:
0:00 - Intro
1:22 – Acts of Service
2:55 – Quality Time
4:16 – Words of Affirmation
5:33 – Gifts
7:19 – Physical Touch
Our website: https://principalpreservationservices.com/
Phone: (855) 987-8888
Contact our team: https://principalpreservationservices.com/wisconsin-minnesota-financial-services/
Get your exclusive first chapter of Mike’s books: https://principalpreservationservices.com/books/
Check out our downloadable guides: https://principalpreservationservices.com/useful-financial-guides/
Check us out on YouTube: https://www.youtube.com/channel/UCJ6RRiWvkInUm_E3lg38T2g
If you’ve spent years successfully managing your own investments, do you really need a financial advisor? That’s the question Bob, one of our listeners, sent in. He’s got an MBA, knows the markets well, and has always handled his portfolio solo.
So, is working with an advisor just an extra expense, or could it actually add real value? In this episode, we break down when and why even experienced investors might benefit from professional guidance and when they’re probably fine on their own.
Here’s what we discuss in this episode:
0:00 - Intro
1:23 – Today’s question
3:01 – How advisors provide value
4:18 – Financial blindspots
6:24 – Help managing a portfolio
8:43 – Why you work with an advisor
Our website: https://principalpreservationservices.com/
Phone: (855) 987-8888
Contact our team: https://principalpreservationservices.com/wisconsin-minnesota-financial-services/
Get your exclusive first chapter of Mike’s books: https://principalpreservationservices.com/books/
Check out our downloadable guides: https://principalpreservationservices.com/useful-financial-guides/
Check us out on YouTube: https://www.youtube.com/channel/UCJ6RRiWvkInUm_E3lg38T2g
Social Security claiming strategies can vary greatly depending on family dynamics. This episode explores how different family situations, such as those with a stay-at-home spouse or a blended family, can impact when and how to claim Social Security benefits to maximize your retirement income.
Here’s what we discuss in this episode:
0:00 - Intro
1:26 – Single-income households
3:53 – Coordinating claiming strategies
6:39 – Blended families
9:33 – Disabled family members
11:09 – Mike’s advice for claiming
Our website: https://principalpreservationservices.com/
Phone: (855) 987-8888
Contact our team: https://principalpreservationservices.com/wisconsin-minnesota-financial-services/
Get your exclusive first chapter of Mike’s books: https://principalpreservationservices.com/books/
Check out our downloadable guides: https://principalpreservationservices.com/useful-financial-guides/
Check us out on YouTube: https://www.youtube.com/channel/UCJ6RRiWvkInUm_E3lg38T2g
Winter has a lot of people thinking about warmer weather. For some, that just means an annual vacation down south. But for certain retirees, they choose to live elsewhere through the brunt of winter, becoming “snowbirds.” Is snowbird life for you? Let’s talk about what motivates people to take up temporary residence elsewhere, where they go, and if it’s worthwhile.
Here’s what we discuss in this episode:
0:00 - Intro
1:50 – How common is this?
3:10 – Trying it before retirement
4:30 – What you need to know
6:24 – How a financial advisor helps
Text RETIRE to 21000 to Begin Building Your Retirement Reality Roadmap
Learn more about Principal Preservation Services: https://principalpreservationservices.com
Schedule an Initial Meeting with Mike: https://calendly.com/ppservices/60-minute-initial-meeting
Watch Retirement Reality on Demand: https://bit.ly/40VIByr
Inflation has been a hot topic in recent years, and its impact on retirement planning is arguably bigger than ever. As prices for everyday goods and services continue to rise, understanding how to effectively manage these changes is essential for securing a comfortable retirement. Let’s explore strategies for inflation-proofing your retirement and share a look into how we address this in our planning.
Here’s what we discuss in this episode:
0:00 - Intro
1:32 – How inflation changes planning
3:04 – Inflation rate average
4:15 – Inflation’s impact over time
6:08 – Investment strategies
7:51 – Client story
Our website: https://principalpreservationservices.com/
Phone: (855) 987-8888
Contact our team: https://principalpreservationservices.com/wisconsin-minnesota-financial-services/
Get your exclusive first chapter of Mike’s books: https://principalpreservationservices.com/books/
Check out our downloadable guides: https://principalpreservationservices.com/useful-financial-guides/
Check us out on YouTube: https://www.youtube.com/channel/UCJ6RRiWvkInUm_E3lg38T2g
As we kick off 2025, a lot of people consider what they want the year to look like and how to put their best foot forward, especially financially. Think: “new year, new me!”
Today, we’ll talk about the financial decisions and habits you’ve maybe had in the past and what changes you can make this year to embrace the new you.
Here’s what we discuss in this episode:
0:00 – Intro
1:20 – Overspending
3:29 – Saving to a fault
5:28 – Not knowing what you have
7:30 – Pausing your investing
9:47 – Not having a plan
Text RETIRE to 21000 to Begin Building Your Retirement Reality Roadmap
Learn more about Principal Preservation Services: https://principalpreservationservices.com
Schedule an Initial Meeting with Mike: https://calendly.com/ppservices/60-minute-initial-meeting
Watch Retirement Reality on Demand: https://bit.ly/40VIByr
The majority of the investment planning you do for retirement is aimed at long-term success, but what can you do with the money you’ll need in the next few years? You don’t want to put those funds at risk when there’s a major purchase like a wedding or a new car coming in the near future.
So what can you do with that money to keep it from being stagnant in the interim? This show will discuss the pros and cons of traditional banking, money markets, fixed annuities, and structured notes.
Here’s what we discuss in this episode:
0:00 - Intro
1:10 – Putting money in the market for a short-term investment
3:06 – Are small returns good enough?
4:53 – Annuities and structured notes
6:29 – The decision-making process
7:49 – Another note on structured notes
Text RETIRE to 21000 to Begin Building Your Retirement Reality Roadmap.
Learn more about Principal Preservation Services: https://principalpreservationservices.com
Schedule an Initial Meeting with Mike: https://calendly.com/ppservices/60-minute-initial-meeting
Watch Retirement Reality on Demand: https://bit.ly/40VIByr
It’s the beginning of a new year – a time when many of us make resolutions to improve our lives. But how often do we resolve to improve the way we feel about our finances? Today, we’re talking about spending with confidence, a surprising challenge for many retirees.
Here’s what we discuss in this episode:
0:00 - Intro
1:19 – Why the reservations?
4:20 – Easing spending fears
5:59 – Overconfidence
8:00 – Spending strategies
Text RETIRE to 21000 to Begin Building Your Retirement Reality Roadmap.
Learn more about Principal Preservation Services: https://principalpreservationservices.com
Schedule an Initial Meeting with Mike: https://calendly.com/ppservices/60-minute-initial-meeting
Watch Retirement Reality on Demand: https://bit.ly/40VIByr
Join us as we explore the evolving benchmarks for retirement savings, the importance of proper planning over mere goal-setting, and the role of charitable contributions in financial strategies. We’ll break it all down and explore what these new numbers mean for your financial future.
Here’s what we discuss in this episode:
0:00 - Intro
1:28 – Is there a universal retirement benchmark?
2:41 – Charitable giving
4:23 – The fear of never being able to retire
5:30 – Average 401k contribution
7:11 – Target date funds
8:44 – Roth 401ks
10:24 – Taking care of yourself in the present
Text RETIRE to 21000 to Begin Building Your Retirement Reality Roadmap.
Learn more about Principal Preservation Services: https://principalpreservationservices.com
Schedule an Initial Meeting with Mike: https://calendly.com/ppservices/60-minute-initial-meeting
Watch Retirement Reality on Demand: https://bit.ly/40VIByr
🎄 The holiday season is here! As you're busy stuffing stockings for your loved ones, don’t forget to stuff your own financial stocking with tips that bring you closer to a secure retirement. 🎁
Here’s what we discuss in this episode:
0:00 - Intro
1:03 – Maxing out contributions
2:04 – Reviewing your Social Security strategy
3:55 – Consolidating old retirement accounts
5:28 – Bucket strategy
7:07 – Revisit your estate plan
8:40 – Planning for inflation
10:05 – RMDs
11:11 – Risk tolerance
12:54 – Emergency funds
14:39 – Financial checkups
Text RETIRE to 21000 to Begin Building Your Retirement Reality Roadmap.
Learn more about Principal Preservation Services: https://principalpreservationservices.com
Schedule an Initial Meeting with Mike: https://calendly.com/ppservices/60-minute-initial-meeting
Watch Retirement Reality on Demand: https://bit.ly/40VIByr
Did you know that most Americans are forced to retire early? A little bit more than you might actually realize. The Transamerica Center for Retirement Studies found that 60% of Americans are forced to retire earlier than their planned age. On this show, we're going to talk about some things to think about and the next steps to consider if you find yourself in this situation.
Here’s some of what we discuss in this episode:
0:00 – Intro
1:33 – How we guide clients in that situation
3:18 – Why people retire earlier than planned
4:28 – Social Security and Medicare
7:11 – Preparing for the unexpected
13:19 – The mindset shift
For more, visit us online: http://philstaxhacks.com
Watch the video podcast on YouTube: Phil's Tax Hacks and Other Retirement Facts
Retirees face serious financial temptations that can jeopardize their future, but there are smart ways to avoid them. In this episode, we’ll reveal the most dangerous temptations the average retiree faces and share strategies to help you avoid them, or correct your current course, to keep retirement on track.
Here’s what we discuss in this episode:
0:00 - Intro
1:00 – Debt
3:45 – Missing out on a 401k match
5:09 – Deferring taxes
8:23 – Taking Social Security early
10:28 – Concluding thoughts
Text RETIRE to 21000 to Begin Building Your Retirement Reality Roadmap.
Learn more about Principal Preservation Services: https://principalpreservationservices.com
Schedule an Initial Meeting with Mike: https://calendly.com/ppservices/60-minute-initial-meeting
Watch Retirement Reality on Demand: https://bit.ly/40VIByr
Today it’s part two of our discussion about the crucial insights every investor should know before stepping into a financial advisor's office.
This week, learn about the importance of comprehensive planning beyond investments, the emotional side of financial decisions, and the value of diversification. Discover why financial planning isn't just for the wealthy and the significance of working with a fiduciary. Plus, get insights on maintaining regular reviews of your financial plan and why consistent contributions to your 401k matter more than market timing.
Here’s what we discuss in this episode:
0:00 – Intro
1:42 – Emotions
3:18 – Diversification
4:33 – Planning not just for the wealthy
6:35 – Reviewing regularly
8:06 – Fiduciary
10:25 – Question on retirement contributions
Learn more about Principal Preservation Services: https://principalpreservationservices.com
Schedule an Initial Meeting with Mike: https://calendly.com/ppservices/60-minute-initial-meeting
Watch Retirement Reality on Demand: https://bit.ly/40VIByr
Imagine you could read your financial advisor’s mind before you even walked through the door for the first time. What would they want you to know? In this episode, we bring you the game-changing insights financial pros wish every saver and investor understood.
Here’s what we discuss in this episode:
0:00 – Intro
2:02 – Investment costs
3:40 – Real risk
5:40 – Motivation behind information
8:06 – Setting realistic goals
10:27 – Long term over short term
11:35 – One-size-fits-all planning
Text RETIRE to 21000 to Begin Building Your Retirement Reality Roadmap.
Learn more about Principal Preservation Services: https://principalpreservationservices.com
Schedule an Initial Meeting with Mike: https://calendly.com/ppservices/60-minute-initial-meeting
Watch Retirement Reality on Demand: https://bit.ly/40VIByr
As we rapidly approach 2025, it's essential to stay informed about the latest changes in retirement contribution limits and tax brackets. In this episode, Mike will update you on what adjustments are being made to key pension and retirement plan limits, providing listeners with the knowledge needed to maximize their retirement savings.
Here’s some of what we discuss in this episode:
0:00 – Intro
1:13 – 401k contributions
2:47 – IRA limits
3:27 – Standard tax deductions
4:17 – Tax bracket income thresholds
5:14 – Social Security COLA increase
6:37 – Impact on planning
Text RETIRE to 21000 to Begin Building Your Retirement Reality Roadmap.
Learn more about Principal Preservation Services: https://principalpreservationservices.com
Schedule an Initial Meeting with Mike: https://calendly.com/ppservices/60-minute-initial-meeting
Watch Retirement Reality on Demand: https://bit.ly/40VIByr
Social Security has long been a cornerstone of retirement planning for millions of Americans, providing a crucial safety net in their golden years. However, recent proposals suggest significant changes could be on the horizon, potentially altering the landscape of retirement as we know it.
Here’s some of what we discuss in this episode:
- Brendan Boyle’s request for information from the Congressional Budget Office regarding raising the age for full Social Security benefits.
- The increased penalty that could come if you claim Social Security benefits early.
- Why is Congress considering making changes to Social Security?
- Strategies to consider to maximize Social Security benefits.
To get in touch with Mike, visit our website: http://principalpreservationservices.com
Every firm has distinct principles that guide its approach to financial planning. In this episode, we take you behind the scenes to explore the core values and unique processes that set Principal Preservation Services apart. We’ll walk you through how we get to know our clients on a deeper level, create personalized financial strategies, and how our approach redefines what it means to have a successful financial planning experience.
Here’s some of what we discuss in this episode:
- The importance of education and understanding in the financial planning process
- The core values that guide Principal Preservation Services + Mike’s primary niche of clients
- The various educational resources and workshops offered by Principal Preservation Services
- The financial planning tools and software that the team uses
- How Mike measures success beyond financial returns + scheduling your discovery call
To get in touch with Mike, visit our website: http://principalpreservationservices.com
A random, retired YouTuber did a simple video exploring the top 5 regrets from other retirees he interviewed (all in their 70s). It blew up to almost half a million views (and counting). Let’s see what regrets made the list and, more importantly, explore what proactive steps you can take to avoid having the same regrets when you retire.
Be sure to stay tuned until the end of the episode as Mike answers two questions from the listener mailbag!
Here are the regrets we discuss in this episode:
- They wish they had retired earlier
- They wish they had spent more when they first retired
- They wish they took better care of their health
- They wish they had taken up a hobby
- They wish they had traveled more
- Mailbag: Would the financial industry be a good career for my nephew to consider?
- Mailbag: Is it a good idea to keep my current home as a rental property?
To get in touch with Mike, visit our website: http://principalpreservationservices.com
In this episode, we’re exploring some of the world’s most unique and quirky fears—and believe it or not, they have a lot more in common with your financial life than you might think.
From the fear of long words to the fear of peanut butter sticking to the roof of your mouth, we’ll navigate through a list of some of the world’s most peculiar fears and draw parallels to financial planning. Mike shares his insights on how these fears can manifest in our financial decisions and offers practical advice on how to overcome them.
Here are some of the fears we discuss in this episode:
- Hippopotomonstrosesquipedaliophobia (Fear of Long Words)
- Arachibutyrophobia (Fear of Peanut Butter Sticking to the Roof of the Mouth)
- Nomophobia (Fear of Being Without Your Mobile Phone or Disconnected from Tech)
- Xenophobia (Fear of the Unknown or Foreign)
- Chronophobia (Fear of Time Passing or Running Out of Time)
To get in touch with Mike, visit our website: http://principalpreservationservices.com
In this special mailbag edition of the show, Mike answers a wide range of listener questions. From life insurance and alimony to savings and retirement planning, this episode covers many of the financial planning conversations we have with clients every day.
Here are some of the questions we’ll answer in this episode:
- I’ve heard that you need to have between 15 and 20 times your annual salary in savings to be able to retire comfortably—do you think that’s accurate?
- It seems that all of the experts I hear say that you should work until 70 and then start your Social Security. I’m only 57 now and I can’t imagine working another 13 years. How important is this notion of working until 70?
- I’ve interviewed seven different financial advisors. All of them have aspects that I like, but not even one seems perfect to me. Should I keep interviewing more folks or am I being too picky?
- I was planning to retire this year, but would this be a bad time to retire with everything that’s going on?
To get in touch with Mike, visit our website: http://principalpreservationservices.com
Retirement planning is a complex process that requires careful consideration of various factors, including the needs of your family. In the latest episode, Mike shares valuable insights on how children and grandchildren can significantly impact retirement goals and offers practical advice on how to navigate these challenges.
Here’s some of what we discuss in this episode:
- More and more parents are providing financial support for their adult children.
- Parents who had kids later in life are still paying for college heading into retirement.
- People who want to be very intentional about leaving a financial legacy.
- Parents lending money to their children for significant expenses like down payments on homes or starting a business.
