Retirement Coach's Corner: Recent Episodes
Alan Mercurio & Troy Bolton
Financial and retirement planning guidance from the team at Mercurio Wealth Advisors in Louisville, Kentucky. Join Chief Financial Advisor Alan Mercurio and Senior Wealth Advisor Troy Bolton each show for helpful conversations about money, life, and retirement. Step into the Retirement Coach's Corner to learn about 401(k)s, IRAs, income planning, investing, and so much more. If you have any questions, call 502-253-9366, email info@mercurioadvisors.com or visit www.mercurioadvisors.com online for more information.
Are you ready to take control of your financial future? In today’s podcast, Alan and Troy dive into listener questions about retirement planning, like what to do about your old 401(k) or how to handle a sudden influx of money. While each of these are “good” problems to have, you still want to be strategic about your next steps.
Alan and Troy stress the importance of having a comprehensive financial plan tailored to your unique situation. Whether you're five to ten years away from retirement or just starting to think about your financial future, sitting down with a qualified professional can help you make informed decisions that align with your goals.
Here’s some of what we discuss in this episode:
- Should I do a 401(k) rollover?
- What reasons do people do a rollover?
- How do you handle newfound wealth?
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
In retirement, your income source is different than it was during your working years. With inflation and market fluctuations to consider, how can you build an income plan that is strong and stable? Alan and Troy share what a comprehensive retirement income plan looks like and what kind of accounts you want to draw from first.
Then, they talk through strategies around Roth conversions. Is it right for you? While there are limits to how much you can contribute to a Roth IRA each year, does that rule apply for Roth conversions? What kind of impact could it have on your taxes or Medicare? Bottom line: talk with a financial advisor to determine the right next steps for you and your unique situation.
Here’s some of what we discuss in this episode:
- Mailbag: Starting Social Security at age 70?
- Mailbag: Can I do a Roth conversion for any amount of money?
- Past performance is not the same as future results.
- Why working with a financial advisor matters.
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
It’s easy to be taken in by half-truths in the financial world without understanding the whole truth. Troy breaks down some of these commonly held beliefs to provide clarity and advice for your financial future. They dive into misconceptions about market losses, portfolio fees, mortgage interest rates, and diversification strategies. Through real-life examples and expert analysis, you’ll learn valuable insights to help you navigate your retirement planning with confidence.
One of the most memorable takeaways from the episode is the analogy used to describe diversification: "You don't want all your eggs in one basket, but you want all your baskets on the same table." This means diversifying your investments while keeping them within a manageable framework, making it easier for you and your loved ones to handle your affairs as needed.
Here’s some of what we discuss in this episode:
- “The market always goes up in the long-run.”
- “The fees are less than one percent.”
- “It’s better to invest money than pay off your mortgage.”
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
Yogi Berra, hall of fame baseball player and legendary catcher for the New York Yankees, was known not only for his athletic abilities but also for his witty and often paradoxical sayings. These quotes provide a unique lens through which we can view and understand the complexities of financial planning.
One of the standout quotes discussed in the episode is, "I never said most of the things I said." This quote reminds us to be cautious about the promises and information we receive, especially when it comes to financial products and services. Alan and Troy emphasize the importance of working with a knowledgeable advisor who can provide a clear and honest assessment of your retirement plan. One way to start is with Troy’s book, “Retirement 360 Game Plan.”
Here’s some of what we discuss in this episode:
- A lot of retirement plans are lacking a little bit in actual plans.
- Everything is costing a lot more because of inflation.
- One of the biggest concerns most people have: taxes in retirement.
- The basic questions to ask about Social Security and pension options.
- What’s in the “Retirement 360 Game Plan” and how it could help you.
Troy’s 360 Game Plan:
https://www.amazon.com/Retirement-360-Game-Plan-Playbook/dp/B0BSWQP3VL
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
Understanding your insurance options is a critical component of a successful retirement plan. From health insurance to long-term care, life insurance, and even travel and umbrella policies, today’s podcast is packed with valuable insights from Alan and Troy to help you navigate these decisions with confidence. Be sure to take the time to explore your options and incorporate them into your retirement strategy with the help of a trusted financial professional.
Do you have the right insurance in place to meet your needs should you face a worst-case scenario? Having this helpful financial tool can not only give you peace of mind, but also protect your financial future.
Here’s some of what we discuss in this episode:
- Health insurance is always weighing on people's mind as they head into retirement.
- Long-term care insurance is becoming more important as people live longer.
- Life insurance can be used to cover income if somebody passes away, but has other uses, too.
- What do we think about burial insurance, travel insurance, and umbrella policies?
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
When it comes to retirement, having the right advisor can make all the difference. But with so many financial advisors out there, how do you choose the right one? In today’s episode, we’ll highlight the key areas to consider, whether you’re evaluating your current advisor or starting the search for one.
Listen in as Alan and Troy uncover some of the critical mistakes many make when choosing a financial advisor. They’ll cut through the noise to highlight what often goes wrong- from misplaced trust in big names to overlooking an advisor’s fiduciary status. This conversation is your essential guide to avoiding those pitfalls and making informed decisions that align with your financial goals.
Here’s some of what we discuss in this episode:
- Not understanding how your advisor gets paid and the services you’re getting for that fee
- Putting too much trust in a recognizable national brand name
- Ignoring your advisor’s fiduciary status
- Forgetting to ask about the advisor’s network and resources
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
When you live in Louisville, you know all about Derby Day! But do you know how it relates to your retirement planning? On today’s show, Troy and Alan discuss what you can learn from the rigorous training required for the main event to understanding the best investments needed to win the race.
Learn how a well-bred plan, a dedicated support team, and the right amount of risk can set you up for a victorious retirement run.
Here’s some of what we discuss in this episode:
- Just like horse racing, you have to train and prepare for your retirement.
- Understand the investment needed to win the race.
- The right team makes all the difference.
