Retire Smarter: Recent Episodes
Kevin Kroskey
Planning Retirement Smarter. Living Retirement Better. With Kevin Kroskey, CFP® Of True Wealth Design.
Some retirement mistakes are obvious. Others are silent — slowly eroding your plan year after year without setting off alarms. From investing the same old way to ignoring tax planning and claiming Social Security without a strategy, these missteps can cost you more than you think.
In this episode, Tyler Emrick, CFA®, CFP®, walks through five of the most common — and avoidable — financial mistakes people make in and near retirement. You’ll walk away with practical strategies to strengthen your plan, avoid missteps, and make more confident decisions as you approach — and live in — retirement.
Whether you're five years from retirement or already in it, this episode will help you spot hidden risks and take smarter action today.
Here’s some of what we discuss in this episode:
📉 Mistake #1: Investing the same way you always have
💰 Mistake #2: Taking too much risk trying to “catch up”
📊 Mistake #3: Not measuring progress against your plan
🧾 Mistake #4: Ignoring tax planning opportunities
🕰️ Mistake #5: Claiming Social Security without a clear strategy
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Check out our other no-cost financial resources here: https://www.truewealthdesign.com/financial-resources/
We're now on YouTube! Subscribe so you don't miss a show: https://bit.ly/3SNWIkg
Warren Buffett announced his retirement as CEO of Berkshire Hathaway at the company’s 2025 annual meeting — marking the end of one of the most legendary investing careers in history. But his lessons aren’t just for billionaires or portfolio managers. They’re surprisingly relevant for anyone approaching retirement or looking to live more intentionally with their wealth. In this episode, Tyler Emrick, CFA®, CFP®, explores the timeless wisdom behind Buffett’s philosophy—from staying invested through downturns to making confident decisions when fear is high. We also discuss how a strong financial plan helps you make purposeful choices: knowing when to spend, when to give, and how to align your wealth with the life you want to live—now and in the future.Here’s some of what we discuss in this episode:
📈 What 90% of Buffett’s wealth after 65 teaches us about patience
🧠 "Be greedy when others are fearful" — and how to actually do it
📉 What to do when market fear clouds good decision-making
🌱 Giving while living — and planning to do it with confidence
🔧 Why your financial plan is your most powerful tool
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.http://bit.ly/calltruewealth
When you're 12 months away from retirement, everything starts to feel real. From hard deadlines like pension elections and Medicare sign-ups to emotional shifts around identity and purpose, this final year before retirement can feel like a perfect storm. In this episode, Tyler Emrick, CFA®, CFP®, explores the unique challenges clients face in this transition — and how the financial planning process needs to evolve accordingly. You'll hear how True Wealth Design helps clients navigate not just the dollars and cents, but also their lifestyle risk, time horizons, and the often-overlooked emotional aspects of leaving a long career behind. Here’s some of what we discuss in this episode:
📆 Why the last 12 months before retirement matter so much.
💸 The truth about lumpy spending and how to plan around it.
💑 Pension decisions, Social Security timing, and survivor benefits.
🧠 How to navigate identity shifts and relationship changes.
📊 Why advisors should be more than number crunchers.
Resources
Our website: https://www.truewealthdesign.com/
Phone: 855.TWD.PLAN
Contact our team: https://www.truewealthdesign.com/contact-a-financial-advisor/
Schedule your no-cost discovery call: http://bit.ly/calltruewealth
Check out our other no-cost financial resources here: https://www.truewealthdesign.com/financial-resources/
Facebook: https://www.facebook.com/TrueWealthDesign/
LinkedIn: https://www.linkedin.com/company/true-wealth-design/
X: https://x.com/truewealthdesgn
Not all Roth dollars are created equal—especially during times of market volatility.
In this episode, Tyler Emrick, CFA®, CFP®, unpacks when Roth contributions, conversions, or pretax savings make the most sense, and how recent market declines may present timely Roth conversion opportunities.
You'll learn how to be strategic with what assets you convert, when conversions might come with risks, and how tools like the mega backdoor Roth can help high earners build tax-free wealth. Whether you're retiring early or just looking for more tax-efficient growth, this episode offers practical guidance for getting Roth right.
Here’s some of what we discuss in this episode:
🔄 Roth IRA vs. Roth 401(k) vs. Mega Backdoor Roth
📉 How market drops create conversion opportunities
💡 Using Roths strategically before Medicare or RMD age
🧾 Why tax bracket awareness is essential
🧠 Advanced strategies like asset location and timing
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Markets have been shaken by a sharp selloff, with the S&P 500 down around 15% and the Nasdaq nearly 20% year-to-date. Much of the recent volatility is being driven by escalating trade tensions and a new round of tariffs that took effect on April 9.
In this episode, Kevin Kroskey, CFP®, and Tyler Emrick, CFA®, CFP®, unpack what’s driving the recent market moves — from global supply chain disruptions to shifting investor sentiment and international dynamics.