- Grandparents who want to help with education costs for their grandchildren.
To get in touch with Mike, visit our website: http://principalpreservationservices.com
Mike gets a lot of questions about 401(k)s and knows they can be tricky to navigate. That's why we're tackling your top questions in one comprehensive episode. From understanding target date funds to adjusting your investments as you near retirement, this conversation will cover a wide range of essential topics. Listen in to see what you can learn!
Here’s some of what we discuss in this episode:
- Should I contribute as much as I can to my 401k or only as much as the company will match?
- Is taking a 401k loan always a bad idea?
- When should I take money out of my 401k and roll it over to an IRA?
- How should I adjust my 401k investments as I get closer to retirement?
- Can I make catch-up contributions to my 401k? If so, how much and when?
- What are the risks and benefits of including company stock in my 401k?
To get in touch with Mike, visit our website: http://principalpreservationservices.com
Imagine retiring comfortably on just $42 per month—sounds too good to be true, right? Well, it’s exactly the assertion you might have seen in the headline of a recent article online.
Here’s some of what we discuss in this episode:
- Is this article clickbait or is there some value to it?
- Some strategies you need in order to save for retirement.
- What are some realistic savings goals that people should have?
- The role planning plays in helping you reach your goals and save enough money to enjoy retirement.
Read the article: https://www.fool.com/the-ascent/buying-stocks/articles/you-can-retire-on-4167-a-month-if-you-do-these-2-things/
To get in touch with Mike, visit our website: http://principalpreservationservices.com
We hear a lot of half-truths in the financial world, not necessarily because people try to make misleading statements, but because sometimes a simple statement just doesn’t quite tell the whole story. Join Mike as he goes over some common financial half-truths to try and help clear some things up and put your mind at ease.
Here’s some of what we discuss in this episode:
- Knowing how much you are paying in fees.
- Weighing whether to invest or finish paying off a low-interest mortgage early.
- Planning for retirement even when you plan to work through your retirement.
- Healthcare needs during retirement.
To get in touch with Mike, visit our website: http://principalpreservationservices.com
In this episode, we’re diving into some famous words by the one and only Yogi Berra. You might know him for his legendary baseball career, but Yogi was also a goldmine of wisdom. So, what can we learn from Yogi about retirement planning?
Here are some of the quotes we’ll unpack in this episode:
- “I never said most of the things I said.”
- “A nickel ain’t worth a dime anymore.”
- “If you don’t know where you’re going, you might wind up some place else.”
- “The future ain’t what it used to be.”
- "You can observe a lot by watching."
- "It ain't over till it's over."
To get in touch with Mike, visit our website: http://principalpreservationservices.com
What types of coverage should you be considering for your golden years? What do you need to keep in mind as you prep for the transition? We’re going to walk you through the fundamentals in today's episode, covering health insurance, long-term care insurance, life insurance, and more.
Here’s some of the mistakes we discuss in this episode:
- Why your health insurance coverage might change and how can you bridge the gap to Medicare?
- The different parts of Medicare and what it does/doesn’t cover.
- Why you would want to consider long-term care insurance?
- What are the alternatives to LTC insurance?
To get in touch with Mike, visit our website: http://principalpreservationservices.com
In this episode, we’ll uncover the critical mistakes many make when choosing a financial advisor. We're cutting through the noise to highlight what often goes wrong- from misplaced trust in big names to overlooking the fine print. This episode is your essential guide to avoiding those pitfalls and making informed decisions that align with your financial goals.
Here’s some of the mistakes we discuss in this episode:
- Not understanding how the advisor gets paid
- Putting too much trust in a recognizable national brand name
- Not checking credentials or the advisor’s background
- Not covering expectations for communication style & frequency
To get in touch with Mike, visit our website: http://principalpreservationservices.com
When we think of retirement, we often imagine endless days of relaxation, travel, and leisure. But how much of this is a dream versus reality? Today, we'll explore why a realistic approach to retirement, inclusive of financial planning and the potential for unexpected challenges, is crucial.
Here’s some of what we discuss in this episode:
- Understanding what retirement will realistically look like for you and planning accordingly
- Accounting for changing expenses, from health insurance to cell phone bills
- Being ready to adjust your plan in response to market volatility, health changes, and inflation
- Not being too proud to get help when it comes to your finances
To get in touch with Mike, visit our website: http://principalpreservationservices.com
Each generation is currently navigating a unique part of the retirement planning experience. With many baby boomers preparing for the transition into retirement and the early half of Generation Z taking their initial steps into the career field, these major life events come with a handful of financial planning questions.
In this episode, we're covering the retirement questions that Gen X, Millennials, and Gen Z are asking.
Here’s some of what we discuss in this episode:
- How do you know how much you need to have saved and how to you tell if you’re on track?
- How to balance savings goals with other expenses like a mortgage, children’s education, and other things.
- Should I rely on Social Security and how do you account for potential changes?
- What can I do if I want to retire early?
To get in touch with Mike, visit our website: http://principalpreservationservices.com
Each generation is currently navigating a unique part of the retirement planning experience. With many baby boomers preparing for the transition into retirement and the early half of Generation Z taking their initial steps into the career field, these major life events come with a handful of financial planning questions. Over the next few weeks, we’ll share insights into the unique concerns that echo across different age groups.
We're starting this series with the baby boomer generation, as a majority of Mike's clients belong to this demographic.
Here’s some of what we discuss in this episode:
- How do I manage the risks of market volatility as I approach retirement?
- What's the best approach for transitioning from a steady income to retirement withdrawals?
- What steps can I take to address rising healthcare costs in my retirement plan?
- What's the best way to pass on wealth without sacrificing my own retirement?
- What are the best ways to maximize my Social Security benefits for a more secure retirement?
- Should I consider downsizing or relocating in retirement?
- Listener question: As a pastor, I have the opportunity to opt out of Social Security. Is this something I should consider?
To get in touch with Mike, visit our website: http://principalpreservationservices.com
Today we will unpack the toolbox of technology that's promising to redefine retirement planning, but does it deliver? This episode takes a critical look at the wave of innovations, from personal finance management software to online calculators, and questions whether they truly simplify the planning process or introduce new complexities.
Here’s some of what we discuss in this episode:
- The rise of robo-advisors and the ways they aren’t able to keep up with comprehensive planning.
- Online calculators work for some things but can’t take into account all the factors we can in a projection.
- Webinars are more common and much easier to be a part of, but Mike explains why he still prefers in-person events.
- Social media has its positives but it also exposes you to people that might seem like they’re much more successful than they truly are.
- Digital estate planning services can provide some the basics for people but they don’t handle complexity as well as working with an attorney does.
To get in touch with Mike, visit our website: http://principalpreservationservices.com
In today’s episode, we spotlight some of the single oversights that could send your dreams to the bottom. We'll share key strategies to plug the gaps, ensuring your financial ship stays buoyant and on course. Tune in to protect your future from the one mistake that could derail everything.
Here’s some of what we discuss in this episode:
- The importance of having a robust financial strategy that ensures a steady income throughout retirement.
- Investment strategies to keep pace with, or beat, inflation.
- You have to consider long-term care costs in retirement planning.
- Strategies to mitigate this risk, such as diversification and proper asset allocation.
To get in touch with Mike, visit our website: http://principalpreservationservices.com
In this episode, we’ll share some eye-opening statistics and actionable advice to empower women in their financial journey. From the persistent gender pay gap to the impact of caregiving responsibilities and higher debt burdens, this is why retirement planning is different for women.
Here’s some of what we discuss in this episode:
- Even though they make up almost half of the workforce, women receive lower compensation than men across almost every occupation.
- Women are more likely to face career interruptions.
- Longer life expectancy and divorce can create additional challenges for women when they’re suddenly on their own.
- Only 53% of women feel confident enough to retire.
To get in touch with Mike, visit our website: http://principalpreservationservices.com
Is 'Lazy Money' still a concern in 2024's higher interest rate landscape? In this episode, we explore this question, examining how the recent rise in interest rates affects the money sitting in savings accounts, CDs, and conservative investments.
Here’s some of what we discuss in this episode:
- What do we mean by lazy money?
- Why we should still be concerned about having too much lazy money.
- The dangers to your retirement if you’re too conservative.
- How we help people shift their mindset and look at other investment options.
To get in touch with Mike, visit our website: http://principalpreservationservices.com
Everyone wants to know. Will the economy boom or bust in 2024? Join us as we explore a range of expert predictions, from the shifting trends in housing prices to the looming question of a potential recession or stock market crash.
Here’s some of what we discuss in this episode:
- Why Mike feels bullish about real estate in the upcoming year.
- Is a recession coming in 2024? Mike says there’s a lot of momentum heading into this year.
- There are two vastly different stock market predictions for the coming year. Which one will be right?
To get in touch with Mike, visit our website: http://principalpreservationservices.com
Sometimes it’s hard to make financial sacrifices when the reward might not be seen until several years in the future. Today we’ll talk about some of the situations where you might be inclined to take the immediate benefit, when you should really consider the delayed rewards.
In part two of our discussion, we’re going to talk through four more situations which people commonly pick the option that gives them a benefit now. Many people aren’t making these choices intentionally so our goal is to help you understand why patience pays in these scenarios.
Here’s some of what we discuss in this episode:
- Maintenance updates and timely upgrades might seem unnecessary in the short term but can prevent larger expenses in the future.
- Claiming Social Security at age 62 might allow you to claim your benefit as soon as possible, but are you maximizing how much you can get over retirement?
- Skipping regular health check-ups and preventative care can help prevent much bigger issues and costs in the future.
- Don’t avoid a tough conversation now if you aren’t with the right advisor.
To get in touch with Mike, visit our website: http://principalpreservationservices.com
Sometimes it’s hard to make financial sacrifices when the reward might not be seen until several years in the future. Today we’ll talk about some of the situations where you might be inclined to take the immediate benefit when you should really consider the delayed rewards.
Here’s some of what we discuss in this episode:
- It might not seem like a big deal to miss a 401k contribution and the company match once or twice, but you don’t ever want to leave free money on the table.
- The tax benefits for contributing to a tax-deferred account now might give you a nice tax savings now but it might cost you even more in retirement.
- People will sometimes deplete their emergency savings to cover expenses rather than keeping that money set aside for when they truly need it.
- Don’t cash out part of a 401k or IRA like Mike did when he was young because you miss out on so much growth over time.
To get in touch with Mike, visit our website: http://principalpreservationservices.com
Ever thought that minor tweaks in your financial plan could lead to major wins? In this episode, we're exploring the surprisingly powerful world of simple financial adjustments. From finding the right balance in your cash reserves to consolidating old 401Ks, we're unpacking those seemingly small steps that can bring about big, positive ripples in your financial life.
Here are a few of the financial tweaks that we discuss in this episode:
- Keeping the right amount of cash on hand for emergencies
- Consolidating your old 401ks
- Reassessing your managed accounts to ensure they align with your current financial goals
- Replacing high-expense mutual funds
- Analyzing the tax efficiency of your investments
- Checking that your beneficiary designations are up-to-date and accurate
- Automating your savings
To get in touch with Mike, visit our website: http://principalpreservationservices.com
We're nearing the end of the year, but it's not quite over yet! Join us for a thoughtful episode where we unpack our 2023 edition of key year-end planning strategies for those nearing or embracing their retirement years.
Here’s some of what we discuss in this episode:
- Regularly reassessing and rebalancing investment portfolios
- Tax-loss harvesting, required minimum distribution (RMDs), and qualified charitable distributions (QCDs)
- Reviewing medical, life, and long-term care insurance
- Budget and expense management + Social Security cost of living adjustments
- Proactively planning for downsizing + relocating in retirement
- Staying informed about cybersecurity threats
- Gifting to charities and family members + tax considerations
To get in touch with Mike, visit our website: http://principalpreservationservices.com
Ever wish you could foresee financial missteps before they happen? On today’s episode explore some real-life stories of regret and arm yourself with the essential dos and don'ts to ensure your money works for you, not against you.
Here are the mistakes we’re going to talk through:
- I regret taking premature IRA withdrawals.
- I spent way too much in my peak earning years.
- I paid so much in tuition for the kids.
- I retired a bit too early and now it’s costing me.
- Maybe I should have investigated opportunities for Roth IRAs.
To get in touch with Mike, visit our website: http://principalpreservationservices.com
In today's episode, we're taking a close look at high-net-worth individuals - those who have accumulated significant wealth and face unique challenges and opportunities when planning for retirement. Unlike the average person, their financial considerations go beyond the basics. We'll explore the distinct strategies and factors that come into play when securing a comfortable and prosperous retirement.
Here’s some of what we discuss in this episode:
- How Mike would define a high-net-worth individual?
- Some of the complex situations that these people might run into.
- How we work with a client’s CPA to make sure we’re being as efficient as we can with their tax planning.
- 3 retirement myths that hurt high-net-worth individuals.
To get in touch with Mike, visit our website: http://principalpreservationservices.com
Are you over 55 and pondering retirement? Dive into the world of Required Minimum Distributions (RMDs) with us. In this episode, we demystify the reasons behind mandatory withdrawals from your retirement savings.
Discover strategies to potentially avoid them and understand the risks of not preparing in advance. And for those fortunate to not rely on RMDs for income, we'll explore impactful ways to utilize those funds. We see people get caught off-guard by RMDs and the tax impact they have on retirement, so getting a jump on planning can go a long way.
Here are some key topics to listen for in this episode:
- Why do we have to take RMDs in the first place?
- There are a couple of ways to avoid RMDs.
- Mike shares some examples of how he helps people plan around RMDs.
- Learn about some of the risks you face by not planning in advance.
- What options do you have for the money if you don’t need it immediately for income?
If you are interested in any of the topics we discussed, please reach out and we would be happy to help you navigate your financial situation.
To get in touch with Mike, visit our website: http://principalpreservationservices.com
Losing a spouse is an unimaginably tough life event, but the financial implications can add another layer of stress to the grieving process. In this episode, we delve deep into the most common financial issues faced by widows and widowers, from dealing with income gaps to navigating tax changes as a single filer.
We explore actionable strategies to address these problems, such as the importance of life insurance and the ins and outs of spousal pension continuation. This is the episode for you if you’re concerned with ensuring the financial well-being of your remaining family members and safeguarding your financial future and legacy in the face of loss.
Here are some key topics to listen for in this episode:
- The income gap problem that most widows face in this position.
- What planning options do you have to solve for the income gap issue?
- The importance of legacy planning and the common mistakes that people make with their kids and grandkids.
- The benefits of a trust and how it might be used to preserve family wealth.
To get in touch with Mike, visit our website: http://principalpreservationservices.com
In today's episode, we'll explore the sensitive and significant process of transitioning from one financial advisor to another. We'll cover how to recognize when your current advisor may no longer be serving your financial needs effectively, the right questions to ask, and crucial factors to consider when searching for a new financial partner.
Here are some key topics to listen for in this episode:
- What are some of the reasons people decide they need to make a change?
- What are the financial consequences of switching advisors?
- The different metrics you can use to evaluate your current advisor.
- The questions you need to ask a new advisor when you begin looking.
- We’ll walk you through that transition process and what steps you’ll need to take.
To get in touch with Mike, visit our website: http://principalpreservationservices.com
In this episode, we’re tackling some common complaints and fears that can arise during the retirement planning process. These complaints often include concerns about advisors taking too much risk, dissatisfaction with account growth, high fees, worries about Social Security not being enough to retire on, and more. We'll discuss which concerns are well-founded, which are based on misconceptions, and offer insight on how retirees can best navigate their financial future.
Here are some key takeaways from this episode:
- Advisors should align investment risk with clients' preferences and needs. Clients should not feel forced into taking on more risk than they are comfortable with.
- Clients should be aware of the fees they are paying and how they impact their investments. Fee transparency is essential, and clients should consider both the cost of services and the value they receive.
- Social Security is an important income source for retirees, and it's essential to understand when and how to claim benefits. Advisors should be well-informed about Social Security changes and provide guidance on the optimal time to claim benefits.
- Retirement portfolios may not always experience high growth every year. Understanding market fluctuations and having a well-structured financial plan that accounts for potential down years is important.
- Some clients feel they only hear from their advisors when it's time to buy or sell stocks. Comprehensive financial planning should include regular communication, addressing all aspects of retirement planning beyond just investment transactions.
For more episodes, visit us online here: http://principalpreservationservices.com
Money can't buy love, but it can certainly start some spicy debates between you and your better half. In part 1 of this series, we're digging into the financial face-offs that make Monopoly fights look like child's play and exploring some money minefields that can test even the most solid relationships.