- Know what your ultimate goal is with your retirement planning.
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
Some things aren’t as good as they seem. And other things might just surprise you! We talk today about some areas financially where expectations and reality don’t always align. Have you thought through what your retirement will actually look like? It’s easy to imagine relaxing on a beach, but is that the reality for you? Is that what you want? How have you prepared to have the retirement lifestyle you want?
Your retirement plan involves a lot of things, including room for change! It’s not something to set and forget. Instead of being too proud to ask for help, reach out to a financial advisor to have experienced professionals guide you through the decisions and strategies.
Here’s some of what we discuss in this episode:
- What do you believe retirement will look like?
- Will your expenses go up or down in retirement?
- Does the financial plan just take care of itself?
- Don’t be too proud to ask for help.
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
Everyone has their own habits and routines when it comes to handling their finances and investing. For instance, having a good budget and being disciplined can help you achieve the financial goals you have for the future. You also want to think about what life experiences you want to have, now and in the future.
It seems wise to stay informed and pay attention to what you are investing in. But which of these habits may seem helpful but can actually cause problems?
So many of these financial habits are all about having the right balance and an understanding of your financial plan. Working with retirement coaches, like Alan and Troy, can help you see which of these habits can be a double-edged sword and how to handle it. Don’t wait for a review to come up—if you have questions, reach out now and avoid the stress of the unknown.
Here’s some of what we discuss in this episode:
- Ignoring account statements.
- Keeping a strict budget.
- Investing in stocks you’re familiar with.
- Staying informed by watching and reading financial news.
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
We’ve all heard the apocalyptic predictions about Social Security, the national debt, and other major issues that are supposed to sink the economy. Do any of these predictions have merit in the years ahead? In this episode, we’ll try to separate sensationalism from reality.
In a world constantly buzzing with economic uncertainties and sensational headlines, Alan and Troy step in as your reliable guides to navigate the noise. Join us as we cut through sensationalism to uncover the truth behind these predictions and ensure your financial playbook is ready for whatever the future may bring.
Here are the predictions we discuss in this episode:
- “Social Security is going broke and they’re going to have to cut everyone’s benefit.”
- “The national debt is out of control and tax rates are going to go through the roof at some point.”
- “Climate change is a serious problem, and our economy needs to be overhauled in order to deal with it.”
- “Runaway inflation will rock the economy for years to come.”
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
Some financial questions are obvious and popular, while others are more hidden. Today, we dig through some of the more overlooked yet equally important questions to ask when going over your retirement plan. From savings that later turn into your largest expense, are you watching these financial elements closely? Do you know how much you can safely withdraw from your retirement savings?
Alan and Troy share what indicators they track and how to calculate both your expenses and needs-based income in retirement. You may be surprised by what you look at differently over time as your financial needs and goals change.
Here’s some of what we discuss in this episode:
- How much are my tax-deferred savings going to cost me?
- How much can I withdraw from my savings safely?
- Do I need life insurance once I’m retired?
Episode Resources
Tax liability calculator:
https://retirementtaxbill.com/?u=MFZxWUQvT0pkUmdLay85eUlIU2tkZz09
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
Continuing care retirement communities (CCRC) are on the rise as Baby Boomers enter into retirement. These communities have become a great place to live. The housing, social life, and long-term care plan all in one place carry a lot of appeal for some, but not all. We chat about what to look for in this type of community and what considerations people face when making the transition.
This can be a big financial commitment, so it’s important to understand the financial structure. Does it require a large down payment or have a buy-back feature? What happens when your care needs change? Ultimately, you want your decision to coincide with your financial plan.
Here’s some of what we discuss in this episode:
- Why are CCRCs so popular?
- What should you consider when picking a CCRC?
- What are the social benefits?
- How does a retirement community fit with your financial plan?
Episode Resources
Youtube video:
https://www.youtube.com/watch?v=-l_hgYZftVg
Attend an event:
https://mercurioadvisors.com/attend-an-event/
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
No one likes to think about it, but most likely, one spouse will outlive the other one. Today, we talk about some of the financial implications that come up after one spouse passes and how to be prepared ahead of time.
Did you know your income, expenses, and tax bracket will all change after one spouse dies? This could make a big difference on how you approach your retirement savings. Having a plan in place will make it much easier on the remaining spouse when the time comes.
Here’s what we discuss on today’s show:
What problems have Troy and Alan seen following the loss of a spouse?
What can you do to plan ahead?
What mistakes do people make due to poor planning?
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
A lot of financial decisions depend on you, your goals, and your needs for your financial future. But there are certain universal truths that everyone faces when it comes to retirement. We discuss a list of key truths and why you need to plan accordingly. From having an income plan to saving enough to live until you’re 95 years old, you’ll want to hope for the best, but plan for the worst. That way, you can be sure you’re covered no matter what the outcome is.
Here are the universal retirement truths we talk through today:
- Everybody needs an income plan.
- Everybody needs a plan to address long-term care issues.
- Nobody can consistently time the stock market.
- Nobody knows how long they are going to live.
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
Let’s talk the pros and cons of real estate investing. Is this a part of your retirement plan? Should it be? Some people love the idea of rental properties as opposed to funding a retirement account, but for others, this might sound like a headache.
Troy and Alan share what successes and downfalls they’ve seen among clients. It’s often worth asking the question, “Why are you doing this?” If you’ve got a solid retirement income plan, maybe you don’t need a real estate investment. Or, if you have a lot of real estate holdings, determine what your exit strategy is and your plan for the future.
Here’s what you’ll learn on today’s show:
- Are rental properties good for your retirement plan?
- How to you manage liquid assets vs. real estate holdings.
- What your options are when it’s time to exit real estate?
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
Retirement comes whether you are ready for it or not. When you hit “retirement age” you might wonder if and when you really should retire. Working with an advisor will help you determine if you’ve saved and planned enough.