Here’s some of what we discuss in this episode:
📉 Why the market hates uncertainty—and how that’s showing up now
⚖️ Risk vs. uncertainty: what’s the difference and why it matters
🔁 How “Runway” helps retirees avoid emotional investment decisions
🧰 Strategies we’re using: rebalancing, dry powder, diversification
🧠 What to do (and not do) when tempted to time the market
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
If the recent market drop has you feeling uneasy, you’re not alone — but sharp swings are regularities you need to navigate. The S&P 500 and Nasdaq have both taken hits this year, but history shows that intra-year declines like these are common and something long-term investors have weathered time and again.
In this episode, Tyler Emrick, CFA®, CFP®, breaks down recent market moves, highlights where diversification is working, and shares how tax strategies and disciplined rebalancing can help keep your investment strategy running smoothing and financial plan on track.
Here’s some of what we discuss in this episode:
📉 Market pullbacks are normal—even healthy
📊 Diversification is your protection in volatile times
🔁 Rebalancing can improve long-term returns
💸 Tax-loss harvesting can create future tax benefits
🧠 Discipline beats emotion when markets get rocky
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Big tax changes could be coming soon!
On February 25, the House passed a budget resolution setting a $4.5 trillion cap for a new tax bill that could replace the Tax Cuts and Jobs Act (TCJA) before it expires at the end of 2025. But what will the new law look like, and how will it impact your financial plan?
In this episode, Tyler Emrick, CFA®, CFP®, breaks down the key debates in Congress, what changes might be coming, and how you can prepare now to optimize your tax strategy.
Here’s some of what we discuss in this episode:
📉 TCJA Expiration in 2026 – What happens when the current tax cuts expire?
⚖️ New Tax Bill Proposals – The biggest changes lawmakers are considering
💰 How to Prepare – What you should do now before changes take effect
⏳ Why Timing Matters – Waiting too long could cost you thousands
📊 Tax Planning for Retirement – Strategies to minimize your tax burden
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Are you leaving money on the table?
For families weighing their options when choosing a financial advisor, Vanguard’s Advisor Alpha study has long been the go-to guide—and now, fresh research from SmartAsset echoes the sentiment that the right advisor could boost your net returns by over 2% annually.
In this episode, Tyler Emrick, CFA®, CFP®, reveals why many advisors miss that extra edge and how True Wealth Design’s holistic approach—integrating smart investments, proactive tax strategies, and comprehensive financial planning—ensures you capture every opportunity.
Here’s some of what we discuss in this episode:
- New study puts annual financial advisor value premium at more than 2%.
- The idea that your advisor should be both offensive and defensive in their approach to planning.
- What differentiates ourselves when someone decides to get serious about managing some aspect of their financial life.
- The four areas that most families come to us for help.
- What happens when someone reaches out to us and how does the process begin?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Retirement isn’t just about your savings—it’s also about where you choose to live.
In this episode, Tyler Emrick, CFA®, CFP®, explores WalletHub’s 46-factor framework for ranking states for retirees, examining everything from tax rates and cost of living to leisure opportunities and healthcare access. We also unpack the key financial and personal considerations, such as state taxes on Social Security and the importance of staying close to loved ones.
Tune in for practical insights to help you pick the retirement destination that fits your lifestyle and financial goals.
Here’s some of what we discuss in this episode:
- The 46 different factors related to well-being in retirement and how they can help you pick a state to live.
- Moving to a lower-tax state doesn’t always result in lower taxes on deferred income.
- Weighing all the different financial factors that will directly impact your retirement.
- The soft factors that could make the difference when it comes to enjoying retirement.
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Can money really buy a longer, healthier life?
In this episode, Tyler Emrick, CFA®, CFP®, dives into the surprising connection between wealth and longevity, uncovering how financial freedom can unlock better health, reduced stress, and more fulfilling retirement years.
We also tackle the challenges of cognitive decline, exploring its impact on financial decision-making and how a trusted financial advisor can help safeguard your investments and create a solid aging plan to spend smarter, plan better, and protect your legacy as you age.
Here’s some of what we discuss in this episode:
- Wealth can unlock many benefits for retired clients.
- The four components of an ‘aging plan’ to help people as they experience cognitive decline.
- Aging and the impact of cognitive decline on investment decisions.
- What studies tell us about the value of financial advisors as people age.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
The Social Security Fairness Act is shaking up the retirement landscape, eliminating the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) for millions of retirees. These long-standing provisions have impacted Social Security benefits for public sector workers like teachers, firefighters, and police officers—until now.
In this episode, hear Tyler Emrick, CFA®, CFP® dive into what the changes mean, how retirees can expect retroactive payments, and the broader impact on the Social Security system.
Here’s some of what we discuss in this episode:
- Background on the Social Security Fairness Act that was signed into law on January 5.
- The Windfall Elimination Provision (WEP) and Government Pension Offsets (GPO) reduce regular Social Security benefits.
- Affected retirees stand to gain significant financial relief.
- The benefits come with a cost so what it does it mean for the long-term solvency?
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
In this episode, Tyler Emrick, CFA®, CFP®, explores the key financial and psychological factors driving early Social Security claims. Discover how a well-optimized strategy could boost your lifetime spending by more than 10%.