Here’s some of what we’ll discuss in this episode:
- What is your risk tolerance with your investments? (3:41)
- What age do you want to retire? (6:07)
- What legacy do you want to leave your children? (9:25)
For more episodes and to get in touch with our team, visit us online here: http://principalpreservationservices.com
Welcome to part 2 of our series on mastering retirement cash flow. Last episode, we talked about expenses in your life that might drastically change in retirement. On today’s show, we’ll talk about income and why you need to understand the crucial role of income analysis. We’ll also explain why you never want to retire without an income plan and what various income sources you might have in retirement.
Here’s some of what we’ll discuss in this episode:
- Why is understanding income so crucial? (2:35)
- What could go wrong if you don’t understand your income and budget? (4:10)
- What income sources could you have? (5:58)
For more episodes, visit us online here: http://principalpreservationservices.com
In this episode, we’ll explore many of the expenses in your life that might drastically change (one way or another) in retirement. We’ll break those expenses down further to see which ones are the top priorities and analyze some of the other factors that impact your cash flow in retirement.
Here’s some of what we’ll discuss in this episode:
- What is your housing situation? Is your mortgage paid off? (2:13)
- Can you move down a tax bracket in retirement? (7:23)
- How much will you be traveling in retirement? (10:31)
For more episodes, visit us online here: http://principalpreservationservices.com
Get ready to roll up your sleeves and dive into the gritty side of personal finance. In this episode, we reveal how everyday household tasks can serve as reminders of the principles that lead to financial success. From taking out the trash in your investment portfolio to cleaning out the fridge of outdated financial strategies, we'll explore how to declutter your financial life.
Here’s some of what we’ll discuss in this episode:
- Take out the financial trash. (2:11)
- Clean up your financial fridge. (4:11)
- Do periodic financial maintenance. (8:13)
For more episodes, visit us online here: http://principalpreservationservices.com
It’s time for part two of our series on the biggest money mistakes you might be making in retirement planning. In part one, we shared the pitfalls of taking Social Security benefits too early, taking investment advice from family or friends instead of a financial professional, and other mistakes. Today we’ll highlight six more missteps.
Here’s some of what we’ll discuss in this episode:
- Have you adjusted your retirement budget for inflation? (1:41)
- Have you done your estate planning? (3:40)
- Have you paid off high-interest debts? (7:36)
For more episodes, visit us online here: http://principalpreservationservices.com
In the complex world of retirement planning, there are countless pitfalls one could fall into. One misstep could lead to some serious financial consequences down the road. In part one of this two-part episode, we’re going to talk about 6 of the biggest money mistakes to avoid in retirement.
Here’s some of what we’ll discuss in this episode:
- Taking Social Security too early. (2:53)
- Being too aggressive or too conservative. (5:41)
- Taking investing advice from friends and family. (8:15)
For more episodes, visit us online here: http://principalpreservationservices.com
It’s time for another mailbag episode! We have an exciting lineup of topics to discuss today. Listen in as we tackle some current questions from our listeners, and you’ll likely gain some invaluable insights to help you make informed financial decisions.
Here’s some of what we’ll discuss in this episode:
- How can my investment strategy impact my returns? (1:08)
- How can I protect my savings from losing value? (4:05)
- How can I tackle this credit card debt? (8:51)
For more episodes, visit us online here: http://principalpreservationservices.com
Have you ever wondered if the Social Security system will run out of money before you retire? Or if claiming benefits as soon as you're eligible is the best decision for your financial future? In this episode, we're going to debunk the top ten Social Security myths and answer your questions surrounding this topic.
Here’s some of what we’ll discuss in this episode:
- Myth: The Social Security Administration will help you make the best decision about when you should start your benefit. (2:06)
- Myth: You won’t pay taxes on your Social Security since you already paid taxes on that money when you paid into the system. (5:09)
- Myth: You should claim Social Security as soon as you’re eligible. (9:03)
For more episodes, visit us online here: http://principalpreservationservices.com
Are you a golfer? Even if you're not, the game of golf can teach us valuable lessons about retirement planning. For example, hitting a hole-in-one might be thrilling, but it won't necessarily guarantee your overall success.
In retirement planning, a financial advisor can help you navigate the hazards and make the most of your financial "clubs." Tune in to this episode to learn more about how the game of golf can help you plan for a successful retirement.
Here’s some of what we’ll discuss in this episode:
- Why a hole-in-one is not the goal. (2:18)
- You need several different golf clubs in your bag. (5:43)
- Listen to your caddy. (9:37)
For more episodes, visit us online here: http://principalpreservationservices.com
We’re willing to bet there are some retirement expenses that you may have forgotten to plan for. In today’s episode we will discuss some areas in your financial plan that you might have initially overlooked.
Here’s some of what we’ll discuss in this episode:
- Are you prepared for medical expenses? (2:45)
- Are you prepared for parental and child assistance? (5:58)
- Are you prepared for home maintenance and repaid? (9:41)
For more episodes, visit us online here: http://principalpreservationservices.com
Retirement can come with a lot of tax questions and concerns. From understanding the tax implications of withdrawing from your retirement accounts to minimizing taxes on investment income, it can be overwhelming. On today’s episode, we’ll break down the top 10 tax questions retirees are asking in 2023.
Here’s some of what we’ll discuss in this episode:
- What are the tax implications of withdrawing money from my retirement accounts? (4:00)
- Will my Social Security benefits be taxed? (6:42)
- Does the taxation of my pension income differ from other forms of income? (7:45)
For more episodes, visit us online here: http://principalpreservationservices.com
After being discussed in Congress for nearly a year and a half, the SECURE Act 2.0 passed in January. On today’s show, we’ll explain what you need to know and learn four ways the new changes might impact you.
From Required Minimum Distributions (RMDs) to catch-up contributions, we’ll explain what you need to know about the SECURE Act 2.0.
Here’s some of what we’ll discuss in this episode:
- The Required Minimum Distribution age has been pushed back again. (1:54)
- What’s happening with the special catch-up contribution. (5:07)
- Now the 529 Plan has a Roth transfer option (7:30)
If you are interested in any of the topics we discussed, please reach out and we would be happy to help you navigate your financial situation.
To get in touch with Mike, visit us online: http://principalpreservationservices.com
On this episode, we’ll address five common beneficiary mistakes that, unfortunately, a lot of people make. From making errors to naming minors as beneficiaries, we’ll break down some common blunders.
Are you making one of these beneficiary mistakes? If so, it could cost you and your loved ones dearly. Some of the simplest mistakes can completely spoil an otherwise well done retirement plan.
Here’s some of what we’ll discuss in this episode:
• Why you shouldn’t name minors as beneficiaries. (1:40)• Why you should name alternative beneficiaries. (5:16)• Why you shouldn’t name your estate as a beneficiary. (6:56)
If you are interested in any of the topics we discussed, please reach out and we would be happy to help you navigate your financial situation.
To get in touch with Mike, visit us online: http://principalpreservationservices.com
Another year is upon us and it’s a great time to ask yourself 10 questions to assess how ready you are for retirement to kick off 2023.
If you’re retiring this year, it’s essential to have some concrete answers to these questions. If you’re still a few years from the milestone, tune in so you can start thinking about these critical conversations.
Here’s some of what we’ll discuss in this episode:
- Do I know exactly how much income I need every month? (1:55)
- Do I know the ideal time to take social security? (5:30)
- Do I have a plan to combat inflation? (10:30)
To get in touch with Mike, visit us online: http://principalpreservationservices.com
The end of the year (or start of a new year) probably means you’re getting a lot of financial statements in your mailbox, or inbox if you’re paperless. Do you ever wonder what some of those terms mean as you look at your 401(k), IRA and other account balances?
From fine print to fees, listen to this episode for a breakdown of some of the terms you might come across.
On this episode, we’ll share:
- Are income projections valuable information? (2:19)
- Are all fees listed on statements? (6:18)
- What are some things in fine print that we shouldn’t ignore? (9:52)
For more episodes, visit us online here: http://principalpreservationservices.com
Get additional financial education on our YouTube channel: https://www.youtube.com/channel/UCJ6RRiWvkInUm_E3lg38T2g
Sometimes it might seem like talking to your financial advisor feels like talking to a therapist, and that’s ok. Today we’re discussing some scenarios where it’s almost inevitable that a talk with your advisor seems like a counseling session.
Whether you’re getting a divorce or having career difficulties, your financial advisor should be there to help guide you through the financial transition.
On this episode, we’ll share:
- How we help clients going through a divorce. (2:22)
- How we handle clients’ career difficulties. (5:27)
- How we help clients who don’t like talking about money. (8:00)
For more episodes, visit us online here: http://principalpreservationservices.com
Get additional financial education on our YouTube channel: https://www.youtube.com/channel/UCJ6RRiWvkInUm_E3lg38T2g
Sometimes you need to find a new financial advisor. Other times, you might think you need a new advisor, but really, you’re just guilty of thinking that the grass is greener on the other side.
Today we’re sharing some common scenarios and whether they’re legitimate reasons for leaving your advisor. We’ll share some hypothetical scenarios and see if any of these apply to you.
On this episode, we’ll share:
- Should I leave an advisor who made a mistake? (3:24)
- Should I leave an advisor who doesn’t have as much time for me? (5:17)
- Should I leave an advisor who is not very engaging and outgoing? (8:00)
For more episodes, visit us online here: http://principalpreservationservices.com
Get additional financial education on our YouTube channel: https://www.youtube.com/channel/UCJ6RRiWvkInUm_E3lg38T2g
Getting through retirement can be a lot like running a marathon. From planning and preparation to a proper diet, a lot of these skills work in both worlds. With marathons, you don’t want to start to fast and tire yourself out before the finish. The same can be said for spending your retirement money.
Today we’ll share some of the similarities of getting to the finish line in racing and retirement.
On this episode, we’ll share:
- You might think you don’t need planning and preparation, but you’re wrong. (4:12)
- Your diet is essential for running and retirement planning. (6:27)
- Don’t start a race or your retirement too fast. (11:53)
For more episodes, visit us online here: http://principalpreservationservices.com
Get additional financial education on our YouTube channel: https://www.youtube.com/channel/UCJ6RRiWvkInUm_E3lg38T2g
Today we're sharing five common questions people ask when they’re forced into retirement. Hopefully, you won’t be in this position, but more and more people are these days.
If this scenario does come your way, it’s best to be prepared. We’ll also be answering some mailbag questions today from our listeners. If you don’t have an advisor or want a second opinion, we’d be happy to help.
Here is some of what you’ll learn on this show:
- Should you accept a buyout offer to retire early? (2:14)
- Should you get a lump sum or monthly lifetime payout? (4:35)
- Will you have trouble getting rehired in retirement? (10:31)
For more episodes, visit us online here: http://principalpreservationservices.com
Get additional financial education on our YouTube channel: https://www.youtube.com/channel/UCJ6RRiWvkInUm_E3lg38T2g
Just like the lights on your dashboard can indicate if something is wrong with your car, such as low tire pressure or leaking oil, there are indicators in your financial life that might point out that you have a problem that needs to be addressed.
If any of these raise a red flag for you, it might be time to sit down with your advisor. If you don’t have an advisor or want a second opinion, we’d be happy to help.
Here is some of what you’ll learn on this show:
- What to do if you have no idea what it costs to fund your lifestyle. (2:22)
- It’s good to have goals, but net worth or account balance shouldn’t be the main goal. (4:24)
- Your mental image of retirement shouldn’t be based on what your parents had. (6:15)
For more episodes, visit us online here: http://principalpreservationservices.com
Get additional financial education on our YouTube channel: https://www.youtube.com/channel/UCJ6RRiWvkInUm_E3lg38T2g
We’re bombarded with ads each day in all forms of media. But have you ever taken a closer look at these messages?
If we unpack some of these headlines and ads a little bit more, we’re able to clearly understand what emotions they’re trying to elicit. More importantly, we can figure out what companies are trying to sell us.
Here is some of what you’ll learn on this show:
- What is meant by ‘invest like the 1%’? (1:49)
- Tactics used to try and sell you something to help you invest more successfully. (3:19)
- How advertisers tap into the emotion of the stock market. (6:42)
- Some messaging Mike has seen a lot of and why it caught his attention. (10:21)
- Should you take Social Security early to help pay off your house? (14:36)
For more, visit us online: http://principalpreservationservices.com
We always talk about the money side of financial and retirement planning. But what about the mental aspect of that big life change?
Today we’ll break down an article written by a Licensed Professional Counselor (Kate Schroeder) for Psychology Today, titled The Psychological Investment In Retirement.
Read the article here: https://www.psychologytoday.com/us/blog/next-change-is-inevitable-growth-is-optional/202208/the-psychological-investment-in-retirement
Here is some of what you’ll learn on this show:
- Are you mentally prepared to walk away from a life and routine you’ve been used to? (2:24)
- What’s the number one thing retirees struggle with in retirement? (4:13)
- Why many retirees view this free time as a more stressful period of life. (7:03)
- The earlier you start in this area of retirement prep, the better you’ll do. (10:00)
- It’s common to struggle with this transition. (13:33)
- Is now a time to be converting IRA money to a Roth? (17:34)
For more, visit us online: http://principalpreservationservices.com
People have many reasons for procrastinating when it comes to putting a retirement plan together. Let’s explore some of those excuses and why they can be dangerous, and talk about how to overcome them…
Here is some of what you’ll learn on this show:
- Why you should still plan for retirement, even if your parents didn’t. (1:23)
- How to sort through which financial advisors to listen to. (3:00)
- Why stress shouldn't keep you from financial planning. (4:28)
- Do you feel too busy to plan for retirement? (5:44)
- When you don't know how to get started on your financial plan, this is what you should do. (7:46)
Visit us online: http://principalpreservationservices.com
You’ve most likely heard plenty of “rules” you’re supposed to follow to retire successfully. Some of these rules are stated so confidently, you’d be crazy not to immediately accept them as fact.
But we don’t mind the threat of being called crazy, so let’s dive into some of the most popular retirement “rules of thumb” to see if they truly lead us down the path of good financial guidance or run a chance of leading us astray.
Here is some of what you’ll learn on this show:
- Can you rely on the rule of 100 to help you determine how much risk to have? (1:37)
- Can you plan for 75% of your current income to have a successful retirement? (3:05)
- Why going off the rule of 10 for savings isn’t an exact measurement for where you should be at 67. (7:03)
- Does the 4% rule for year withdrawals still hold true today for retirees? (8:43)
Visit us online: http://principalpreservationservices.com
Going through a divorce at any age is difficult, but doing it near or in retirement adds all sorts of additional complications. On this episode, we’ll talk about some of the financial mistakes we see people make in the midst of a divorce.
Here is some of what you’ll learn on this show:
- Why choosing the house over other financial assets might not be in your best interest. (2:06)
- The tax implications of the retirement accounts could discount how much you’re actually getting. (3:06)
- Why you shouldn’t rollover a spouse’s IRA immediately after a divorce. (5:13)
- Best practices for managing your TSP account as a federal employee. (10:39)
If you’re going through divorce and would like to begin discussing your financial situation, please reach out and we’ll be happy to sit down and provide you with support.
Contact us:
(855) 987-8888
http://principalpreservationservices.com/
Don’t dread this as much as you hated hearing these words as a kid, but it’s time for a pop quiz! We’re putting retirement planning preparedness under the microscope with 5 critical questions to which you need to know the answers. So sharpen those pencils and let’s see how ready you are for retirement.
Here is some of what you’ll learn on this show:
- How much income will you need in retirement compared to how much you’re making while working. (4:19)
- What’s the biggest fear for most retirees and how planning accounts for that. (6:10)
- How we help our clients achieve a truly diversified portfolio. (8:55)
Hopefully, you’ll pick up on something during the quiz that you didn’t know about before, but if you have questions about anything we discussed on the show, please reach out and we’ll be happy to talk to you about your financial situation.
Contact us:
(855) 987-8888
http://principalpreservationservices.com/
On this episode, we’ll try to pick sides of some important financial debates. From bonds to life insurance, credit card debt to starting Social Security, we’ll propose several different topics to see which sides of the debates you and your advisor should probably fall on.
Here is some of what you’ll learn on this show:
- Why it might not always be the best strategy to pay off your house as soon as you can. (2:03)
- How you can benefit from having life insurance in retirement. (5:00)
- Why annuities can provide big benefits to your financial plan even though a lot of people don’t feel they’re valuable. (6:57)
- Social Security benefits can begin as early as age 62 but that doesn’t mean you should be claiming them as early as possible. (13:31)
If you have questions about anything we discussed on the show, please reach out and we’ll be happy to talk to you about your financial situation.