Retirement plans go beyond just the financial decisions —they consider how you want to spend your time in retirement. Some people struggle to walk away from the office, while others can’t wait to make the leap but aren’t prepared financially. Join us as we talk through how to put yourself in the right position to be ready to retire on your terms.
Here’s what we discuss on today’s show:
- Should you retire or should you keep working?
- Why do some people lack the confidence to retire?
- What happens when people are ready to retire mentally but not financially?
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
Today we continue our two-part series on the expenses you’ll have in retirement and how they might look different from your expenses when you’re working. It’s a mental shift you’ll have to make as you adjust your plan, your savings, and your spending. Getting ready can be a challenge, so it helps to have a financial advisor to coach you through.
When you’re no longer working, you may want to spend your time in retirement doing all the things you couldn’t do in your working years. For some, that’s travel and for others, that’s enjoying life at home. Figure out what’s most important to you in order to make sure your retirement goals align with your plan.
Here’s what we discuss on today’s show:
- You have more control over taxes, but does that make them lower? (1:14)
- Once you retire, you no longer have to save for retirement. (6:06)
- Travel starts strong, then changes over time. (11:44)
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
When you get into retirement, you might be surprised to find that your expenses change. Not only do they change as soon as you retire, but they can change later on as well. In today’s show, we talk about the different areas where your cash flow and expenses may change and how to plan accordingly.
For example, whether you are paying off your mortgage or buying that lake house you’ve been dreaming of, housing expenses may impact your cash flow. If you aren’t working, some of your usual work-related expenses are no longer a factor. Healthcare expenses also change, especially as you get older. Is your advisor asking about these things and accounting for them in your financial plan?
Here’s what we talk about in part one of this series on retirement expenses:
- Housing expenses may change as you enter retirement. (2:14)
- Work-related expenses go away. (5:07)
- Healthcare expenses can be a challenge to plan for. (8:17)
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
There are many mistakes that you don’t want to make when it comes to retirement planning. We’re back to continue talking through common money mistakes to avoid in part two of this episode series. One of these mistakes can cost you thousands, if not hundreds of thousands, over your lifetime.
You only get one chance at retirement, and you’ve got to make sure that you make the right choices. Stay tuned as we dive into these topics and provide valuable insights that can help you get the most out of your money. And remember… everybody’s situation is different, so make sure you work with an advisor who can create the right financial plan for you.
Here are the mistakes we discuss on today’s show:
- Taking advice from family and friends on how to invest. (1:00)
- Thinking you’re diversified when you actually aren’t. (5:30)
- Procrastinating saving for retirement. (9:02)
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
Unfortunately, we all make mistakes from time to time. After years of working as financial advisors, Alan and Troy outline five of the most common mistakes people make with money. Building a strategy ahead of time can help you avoid these mistakes and get the most out of your money.
What strategy is in your best interest when it comes to your Social Security or retirement savings? Are you focusing on the right things with your investments? Have you assessed the amount of risk you are willing to take on? These are critical financial questions that demand careful consideration to ensure a secure financial future. Stay tuned as we dive into these topics and provide valuable insights that can help you achieve your financial goals.
Here’s what you’ll learn on today’s show:
- Ignoring the future tax implications of your retirement savings. (1:17)
- Starting Social Security without a plan. (4:30)
- Focusing too much on returns instead of income. (8:13)
- Being too aggressive or too conservative with your investments. (11:37)
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
People like to change their goals sometimes, whether they realize it or not. Today we talk about common ways people move the goalposts in their financial lives. Should your goals move and what happens when they do?
Troy and Alan talk through the techniques you can implement to stick to your goals in a healthy way. From getting serious about saving what you need to protecting yourself from too much risk, it’s important to understand your plan. What does it take to have that successful plan?
Here are the areas people often move the goalposts:
- Figuring out how much cash you need. (1:00)
- Putting off saving aggressively. (5:35)
- Recognizing you have too much risk but waiting for a little more. (8:04)
- Deciding when to retire. (11:17)
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
What happens when a bank fails? If you’ve been watching the news lately, you may have noticed a lot happening around the Silicon Valley Bank and then Signature Bank. These are specific banks that cater to a specific client. How might these recent collapses impact your money or financial plan? Troy and Alan talk about the common situations that lead people to have large sums of cash in the bank and how to protect your money.
Instead of reacting out of fear from the recent headlines, listen to Alan and Troy explain what you need to know about the money you put in the bank and how to approach your strategy around safe money.
What we discuss in this episode:
- Is this something I need to be worried about? (0:50)
- How does a person get to having so much cash in the bank? (3:20)
- When is it appropriate to have large sums of cash? (6:03)
- How safe is your money in life insurance or an annuity? (8:32)
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
It’s time to open up the mailbag and find out what’s on your mind when it comes to financial planning. In this episode, we’ll cover five different topics that impact both pre-retirees and retirees and we’ll coach you through each of these planning items today.
Alan and Troy will discuss Roth conversions, why inherited IRA withdrawals have different rules, how to find a trustworthy advisor, rental properties, and tax planning. There’s a wide range of topics so we hope this episode touches on something you’ve been curious about. If you have anything you’d like to ask us, get in touch and we’ll set up a time to meet.
Here are some of the things we’ll discuss in this episode:
- If you’re retiring soon, does it make sense to convert as much money from IRA to Roth as possible? (1:07)
- What are the rules for withdrawing from inherited IRAs? (5:01)
- How do you really know if a financial advisor is trustworthy or not? (7:11)
- What’s the best option for buying a rental property: cash out investments and pay cash, take-out a home equity loan, or just have a mortgage? (9:28)
- How do you project your taxes in retirement so you can start preparing for what you’ll owe? (12:31)
Contact Mercurio Wealth Advisors: https://mercurioadvisors.com/
After being discussed in Congress for nearly a year and a half, the SECURE Act 2.0 passed in January. You may or may not have seen the news, but it’s important to be aware of the changes enacted by the new legislation.