Your Social Security decision isn’t just about dollars and cents—it’s a critical piece of your retirement puzzle. Join us to learn how to sidestep common pitfalls, maximize your benefits, and secure a more confident, fulfilling retirement.
Here’s some of what we discuss in this episode:
- What research and stats tell us about the benefits that get left on the table.
- What’s the motivation behind the decision to claim early.
- Will Social Security still be around when it’s time for you to claim?
- What if President Trump stops taxes on Social Security?
- The benefits of waiting to take it later in life.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Remember in 2022 when both stocks and bonds fell in lockstep? Did you think diversification failed? Want to build a more diversified, resilient portfolio to better grow and protect your hard-earned dollars?
Hear Kevin Kroskey, CFP®, MBA discuss how the TALS strategy adds unique sources of returns to your portfolio outside of traditional stocks and bonds.
Here’s some of what we discuss in this episode:
- How this strategy helps with asset allocation and tax efficiency.
- The strategy involves long and short positions in a basket of stocks.
- Who are the clients that would benefit the most from this?
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Have a sizable brokerage account? Have unrealized capital gains? Pay income taxes at the highest rates? Want to pay your fair share but no more? If so, this is an episode not to miss.
In part 1 of this series, Kevin Kroskey, CFP®, MBA explored why adding the TALS strategy may yield significant investing and tax benefits. He described how TALS can help you defer, avoid, and potentially eliminate your capital gains.
For the most successful investors that meet the definition of an SEC Qualified Purchaser, generally one with $5m+ of investments, there is another leg to the TALS strategy that can help you solve your ordinary income tax problems too. Whether derived through your business or from non-business income such as wages, interest, non-qualified dividends be sure to tune in and listen closely.
Here’s some of what we discuss in this episode:
- Why should you care about this investing strategy?
- The tax benefits to TALS and the keys to smart trading and executing.
- Applications of how realizing capital losses can be beneficial.
- The TALS separately managed account and limited partnerships strategy.
Learn more about tax strategies and tax-aware investing here: https://www.truewealthdesign.com/part-2-the-long-and-short-on-tax-aware-long-short-tals-investing/
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
For successful investors and high-income earners, this is an episode not to miss...
Sure, you can own an S&P 500 ETF or mutual fund.
You could also own the 500 stocks individually, a strategy nowadays called direct indexing. Direct indexing aims to capitalize on individual stock volatility and add tax benefits by harvesting losses.
Or you may choose to go a step farther up the complexity ladder to own the 500 stocks individually with a tax-aware, long-short overlay. Let's call that TALS for short. Here you expect to obtain the return of the S&P 500, add an extra return from the overlay, increase diversification, and provide significantly more tax benefits than direct indexing. It's a mouthful, but it sure sounds good!
Have a sizable brokerage account? Have unrealized capital gains? Be sure to listen to Kevin Kroskey, CFP®, MBA explore why adding the TALS strategy can help solve these good problems to have.
Here’s some of what we discuss in this episode:
- The Q4 focus for our clients and an office update.
- These strategies are bit more complex so they broadly apply more for successful investors.
- The risks associated with TALS.
- The 3 key building blocks for this strategy.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Tax-Loss Harvesting: Wall Street’s New Strategy Cuts Rich Americans' Bills – Bloomberg - https://www.bloomberg.com/news/features/2024-10-24/tax-loss-harvesting-wall-street-s-new-strategy-cuts-rich-americans-bills
Watch Wall Street Finds Another Workaround With Taxes, Losses – Bloomberg - https://www.bloomberg.com/news/videos/2024-10-25/wall-street-finds-another-workaround-with-taxes-losses-video
Is diversification dead? Over the last decade, putting all your eggs in the S&P 500 basket has outperformed diversified strategies.
In this episode, hear Tyler Emrick, CFA®, CFP®, explore why the U.S. market has been on an unprecedented run, why the global market portfolio hasn't kept up, and whether diversification is really the best move for long-term investors. We dive into the rise of ETFs, global market trends, and why the "SPY or die" mentality might not hold up in the future. Learn why diversification should still be a priority despite the recent performance gap.
Here’s some of what we discuss in this episode:
- Taught diversification is fundamental to the investing process.
- Why diversification has been a bad idea for the last decade.
- The reasons why people would want to move beyond the S&P 500.
- The changes globally that have impacted investing.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
The clock is ticking on the 2017 Tax Cuts, and big changes are looming.
In this episode, Tyler Emrick, CFA®, CFP®, breaks down the complexities of the 2017 Tax Cuts and Jobs Act and its upcoming expiration in 2025.
We dive into the original intent behind these cuts, what changes were made, and the impact on your bottom line. Learn how the expiration could lead to a significant tax hike unless new legislation is passed. We highlight key strategies—like maximizing retirement accounts under lower rates and leveraging deductions—so you can prepare for the changes on the horizon.
Here’s some of what we discuss in this episode:
- Recapping the details around the 2017 Tax Cut and Jobs Act.
- Why were tax changes needed in the first place?
- The permanent change that took place and the ones that will revert back in 2026.
- How the income tax brackets break down.