For more, visit us online: http://principalpreservationservices.com
In the current market, a lot of us are looking to work with an advisor to help withstand these market turns. So, what do you need to look out for when working with a new professional?
An advisor that is a jack of all trades may not be the best fit for someone approaching retirement. Similarly, if they only tell you the good news, use a lot of technical jargon, or try to predict the turns of the market you may want to reconsider. Working with an advisor is a great advantage, but working with someone that understands your situation is essential. On today’s episode, we’ll break down five red flags investors need to be aware of when looking for a new advisor.
Today's key points:
0:42 – How was Ireland?
1:47 – A jack of all trades
4:32 – They only tell you good news
6:34 – Setting realistic expectations
7:38 – Using technical jargon
9:20 – Fearful to ask
10:04 – Predicting the market
12:10 – More talking than listening
Read more and get additional resources here: https://principalpreservationservices.com/retirement-reality-podcast/
On this episode of the podcast, we’ve assembled a list of priorities to keep in mind as you count down the days to retirement. This won’t replace proper planning but running down this checklist will help you make sure you’re putting your best foot forward as you enter retirement.
Today's key points:
0:49 – Headed to Ireland
1:53 – Get healthy
3:22 – How will you spend your free time?
4:43 – Do clients usually know?
6:06 – Post-retirement career
8:13 – Opportunities to save more
9:16 – Pay down debt
10:58 – Assess your risk
13:13 – Do you have a plan?
Read more and get additional resources here: https://principalpreservationservices.com/retirement-reality-podcast/
With the great resignation sweeping the nation we’ve been hearing more and more from people that want to retire early. On today’s episode, we want to explore this topic and a recent Yahoo News article that breaks down whether you can really retire at age 55.
Retiring early can present a wide variety of unique challenges, for example, what will you do if you can’t take Social Security yet? You need to consider how you’ll cover that income gap. There are various issues people who want to retire early may face, but planning ahead of time can make the transition a lot easier.
Yahoo News Article: https://www.yahoo.com/video/retire-age-55-lets-run-203416606.html#:~:text=So%20can%20you%20retire%20at,Security%20retirement%20benefits%20is%2062.
Today's key points:
0:43 – More people wanting to retire early
1:50 – Going to a Justin Bieber concert
2:52 – The peanut gallery term
5:01 – Social Security
6:13 – Penalties to worry about
9:02 – Healthcare expenses
11:49 – Any other challenges?
12:51 – What can you do now?
14:36 – Having guaranteed income
15:48 – Stock market’s impact on your plan
17:29 – Depends on how you want to live
18:58 – Retire whenever you want!
Read more and get additional resources here: https://principalpreservationservices.com/retirement-reality-podcast/
For the majority of people in Minnesota and across the country, your house will be the most expensive asset you ever own or manage. That’s why it’s no surprise that it takes up a big slice of the financial planning conversation.
Retirement brings along another set of decisions to be made with your house so we wanted to address some of the most common ones we hear at Principal Preservation Services. From paying off your mortgage to considering a downsize, we’ll find out what Mike thinks about these housing topics and hopefully touch on something you’ve been thinking about as well.
Today's key points:
0:46 – Housing questions
2:36 – Paying off mortgage or not?
4:27 – Downsizing
6:10 – Borrow from a Home Line of Equity
8:26 – Signing house over to kids before death
10:49 – Other estate planning problems
12:09 – Reverse mortgage
14:15 – Mailbag question on anxiety around money
15:49 – Mailbag question on life insurance
Read more and get additional resources here: https://principalpreservationservices.com/retirement-reality-podcast/
What are the important birthdays we need to take note of when planning for retirement? There are certain milestones that have a big impact on your plan. As you approach 50, you want to really start planning strategically. If you haven’t been saving much before, once you turn 50 you can actually participate in catch-up contributions.
A few years later at 59 ½, you can start taking out of those retirement accounts without the 10% penalty. At 62 you’re eligible to take Social Security, although whether you want to do so is dependent on your plan. What other important ages do you need to keep marked on your calendar? On today’s episode, we’ll break down the most important retirement birthdays as well as answer some mailbag questions.
What we discuss in this episode:
0:54 – How are is Mike doing?
2:39 – Catch-up contributions at 50
4:56 – Withdrawing early at 55
6:27 – No penalty withdrawals at 59 ½
8:33 – Social Security at 62
11:02 – Medicare at 65
12:44 – Full retirement age
14:06 – RMDs and age 72
16:04 – Get your plan done!
17:27 – Mailbag: “Can I justify a private school tuition?”
20:16 – Mailbag: “Should I budget before meeting with an advisor?”
Read more and get additional resources here: https://principalpreservationservices.com/retirement-reality-podcast/
If you are someone that tackles financial planning on your own without the help of a professional, you might be relying too much on the guessing game. We’ve seen the end results of retirement without a plan and many times it’s not what the retiree had envisioned.
Today we’re going to identify some of the key planning areas that people often fall short and Mike will help provide some clarity. From income needs to inflation to healthcare costs, these are all things you need to have buttoned up before you hit retirement.
What we discuss in this episode:
1:31 – Monthly income needs
6:41 – Planning for major purchases
10:11 – How much impact will inflation have?
13:31 – Healthcare costs
17:20 – Mailbag question on reducing investment risk
18:48 – Mailbag question on rolling over a 401(k)
Read more and get additional resources here: https://principalpreservationservices.com/retirement-reality-podcast/
We found a recent article in USA Today that talked about the retirement planning issues that most Americans don’t have answers for. On this episode, we’re going to breakdown the article and share a few of the key takeaways we identified.
The key with financial planning is to remove the guesswork and have a concrete strategy for income and expenses in retirement. That’s why we think you’ll get a lot out of this episode because we’ll talk about how to keep up with inflation, explain why so many people don’t understand their Social Security benefits and tell you why many people don’t have a plan for withdrawing money in retirement.
These are three key parts of determining your income plan and how much you’re going to need to feel comfortable in retirement.
USA Today Article: usatoday.com/story/money/personalfinance/retirement/2022/02/28/retirement-3-issues-making-planning-harder/49859935/
What we discuss in this episode:
0:46 – Uncertainty around the world
2:17 – Lack of basic knowledge
3:56 – Takeaway 1: Keeping up with inflation
6:00 – Awareness of inflation
8:06 – Takeaway 2: Social Security benefits
10:40 – Takeaway 3: Withdrawal rates
14:37 – Final thoughts
Read more and get additional financial resources here: https://principalpreservationservices.com/retirement-reality-podcast/
A lot of us don’t have the time or knowledge to properly dedicate to a robust financial plan, that’s why having a financial advisor is so important. But, who really needs a financial advisor? Probably, most of us. Are you a procrastinator? A financial plan is certainly not the place you want to procrastinate.
Maybe you don’t know where to start. There’s so much information out there! For a lot of people, the hardest part is starting. There might be a lot of things out there you aren’t considering and that can set you behind on your plan without you even knowing it. The closer you get to retirement, the harder it is to recover from mistakes. On today’s episode, we’ll discuss who really needs a financial advisor and why.
What we discuss:
2:21 – Are you a procrastinator?
4:10 – Do you know where to start?
5:45 – You don’t know what you don’t know
7:14 – Once you get into your 50s and 60s
8:42 – Are you too busy?
10:13 – All the conflicting opinions
14:43 – Mailbag: “My kids are grown; do I still need life insurance?”
16:22 – Mailbag: “I want to travel; I need a higher income in retirement. Is that irresponsible?”
Get additional financial information: https://principalpreservationservices.com/retirement-reality-podcast/
How do you plan for things you can’t predict? There are a lot of factors in life that we can’t be sure will happen, but with proper planning we can prepare for them financially. No one can predict the next market crash. However, we know it will happen eventually. When we do planning, we want your retirement to be the same, whether the market is good or bad.
There’s really no way to know what healthcare will cost or look like in the future. You have to factor in healthcare in your overall retirement plan. The healthcare you are offered at your employer will look different once you are in retirement. On today’s episode, we’ll discuss four areas in financial planning where you can’t predict the future, but you can still plan for it.
What we discuss:
0:52 - Wishing for warmer weather
2:44 – When will the next market crash be?
6:00 – Planning for healthcare costs
9:03 – Planning for future tax obligations
12:10 – It’s not easy to keep up with taxes
12:57 – How do you plan for longevity?
16:29 – Mailbag: “I want to retire, should I sell the building my business is in?”
18:11 – Mailbag: “My company is having a pension buyout, should I retire now?”
Get additional financial information: https://principalpreservationservices.com/retirement-reality-podcast/
We are talking about finances and football today! Like a quarterback protects the ball, you need to protect your finances, especially as you enter the retirement red zone. What is the retirement red zone? It's the 10 years before you retire and the 10 years after.
You need to really focus during this time and nail down the details of your plan. Make sure your game plan is in place. Time is no longer on your side, you need to avoid big mistakes and think about the long-term. We’ll discuss this crucial time period, the common mistakes people make in the red zone, and how having a plan will help you.
Get additional financial information: https://principalpreservationservices.com/ep-86-dont-fumble-in-the-retirement-red-zone/
What we discuss:
0:31 – Finance and football
2:29 – New YouTube channel!
4:25 – What is the retirement red zone?
4:59 – Why is this a crucial time period?
7:13 – Common mistakes that people make
9:59 – Are people more emotional?
11:25 – Why is planning easier in the retirement red zone?
15:27 – Mailbag: “Am I stuck in my job or is there a way I can retire early?”
17:28 – Mailbag: “I have $150,000 in the bank is that bad?”
What do you know about the “Great Resignation”? There’s been a lot of people leaving their jobs lately, either to take a break or to retire early. We’ve seen it with some of our clients even. With this huge shift in the workplace, we want to discuss how it could impact your retirement plan if you decide to leave your job.
What should you be aware of when it comes to Social Security and your retirement accounts if you quit your job? You’ll have to keep in mind if you do take a break, your Social Security payment calculations could change later on. Don’t think of your 401(k) as a rainy-day fund either. However, make sure you take it with you if you do go to a new job. A lot of people are thinking about retiring early and having a stable plan is the first step to realizing that goal.
Forbes Article: https://www.forbes.com/advisor/retirement/great-resignation/
Get additional financial information: https://principalpreservationservices.com/ep-85-how-the-great-resignation-could-impact-your-retirement/
What we discuss:
1:31 - Happy New Year!
2:25 – Retirement planning during the great resignation
4:10 – The impact of the pandemic
5:05 – Taking a break from Social Security
6:56 – 401(k) as a rainy-day fund
9:05 – Take your 401(k) with you
11:37 – Leaving before a potential match
14:18 – Cover your basis before you retire early
18:15 – Mailbag: “How much stock in the company I work for is too much?”
20:20 – Mailbag: “How do I get myself motivated to save more for retirement?”
Are you in good financial health? On today's episode, we'll discuss 5 signs you are in shape when it comes to your finances. Are you spending less than you make? If not, it’s probably time to take another look at your budget. This is especially important in retirement when you’re no longer getting a paycheck.
When it comes to taxes are you aware of what you'll be paying and when? Other signs you are in good financial health include being on the same page with your spouse and having a retirement income plan. If you can answer yes to these 5 signs, you are probably financially healthy!
Get additional financial information: https://principalpreservationservices.com/ep-84-5-signs-you-are-in-good-financial-health/
What we discuss:
2:08 – Are you spending less than you make?
3:41 – Do you understand future tax consequences?
6:29 – Do both you and your spouse know enough?
8:11 – Do you have a retirement income plan?
9:04 – Do you worry about your financial future?
12:24 – Any other bonus signs to look out for?
13:45 – Mailbag: “Where do we start with new investments?”
15:28 – Mailbag: “How can we plan for retirement with separate accounts?”
It's getting close to the end of the year. What are your resolutions? On today's episode we go over 22 money resolutions you can make in 2022. Want to pay off your debt? Audit your insurance policies and make sure they fit your situation? Some of these ideas are easy like checking your credit while others will involve you working with an advisor. We'll discuss money-saving, taxes, consolidating your accounts, and more. At the end of the episode, we will go over two listener questions about mortgage and part-time work.
Get additional financial information: https://principalpreservationservices.com/episode-83-22-money-resolutions-for-2022/#
What we discuss:
0:50 – The holiday season!
2:02 – Reducing debt
3:43 – Reduce our retirement savings
4:28 – Preparing for emergencies
5:18 – Don’t overreact to headlines
5:55 – Implement a budget
6:55 – Meet with an advisor
7:49 – Check beneficiaries
8:30 – Tough conversations
9:41 – Audit our insurance
10:50 – Think about refinancing
11:53 – Organize your financial life
12:51 – Check your credit
13:46 – Check your fees
15:01 – Share our knowledge
16:04 – Donation options
17:00 – Review your tax bracket
17:56 – Roth conversions
18:44 – Update paycheck withholdings
19:39 – Rebalance your portfolio
20:40 – Plan your retirement transition
21:45 – Consolidate accounts
22:38 – Listen to more podcast episodes!
24:16 – Mailbag: “Should I work part-time or full-time as I get close to retirement?”
25:25 – Mailbag: “Should we split our mortgage in half and pay every two weeks?”
If you are close to retirement age but don't think you've saved enough money, you might be in better shape than you realize. Additionally, there are ways to save more as you approach retirement. You are probably in your peak earning years, meaning you have more money than ever to put away for your future. On today's episode, Mike is going to discuss some opportunities for late bloomers approaching retirement. In what ways can you save more? Where in your budget can you move money around?
Get additional financial information: https://principalpreservationservices.com/episode-82-opportunities-for-retirements-late-bloomers/
What we discuss:
1:17 – Happy Thanksgiving!
2:21 – Catch up contributions
4:40 – Kids no longer on your budget
8:09 – Disappearing debt
10:55 – Downsizing the house
13:13 – Working into retirement
15:44 – Mailbag: Pension lump-sum or monthly payments?
17:20 – Mailbag: Should I have more than one advisor?
20:09 – Mailbag: Do I really need a budget for retirement?
Your advisor is here to help you make the best financial decisions for your future, but there are still some unreasonable things to expect from them. It’s important, as a client, to stay down to earth when it comes to your financial expectations. On today’s episode, we will be discussing 4 requests that are probably a little too unreasonable to ask of your advisor.
Do you want big returns without risk? Well, you are probably going to have to take on at least some risk to get there. Can you ask an advisor to lower their fees? Some people wonder if there is a way to get out of paying taxes on retirement accounts like a 401(k) or IRAs. Although you can roll over these accounts to a Roth, you’ll still have a tax bill. What if you don’t want to be involved in the planning process? It’s crucial your advisor understands you and your expenses so being involved to some degree is required. We’ll also answer three mailbag questions about retiring early, risk, and working until the age of 70.
Get additional financial information: https://principalpreservationservices.com/episode-81-4-unreasonable-requests-for-your-advisor/
What we discuss:
1:14 – Enjoying fall
2:26 – I want big returns, but I don’t want any risk
6:03 – Can you reduce your fees?
9:42 – How can I get out of paying taxes on my 401(k) or IRA?
12:03 – Do I have to be involved in the planning process?
15:12 – Mailbag: What steps should I take to retire at 55?
17:05 – Mailbag: How much should I have at risk in my portfolio?
19:38 – Mailbag: I’m single, should I work until I am 70?
Whether you choose to invest in a tax-deferred account or not, you will need to have a tax plan. Knowing which accounts could benefit your situation is important. Today, Mike is going to break down different types of accounts and the pros and cons we see with each.
The accounts you should be investing in will depend a lot on your income level and retirement goals. Many of us have invested in tax-deferred accounts. Once you are in retirement you will have to start paying taxes on withdrawals. If you decide to pay taxes now, that may be helpful in the future. Make sure you have a plan for these taxes that fit into your current financial budget. Either way, tax planning is an essential part of our retirement plan. We will also be opening up two mailbag questions today about business ownership and long-term care coverage.
Get additional financial information: https://principalpreservationservices.com/ep-80-tax-pros-and-cons/
What we discuss:
0:47 – Pros and cons of different accounts
2:07 – Tax-deferred accounts
4:37 – Tax ‘free’ accounts
7:49 – Taxable accounts
10:19 – CD tax consequences
12:23 – Life insurance
16:13 – Mailbag: Sell a business or retain ownership?
17:39 – Mailbag: Should we keep long-term care coverage?
When our financial growth is going well it can create a false sense of overconfidence. You want to stay vigilant about protecting your financial plan.