The list of provisions in SECURE Act 2.0 is lengthy and it would take much more than one podcast to sort through them, but we took the time to find a handful of the ones that are most likely to impact you. Listen to today’s episode to see what you need to know and learn four ways the new changes might impact you.
Here are some of the things we’ll discuss in this episode:
· The RMD age is being pushed back again. (1:00)
· The special catch-up contribution provision. (4:41)
· You can now move money from a 529 to a Roth IRA. (6:47)
· Changes in the way a company can match as it relates to student loans. (9:43)
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
To continue our retirement preparedness list, we pick up where we left off from last time and add five more important things to the list. Are you prepared for retirement? Make sure to review these questions with your financial advisor to ensure your retirement is as successful and stress-free as possible.
Here are the questions you’ll want to ask yourself in regards to retirement:
- Do I have a plan to combat inflation? (2:07)
- Am I prepared for the likelihood of future tax increases? (5:55)
- Do I have a plan to address healthcare costs? (8:23)
- What is my legacy plan? (10:24)
- Are there investment products I have that I don’t understand? (12:20)
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
Whether or not you’ve made any New Year’s resolutions yet, right now is a good time to look ahead financially. We go over a checklist for retirement preparedness as you formulate your retirement plan. Do you know the answers to these questions?
Here are the first five questions you should be asking:
- Do I know how much income I need every month? (1:46)
- Which account should I withdraw from first? (3:27)
- Do I know the ideal time to take Social Security? (5:41)
- Have I addressed longevity risk? (8:14)
- Am I prepared to handle market volatility? (10:35)
Looking for more financial information, visit us online here: https://mercurioadvisors.com/podcasts/
Want to get in touch? Contact us here: https://mercurioadvisors.com/contact/
As the saying goes, “the grass is always greener on the other side.” If that’s the case, how can you tell if it’s time to find a new financial advisor or if you’re just imagining things might be better elsewhere?
Alan and Troy talk through when and why you might want to find another financial advisor and when it might make more sense to stay with the advisor you have.
Here are some of the reasons people tend to wonder if they should switch advisors:
- My financial advisor made a mistake, should I leave? (1:28)
- My financial advisor’s business seems too big, and I don’t get to talk to him. (5:52)
- I went to a dinner seminar, do I need to make a change? (8:49)
- I like my advisor, but I moved out of state. (12:06)
- I lost a ton of money in my portfolio in a market crash. (14:10)
Looking for more financial information, visit us online here: https://mercurioadvisors.com/podcasts/
Want to get in touch? Contact us here: https://mercurioadvisors.com/contact/
What does it look like to finish the race strong when it comes to retirement? In running, marathons are considered one of the ultimate races to run.
Today we talk about the similarities between retirement planning and running a marathon. From preparing ahead of time to crossing the finish line successfully, Troy and Alan are here to coach you through it.
Here are some of the similarities between marathons and retirement:
- A lot of planning and preparation is required. (2:39)
- A proper diet is key. (7:20)
- Don’t start too fast. (11:10)
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
When you are on a team, it’s important to build a sense of trust and understanding of one another. Troy and Alan are financial advisors and retirement coaches, but there’s a lot more to know about them. On today’s show, we hear more about what their lives look like and what their outlook is for the future.
Here are the questions we answer from the mailbag:
- What would we do if we could foresee the future? (1:27)
- What takes up a lot of our time? (4:28)
- Where do they spend time at home? (8:24)
- What songs will they listen to on the open road? (10:03)
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
Wondering what to do about the market right now? Troy and Alan coach three different people through their investment decisions. From when to become more conservative in your investments to using a Roth 401(k) option to retiring early, you’ll want to hear what they have to say on today’s show. How would Troy and Alan build a plan around these people and their unique situations?
Here are the questions we answer from the mailbag:
- At what age do I need to become a conservative investor? (1:13)
- Should I use the Roth 401(k) option at work? (5:40)
- Can I retire now? (9:52)
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
Instead of kicking the can down the road, we talk about why people procrastinate putting together a financial plan. Ready to get started?
Do you ever put something off too long? A lot of people procrastinate when it comes to retirement planning, too. Why is that? Today we talk through the reasons people put off retirement planning and how to overcome these hurdles.
You might say, “It worked out for my parents.” Comparing yourself to your parents or grandparents is dangerous. If something happens and you make a mistake, you might end up losing benefits or paying more in taxes. You can’t just go through retirement without a plan.
When you get too much information or contradicting information, it might make you feel overwhelmed. Working with a fiduciary who works in your best interests will help. Make sure you find something you connect with and someone you trust with your money.
Does talking about money stress you out? Going through a planning process can help walk you through the things you aren’t thinking about. What are your goals in retirement? What will you do with your time? All of these questions will help go beyond dollar amounts and give a vision for the bigger picture.
Listen to the entire episode or skip ahead using the timestamps below to hear more.
0:44 - Let’s talk about procrastination.
1:13 - Retirement worked out for my parents.
3:49 - I don’t know who to listen to.
8:19 - Talking about money stresses me out.
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
We’ve all heard a few different rules of thumb when it comes to retirement planning. Are they worth following? Alan and Troy weigh in on what advice to take to heart and which of these rules of thumb don’t pan out.
Let’s start with the rule of 100. This takes your age and your risk tolerance into account. Subtract your age from 100 and theoretically, that’s how much risk you should have in the market. Seek out a fiduciary to see if this is something you should follow. You need to find somebody who can help you navigate the many things in retirement beyond simply your investment allocation.
The 75 percent rule is assuming that in retirement you’ll need about 75 percent of the income you have when you’re working. The reality is, most people end up spending more the first few years of retirement because you have the freedom to travel and do what you’ve been putting off.