- The tax deduction was substantially increased and maximizing itemized deductions.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
This episode explores the disconnect between retirement expectations and reality, referencing a recent Gallup report that shows most retirees live comfortably despite fears about running out of money.
Hear Tyler Emrick, CFA®, CFP®, discuss why non-retirees may be more fearful than needed, the role of Social Security, and how age-based spending patterns contribute to the relative success of sustaining a retirement lifestyle. And be sure to pay attention to how working with the right financial advisor can help you achieve financial independence earlier (data suggests up to three years earlier) by measuring and modeling your current spending and retirement goals more appropriately.
Here’s some of what we discuss in this episode:
- Why is there a disconnect between retirement expectations and more positive outcomes?
- More people depend on Social Security for their retirement income than they expected to.
- The disconnect in spending when people get into retirement.
- A good advisor can help clients gain confidence and overcome their healthy sense of doubt.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Check out the Social Security episode referenced in this show: https://www.truewealthdesign.com/social-security-timing-reframing-your-thinking-for-better-decision-making/
Over the last few years, significant changes have been made to how retirement accounts are managed after death, especially with new RMD rules. In July, the IRS issued its new Final Regulations regarding the SECURE Act’s provisions.
In this episode, hear Tyler Emrick, CFA®, CFP®, break down the key provisions, including the 10-Year Rule for beneficiaries and updates to RMD timelines, and how these changes impact your retirement and estate planning.
Here’s some of what we discuss in this episode:
- What the SECURE Act changed when it passed in 2019 and what’s been updated since?
- Which accounts are impacted by this and how does it impact taxes and estate planning?
- Who are designated beneficiaries and what are the differences between eligible and non-eligible?
- The 10-year rule for inheriting these accounts and what you need to know.
- The new RMD rules that will begin in 2025.
- Additional rules dealing with the surviving spouse, successor beneficiaries, and RMD ages.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
In this episode, Tyler Emrick, CFA®, CFP®, reviews the rich insights from Fritz Gilbert's blog post, "Six Lessons From Six Years of Retirement." Exploring the complexities of retirement that go beyond financial concerns, highlighting how true fulfillment often lies in navigating the non-financial aspects of this life stage. Join us as we unravel the lessons that can guide you to a more satisfying retirement.Here’s some of what we discuss in this episode:
- Background on The Retirement Manifesto Blog and the blog post we’re discussing.
- The complexity of non-financial issues and why these lead to our true happiness.
- Your retirement will be different than you expect.
- Retirees find that their priorities change as they move through retirement.
- Retirement can be the best years of your life but it’s up to you.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
There is no such thing as a free lunch – or is there? Discover the world of buffered ETFs, a fast-growing segment in financial markets designed to offer investors defined outcomes with built-in downside protection. In this episode, hear Tyler Emrick, CFA®, CFP®, dive into the mechanics, benefits, and potential drawbacks of these complex financial instruments. And be sure to listen to the comparisons of buffered ETFs against traditional investment options and how each may fit (or not) in your diversified investment strategy.Here’s some of what we discuss in this episode:
- The rapid growth we’ve seen in Buffer ETFs.
- Defining and explaining the Bufffer ETF or Defined Outcome ETF.
- Why are investors using these and what are the benefits compared to structured notes and annuities?
- What you need to know that they aren’t telling you.
- Our overall feelings on this investment and whether they work in a long-term portfolio.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
In this episode, hear Tyler Emrick, CFA®, CFP®, discuss why meticulous budgeting isn’t necessary for most people approaching retirement. Discover how understanding your lifestyle spending and anticipating future changes can lead to more effective financial planning.
Learn about the "Retirement Spending Smile" concept and why focusing on your lifestyle expenses is more beneficial than a line-by-line budget. Plus, we’ll explore how your financial advisor should be helping you monitor spending against your goals.
Here’s some of what we discuss in this episode:
- The common perception of budgeting and why a detailed budget might not be necessary.
- What areas of your expenses should you be focused on?
- The importance of identifying and understanding the spending associated with your lifestyle.
- Anticipating how your lifestyle will change in retirement and how that will impact expenses.
Check out our interview with retirement researcher Dr. David Blanchett:
Part 1 - https://www.truewealthdesign.com/ep-101-interview-with-retirement-researcher-dr-david-blanchett-part-1/
Part 2 - https://www.truewealthdesign.com/ep-102-interview-with-retirement-researcher-dr-david-blanchett-part-2/
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
It's almost Election Day in the US, and opinions are flying. But should elections sway your long-term investment strategy?
Find out in this episode as Tyler Emrick, CFA®, CFP®, cuts through the political noise exploring historical market performance in past election years and Presidential terms. Sharing how you can use this data to set your emotions aside and make more informed investment decisions.
Here’s some of what we discuss in this episode:
- Elections provide a great degree of uncertainty, which can cause emotional and usually illogical behavior.
- What market returns have looked like for election years dating back to 1928.
- The market’s performance the month that the election took place.
- A look at the annualized returns during US Presidential terms.
- What can YOU control?
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Our brain uses mental shortcuts to help us solve problems. While they can be quite helpful, in some areas they may harm our decision-making. Social Security claiming is often one of these negatively impacted areas.