On today’s episode, we are going to discuss places in our finances that we can be overconfident in. Even if the stock market has been great for the past 10 years, that’s no indication of how it will look in the next 5 or ten years. Some of us have an ideal number we want to reach in order to retire, but this may cause a false sense of security and overconfidence.
So, how should we prepare for these circumstances and protect our overall retirement plan?
Get additional financial information: https://principalpreservationservices.com/ep-79-overconfidence-in-retirement-planning/
What we discuss:
0:44 – Pride cometh before the fall
1:53 – Mike goes to Greece
3:38 – The stock market
7:16 – 1 million dollars for retirement
9:11 – Rules of thumb
11:40 – Investment products
13:55 – Decision-making process
17:59 – Mailbag: Do I really need an emergency fund?
19:06 – Mailbag: My advisor doesn’t reach out to me?
Pension options, Social Security, and investments are all among the topics that you should be addressing with your significant other. Finding the right balance between both of your risk tolerances can help you better manage your future income. Even if you both have a plan on saving for retirement, you will also need to plan on what your retirement will look like. Do you both want to travel or stay close to family? Should you sell your current home or the vacation home? On today's episode, we are talking about some common financial mistakes couples make and what decisions you need to address together.
Read and get additional financial information: https://principalpreservationservices.com/ep-78-retirement-decisions-to-make-as-a-couple/
What we discuss:
1:00 – Couples as clients
2:06 – Pension options
6:27 – Social Security
8:59 – Should spouses come in together?
10:24 – 401k and IRAs
12:49 – Managing risk together
15:14 – Retirement planning together
19:22 – Mailbag: Am I in trouble with investing?
21:35 – Mailbag: Roth or Traditional 401(k)
When it comes to our finances, there are certain things that we shouldn't wait to address. A few of the most common things people tend to put off in their finances include taxes in retirement planning, paying off debt, Social Security, and making a financial plan. Whether you can wait on some of these topics will depend a lot on your situation. Mike is going to discuss some general rules and advice about waiting to act on these financial decisions.
Read and get additional financial information: https://principalpreservationservices.com/ep-77-can-you-wait-on-these-financial-decisions/
What we discuss on the episode:
1:24 – Catching up with Mike
3:29 – Paying taxes on investments
5:43 – Paying off debt
9:01 – Legal and estate documents
12:09 – Taking out Social Security
15:29 – Creating a financial plan
18:27 – Mailbag: Starting a business
20:35 – Mailbag: Required minimum distributions
So you’re experiencing some concerning symptoms with your finances? Let’s visit with the money ‘doctor’ Mike Kojonen to see what financial prescriptions you might need to keep your retirement on track.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-76-what-the-financial-doctor-ordered/
What we discuss on this episode:
1:17 – Summer update
4:34 – Dizziness from market volatility
6:44 – Paralysis in financial decision-making because of too many options
8:40 – Anxiety from watching the news everyday
10:21 – High blood pressure from anger about receiving bad advice in the past
12:58 – Losing sleep about not having enough money for retirement
16:40 – Mailbag question on which accounts to withdraw from first
18:19 – Mailbag question on robo advisors
If they age is the price we pay for wisdom, then we should possess a strong fundamental understanding of our finances by the time we reach retirement. As we get older, our view of money changes and our perspective of what’s most important in our retirement plan will evolve.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-75-how-age-wisdom-play-into-financial-planning/
What we discuss on this episode:
1:55 – Perspective of money changing with age
3:59 – What would you have done differently?
6:22 – Worry more or less later in life?
7:59 – Leaving a legacy
12:36 – How we view risk
15:38 – Mailbag questions on giving money to children
17:37 – Mailbag question on dividend-paying stocks
All the hard work and time you spend during your working career should be enjoyed in retirement, but what type of motivation do you have? Let’s explore some of the primary motivations that people have for retirement and how planning can help you reach that.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-74-what-retirement-are-you-living-for/
What we discuss on this episode:
1:52 – Spending more time with your family
3:53 – Want to buy stuff
6:10 – The desire to travel
8:56 – Helping your grandchildren with college
11:15 – Donating to a charity
13:32 – Mailbag question on money creating stress in a relationship
14:30 – Mailbag question on Social Security
So much of the financial world is focused on accumulating money and you can find plenty of advice on how to save and invest. But there aren’t nearly as many resources for navigating the period of time after your retirement through decumulation. On this episode, we’ll point to 5 things you need to know about spending down and managing the assets you’ve accumulated throughout life.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-73-5-things-you-must-know-about-decumulation-to-retire-successfully/
What we discuss on this episode:
2:20 – Lack of support
4:16 – Fear of spending is real
5:56 – Risks in retirement
7:29 – Focusing on tax consequences
9:59 – Leveraging your lifetime income
12:34 – Mailbag question on divorce settlement
14:17 – Mailbag question on saving and interest rates
Just about everyone is familiar with the phrase diversification and what it means in financial planning, but what does it take to be properly diversified?
On this episode of the podcast, we’ll break it down to the three worlds of money and explain why finding balance among these will provide you with the diversification you need to have a successful retirement. Each of these play a key role in planning and it’s important that you find the right mix for investing your money.
You can listen to the full episode or use the timestamps below to find a specific segment.
1:12 – The Banking World
5:25 – The Insurance World
10:37 – The Wall Street World
17:18 – Finding balance with our clients
20:23 – Mailbag question on old 401K accounts
22:12 – Mailbag question on taxes in retirement
For additional financial planning resources, visit us online at http://principalpreservationservices.com
If financial planning was simple, no one would need help. Even when we know what we’re supposed to do, it’s not always a certainty that we will.
On this episode of the Retirement Reality podcast, we’ll go through some common sense financial statements that ring true to all of us and Mike will explain why we often fall short in following this guidance. If you find yourself getting off-track, make sure you lean on an advisor to help you keep retirement planning on the right path.
You can listen to the full episode or use the timestamps below to find a specific segment.
1:14 – Buy Low, Sell High
4:04 – Don’t pay more in taxes than you have to.
7:02 – Keep expenses low.
9:56 – Don’t put all your eggs in one basket.
12:04 – Market timing is virtually impossible.
17:01 – Mailbag question on capital gains taxes
18:48 – Mailbag question on IRAs
For additional financial resources, visit us online at http://principalpreservationservices.com
On part two of our estate planning conversation with attorney Patrick Boley, we turn our attention to life after death to discuss the documents you need to have in place. That includes a detailed discussion on wills and trusts, along with the role probates play in the estate process.
Read more and get additional resources here: https://principalpreservationservices.com/ep-70-estate-planning-for-life-after-death-with-patrick-boley-part-2/
Check out Part 1: https://principalpreservationservices.com/ep-69-the-living-side-of-estate-planning-part-1/
What we discuss on this episode:
1:14 – Interview begins
2:44 – What happens if you don’t have documents in place?
3:58 – The Will
6:19 – Probate & the Transfer on Death Deed
10:16 – Stepped-Up Value
11:52 – Formal or Informal Probate
13:44 – Mike shares a personal story
17:48 – Client story about a will getting contested
18:55 – Revocable Living Trust
22:41 – Putting house in a trust
28:22 – Second marriages
30:30 – Dangers of doing it yourself
33:24 – Protection from nursing home
35:13 – Updating your documents
Through years of working with clients, we’ve seen that the estate side of planning often gets overlooked. That’s why we’ve asked attorney Patrick Boley of Eckberg Lammers to come on and talk to us about the living documents that every person needs in part one of a two-part series on estate planning.
Read more and get additional resources here: https://principalpreservationservices.com/?p=39915&preview=true
What we discuss on this episode:
1:01 – Welcome in Patrick Boley
2:09 – Background on Patrick
5:37 – Healthcare directive
8:04 – Specific statutes that need to be in place
14:45 – Mike shares story about how a catastrophic event can unfold.
16:46 – What if you have an adult college student and need access to medical records?
18:02 – Definition of Durable Power of Attorney
19:36 – Standard Power of Attorney
21:31 – Little things to think about
26:31 – How long is the process to get these living documents in place?
You can't talk about financial planning without discussing risk, but what does that mean exactly? Risks comes in multiple forms and you have to guard against each when building a plan. Today we'll tell you about the different types of risk and how we help clients manage it.
Read more and get additional financial resources here: http://principalpreservationservices.com
What we discuss on this episode:
2:00 - Market Risk
4:31 - Interest Rate Risk
6:47 - Inflation Risk
9:44 - Taxes
12:01 - Longevity risk
14:35 - Mailbag question on variable annuities
17:25 - Mailbag question on flipping houses
On today’s episode, we’re talking about things that drive your financial advisor crazy about the financial world.
Read more and get additional financial resources here: https://principalpreservationservices.com/retirement-reality-podcast/
What we discuss on this episode:
1:21 – Coronavirus vaccine
3:10 – Hidden fees
5:08 – Advisors who put their own goals ahead of their clients
7:00 – Cookie cutter (one-size-fits-all) sales pitches
9:15 – Big companies who push products
11:12 – Buzzwords and jargon that don’t mean anything to the average person
13:25 – Financial plans that consist of dozens of pages that no one can understand
16:48 – Mailbag: Should we refinance our house?
On today’s episode, we’re talking about things nobody says in the financial planning world and Mike explains why that’s the case.
Read more and get additional resources here: https://principalpreservationservices.com/ep-66-things-nobody-says-in-the-financial-planning-world/
What we discuss on this episode:
3:08 – I really regret putting money into my Roth IRA every year
4:33 – I should have spent more and saved less
6:00 – Life insurance payment was insulting
8:10 – It makes me feel patriotic to pay more in taxes
10:56 – I love big market corrections
13:35 – Mailbag: How to stay out of craziness of the market
Our country has been through some major market crashes over the years. What happened during those events and what can we learn from them?
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-65-lessons-learned-from-biggest-market-crashes-of-all-time/
What we discuss on this show:
1:59 – Black Tuesday
3:50 – Dot com crash
6:25 – 2008
8:42 – 2020 coronavirus pandemic
10:34 – Lessons learned
14:28 – Contact Mike and his team
16:15 – Mailbag: Should I take Social Security?
18:03 – Mailbag: Husband doesn’t want to plan for retirement?
Today we’re sharing five key questions to see if you are ready for retirement. How well do you know your finances?
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-64-are-you-prepared-for-retirement-take-this-quiz/
What we discuss on this show:
2:42 – Do you know how much you actually have?
5:09 – Do you know how much you’re spending?
7:37 – Do you know how much risk you actually have?
10:07 – Do you know what you’re paying in fees?
12:28 – Do you know what your retirement income stream will actually look like?
14:10 – Using a financial advisor
14:50 – Mailbag: Thoughts on annuities and hedge funds
17:58 – Mailbag: How can I save taxes on my new income?
Variable annuities are a bit of an outcast, the liver and onions of the financial world. Why is that? What are the pros and cons? Mike explains on the show.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-63-why-variable-annuities-are-the-liver-onions-of-the-financial-world/
What we discuss on this show:
2:27 – Why variable annuities are hated on
5:31 – Do many people have variable annuities
7:25 – Many people don’t know they have variable annuities
8:50 – Fees
12:11 – Can you get out of a variable annuity
14:44 – Mailbag: Helping mom after dad dies
16:30 – Mailbag: Should I do a Roth conversion
You know the saying, “The customer is always right.” Well, that’s not always the case in the financial world. On this episode of the Retirement Reality Podcast, Mike Kojonen explains why you should rely on your advisor’s expertise.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-62-in-financial-planning-the-customer-isnt-always-right/
What we discuss on this show:
2:28 – Telling the customer they’re wrong
3:28 - Now is the time to get in or out of the market
6:20 - This is what I want to invest in. I want you to pick the exact funds.
8:19 - I don't need a will, life insurance, long-term care insurance, etc.
10:23 – Feelings about fees
12:24 – I don’t know if this plan is going to work
14:14 – Mailbag: Should I self-insure?
16:18 – Mailbag: Are reverse mortgages a bad idea?
What does diversification mean to you? And is it good financial strategy? On this episode of the Retirement Reality Podcast, Mike Kojonen breaks down the reasons why it’s not always a good financial strategy.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-61-is-diversification-for-suckers/
What we discuss on this show:
1:58 – Get to know you: Mike’s go-to karaoke song?
4:01 – Warren Buffet quote about diversification
4:54 – Definition of diversification
7:07 – What is diversification?
8:36 - How much emphasis should be put on diversification?
9:34 - Is it possible to be “too diversified?”
11:08 – Mike describes diversification scenario
14:26 – Be prepared
Most people have a 401K or other retirement plan, but it’s not as simple as contributing money and collecting it when you retire. There are a lot of decisions you can make about investments, loans, rollovers and more.
Read more and get additional financial resources: https://principalpreservationservices.com/ep-60-frequently-asked-questions-about-401ks/
What we discuss on this show:
2:09 - Should I accept 401K advice from my company?
3:37 - Should I take out a 401K loan?
5:45 - Are 401K rollovers a good idea?
7:25 – Should people consider target date funds?
9:36 – Should you invest enough to get match or more?
11:46 – Should you use a Roth option?
15:02 – Mailbag: Is $250,000 enough for long-term care coverage?
16:53 – Mailbag: Should I move my investments to cash?
We’re talking specifically to Baby Boomers on this episode. What are the most common challenges, fears and goals of this generation? What are some of the mistakes Boomers often make and how can they be avoided?
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-59-common-retirement-mistakes-and-concerns-of-baby-boomers/
What we discuss on this show:
3:00 – Challenges of Baby Boomers
4:30 – Have people failed to save enough without a pension?
5:56 – Baby Boomers’ fears
8:55 – What mistakes do Baby Boomers make?
13:01 – Mailbag: Can I use this money to buy a car or should I invest it?
14:23 – Mailbag: How reliable is my 401K estimated income statement?
On this episode, we share five commandments that should be written on stone tablets in your retirement plan.
Read more here: https://principalpreservationservices.com/ep-58-five-financial-commandments-to-follow/
What we discuss on this show:
4:13 – Mike talks about a place he never wants to visit again
7:43 – Thou shall not compare your investments to the stock market without the proper context
9:21 - Thou shalt not give up before giving your strategy enough time to play out.
10:59 – Thou shalt not chase big returns too late in life.
13:39 – Thou shalt not ignore costs and fees.
16:42 – Thou shalt not overlook the importance of rebalancing and diversifying.
19:46 – Mailbag: Can I get half of my ex-husband’s Social Security benefit
Let’s talk about estate planning, specifically wills and trusts. Find out what’s right for you, how much it costs and more.
Read more on the topic here: https://principalpreservationservices.com/ep-57-what-you-should-know-about-wills-and-trusts/
What we discuss on this show:
2:10 – Getting to know you question
5:39 – Why estate planning is so important
7:19 – Will or trust?
10:41 - You don’t need a lot of assets for a trust
14:14 – What does it cost to set up will vs. trust
16:40 - Financial adviser’s role
18:30 – Mailbag: Should I give my son this inheritance?
Have you ever looked back on a financial decision and thought, “I wish I would have done that differently”? Decisions about money are a lot easier with the benefit of hindsight. On this episode of the Retirement Reality Podcast, Mike Kojonen looks at five common money mistakes people have made this year.
Read more and get additional financial resources here: https://principalpreservationservices.com/39703-2/
What we discuss on this show:
2:19 – Getting out of the market
4:59 – Not knowing your risk factor
6:51 – Not knowing your social security options
9:15 – Not putting money in a Roth IRA
12:21 – Retiring too early and going back to work
15:30 – Mailbag: Should I try to get a tax refund?
17:12 – Mailbag: Redo our kitchen or save more for retirement?
Have you ever wondered how your savings plan compares to the average American? Vanguard released a report with stats on retirement accounts and we’re going to look at some of the most interesting data to come out of the past year.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-55-how-does-your-retirement-savings-compare-to-average-american/
Read the full Vanguard report: https://institutional.vanguard.com/ngiam/assets/pdf/has/how-america-saves-report-2020.pdf
What we discuss on this show:
6:01 – Majority of assets in 401Ks or something similar
7:41 – Maximizing your 401K contributions
8:58 – 1 in 5 use Roth or after-tax option
10:08 – Statistics on employer matches
12:39 – Average rates of return
16:24 – Leaving money with former employer
19:40 – How we help educate clients
21:53 – 76% of people have balanced strategies
Just like technologies change and become outdated, so do some retirement planning strategies. Let’s look at five financial strategies and determine whether or not they still apply.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-54-five-outdated-financial-strategies/
What we discuss on the show:
2:34 – 4% rule
4:00 – 10/5/3 rule
7:10 - as you get older, move money from stocks to bonds
9:37 - $1 million retirement target
12:17 - you’ll need less money in retirement
15:11 – Mailbag: Should I invest differently based on the election?