Finally, can we rely on the rule of five? This says on average, we’ll experience a bear market every five years. While it has happened in the past, it’s not always something that occurs every five years. Going into retirement you have to be a little more aware of where the market is, but if you use the proper planning it really shouldn’t matter.
Listen to the entire episode or skip ahead using the timestamps below to hear more.
0:45 - What rules of thumb have you heard about retirement?
1:16 - What’s the rule of 100?
5:50 - Is the 75 percent rule accurate?
8:02 - What does the rule of five say?
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
There is so much career change happening for so many people right now. Finding yourself between jobs can be stressful, whether that’s because you were laid off or needed to step away. Today we’ll talk about the challenges, opportunities, and questions to ask when you find yourself between jobs.
One question you might ask is, is it time for a new career? The last couple of years a lot of people have asked this question. For those close to retirement, it might mean finding something just for the next couple of years to pay the bills. Maybe you can become a consultant.
Is this the right time to become self-employed? There are more self-employed people now than there have been in our country’s history. There are a lot of things to think about when you become self-employed. Do you know what goes into it? Think about the tax side of it as well as what it will be like to pay employees and still save for retirement.
What will you do about health insurance? Without health insurance through your employer, you’ll have to figure out how to get coverage. You may qualify for COBRA to stay on your employer’s health insurance plan for some time, but it is costly. If you are a few years out from retirement, you’ll want to know what to expect with Medicare costs.
Should you do a 401(k) rollover while in between jobs? This might allow you to have more control over the money. Be sure you understand the rules and possible penalties for the rollover process. What happens if you need some of that money before you retire?
Finally, if you have a severance package, how do you handle it? All of that has to be part of a comprehensive and well-thought-out plan. Have a conversation with a financial advisor to build a successful plan.
What we discuss in this episode:
0:42 - What happens when you’re between jobs?
1:31 - Is it time for a new career?
5:31 - Is now the time to work for yourself?
8:00 - What will you do about health insurance?
10:50 - Is it a good time for a 401(k) rollover?
14:52 - How do you handle the severance package?
16:22 - What should you do about taxes?
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
Going through a divorce at any age is difficult. If you are near retirement or in retirement, there are some additional financial complications you’ll want to consider amidst the divorce.
For starters, many women will choose to keep the house. Their home may feel more sentimental or an area of comfort. If that’s your choice, just make sure you know the ramifications of that to make sure it’s a fair agreement. A house won’t provide an income, and instead will still have costs associated with it, even if it is paid off. Sometimes a fresh start with a new place to live can be easier.
During the divorce, you will likely split up some of your retirement accounts. Make sure to think through what the tax implications and rules are of each account. Think about five years from now and how you can best position yourself for that time. Know what you actually have left after taxes are taken out. If you split a retirement account immediately following a divorce, determine whether you should roll it over directly or if it would be better to take some money out when you can do so without penalty.
Divorce is an emotional time. Anytime that emotions enter into investing, it’s usually not a good thing. Contact an advisor to help you navigate these financial decisions from a wise and logical standpoint instead of making any rash decisions.
What we discuss in this episode:
1:25 - Divorce: who gets the house?
6:35 - What are the tax implications of splitting up retirement accounts?
10:22 - Should you roll over a split retirement account directly into an IRA after the divorce?
12:49 - Be care that you don’t let emotions cloud your decisions.
Get additional financial resources here: https://mercurioadvisors.com/
Sometimes the biggest thing holding you back is you. If you overthink something or act impulsively, it can have big implications on your financial plan. Let’s talk about the main areas where people tend to get in the way of themselves and what to do instead.
Are you feeling a little worried about the market at the moment? Alan and Troy share what they tell clients to focus on instead. Think about how much risk your plan can withstand and still have a successful outcome. Even if you’re down, does your market provide what you need and are your at-risk assets appropriately protected?
Anytime the market is volatile, people will get in their own way as they let fear or greed take over. Financial advisors are there to help you stick with the plan and make logical and strategic decisions with your money. If you think you want to get out of the market, have you considered your plan for getting back in?
If you leave money in cash for too long, you might feel a bit of regret or wonder when the time is to get back into the market. Another common problem is overthinking the decision to the point of not making a decision at all. Remember that not making a decision is a decision in itself. When you’re getting ready to start drawing this money out, having a relationship with an advisor is so critical because there are so many other things outside of the investments that you have to decide on. Are you prepared to make the right decisions for your situation?
Listen to the entire episode or skip ahead using the timestamps below.
What we discuss in this episode:
0:37 - How do you handle worries about the market?
6:04 - How do advisors help people get out of their own way?
11:11 - What about leaving too much money in cash?
14:40 - Overthinking to the point of never making a decision?
Get additional financial resources here: https://mercurioadvisors.com/
Is retiring at the age of 55 feasible? Inspired by an article from Yahoo Finance, Troy and Alan discuss what you need to do to make that dream a reality. Not everyone wants to retire this early, but some are dreaming about retiring as soon as today (or even better, yesterday). In order to make it happen, you’ve got to have the right plan in place.
When you retire early, you will face certain challenges you don’t want to overlook. Social Security can’t be withdrawn until 62 years old, so do you have enough money to pull from until then? What can you do with your 401(k) if you retire early without facing penalty?
Do you know how you will pay for health insurance? It’s a big monthly cost and you cannot begin using Medicare until age 65. Without insurance from your workplace, you might reconsider retiring early. For some, doing a part-time job may help offset the added costs of things like insurance but still provide the flexibility you want.
If you have the money, can you retire whenever you want? You don’t have to have the same retirement age or strategy as your parents or your neighbor. Everyone’s situation is different. Make sure that you are talking through the specifics of what your situation is to find out if you are ready to retire.
What we discuss in this episode:
0:53 - Can you really retire at 55?
1:33 - How often do people want to retire at 55?
4:04 - What challenges does an early retiree face?
11:08 - What does it look like to be ready to retire early?
13:28 - Can you just retire whenever you want?