In this episode, hear Tyler Emrick, CFA®, CFP®, discuss the mental shortcuts (aka cognitive biases) at play when deciding to take your Social Security benefits. Being cognizant and acting with a more prudent decision-making process will likely help you realize a better outcome and improved retirement.
Here’s some of what we discuss in this episode:
- Optimism and pessimism bias can skew our judgments when making decisions.
- Present bias and temporal discounting. In the context of Social Security, this means favoring smaller payments now over larger payments later, a decision that can significantly impact long-term financial health.
- The anchoring effect is another critical bias discussed. This occurs when individuals rely too heavily on the first piece of information they encounter—such as the earliest age they can claim Social Security—making it challenging to adjust their plans with new information.
- Tyler explains the concept of delayed retirement credits and how Social Security benefits are designed to be actuarially equivalent, regardless of when you start claiming them.
- How Social Security is uniquely impacted by inflation and interest rates.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Estate planning is about more than just wealth distribution—it’s about peace of mind.
In this episode, Hear Tyler Emrick, CFA®, CFP®, cover the fundamentals to start or update your estate planning journey. We’ll discuss how your financial advisor is best to guide the process while your attorney ensures legal alignment. Working together makes the journey better for you and more likely at your intended destination while reducing risks of unnecessary taxes, legal costs, and family conflicts.
Here’s some of what we discuss in this episode:
- A story about how a lack of estate planning could derail everything you hoped to leave your loved ones.
- What we need to begin crafting the financial aspects of your estate plan.
- The role your advisor plays versus what the attorney will do.
- Tax considerations you need to be aware of so that you can ensure more wealth is passed along.
- The many benefits to estate planning.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Employer-provided retiree health benefits are quickly becoming obsolete. KFF’s latest survey reveals a sharp decline in large employers offering these benefits, leaving individuals to seek other solutions.
Hear Tyler Emrick, CFA®, CFP®, explore your options. Whether you are worried about age 65—either retiring before or after—or have a business, we have you covered. Plus, we'll highlight potential trouble spots and important deadlines you need to know.
Don’t navigate this shift alone—tune in for expert guidance.
Here’s some of what we discuss in this episode:
- What the trends tell us about employer-sponsored coverage, including retiree health benefits.
- Understanding the different healthcare options you might have along with the pros and cons: COBRA, Market Place, MEWA Plan, Health share plans, Private health insurance, and Medicare.
- The trouble spots for retirees planning for health care.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
In this episode, Tyler Emrick, CFA®, CFP®, explores why targeting a "magic number" of retirement savings falls well short of good retirement planning. Yet, why do people often focus on this? Is it because this survey data is regularly done and widely in the media – with the magic number now at a record high of $1.46 million – or something more?
Here’s some of what we discuss in this episode:
- The amount of money investors believe they need to retire has increased dramatically and is exceeding the current pace of inflation.
- What has been the driving force behind the increase?
- Why you should be careful when using a magic number.
- The financial items you should be focusing your attention on instead.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
We welcome Kevin Kroskey, CFP®, MBA, back in action, joining Tyler Emrick, CFA, CFP®, on this potpourri-type episode.
Hear Kevin's perspective on the last episode, coming changes in the residential real estate market, and why they will be good for consumers. He'll also share some lessons learned from this tax season and differences between tax-only clients and clients who receive coordinated tax and wealth management services.
Hear Tyler share recent client stories from new clients about the issues and ramifications of not coordinating financial, legal, and tax matters properly.
And be sure to listen at the end when they discuss the recently released college ranking, called "A First Try at ROI". This study and the resulting calculator look at the cost outlays for 4,500 colleges and the ROI – return on investment – in earnings over time. Is the Ivy league worth the cost (if your child can get in)? What about a pricey private school vs. a public in-state one? And who had a wiser decision-making process for their college selection – Kevin or Tyler.
That and more on this episode of Retire Smarter.
See the rankings here: https://cew.georgetown.edu/cew-reports/collegeroi/
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Gone are the days of 6% commissions when selling a home!? Well, sort of. In this episode, we unpack the $418 million proposed settlement that will likely reshape the real estate industry. While change creates winners and losers, consumers will generally be winners as the industry wheat will further separate from the chaff.
Hear Tyler Emrick, CFA®, CFP®, reflect on similarities to the financial planning industry's evolution from stock traders to advisors, from selling products to providing advice. The changes have been positive for consumers, and there's still plenty of chaff to remove. To help you better identify the chaff, Tyler discusses advisory services that stand out and deliver more value to you for the dollars you pay.
Here’s some of what we discuss in this episode:
- Background on the lawsuit and subsequent agreement for the National Association of Realtors (NAR).
- The argument being made against real estate agents.
- How this compares to past legislation in the financial planning industry.
- The details of the agreement and how it might change fees and services.
- The similarities to the financial planning industry and why there’s been a move towards a holistic approach.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
When it comes to finances, paying a big bill at tax time is the worst. Worse yet, is if that bill comes as a surprise because your CPA, Investment Professional, and Financial Planner were not on the same page.