Clients often ask how housing fits into retirement plans. From downsizing to rental properties to interest rates, let’s explore some of the top retirement questions about housing.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-53-answers-to-common-housing-and-retirement-questions/
What we discuss on this show:
4:00 – Pay off the house early or slowly?
6:28 – Downsize to a smaller home at retirement?
8:55 – Is rental property a good idea for creating income?
10:37 – Complications with real estate legacy plans?
14:47 – Contact Mike
15:34 – Mailbag: How much money will I spend in retirement?
17:15 – Mailbag: Can I overcome a divorce this late in life?
As life spans continue to increase, so does the need for more money later in life. On this week’s episode of the Retirement Reality Podcast, Mike Kojonen explains how to plan financially for a long life.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-52-can-you-afford-to-live-a-long-life/
What we discuss on this show:
1:05 – Let’s talk about longevity
2:40 – Oldest clients
4:33 – Oldest family member
5:44 – Why is living long a risk?
8:44 – Are people prepared for longevity question?
11:05 – People afraid of running out of money
14:00 – Mailbag: should I cash out life insurance policies?
16:04 – Mailbag: How to prepare financially to leave job?
You’ve heard advice about how to improve your finances and prepare for retirement, but what about mistakes? On this week’s episode of the Retirement Reality Podcast, Mike Kojonen shares five ways you could be ruining your retirement.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-51-5-ways-to-ruin-retirement/
What we discuss today:
3:28 - Treating retirement as a destination
6:22 – Believing retirement will solve all your problems
8:11 - Assuming your monthly spending habits will be same
10:39 – Not staying active in retirement
13:52 – Investing like you’re 35 years old
18:14 – Mailbag: Which account should I withdraw from first?
On this week’s episode, we take a look at some of the financial and retirement challenges that are unique to women and how to handle them.
Read more and get additional financial details here: https://principalpreservationservices.com/ep-50-financial-issues-and-advice-for-women/
What we discuss today:
1:04 – Off-topic: Is this a good time to buy a home or refinance?
4:49 – How engaged are women with finances?
7:59 – Women in difficult financial situations
9:43 – Challenges faced by widowed women
11:43 – Advice for men
13:22 – A memorable story
17:36 – Mailbag: Financial issues in second marriage
How can you build a strong financial house? Mike gives you step-by-step instructions to create a solid foundation for your finances.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-49-how-to-build-a-strong-financial-house/
What we discuss on this episode:
3:56 – Foundation = Income Plan
6:23 – Walls = Investment Plan
8:11 – Roof = Insurance protections
11:20 – Finishing Touches = Estate Plan
16:54 – Mailbag: Forced into early retirement
19:12 – Mailbag: Can you explain the rule of 100?
How should you prepare for a market crash? We’re here to help you get through those tough times with a five-step market crash survival guide.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-48-market-crash-survival-guide/
On today's show:
2:19 - Know how much risk you are exposed to
6:01 - Protect your gains
8:40 - Have appropriate diversification
10:00 - Don’t try to time the market
12:48 - Don't panic
15:10 – Mailbag: Buy shares of company stock?
16:48 – Mailbag: Pay off house/rental property or keep money in account?
Just how ready are you for retirement? We explore some of the faulty thinking that leaves people underprepared when it comes time for retirement.
Read more and get additional resources here: https://principalpreservationservices.com/ep-47-are-you-really-ready-for-retirement/
On today's show:
2:41 – Believing a certain number is all you need
5:22 – Believing you won’t need as much money in retirement
7:34 – Expecting you’ll get an inheritance
10:05 – Thinking you’ll just figure it out
11:40 – Believing the income estimate in your 401K statement or retirement accounts
15:21 – Mailbag: Real estate investment trusts
18:36 – Mailbag: Retiring at 55
It’s a topic no one likes to think about. Would you be OK financially if your spouse passed away? Find out how to prepare financially for a worst-case scenario like this and what common mistakes people make.
Read more and get additional financial resources here:
On today's show:
0:55 – A tough situation
2:31 – What can you do to prepare?
3:42 – Why it’s important to meet with both spouses
4:30 – Immediate financial challenges when a spouse dies
7:55 – Wife didn’t know where all the assets were
9:43 – Husband and wife had good plan in place
11:18 – Why planning is key
12:54 – Mailbag: What should a financial advisor help me with?
We see it all the time. People approach retirement and make these classic mistakes, costing them time and money. Find out how to avoid these common blunders and set yourself up for financial success.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-45-avoid-these-classic-pre-retiree-mistakes/
On today's show:
2:40 – Investing like you’re younger
4:35 – Taking Social Security too early
6:38 – Failing to focus on tax planning
8:59 – Thinking Medicare will cover all your needs
10:20 – Taking on extra risk
13:10 – Mailbag question
Mark Twain is considered one of the greatest writers in American history and many of the things he wrote and said are still very applicable more than 100 years later. To celebrate his humor and wisdom, we pulled some of his best quotes and applied them to financial planning.
Show notes & additional financial resources: https://principalpreservationservices.com/ep-44-applying-mark-twain-quotes-to-finance/
Today's show schedule:
1:29 – Before we turn to Mark Twain quotes, let’s begin with our favorite Yogi Berra quotes.
3:58 – 1st Mark Twain quote
5:43 – 2nd Mark Twain quote
7:05 – 3rd Mark Twain quote
8:44 – 4th Mark Twain quote
10:26 – 5th Mark Twain quote
12:02 – 6th Mark Twain quote
14:37 – Mailbag Question: When should I start focusing less on growing my money and focus more on protecting it instead? I plan on retiring in two years and the volatility makes me nervous.
When it comes to investing, do your actions line up with your goals? It’s easy to talk about what you want to accomplish but are you taking the proper steps to make progress towards those things? Let’s talk about the ways in which people will say one thing about their finances but do another.
Read more and get additional resources here: https://principalpreservationservices.com/ep-43-saying-one-thing-but-doing-another/
Today's show schedule:
1:02 – Update on Mike professional career.
2:53 – What we’re talking about today.
3:17 – They spend a lot of time saving but don’t worry about fees in their investments.
5:33 – Someone says they aren’t comfortable with risk but their portfolio doesn’t reflect that.
7:26 – People that really care about their family and loved ones but don’t have a plan in place to take care of them in the event something happens.
10:24 – People want to retire as soon as possible but don’t take the time to put a plan in place.
13:52 – Mailbag question: Is it wise to have a trust as part of my financial and estate plan?
Despite the popularity of IRAs, there seems to be quite a bit of confusion between the traditional options and the Roth. What’s the difference between the two and where should you be contributing your money? Today we’ll answer those questions and help you better understand your investing options.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-42-traditional-or-roth-ira/
Today's show schedule:
1:19 – Do you get a lot of questions on this subject from clients?
2:32 – Explain the differences between the two.
4:56 – Why do people typically contribute more to IRA over Roth?
6:00 – How can a Roth be a powerful tool for investors?
8:00 – Who is someone that would benefit from contributing to a Roth over traditional?
11:31 – Who would benefit more from a traditional IRA over a Roth?
13:26 – Mailbag question #1: We should be leaving a significant amount of money to our kids. Should we tell them about our plans now or let it be a surprise?
16:41 – Mailbag question #1: We have big travel plans in retirement, including visiting all 7 continents. Will we need more income in retirement than we have now?
We were playing the dangerous game of perusing the comments section of a recent article about COVID-19 and the impacts on retirees and how much money you’ll need to retire going forward. The trip into the comments section is always a mixed bag of trolling, inaccuracies, and sometimes surprisingly helpful insight from what we’ve come to describe as “Keyboard Warriors.” So, let’s look at some of the sentiments found under this recent article and see if they resonate with how others truly see the financial world, retirement, and how to best prepare for it all.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-41-lessons-from-keyboard-warriors/
Today's show schedule:
0:58 – Mike has his first seminar scheduled since the pandemic started.
3:22 – Let’s talk about keyboard warriors and the comments on a recent article.
4:11 – First comment
5:46 – Second comment on concern
7:44 – Third comment on opportunity
9:22 – Fourth comment
10:54 – Fifth comment with opposite views.
13:22 – Final comment on planning
15:27 – Mailbag Question: I have a variable annuity and found out that the fees are very high. I’d like to move the money but I’d have to pay a penalty to get it out. Is it worth paying the penalty to lose the high fees?
If you really took inventory of your financial situation, you might find that you’ve been taking for granted some assets that make up a huge piece of your puzzle. Is it possible you should be putting a little more thought into some of these assets? We’ll tell you why on today’s episode.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-40-are-you-giving-your-biggest-assets-enough-attention/
Today's show schedule:
2:04 – Mailbag question: I counted up the mutual funds in my IRA and it appears that I have 33 different funds. Is that adequate diversification?
3:46 – Mailbag question: I’m 55 and I have about $300K saved for retirement but I feel like I’m behind compared to people I know. Am I in trouble?
5:23 – Are you paying enough attention to the biggest assets you already own?
First asset: 401k
7:47 – Second asset: Your house
9:39 – Third asset: Social Security
12:40 – Fourth asset: Your future savings potential
14:12 – Fifth asset: Having a bunch of smaller accounts
If you’re like most people, you have old financial accounts that you haven’t looked at it recently and the statements are filed away collecting dust. You might not think much of them, but those accounts might be hidden gems for your portfolio if used in a different way. Let’s talk about where you should look and what you could gain out of these old investments.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-39-hidden-gems-in-your-financial-portfolio/
Today's show schedule:
1:02 – Hoping to get educational seminars going again soon.
2:35 – More virtual seminars going up to the website as well.
3:11 – Mailbag question 1: An online calculator gave me an amount I need for retirement. How accurate do you think that is?
5:02 – Mailbag questions 2: I have almost $150,000 sitting in my savings account. I don’t like getting no interest on it but I’m also too scared to invest right now. Should I just leave it in the bank?
8:02 – Let’s talk hidden gems starting with the old 401k.
11:43 – What should you do with the life insurance policy you have?
14:00 – How can savings accounts be hidden gems?
16:11 – Last hidden gem: old pension fund.
19:04 – We work with clients to go through all of these things in a discovery meeting.
Should you follow Dave Ramsey and his baby steps to financial success? On this episode of the Retirement Reality Podcast, Mike takes a critical approach to help you determine if Dave’s advice is right for everyone.
Read more and get additional resources here: https://principalpreservationservices.com/?p=39469
Today's show schedule:
1:04 - Mike looks forward to summer weather and football season.
3:01 - Mike shares about his favorite charity to support.
5:55 - Is the debt snowball a good strategy?
7:43 - Should you just invest in mutual funds?
10:07 - Can you spend eight percent of your money in retirement?
12:42 - Is it a good idea to stop saving for retirement while getting out of debt?
14:23 - Dave Ramsey has seven baby steps, but are they for everyone?
17:14 - Know who the audience is for these financial experts.
With so much happening in the financial world these past few months, there can be a lot to process when you’re trying to understand the market and the economy. Certain financial terms are being used a lot more now than they were the past decade so we will help you understand what these things mean and how they apply to you.
Read more and get additional resources here: https://principalpreservationservices.com/ep-37-financial-terms-you-should-know-during-the-pandemic/
Today's show schedule:
1:28 – Mike and his family staying active outdoors.
3:08 – Getting to Know Mike: What do you do to relieve stress?
5:20 – What would you call what’s happening right now with the market?
7:17 – Help us understand the difference between a recession and a depression.
8:55 – Explain the types of recoveries: U-shaped, V-shaped, W-shaped, L-shaped
10:24 – What is the VIX index?
12:38 – Is this an opportunity for tax-loss harvesting
15:17 – How can index funds benefit people during a downturn?
16:46 – What is rebalancing, how does it work, and how often should you?
19:48 – Our team is in the office and available for people that want to take meetings in person.
Sometimes events happen in life that make it really important for you to carefully assess your financial situation. Let’s explain why these five major events are usually a good reason for a financial review.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-36-5-life-events-that-spark-major-financial-changes/
Today's show schedule:
1:12 – Mike is busy with spring projects and getting life back to normal.
2:44 – Financial Dictionary: What is an Adjustable Rate Mortgage?
6:21 – Mike isn’t a fan of these mortgages and this is why.
8:33 – Let’s get into the main discussion.
8:55 – Life event: Moving to a new job (planned)
10:21 – Life event: Changing jobs (unplanned)
12:08 – Life event: An inheritance
14:02 – Life event: A serious medical issue
16:07 – Life event: Death of a spouse
We turn to many different people and resources to get financial advice, but how much can you depend on the information you’re getting? Today we’ll talk about four common people we go to that might have the best intentions but why their advice isn’t always beneficial to you.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-35-best-intentions-sometimes-end-in-bad-advice/
Today's show schedule:
1:55 – How is Mike handling the quarantine time?
2:37 – What we’re talking about on this episode.
3:10 – Get advice from our family.
5:05 – Next on the list is friends
7:21 – The third is a CPA
8:53 – Mike shares as story about a continuing education event he held.
10:01 – The final one is financial experts in the media.
13:35 – Mailbag question #1: I make too much money to contribute to an IRA or Roth. What’s the best way to contribute towards retirement?
16:26 – Mailbag question #2: My financial advisor is older than me. Should I move to someone else that won’t retire before I do?
The government implemented multiple measures to assist Americans during this health crisis, and there are number of changes that investors and retirees need to know about. Mike is going to run through the key provisions so that you will have a better idea of how your retirement plan will be impacted.
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-34-retirement-account-changes-for-2020/
Today's show schedule:
1:17 – Are you and clients getting used to the virtual meetings?
2:06 – First thing Mike wants to do when quarantine is over?
4:44 – Give us the details of the changes made to retirement accounts and withdrawals.
7:14 – 401k loans
7:54 – RMDs have been waived for 2020.
8:55 – Mike doesn’t recommend taking money out of retirement accounts.
9:49 – Are clients considering this option right now?
11:11 – Does Mike think these are good changes that will help people?
12:50 – Before you withdrawal any money, make sure you have a plan.
14:40 – Mailbag Question #1: I’m going to sell three rental properties but maybe all five. I have quite a bit of equity in these properties. What should I do with this money?
16:32 – Mailbag Question #2: I retired two years ago with more than a million dollars in my IRA, which I thought was more than enough at the time. It makes me nervous every time I withdrawal money from that account because I don’t want to run out of money. Am I worrying too much?
Okay, so there might not be such a thing as a ‘bad financial product’, but there are certainly inappropriate investments out there for people in certain situations. We’ll explore some examples of those kinds of situations on this episode and you might be surprised just how common it is for people to be invested in products that are ill-suited for their financial goals.
Read more and get additional resources here: https://principalpreservationservices.com/ep-33-are-you-in-a-bad-investment/
Today's show schedule:
1:05 – A recent study found a bad savings trend for Americans.
4:04 – Does Mike agree that there aren’t bad financial products, mainly just bad fits for people?
5:15 – Mike shares the worst investments he remembers seeing from a client.
7:59 – Do clients have any idea how they got into these bad investments?
9:48 – There are usually ways to correct your mistakes and get into correct investments. Mike shares a story.
12:31 – Making changes can benefit you greatly and here’s another story about a past client.
14:45 – Mailbag Question #1: How much long-term care coverage is recommend? It seems there are hundreds of options out there.
17:45 - Mailbag Question #2: I’ve had the same financial advisor for 20 years but it seems like he’s phasing out and passing things on to a younger advisor in the firm. Should we stick with them or find somebody new?
Now that we’ve had a little time to process what we’ve been seeing in the stock market, let’s get an update from Mike on where we stand, how clients are handling everything, and what the next steps need to be for your finances.
Read more and get additional resources here:
Today's rundown:
1:16 – How is Mike and his team dealing with the quarantine?
2:43 – Mike’s usual seminars are on halt but virtual seminars are starting.
4:21 – Getting to Know Mike: What’s dumbest or most foot-in-mouth thing that you’ve ever said?
5:45 – Let’s turn to the market and get Mike’s perspective on what we’ve seen over the past two months.
7:44 – How have your clients handled everything so far?
9:36 – What about someone with a solid financial plan already, what adjustments can they be making?
12:07 - If you have the ability, now is the time to increase your contributions.
13:36 - It’s difficult in the moment to trust the process but look at some of the values out there.