Get additional financial resources here: https://mercurioadvisors.com/
What do you need to know about required minimum distributions? Are they inevitable or is there something you can do about them?
What we discuss in this episode:
0:29 - Troy and Alan are back together!
1:28 - Do you know what RMDs are?
4:16 - RMD age changed to 72.
9:43 - Can you avoid taking RMDs?
14:38 - What do you do if you don’t need the RMD?
Get additional financial resources here: https://mercurioadvisors.com/
We don’t think as much about birthdays as we get older, but we should all be paying attention to certain ages when planning for retirement. You might already be familiar with a couple of the ages we discuss on the show today but we’ll share a few planning opportunities that many people might not be aware of.
What we discuss in this episode:
0:49 – Working with advisor out of your market
2:11 – Age 50
4:03 – Age 55
5:07 – Age 59.5
5:55 – Age 62
8:08 – Age 65
9:59 – Age 66 or 67
11:47 – Age 72
14:14 – The most important age
Get additional financial resources here: https://mercurioadvisors.com/
Ever hear a phrase while you’re watching television or reading a financial article and not truly understand what it means? There’s so much jargon that gets used in the financial industry and it’s not always well-defined. On this episode, we’ll clear up some of the terms you might be hearing more frequently right now and make sure you know exactly what’s being said.
What we discuss in this episode:
1:22 – What we’re discussing today
2:10 – Bear market/bull market
5:01 – Fiduciary
8:27 – Volatility
11:09 – Client story
13:13 – Dollar-cost averaging
14:58 – Good communication from your advisor
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
Following last week’s episode of answering questions from the mailbag, we have yet another mailbag full of questions. Troy answers listeners' questions about saving and spending wisely in retirement. Gideon in Lexington is a pastor and has the option to opt out of paying into Social Security. Is this something he should do? Troy said this is a nice option to have. This allows you to invest in yourself and your own retirement. Locally, Troy has worked with a few pastors who have faced this decision. It does come with some risk to opt-out of it, so be sure you have the discipline to invest well into your retirement.
Sam in Crestwood has a whole life insurance policy but his kids are in their 30s now. Should he get the cash value of $50,000 of the life insurance policy and use that cash to pay off his house? Troy says it’s important to know how much is left on the principal of your mortgage. There could be options within the life insurance policy to take tax-free loans. There may be benefits to paying the house as planned instead of paying it off all at once.
Debra in Goshen wants to have fun and travel in retirement. This will require a higher income in retirement than when working. Is this irresponsible? There’s no rule saying you have to spend more or less in retirement. If you’ve been a good saver and have what you need, this might be fairly easy. But if you haven’t saved enough, you might run out of money a lot quicker. A lot of people use the 4 percent rule to live off of their assets. In the first 10 years of retirement, people often do more traveling and spending. It tends to slow down between health and family reasons for the majority of people. Of course, no one knows what their longevity will be, so you’ll want to have enough saved for the long run.
What we discuss in this episode:
1:08 - As a pastor, should I opt out of paying into Social Security?
3:38 - Should I use the cash value of my life insurance policy to pay off the house?
6:32 - Is it irresponsible to take a higher income in retirement?
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
On today’s episode, we are opening up the mailbag to answer some of your questions about retirement and financial planning. We’ll discuss selling a business, pension buyouts, and splitting assets during a divorce.
Tim says, “I am a dentist and I am thinking about retiring in the next five or so years. I own my building so would I be better off selling the building and investing that cash or try to sell my practice to someone else and rent the building to them?”
We would want to know how much you could receive in rent for the building. Looking at properties if we can get a 6 to 8% return a year, it’s a great return. But it’s really going to be about income. How much income can you create with all the assets you’ve accumulated? You’ll want to do the math and see which option creates the most income revenue.
Harvey explains, “The airline that I fly for is eliminating pensions and giving us a buyout instead. I’m not being forced to retire but now I won’t be increasing my pension by working more years. Should I retire now? What should I do with my buyout?”
To answer this question accurately we would need to know Harvey’s situation. Have you saved enough to be able to retire right now? With pension buyouts, we typically see that people want control of their money.
Taking that lump sum and investing in the future probably makes the most sense. You really need to sit down with an advisor and have an in-depth conversation about where you are in your retirement plan and how you can get where you want to be.
Vickie says, “It’s very likely my husband and I will be getting divorced in the next year or two. I’m already retired and he plans to retire in the next few years. How does splitting our assets change my retirement picture?”
A divorce is an emotional event. You’ve planned to have double the assets and now find yourself splitting them. We really want to look at your situation and see what the possibilities are with this new turn in your plan. We’ll look at which type of assets would be better to split.
Sometimes individuals in a divorce can keep what’s there’s and it works great that way. But it really depends on where you are invested and what your plan looks like. If you can sit down and go over everything before the divorce actually happens, you’ll be in a lot better shape in the long run.
What we discuss in this episode:
1:21 – “Should I sell the building my business is in or rent it out?”
4:52 - “What should I do with my pension buyout and should I retire now?”
7:34 – “My husband and I are getting a divorce. How does splitting our assets change my retirement?”
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
Does everyone really need a financial advisor? Who does an advisor most benefit and who might be better off on their own? Alan and Troy talk through the reasons why someone might do well working with a financial advisor to create the right financial plan.
Instead of waiting until you get to retirement, you want to approach it beforehand with an advisor. For those who are procrastinating or feel like they don’t know where to start, an advisor will be able to help you. The right advisor will be able to build a plan that helps you get where you want to go in retirement. Troy and Alan work with people to find the problem areas in their financial path so that you have time to fix it if needed.
If you don’t work with financial plans all of the time, you might be overlooking things. You don’t know what you don’t know. If you are doing DIY for your financial plans you might later face unexpected repercussions if you aren’t aware of what your choices or risk could result in. Some may be able to do it themselves, but simply don’t want to. You may know how to fix your car, repair your roof, or put together a financial plan, but choose to have someone else do it.