In this episode, Tyler Emrick, CFA®, CFP®, sheds light on traditional culprits that cause nasty surprises at tax time. Whether it is capital gain distributions, higher interest rates, or under-withholding on your income we cover it all on today’s episode of Retire Smarter.
Here’s some of what we discuss in this episode:
- Interest rates have increased ordinary income and what most Americans are used to being taxed on.
- Investment considerations to factor in that will impact taxes.
- Stats on capital gain distributions and better investment options for tax purposes.
- Sometimes you are under-withholding taxes on your income so what should you change?
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
So, what are smarter ways to save or gift to your family? In this episode listen to Tyler Emrick, CFA®, CFP® discuss how to gift wisely, be supportive of and not inhibit responsible financial behaviors, utilize intra-family loans, and optimize benefits for your family today and into the future.
Here’s some of what we discuss in this episode:
- What the statistics tell us about how closely tied parents and young adult children are emotionally and financially these days.
- Some smart ways to gift to your children and grandchildren.
- Best practices for opening and saving into a 529 account and the mistakes you need to avoid.
- Why you might choose to use a custodial account or Roth account instead of a 529 plan.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
In this episode, Tyler Emrick, CFA®, CFP®, takes a deep dive into the world of risk. Is filling out a simple questionnaire sufficient? How about telling your advisor, "I'm moderately conservative?" Don't these seem fuzzy at best?
Hear how your perceived risk and diversification may differ – sometimes substantially – from mathematical reality. And be sure to listen in to how Tyler and the team at True Wealth can help you more appropriately find the right risk level, which probably should change over time, to best align your money to achieve your goals.
Here’s some of what we discuss in this episode:
- Risk applies to everyone we work with so there are no exceptions when it comes to this topic.
- What are the general rules for risk that the industry follows?
- The True Wealth Design process for building a plan and determining risk.
- How diversification and market conditions are used to construct a portfolio.
- What ongoing portfolio management should you be doing to manage risk as you move through life?
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
In this episode, we investigate the pivotal points that clients continually express genuinely matter when seeking financial guidance.
Hear Tyler Emrick, CFA®, CFP®, explore the deeper aspects of working with a Financial Advisor and how they hold significance when choosing and continuing to work with a financial professional.
Here’s some of what we discuss in this episode:
How a conversation with his wife sparked the idea for this show for Tyler.
How we get feedback from our clients to help us evaluate our service.
Where does an advisor add specific value to a client?
Tyler will share a few specific things that people want from their advisor.
The many different designations advisors have and a breakdown of which ones you should pay attention to.
How important are returns?
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
In this podcast, hear Tyler Emrick, CFA®, CFP®, delve into the often misunderstood world of Required Minimum Distributions (RMDs). Join us as we uncover the essential strategies and tips to help you navigate RMDs and make informed decisions for a secure and fulfilling retirement. Whether you’re new to RMDs or seeking to optimize your distribution strategy, this podcast is your go-to resource for mastering the art of income and distribution planning.
Here’s some of what we discuss in this episode:
- An explanation of SECURE Act 2.0 and the legislation that was passed.
- A high-level overview of Required Minimum Distributions and how to calculate them.
- Highlighting the key changes brought about by the SECURE Act.
- What planning opportunities does this present?
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Each year, about two-thirds of Americans plan on making a financial-related New Year’s resolution for the year ahead, with just over 80% of them bailing on that resolution before January ends. Don’t bail on your financial resolution!
Join us on this episode of Retire Smarter as Tyler Emrick, CFA®, CFP®, gives easy and actionable suggestions for what financial goals should be a part of your financial New Year’s resolution to overcome the odds and put yourself in a better financial situation in 2024.
Here’s some of what we discuss in this episode:
- Personal finances can be overwhelming, which is why so many people make it a priority to start the year.
- Start with getting a handle on where your money is going.
- Why it’s important to revisit your investment strategy.
- Don’t overlook the housekeeping items that sometimes get forgotten.
- Identify where you want to go and then build goals that help you achieve that.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Join us on this eye-opening episode of Retire Smarter as Tyler Emrick, CFA®, CFP® delves into the intriguing world of Social Security benefits. While delaying your benefit is often the obvious choice, we challenge conventional wisdom and explore scenarios where taking Social Security early can actually be a smart financial move.
Here’s some of what we discuss in this episode:
- We’ll explore an article listing reasons why you should claim early.
- The typical considerations that come into play when picking a strategy for Social Security.
- People often retire earlier than they planned because of health issues.
- Delaying Social Security can lead to you relying too heavily on your investment portfolio.
- The situational circumstances that we often see.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Pick your favorite financial publication. One minute, they tout a financial collapse and pending recession, and then seemingly on a dime, headlines change to - "cash yields are attractive" and "the stock market finishes at its highest level in twelve months." Making portfolio decisions through all the noise can be a challenge. What is the right investment strategy? How much should you put in stocks? Do you need bonds? CDs? What type of stocks or bonds? What about other or "alternative" investments. All are good questions and just touch the tip of the iceberg.