15:26 - What about the people without a plan in place? What are their next steps?
17:37 – Mailbag Question #1: I haven’t wanted to pay off my house but I have the money to now so should I?
19:46 - Mailbag Question #2: I’ve heard I should be saving about 10% of my income towards retirement? Is that right?
Planning for retirement consists of many different steps, and a comprehensive plan will cover dozens of different areas of your finance over time. But that doesn’t mean you have to focus on everything at once. It’s time to really start honing in on your retirement when you reach your 50s and making sure everything is taken care of. On this episode, we’ll talk about what’s most important at each stage to help you prioritize.
Read more and get additional resources here: https://principalpreservationservices.com/ep-31-where-you-should-focus-during-each-stage-of-retirement/
Today's rundown:
1:26 – How’s the office handling everything and what kind of conversations are you having with clients?
3:38 – Let’s talk stages of retirement.
4:16 – 15 years out (about 50 years old) what do you need to be focusing on?
6:41 – Now you’re about 10 years out, where does your attention turn?
8:17 – You cross into your 60s and you’re closing in on retirement. Here’s what you need to do.
10:06 – You’ve reached retirement. What’s the one essential thing you need to take care of?
12:28 – After retiring, there’s still work to do.
15:54 – Mailbag Question #1: We had kids later in life than most people so they’ll be in college when we’re ready to retire. Should we make them take out student loans instead of trying to come up with the money to pay tuition?
18:51 - Mailbag Question #2: We’re both 63 and haven’t saved much at all for retirement. We’re about to sell our farm and that will net about a million dollars. What should we do with the money?
As we’ve seen over the last month, a market downturn can happen quickly and it causes many people to evaluate their financial situation. As you’re doing that, pay attention to the lessons that can be learned in times like these. On this episode, we’ll talk about five financial truths that are even more evident now than they were to start the year.
Read more and get additional resources: https://principalpreservationservices.com/ep-30-5-financial-truths-you-can-rely-on/
Today's rundown:
2:17 – Today’s topic is on financial truths.
2:49 – 1st truth: TV can be your biggest enemy.
4:04 – 2nd truth: It’s important not to react emotionally.
5:15 – 3rd truth: The market will always go in cycles.
6:48 – 4th truth: People aren’t ask risk tolerant as they think they are.
9:01 – 5th truth: There is no magic bullet when it comes to retirement planning.
13:56 – Mailbag Question #1: Is it wise for me to own some gold in my portfolio? What percentage?
14:58 – Mailbag Question #2: The coronavirus scare has me convinced the market will keep crashing again and again. I’m ready to move everything to cash right now. Is there any reason to wait?
We talk all the time about how people need to give their dollars purpose or set goals for their retirement and even specifically for certain investments. But let’s dive deeper into what different goals look like for various folks approaching retirement. How do you determine if a goal is realistic or out of reach? We’ll tackle that conversation with plenty of examples on this episode.
Read more and get additional resources here: https://principalpreservationservices.com/ep-28-setting-financial-retirement-goals/
Today's rundown:
1:35 – It’s a busy time around the office.
3:33 – What general goals can everyone shoot for when building a plan?
5:30 – Not having a plan is planning to fail.
5:55 – You don’t have to completely understand finances to build a plan and set goals. That’s what we’re for.
7:26 – How do you help someone determine what their goals are?
8:46 – What unrealistic goals have you heard from people?
11:35 – How can you know if your financial goal is realistic and achievable?
13:19 – Mike shares a client story about underestimating expenses.
14:50 – Mailbag question: I just looked at Social Security estimate and see how much I’d get at 62, 66, and 70. I’m blown away by how much more I’d get at 70. I’m inclined to wait as long as possible to start it event though I’ll retire around 66. Is that the best option for me?
With taxes at historically low levels, many people have turned to Roth conversions as a planning strategy. Is this a smart option for you? What all should you consider when it comes to conversions? Let’s breakdown the pros and cons and explain how the process would work for you.
Read more and get additional resources here: https://principalpreservationservices.com/ep-27-understanding-roth-conversions-as-a-planning-strategy/
Today's rundown:
1:18 – Roth conversions are a topic we talk about a lot in the planning process.
2:37 – What is a Roth conversion?
3:33 – Why might this be especially helpful for high-income earners?
5:04 – Mike explains tax considerations for a Roth conversion?
6:09 – What are the common mistakes people make with a Roth conversion?
7:25 – Who is someone that might benefit from this strategy?
8:48 – This is a great way for people wanting to leave money to their kids through a retirement account.
9:39 – Who else should not consider a Roth conversion?
10:49 – A common mistake we see people make relating to RMDs.
11:48 – Every situation is different and you need a personal plan.
13:16 – Mailbag question: I have several thousand in company stock that I want to cash in and put towards land to build a vacation home. Is there any reason I shouldn’t do that?
With so much uncertainty in the market right now, we want to get Mike’s opinion on what we’re seeing with the coronavirus and the impact it’s having financially. We’ll then spend the rest of the show discussing ways in which you get lost in retirement. It doesn’t take much to get off track but there are always ways to regain your retirement compass.
Read more and get additional resources here: https://principalpreservationservices.com/coronavirus-upda…st-in-retirement/
Today's rundown:
2:17 – What does Mike make of the coronavirus and its impact on the market.
3:42– This is scary if you’re in retirement.
5:20 – You have to know where you are in your retirement planning process.
6:49– Long term we’re not worried.
8:07– Let’s shift to our main topic today on getting lost in retirement planning.
8:31– The first way to get lost is having bad tools.
10:13– The next way is getting poor directions from someone.
12:52– If the first two don’t get you, then you might get lost due to lack of attention.
14:36– How can we get back on track? Let’s start with determining exactly where you are.
15:51- The next thing you need to do is decide where you want to go.
17:27- Don’t be afraid to get help along the way.
When you think about retirement, are you someone that pictures yourself working for as long as you can or do you want to hang it up as soon as financially possible? Everyone has a different level of desire when it comes to retiring and we’ll span the full spectrum on this episode.
Read more and get additional resources here: https://principalpreservationservices.com/ep-26-whats-your-level-of-desire-to-retire/
Today's rundown:
2:48 – Getting to Know Mike: What’s your favorite sport?
5:21 – Moving into our main topic on desire to retire.
5:41 – Level 1: ‘I don’t see myself retiring. I love what I do.’
6:49 – Level 2: ‘I guess I could retire but they pay me pretty well and I don’t hate it. So I might as well keep working.’
7:35 – Mike shares a story about a trip to California and a retirement conversation he had.
8:52 – Level 3: ‘I’d like to retire in a few years but I’m not really sure when I can.’
11:05 – Level 4: ‘I always pictured myself working for a few more years but the idea of retirement is looking better and better.’
13:28 – Level 5: ‘I want to retire tomorrow and if I don’t quit this job right now, they might have to put me in an asylum.’
16:28 – Here’s how you can start the planning process regardless of your level.
17:54 – Mailbag question: It appears I’m now able to contribute more to my 401k this year than I was allowed to last year. Is it safe to assume I should put in the extra amount?
The SECURE Act took effect at the beginning of 2020 and it brought significant changes to retirement accounts. Let’s break down the new legislation and explain what it means to your plan.
Get the show notes and additional resources here: https://principalpreservationservices.com/ep-25-what-does-the-secure-act-mean-for-your-retirement/
Today's rundown:
0:56 – Here’s what we plan on talking about today.
1:34 – Most of our clients don’t know the details of the SECURE Act and we’re discussing it with them quite a bit.
2:32 – In the News: Study shows student loans have tripled since 2006 and now stands at $1.6 trillion. How serious is this problem?
6:00 – The SECURE Act got passed at the end of 2019. Here’s an overview of what it means to you.
8:26 – How does the delay in taking your RMDs impact retirees?
9:45 – Two more big changes that came with the SECURE Act involving contributions and Stretch IRAs.
12:17 – If you plan on leaving money behind to your children, what’s the best way to do it?
13:54 – A couple extra tidbits involving the SECURE Act.
16:04 – This is significant legislation and it’s a great idea to meet with an advisor.
16:47 – Mailbag question: I’ve worked with a couple different advisors over the years and like them both. Should I stick to just one or is okay to work with both?
We spend a lot of time we researching and gathering information but some of the best guidance for retirement planning can be found right in front of us. We’ll show you that’s the case by taking farming and extracting five lessons that you can apply to your planning strategy.
Show notes and additional resources: https://principalpreservationservices.com/ep-24-5-retirement-lessons-you-can-gather-from-farming/
Today's rundown:
1:02 – Mike and his family own a hobby farm with multiple animals.
2:20 – Let’s take farming and relate it to retirement planning.
2:33 – The first lesson is understanding liquid vs non-liquid assets.
5:08 – The second lesson we can find in the chicken and the egg.
8:13 – The third lesson is protecting yourself from risk like predators on a farm.
10:34 – Long-term care is another predator people don’t always consider.
11:53 – Hidden fees is the last one that can attack your ‘chickens.’
12:30 – The fourth lesson is a diversity of crops to make sure your business isn’t too reliant on any one asset.
15:39 – The final lesson can be taken from the rooster.
17:31 – Mailbag question: I’d really like to meet with a financial advisor but my husband says we’re fine handling our investments ourselves. Is that okay to do on our own?
A lot of financial professionals will tell you things that just aren’t true. That doesn’t mean they do it intentionally. Many times these professionals have been given talking points, which they might even feel to be true themselves. We want to talk about the statements you should be cautious of if you hear them from an advisor.
Show notes and additional resources: https://principalpreservationservices.com/ep-23-lies-learned-in-broker-school/
Today's rundown:
1:28 – Minnesota winters have brought below-freezing temperatures once again.
3:55 – In the News: A recent CNBC article points out that an older retirement age is becoming the trend around the world. Is Mike seeing this in Minnesota and Wisconsin?
5:53 – Why we’re talking about broker lies today.
6:26 – Lie #1: ‘We have experts who can accurately predict market movement.’
7:42 – Here are the investments we see people come in with all the time.
9:10 – Lie #2: ‘Just look at our past investment returns and you can see that we have a system that works in all markets.’
10:43 – Lie #3: ‘Your tax rate is going to be much lower in retirement.’
12:30 – Most people we work with have the majority of their savings in pre-tax accounts.
13:23 – The SECURE Act will have a big tax impact as wealth gets transferred from the Baby Boomer generation.
15:09 – Lie #4: ‘It’s just a paper loss. Hang in there and you’ll be fine.’
17:03 – The difference between working with a fiduciary versus the alternative.
19:49 – Mailbag Question: I told myself that if I ever hit $1 million in my portfolio, I’d move it a lot of it to cash. Now that I’m there, I feel like I can get to $1.2 million. What do you think?
Of course we all want to have a healthy bank account and feel the security of knowing we have money at our disposal. Having plenty of cash on hand can help in the event of an emergency but building up your account too much can actually be a detriment to your retirement. Let’s talk about the situations where cash can be a benefit and the times when it can hurt you.
Show Notes and Additional Resources: https://principalpreservationservices.com/ep-22-is-having-cash-good-or-bad/
Today's Rundown:
2:12 – In the News: IRS increased contribution limits for retirement accounts. How significant is this news?
4:14 – It’s all about the Benjamins. Let’s talk cash.
4:47 – What are some of the reasons you want to keep cash on hand?
7:20 – Then when is it counterproductive to have too much cash?
8:56 – How we work with clients on determining how much cash they need to have.
11:23 – Does fear drive a lot of those decisions to hold onto cash?
13:28 – What are some of the other investments outside of the market that people can put their cash in?
15:56 – Mailbag Question: I can sell my house right now for $500,000 and I only owe $100,000. I’m only 57 so I could sell the house and use that extra cash to retire early. Is that a good idea?
We live in an era where everyone has a platform and it’s more profitable to be entertaining than to be informative. That’s led to bias in media and finance is no exception. Let’s take a look at the most common places you’ll find bias and how to make sure you’re getting information that’s accurate for your retirement plan.
Show Notes and Additional Resources: https://principalpreservationservices.com/ep-21-be-aware-of-bias-in-financial-media/
Today's Rundown:
2:06 – In the news: The Stretch IRA is going away as part of the SECURE Act. Here’s what you need to know.
4:40 – Why did this change happen? Is it specifically a tax play for the government?
6:18 – Let’s talk ‘Fake News’
6:43 – First place to find bias: Sensationalism
9:17 – Second bias: Paid Placements
11:18 – Another bias: Wrong Audience
12:50 – An example of a common investment that doesn’t usually make sense for pre-retirees.
14:19 – Final bias: An Axe to Grind
17:58 – Mailbag Question: I have about $50,000 in cash value in an old life insurance policy. I don’t need it before so should I just cash it out and invest it somewhere else?
19:30 – There are a couple options for what you could do with that money.
Do you believe you need to be completely debt free to retire successfully? Or are you okay carrying some balances beyond your working years? There are many opinions about the best way to handle debt and retirement planning, so we’ll tackle them all on today’s show.
Read more here: https://principalpreservationservices.com/ep-20-do-you-need-to-be-debt-free-to-retire/
Today's rundown:
2:12 – In the News: President Trump changed his state of residence from New York to Florida for tax purposes. How often do our clients consider moving in retirement?
5:01 – Our main topic today is debt heading into retirement.
5:22 – Clients can consistently create more wealth when they don’t have debt.
7:30 – Do you have to be debt-free heading into retirement or is that able to be managed?
8:55 – Does Mike believe there’s such a thing as ‘good debt’?
10:40 – What are some examples of bad debt?
12:04 – Car debts aren’t the best but it could make sense in certain situations.
13:38 – How do you work with clients to develop a plan to become debt-free?
15:42 – Mike and his wife overcame a lot of debt earlier in their life.
17:09 – That client Mike helped was able to retire, which was great to see.
Nearly everyone invests in mutual funds at one point or another, but is that the best strategy for your retirement plan? As the landscape continues to change, we wanted to look at the ins and outs of mutual funds to give you a better understanding of what you’re buying into. We’re joined by advisor Kasey Byrd to talk about our strategy when it comes to this investment option.
Read more on this topic here: https://principalpreservationservices.com/ep-19-the-ins-and-outs-of-mutual-funds/
Today's rundown:
1:12 – Welcoming on a guest today, Kasey Byrd.
2:57 – What percentage of our clients own mutual funds when they come to see us?
5:02 – Understanding expense rations and the three classes of mutual funds.
8:14 – Explain what the term ‘loaded’ means?
9:07 – Even though they’re actively managed, mutual funds still don’t have much flexibility when downturns occur.
10:14 – What tax considerations do we need to make with mutual funds?
12:04 – So what’s the future of mutual funds? Do they have a purpose?
15:25 – Mailbag Question: My husband’s military pension is a nice benefit but I won’t get any of it when he dies. That was a mistake in retrospect but how can we address this problem moving forward?
18:08 – Mailbag Question: Because of a mutual friend, I have the opportunity to work with an advisor who works primarily with people who have $5 million or more. Do you agree that this is a great opportunity for me?
Sometimes people say they don’t want to retire and they really mean it. But other times it’s just a defense mechanism to mask the opinion that they don’t feel like they can retire. Let’s look at the common excuses people make and explore the possible meanings behind why you don’t want to retire
Show notes and additional resources: https://principalpreservationservices.com/ep-18-are-you-making-these-excuses-to-avoid-retiring/
Today's rundown:
2:15 – We’re talking about excuses people make for not retiring.
2:33 – “I love my career.” What’s the deeper meaning to that statement?
4:43 – “If I’m not working, I’m going to be bored.”
6:30 – “I don’t have enough money to retire.”
8:01 – Mike shares a recent meeting he had where they discovered the client was going to run out of money.
9:59 – The final excuse is when someone says they don’t have the confidence in their plan/portfolio.
13:56 – Mailbag Question: I’ll be retiring in exactly one year. What’s on the list of things I need to do before I retire.
15:32 – Mailbag Question: I’m overwhelmed by how many accounts we have accumulated through our careers. How much can we consolidate and how does that all work?
How do you know if an advisor is a good fit? That’s a question that keeps many people from working with a professional so let’s identify the essential traits every advisor should possess. That might be easier said than done so let’s also talk about how you can determine whether an advisor has these characteristics.
Show notes and additional resources: https://principalpreservationservices.com/5-traits-your-financial-advisor-should-have/
Today's rundown:
1:23 – Excited for the new year and what 2020 will bring.
2:42 – In the News: For the first time in 37 years, the inventory of homes is at its lowest level nationally. Is that the case in Minnesota and Wisconsin as well?