If you decide to do it yourself, be sure to be a student in the many areas you will need to understand. You may hear conflicting things in the media, which could become confusing. Financial advising is not just for multi-millionaires, but for people who want a coach to help them navigate the many financial decisions ahead of them.
What we discuss in this episode:
0:55 - Who even needs a financial advisor?
3:52 - Don’t procrastinate.
6:06 - You don’t know what you don’t know.
7:59 - Maybe you can do it, but don’t want to.
10:13 - You may hear conflicting things in the media.
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
You don’t know what you don’t know. On today’s show, we talk through ways to financially plan for the future, even if you don’t know what it holds.
What we discuss in this episode:
0:40 - What’s it like living that RV life?
1:54 - How do you plan for the next big market crash?
5:44 - What are healthcare costs going to look like in 20 years?
8:29 - What will your tax rates be in the future?
11:00 - How long are you going to live?
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
What answers will Troy and Alan have for these financial questions? Do yours match what they have to say? Find out!
What we discuss in this episode:
2:06 - The best way to not run out of money is?
5:22 - The stock market has the ability to…?
7:30 - When should you run the other way from a financial advisor?
11:30 - What is a new client most nervous about?
13:41 - What’s the most gratifying part of Troy and Alan’s job?
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
Are you one of the many people resigning from your job right now? What does it mean for your financial plan and financial future?
What we discuss in this episode:
1:17 - People are leaving the workforce, coined the “Great Resignation.”
5:37 - Those leaving the workforce are no longer contributing to Social Security.
7:21 - Some chose to take money out of their 401(k) this past year.
12:10 - Take your old 401(k) with you when you leave a job.
14:25 - Be careful before you retire early.
Get additional financial resources here: https://mercurioadvisors.com/podcasts/
What’s the risk of longevity? Does your financial plan prepare for the possibility of living until 100? On today's episode, we'll discuss how longevity impacts your retirement plan.
Read more and get additional financial resources here: https://mercurioadvisors.com/podcast/preparing-for-longevity-risk/
What we discuss in this episode:
0:55 - How old is their oldest client?
2:09 - How old is their oldest family member?
2:48 - Why is it considered longevity “risk”?
5:53 - How well do people plan for longevity?
This one’s on the house--what should you do about your house in retirement? How does it fit into your financial plan?
Read more and get additional financial resources here: https://mercurioadvisors.com/podcast/ep-17-all-about-the-house/
What we discuss in this episode:
0:51 - What’s it like being a snowbird?
2:31 - When should you pay off the house?
5:22 - Should you downsize?
7:17 - Is a rental property a good investment?
10:08 - What complications could you face when legacy planning?
13:25 - Should you take money out to pay off the house?
How should you prepare for the possibility of needing long-term care? Is long-term care insurance your only option? Alan and Troy share the basics of how to address long-term care expenses in your financial plan.
Read more and get additional financial resources here: https://mercurioadvisors.com/podcast/ep-16-planning-for-long-term-care-expenses/
What we discuss in this episode:
0:40 - Alan is enjoying Florida right now!
2:41 - How often do clients consider long-term care expenses?
4:51 - Can you self-insure against long-term care expenses?
7:26 - Should you get long-term care insurance?
10:51 - What other ways can you protect yourself?
Is life insurance something you should have as a part of your financial plan? Alan and Troy discuss the reasons you may want to use this financial tool.
Read more and get additional financial resources here: https://mercurioadvisors.com/podcast/ep-15-the-strategy-behind-life-insurance/
What we discuss in this episode:
0:35 - Why does talking about life insurance make people cringe?
4:04 - How do you know if you need life insurance?
8:01 - Life insurance protects against risk.
10:20 - How can life insurance provide tax-free income?
Do you know what your risk tolerance is or why it matters? Alan and Troy break down the basics of what risk is and how it fits into your financial plan.
Read more and get additional financial resources here: https://mercurioadvisors.com/podcast/ep-14-what-is-your-risk-tolerance/
What we discuss in this episode:
0:42 - Troy got a new job title!
2:11 - What is risk tolerance?
7:35 - How does your advisor know how to factor in their risk?
10:47 - How can you tell what someone’s risk tolerance may be?
12:48 - What’s an example of a low-risk tolerance solution?
When you do a 401(k) rollover, you want to make sure you get it right. We discuss the importance of a rollover and what kinds of things to be aware of throughout the process.
Read more and get additional financial resources here: https://mercurioadvisors.com/podcast/ep-13-401k-rollovers/
What we discuss in this episode:
0:42 - Troy just moved into a new home!
1:36 - Let’s talk 401(k) rollovers.
5:43 - How does the rollover fit into your retirement plan?
9:49 - Should you do a rollover before you leave your company?
14:35 - What do we invest in?
When we ask this question to people that meet with us, the answers come in many different forms. For some, they want to retire but can’t financially. Others will be hesitant to make the transition for different reasons. And a third group is actually much better off than they ever believed. Today we’ll discuss one of the most important questions in planning, “Are you ready to retire?”
Read more and get additional financial resources here: https://mercurioadvisors.com/podcast/ep-12-are-you-ready-to-retire/
What we discuss in this episode:
0:40 – Preparing for the day you’re retired
3:03 – Fear of change
5:05 – People that are mentally ready but not financially
7:54 – Better off than you expected
11:30 – Are we ready to retire?
What should you know about a traditional IRA vs. a Roth IRA? Today we will talk about the differences in these accounts and why they matter for your financial plan.
Read more and get additional financial information: https://mercurioadvisors.com/podcast/ep-11-traditional-ira-or-roth-ira/
What we discuss:
1:06 - What’s the difference between a traditional vs. Roth IRA?
3:45 - You may have the option of a Roth 401(k) at work.
6:35 - Why don’t many people have much money in a Roth?