On this episode, hear Tyler Emrick, CFA®, CFP®, dive into these questions and, more broadly, how you should think about asset allocation -- aka your "investment recipe". Pay special attention to how aligning your financial life planning and your goals to your investment decisions is a critical step many misunderstand or overlook.
Here’s some of what we discuss in this episode:
- Determining how much you can afford to withdraw in retirement each month.
- Should you be favoring cash and bonds over stocks and what are the benefits of each?
- How to design the proper portfolio that aligns with your goals.
- Having a more dynamic retirement plan and a more dynamic investment plan.
Learn more about the Retire Smarter Solution ™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Recently, famous radio show host and personal finance guru Dave Ramsey made headlines by saying he’s perfectly comfortable with an 8% withdrawal rate in retirement. Critics were quick to respond, calling his advice scary, dangerous, and just plain wrong. So, who’s right?
On this episode, hear Tyler Emrick, CFA®, CFP®, break down Ramsey’s comments and how you should be thinking about income and spending in retirement.
Here’s some of what we discuss in this episode:
- How Dave Ramsey explains his position on the 8% withdrawal rate.
- Why the math might seem simple but is actually wrong.
- What you need to know about Geometric and Arithmetic returns.
- You can’t ignore the sequence of return risk with a 100% stock portfolio.
- Is the 4% rule too depressing?
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
On this episode, we dive into real-life scenarios to gain insight into crafting a successful and early retirement plan. Hear Tyler Emrick, CFA®, CFP®, dissect a client's journey of retiring in their late 50s. Exploring the intricacies of their tax-smart distribution plan to fund their retirement lifestyle and obtained significant tax credits to offset their pre-Medicare healthcare costs.
Here’s some of what we discuss in this episode:
- Background on a real-life scenario with a family we met a few years ago.
- What we learned about the challenges to their retirement, including healthcare.
- The different healthcare decisions to choose from and the costs most aren’t prepared for.
- Places you can trip up with healthcare.
- How we approach the distribution planning.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
It's that time of year again … the fourth quarter. Before you get enthralled with the holiday season, it's time to look back over this year and towards the next. Have you completed all the financial goals you set this year? Reviewed your medical coverage? Executed your tax planning for the year? Set your preliminary tax strategy and retirement distribution plan for next year? If not, there is still time!
Listen to Tyler Emrick, CFA®, CFP®, discuss how True Wealth Design ensures your important financial tasks get handled so you stay on track and pay no more than your fair share in tax.
Here’s some of what we discuss in this episode:
- Prioritizing tax planning and determining what items need attention before December 31.
- What we discuss during our Yearend Tax and Investment Review meetings.
- Looking back on your financial goals at the beginning of the year and comparing that to where you are now.
- Why you should be taking a closer look at your benefits for the next year.
- Looking at spending for the next year and setting income targets.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
The emotions and questions seem to come from everywhere and out of nowhere as you inevitability approach retirement. Even the most prepared will ask, second guess, and then ask again: Do I have enough to retire? How do I ensure it lasts?
Leading retirement researcher Moshe Milevsky addressed this in a paper "How Long Will a Nest Egg Last." In this episode, Tyler Emrick, CFA®, CFP®, takes a different approach to try and answer that critical question. Hear Tyler give actionable steps in plain English that you can help build confidence and clarity around your retirement nest egg.
Here’s some of what we discuss in this episode:
- Breaking down the equation and identifying areas we agree and disagree.
- How many years can you make withdrawals before running out of money?
- What are the variables you know and don’t know and how do you account for both?
- The importance of a diversified portfolio when trying to generate a rate of return each year.
- Rarely is there a single product or investment that meets your needs for all of retirement.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Surprise! Another robust study showed investors are still underperforming and making bad investment decisions. Morningstar released its yearly "Mind the Gap" study last month, showing investors have lost on average 1.7% yearly -- that's $17,000 on a $1,000,000 portfolio -- over the last decade. Why so and how can we stop the madness?!
In this episode hear Tyler Emrick, CFA®, CFP® break down the study's results and describe how True Wealth helps families not make the same mistakes as the average investor.
Click to read Morningstar's Mind the Gap study: https://www.morningstar.com/lp/mind-the-gap
Here are some of the things we will discuss in this episode:
- Background on the ‘Mind the Gap’ study from Morningstar.
- The study found a 1.7% gap from average investor to the average fund return.
- Timing the market costs investors regular and the data from the last four years shows that.
- There’s always a new reason to give us the belief that we can time the market.
- The illusion of control bias can lead people to believe they have more control over the outcome than they actually do.
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
Or use this link: http://bit.ly/calltruewealth
Learn more about the Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/
Here it comes again… F. E. A. R. This time manifest from headlines of the U.S. dollar’s demise as a reserve currency, spiraling inflation, low growth and an expressway to investment-return hell.
Listen to Kevin Kroskey, CFP®, MBA cut through the B.S. to understand what the economic risks are or are not and how they do or do not translate to your investment strategy.
Here are some of the things we will discuss in this episode:
- The questions we’ve been getting from clients about the headlines on the US dollar’s demise.
- What are the biggest concerns and risks that exist currently?