6:13 – Personality trait: Trust. How do you identify if someone is trustworthy?
8:20 – Trait: Likeability. How can you assess whether or not you want to work someone?
9:45 – Trait: Area of expertise that matches your needs.
11:50 – Trait: Good listener. You need someone that can key in on what your needs are.
13:39 – Trait: Problem Finder
16:50 – Mike adds one final trait to the list: full disclosure.
There’s plenty of misinformation and rumors in the world of Social Security and that might cause a little anxiety when it comes time to claim your benefit. On this show, we’ll look to clear up the top 5 misunderstandings about Social Security.
Show Notes and Additional Resources: https://principalpreservationservices.com/top-5-biggest-social-security-misunderstandings/
Today's Rundown:
1:19 – What goals does Mike have for the company in 2020?
2:22 – Reflecting on 2019
3:30 – In the News: A baggage handler at an airport in Nevada was giving financial advice to more than 900 people and even charging them a fee before the SEC charged him with fraud.
5:36 – Moving into our main topic today on Social Security misunderstandings.
6:05 – No. 1: Social Security is going broke.
8:09 – No. 2 and 3: Some people say you need to start as early as possible while others say delaying as long as possible is the best strategy.
9:52 – No. 4: The Social Security Administration office will help you determine the best strategy for claiming your benefits.
13:07 – No. 5: Assuming that you don’t have to pay any taxes on your Social Security.
15:26 – Getting to Know Mike: What do you do to relax after a long day or a long week of work?
Not everything goes as planned when it comes to your financial life, but how will you respond to difficult situations? We’ll look at some negative circumstances that many retirees and pre-retirees face and help you find the silver lining.
Show Notes and Additional Resources: https://principalpreservationservices.com/finding-the-silver-lining-in-4-challenging-financial-situations/
On This Episode:
1:19 – What’s happening around the office during the holiday season.
3:38 – Let’s talk about the difficult situations we sometimes face and how to find the silver lining.
4:01 – First situation: Your company forces you into an early retirement.
7:04 – Second situation: You find out your insurance premiums are going up.
9:34 – Third situation: Your company is doing away with pensions.
11:54 – Fourth situation: Your company gets bought out and you have to get used to new management.
14:28 – Mailbag question: I’m selling one of my rental properties in a month or two and don’t plan to buy another one. What’s the best thing to do with the money from that sale?
17:25 – Mailbag question: Are there really no tax obligations to rolling over my 401k?
Not everyone wants to leave a financial legacy behind, but for those that do, it’s important to eliminate the common estate planning mistakes. We’ll identify five key missteps that people make when building and managing an estate plan so that you’ll be able to leave exactly what you want to the people that mean the most to you.
Show Notes and Additional Resources: https://principalpreservationservices.com/5-critical-estate-planning-mistakes-to-avoid/
On This Episode:
1:20 – It’s been a busy but great year.
2:22 – Today our topic is avoiding estate planning mistakes.
2:45 – Mistake 1: Failing to plan for expenses that can be foreseen like healthcare.
4:30 – Mistake 2: Failing to update beneficiary designations.
6:18 – Which accounts should you be starting with when you go back to update beneficiaries.
7:34 – Mistake 3: Failing to take those steps to avoid conflict among heirs and family members.
11:01 – Mistake 4: Transferring your real estate while you’re still living instead of at death.
13:56 – Mistake 5: Not considering the tax implications of your estate.
With all of the things in the financial world that you can’t control, why would you sabotage your own retirement by messing up the thing you can control? It’s time to discuss the ways in which people damage their retirement and hurt their long-term financial health.
Show Notes and Additional Resources: https://principalpreservationservices.com/these-mistakes-could-sabotage-your-retirement/
On This Episode:
1:32 – Mike gives us an update on his daughter’s wedding.
2:31 – In the News: Social Security Administration announced a 1.6% cost of living adjustment on their monthly benefits in 2020. Is this a big deal?
4:18 – Our main topic today is sabotaging your own retirement.
4:35 – Obsessing about the short term ups and downs of the market.
6:04 – Choosing to start Social Security at the wrong time.
7:29 – Mike shares a client story about Social Security benefits timing.
8:21 – Not planning for nursing home care.
9:57 – Underestimating how much money you’ll need in retirement to fund the lifestyle you want to have.
12:01 – Not funding your retirement accounts enough.
12:45 – Pulling money out of your retirement accounts early to help your children or grandchildren.
There are things we'd all like to avoid talking about with our advisor because it makes us feel uncomfortable or awkward, but some topics have to be addressed if you want to build a strong retirement portfolio. We’ll take a look at how advisors should help clients navigate various tricky situations.
Full Show Notes: https://principalpreservationservices.com/are-you-having-these-tough-financial-conversations/
On This Episode:
1:19 – Mike shares a Black Friday story from a time he waited in line.
3:38 – We’re talking about awkward conversations on today’s show.
4:15 – Mailbag question: It’s seems counterintuitive to move out of a house I’ve already paid off, but I’m thinking about selling my home and moving into a rental to avoid taxes and repairs. Is that a good or bad idea?
7:20 – Starting to discuss conversations you should be having with your advisor and we begin with the death of a spouse.
9:19 – Another conversation is nursing home care and how will we afford it.
11:28 – The next topic you need to be discussing is whether you need to work longer than you expected.
13:55 – You need to sit down with your children and discuss your estate plan.
16:09 – The last conversation you need to have is with your advisor if that person doesn’t fit with your plans.
No one wants to reach retirement and wonder what might have happened if they made a few small changes. Simple mistakes can lead to larger financial regrets later in life. On today’s show, we’ll explore some of the things you can do to avoid living with regret in retirement.
Show Notes: https://principalpreservationservices.com/4-tips-for-retiring-without-regret/
Today's Rundown:
1:17 – What does the holiday season look like for the Kojonen family?
2:29 – Previewing our main topic for this episode.
2:58 – Retire without regret: Don’t make any sudden decisions.
4:17 – Retire without regret: Do your research.
6:51 – How does Mike help a client make the right choice?
7:47 – Retire without regret: Work with a professional you can trust.
9:27 – An advisor can help you sort through all of your investments and help you develop a plan.
11:08 – Retire without regret: Have an actual plan for retirement.
While there are some factors that are different for everyone in retirement planning, there are also constants that affect everyone, no matter the specifics of your situation. How do we plan around these constants? We’ll explore that question on this episode
Show Notes: https://principalpreservationservices.com/retirement-constants-that-affect-everyone/
Today's Rundown:
1:06 – Mike’s daughter is getting married in a couple days.
2:29 – Previewing today’s show.
2:48 – Mailbag question: Most of my 401k is invested in company stock. Is that a bad thing?
4:28 – Mailbag question: How long should I be meeting with my advisor? I get a birthday card every year but that’s about it.
5:48 – Let’s move to our main topic on retirement constants.
6:18 – Retirement constant: Inflation
7:24 – Mike shares the story of the first car he bought.
9:36 – Retirement constant: Rising taxes
11:22 – Retirement constant: Market volatility
13:42 – Retirement constant: Healthcare costs
15:59 – Retirement constant: Fees and commissions
Retirement planning is most effective when it’s tailored to a specific individual’s needs but what factors should you pay the most attention to? We’ll discuss five retirement variables that will change from person to person but need to be considered when building a financial plan.
Show Notes: https://principalpreservationservices.com/retirement-variables-that-need-to-factor-into-your-plan/
Today's Rundown:
1:00 – Mike and his team have moved into a new office in Wisconsin office.
1:58 – Previewing our main topic today.
2:40 – Getting to Know Mike: What is your favorite movie genre?
4:28 – Retirement variable 1: How much income will we need in retirement?
7:55 – Retirement variable 2: Taxes
10:32 – Retirement variable 3: Our life expectancy
12:09 – Retirement variable 4: At what age should I take Social Security.
15:32 – Retirement variable 5: Risk
No one wants to play the guessing game when it comes to retirement and waiting until the last minute to iron out your plan will leave you unsure about your readiness. That’s why that final decade of work is very important from a retirement planning perspective. Get this list of items in order and you’ll be in great shape when that retirement day arrives.
On this episode:
1:36 – Mailbag question: I’ve heard people say the only type of life insurance you should by is term insurance. Is that true?
2:55 – Mike is a fan of some of the index universal life policies.
4:39 – Mailbag question: I’ve owned my own business and haven’t paid a lot into Social Security even though I’ve had a nice income. Is this going to be problematic for me in retirement?
6:37 – Moving into the main topic on why the last decade of work is so important for retirement planning.
7:41 – First thing to do is decide what’s most important to you.
8:27 – The next thing is getting a handle on your numbers.
10:04 – Next you should estimate your income streams and get an idea of how much to expect in retirement.
11:41 – As you’re planning for retirement, keep in mind the cost of healthcare.
12:58 – The final thing to keep in mind is things will change during retirement.
Show notes and additional resources: https://principalpreservationservices.com/ep-8-why-the-final-decade-of-work-is-so-important-for-retirement/
We’ve been enjoying a long bull run over the past decade and that’s made many people fearful that a major downturn is right around the corner. So what might that look like and when could it happen? We discuss the next market crash and how to prepare yourself for it.
Today's rundown:
1:20 – Mike’s team is moving into a new office.
2:37 – Mailbag question: Should I work with a younger advisor with less experience or someone my age that will retire the same time I do?
5:17 – It’s valid to ask an advisor what their plan is when they retire. Who will take care of you?
6:00 – Mailbag question: I’m retiring in six months and worried about a market crash before I get to the finish line. Will I be ok?
7:41 – So what will the next market crash look like? Let’s discuss.
8:07 – When is the next market crash coming?
9:34 – When it does happen, should we plan for it to be as severe as 2008?
10:52 – If someone is worried, is it best to pull your money out of the market and just wait?
12:19 – What our team does to protect our clients from a downturn.
15:30 – An advisor can help you understand investment options you might not even be aware of.
Show notes and additional resources: https://principalpreservationservices.com/ep-7-what-will-the-next-market-crash-look-like/
When was the last time you took a flight? Did you think at all about how that process related to investing? Probably not, but there are actually some pretty great parallels between retirement planning and flying that we will talk about on this episode. Buckle up and prepare for takeoff.
On this episode:
2:36 – Introducing our topic on today’s show.
3:32 – In the news: 37% of households are ‘free and clear.’ Is that number high or low?
4:49 – 75% of our clients are free and clear and the others are pretty close.
5:44 – Beginning our main topic of what flying teaches us about retirement
6:09 – The first lesson: You need a flight plan.
7:42 – You need someone with experience to build the correct flight plan.
8:51 – The third lesson: Turbulence effects different people in different ways.
10:15 – Your plan, like an airplane, is built to withstand the ups and downs.
11:00 - The final lesson: You need help along the way to get from point a to point b.
11:50 - Past success can really hurt you. Here’s why.
Get the full show notes and additional resources by clicking here: https://principalpreservationservices.com/what-flying-can-teach-us-about-retirement/
You can’t criticize people that take a proactive approach to their future by putting away savings as they earn, but you can offer up ways to improve the way that they save. Believe it or not, even responsible savers make mistakes because the transition into retirement can be a major lifestyle change. Let’s talk about some of those missteps that happen along the way.
Today's rundown:
2:01 – What we’ll talk about on today’s show.
2:43 – Wedding loans are a new trend where young couples take out money to pay for their ceremony. Mike shares his thoughts on this.
6:01 – Moving into the main topic – even responsible savers make mistakes.
6:22 – Mistake: Getting too enamored with cash.
8:00 – Mistake: Taking too much risk to accumulate savings.
10:11 – How often you should be evaluating your portfolio with an advisor.
10:45 – Mistake: Not preparing for that tax time bomb.
14:21 – Mistake: You aren’t enjoying the savings you’ve accumulated.
Get the show notes and additional resources by visiting our website here: https://principalpreservationservices.com/even-responsible-savers-make-these-mistakes/
Have you ever had any type of financial trouble and immediately look to place the blame on external factors? Many times there are situations that make retirement planning difficult, but making excuses rather than looking for solutions will slow down your growth and limit your potential. We’ll share some of the common ‘blame game’ examples we hear and provide you with guidance to get past them.
On this show:
0:54 – Introducing the topic for today’s show.
1:15 – Getting to Know Mike: What hobby would you pick up if time and money weren’t an issue?
3:30 – Blame game excuse 1 : My divorce has really messed me up financially.
5:04 – How difficult is to get back on track financially after a divorce?
5:48 – Blame game excuse 2: My old broker did me wrong?
7:12 – Blame game excuse 3: The system is rigged in that Wall Street always wins but not the little guy.
9:37 – Blame game excuse 4: My kids have had trouble finding good jobs since leaving school so I’ve been helping them out for years.
11:17 – Is Mike seeing clients that are dealing with kids living with them longer and relying them for long periods of time.
13:34 – Another common issue Mike sees from clients.
Get the full show notes and additional resources by clicking here: https://principalpreservationservices.com/is-playing-the-blame-game-holding-you-back-financially/
As the year begins to wind down, it becomes a great time to run through a financial checklist to make sure your investments all are on track. These six items will help you decrease your taxes, improve your portfolio, and keep your retirement plan moving forward.
Today's rundown:
1:21 – Mike talks about his trip to the Minnesota State Fair.
3:13 – Let’s talk about a 3rd & 4th quarter planning checklist.
3:53 – Item 1: Evaluating our IRA or Roth contribution options.
5:31 – Item 2: Taking a look at your charitable donations.
7:06 – Item 3: Offsetting your gains with losses.
8:19 – Item 4: Get updated estimates on retirement income streams.
9:49 – Item 5: Put a plan or schedule in place to get rid of your debt.
11:12 – Item 6: Evaluate your portfolio and rebalance your investments.
14:22 – Mailbag question: What kind of annual return should I be seeking on investments in retirement?
15:54 – Mailbag question: I’ve seen a lot of growth in my 401(k) recently but I feel like I should capture these gains and take risk off the table. On the other hand, what if the market continues to go up?
For full show notes and additional resources, click here.
When it comes to retirement planning, there are some widely believed financials myths that you’ve likely heard. Today we’ll look at some of those and try to bust them wide open. The scary thing is that a lot of people base their financial plans on some of these myths. Don’t be like that.
2:22 – Getting to know Mike: Who is somebody that always makes you laugh?
4:25 – Beginning our discussion on the biggest financial myths.
4:49 – Myth 1: Shifting from stocks to bonds removes the volatility.
6:42 – Myth 2: Once you’re retired, life insurance is no longer necessary.
7:43 – Myth 3: You’ll need less income in retirement than when you’re working.
9:43 – Myth 4: You will be in a lower tax bracket once you retire.
10:55 – Myth 5: Financial planning today is easy to do by yourself now because there’s so much info available.
13:08 – One final myth that Mike hears a lot.
15:17 – Some people are so hard on themselves when planning for retirement.
Get show notes and additional resources here: https://principalpreservationservices.com/5-financial-myths-that-need-to-be-busted/
It’s not uncommon to meet people that aren’t completely satisfied with their financial advisor but don’t feel the need to make a change. Many times, relationships have been formed that prevent clients from making a tough choice, but other times the excuses are a little flimsier. Find out some of the common signs that your advisor might not be a great fit in this episode.
Podcast Website: https://principalpreservationservices.com/retirement-reality-podcast/
Today's rundown:
3:27 – In the news: Reacting to the campaigns to forgive student debt.
6:29 – Mike shares his personal philosophy on how to handle student loans as parents.
7:45 – Conversation about advisors begins.
8:13 – Common excuse from clients: My portfolio hasn’t done well but he’s a nice guy and I don’t want to make a change.
9:20 – Common excuse #2: I don’t understand everything in my portfolio but money isn’t really my thing.
10:38 – Common excuse #3: We don’t regularly get together for reviews and we don’t talk often, but I assume he’s taking care of me.
11:54 – Common excuse #4: He doesn’t really specialize in retirement planning but he’s an old friend so I stick with him.
13:28 – What advice would you give someone that might be in this situation and having second thoughts?
Before we launch the first episode of the Retirement Reality podcast, we wanted to introduce you to the show and the people. In this ‘Getting to Know You’ episode, we’ll learn more about Mike Kojonen, his business, and the future of the podcast.
Check out the full show notes by clicking here. ----more----
Today's rundown:
1:36 – Introducing the plan for the episode.
1:54 – Getting to know Mike.
6:25 – Learning about the business and the philosophy behind Principal Preservation Services.
11:34 – What to expect from this podcast.