10:19 - Who should contribute to a Roth?
13:00 - Who should stick with the traditional IRA?
16:01 - What would happen during a visit about Roth conversions?
There is a lot of confusion around Social Security. Today we are addressing some of these myths. We are going to set the record straight.
Read more and get additional financial information: https://mercurioadvisors.com/podcast/1254-2/
What we discuss:
0:39 - Troy is mid-move!
1:46 - Let’s bust some Social Security myths.
1:57 - The Social Security Administration will help you make the best decision.
3:46 - Stay-at-home moms don’t get Social Security.
6:10 - You won’t pay taxes on your Social Security.
8:12 - There won’t be any Social Security left when you retire.
10:19 - Claim Social Security as soon as you’re eligible.
What do you think of when you hear the word, “annuities”? Troy and Alan talk through the different types and how they may or may not fit in your plan.
Read more and get additional financial resources here: https://mercurioadvisors.com/podcast/ep-9-what-to-know-about-annuities/
What we discuss on this episode:
0:43 - A lot of people have strong opinions about annuities.
1:29 - What is an immediate annuity?
4:13 - What is a fixed annuity?
6:41 - How does a variable annuity work?
10:06 - What is an index annuity?
14:51 - How have annuities been used in a retirement plan?
In the financial red zone, your last few years before retirement are crucial to get it right. Just like in football, during that final stretch before the end zone you want to make sure there are no major mistakes are errors. On today’s episode of the podcast, Alan and Troy coach you through this area in your financial life.
Read more and get additional financial resources here: https://mercurioadvisors.com/podcast/ep-8-the-financial-red-zone/
What we discuss on this episode:
1:21 - What is the financial red zone?
3:29 - Why do you need to pay more attention in the last 10 years before retirement?
6:33 - What are some common mistakes people make?
11:42 - What can make retirement planning easier?
What makes a financial advisor a good one? We talk through the role of an advisor, the difference between a broker and a financial planner, and how to find the right advisor for you.
Read more and get additional financial resources here: https://mercurioadvisors.com/podcast/ep7-finding-the-right-advisor/
What we discuss on this episode:
0:42 - How do you find the right advisor?
4:53 - What made you want to go from a broker to a planning advisor?
6:56 - Why might you want to look for a new advisor?
10:38 - What if you are in a new stage of life?
11:44 - What questions would you ask a potential advisor?
14:14 - What have potential clients asked?
16:37 - Shouldn’t all advisors work for the client’s best interests?
Do you have your money in all three worlds of money? We talk about all three, as well as their pros and cons in order for you to strike the right balance for your financial plan.
Read more and get additional financial resources here: https://mercurioadvisors.com/podcast/ep-6-the-three-worlds-of-money/
What we discuss on this episode:
1:01 - What are the three worlds of money?
1:40 - What should you know about the world of banking?
5:29 - What ways can a person misuse the bank?
10:34 - How does the insurance world fit?
12:01 - How can the insurance world be misused?
16:29 - What does Wall Street give us?
18:51 - How do you find a balance?
In the financial planning process, you may also have your legacy in mind. But is your estate plan set up accordingly? On today’s episode of the podcast, we discuss common needs for an estate plan as well as mistakes often made.
Read more and get additional financial resources here: https://mercurioadvisors.com/podcast/ep-5-estate-and-legacy-planning/
What we discuss on this episode:
0:47 - How do people view their legacy?
3:37 - What are some common estate planning mistakes?
7:03 - This is an ongoing conversation.
9:09 - How does estate planning fit into financial planning?
12:22 - What are some examples of interesting estate plans?
What is tax planning and how can it benefit you? We talk about how tax planning fits into your overall financial plan and what kind of difference it can make long-term.
Read more and get additional financial resources here: https://mercurioadvisors.com/podcast/ep-4-what-is-tax-planning/
What we discuss on this episode:
1:53 - What is tax planning?
4:33 - What does tax planning actually look life with clients?
7:21 - Is it safe to assume you’ll be in a lower tax bracket in retirement?
10:26 - Why not just take the money out?
12:03 - What do we need to think about with taxes and legacy?
What’s the difference between income planning and investment planning? On today’s episode we talk about the importance of investment planning, how it’s done, and what you can expect when working with Mercurio Wealth Advisors.
Read more and get additional financial resources here: https://mercurioadvisors.com/podcast/ep-3-what-is-investment-planning/
What we discuss on this episode:
2:29 - What is the goal for investment planning?
5:11 - How do you balance risk for someone in retirement?
7:47 - What is a tactical manager?
10:50 - How are fees reduced and the value maximized?
13:23 - Not all financial advisors do the same thing.
What’s the best way to ensure that your money lasts throughout retirement? It’s by having a solid income plan, but you’d be surprised to find out that most people haven’t put that into place. Let’s explore what goes into income planning, what steps you can take to start that process, and why so many people are underprepared in this area.
Read more and get additional financial resources here: https://mercurioadvisors.com/podcast/ep-2-do-you-truly-have-an-income-plan/
What we discuss on this episode:
2:12 – No income plan, no retirement plan?
4:29 – How many people have a true income plan?
6:52 – Why are people so unprepared in this area?
8:11 – Steps to take
11:32 – Real-life example of building an income plan
14:08 – Factoring in lifestyle
17:01 – Our process
On this episode of Retirement Coach’s Corner, get to know our team a little better. Alan Mercurio is the founder and chief financial officer at Mercurio Wealth Advisors, and Troy Bolton is a senior wealth advisor with the company.
Read more and get additional financial resources here: https://mercurioadvisors.com/podcast/episode-1-get-to-know-alan-mercurio-and-troy-bolton/
What we discuss on this episode:
1:15 – What does being a financial advisor mean to you?
6:15 – What does the financial planning process look like?
10:07 – Why do you work and live in Louisville?
12:17 – What has changed since Troy came on?