- We’ll sort through the historical evidence on the dollar.
- Which investments would respond favorably in this environment?
- We’ll explain why we think this is largely a non-issue for well-diversified investors.
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
Or use this link: http://bit.ly/calltruewealth
Learn more about the Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/
Hear Tyler Emrick, CFA®, CFP®, peel back the onion on income targeting – a critical part of a successful retiree’s overall Tax-Smart Distribution Planning. Learn how this type of planning, coupled with careful “Asset Location” decisions, can save a lot in tax over a multitude of years, allowing you to potentially retire earlier, spend more, or give more.
And be sure to pay attention to how True Wealth uses these strategies to benefit clients no matter what, whether they are still working or already in retirement.
Here are some of the things we will discuss in this episode:
- Why we want to get into this idea of income-targeting in this show.
- What exactly do we mean when we say income-targeting and how does that help us build a savings strategy.
- Looking at the scenario where a family put most of their assets in pre-tax accounts.
- The tax benefits that you could gain by going through all of this.
- The complexities that comes with a family that has more of their assets outside of retirement accounts.
- What kind of income are we going to target when we do this?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Learn more about the Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/
It's often beneficial to target income for tax planning purposes while working and even more so during your retirement years when you have more control over how you generate your income. Realizing income in lower brackets while avoiding higher brackets is the essence of this strategy which can quickly get complex.
In this episode, Tyler Emrick, CFA®, CFP®, reviews a recent article from Dr. James M. Dahle of the popular "The White Coat Investor" blog and podcast that suggests planning for the Medicare IRMAA surcharge doesn't matter. Hear Tyler discuss IRMAA and its impact on your tax-smart retirement income planning. And be sure to pay attention to the broader framework of how to think about income targeting, which we'll dive into in more detail in an upcoming episode.
See the reference article from Dr. James M. Dahle of the White Coat Investor here: https://www.whitecoatinvestor.com/irmaa
Here are some of the things we will discuss in this episode:
- What is IRMAA and how does it work?
- What parts of Medicare does this impact?
- Details on the different thresholds.
- The different planning discussions we have with people as we look at specific scenarios.
Check out our previous discussions on Medicare:
Retiree Health Insurance Part 1: Medicare - https://www.truewealthdesign.com/ep-58-retiree-health-insurance-part-1-medicare/
Retiree Health Insurance Part 2: Pre-Medicare - https://www.truewealthdesign.com/ep-59-retiree-health-insurance-part-2-pre-medicare/
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
In this episode, Tyler Emrick CFA®, CFP® explores the disconnect between some investors' return expectations. Learn common mistakes people make and traps they may then fall into.
And be sure to pay attention to what historical performance tells us, and how, if the forecasts of the big institutional investors are reasonably accurate, these investors could be setting themselves up for severe disappointment.
Here are some of the things we will discuss in this episode:
- Why expectations are almost always higher than what reality provides. (5:30)
- We use a historical perspective to help clients understand what returns have typically looked like in previous decades. (10:27)
- Looking ahead and setting expectations for future returns. (16:07)
- Return expectations can be vastly different depending on who you talk to. (20:09)
- How to determine what approach you should take to investing. (24:40)
Sign up for our newsletter on our podcast page: https://www.truewealthdesign.com/podcast/
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
In this episode, Tyler Emrick CFA®, CFP® talks through the financial impacts of implementing a well-thought-out Roth conversion strategy. Hear how his clients overcame the emotional struggle of paying a large upfront tax bill to build wealth and provide better outcomes for themselves and their families.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Here are some of the things we will discuss in this episode:
- How a Roth conversion can protect your spouse’s future. (3:28)
- How legacy planning and inheritances can benefit from a Roth conversion. (8:39)
- A recent scenario we worked through with a client when determining inheritance plans. (11:10)
- Some of the factors that go into determining whether a Roth is right for you. (14:46)
Sign up for our newsletter on our podcast page: https://www.truewealthdesign.com/podcast/
There Is No Alternative or TINA has been used throughout history and is mostly strongly associated with the UK's Marget Thatcher. The phrase is used to signify Thatcher's claim that "the market economy is the best, right and only system that works, and that debate about this is over."
More recently, TINA was popularly used to describe the stock market in light of low interest rates and correspondingly low yield-based returns. There is no alternative to stocks. Hear Kevin Kroskey, CFP, MBA discuss why now that rates have had an unprecedented rise, it is time to say goodbye TINA and how this fits into your ever-evolving investment strategy and retirement plan.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
We also reference Episode 85 - What's A Conservative Investor To Do? Check it out at this link: https://www.truewealthdesign.com/ep-85-whats-a-conservative-investor-to-do-these-days/
Here are some of the key points from this episode:
- Let's start with the why. Key questions analyzed with clients. (5:37)
- Breaking down the first asset class bucket: preservation. Kevin covers credit, term and what you should know about the yield curve inversion. (14:25)
- Kevin highlights the second asset class bucket: diversifying. He'll touch on private credit and corporate direct lending. The yields might surprise you in this category. (17:50)
- The third asset class bucket: appreciation. You'll be more familiar with this one as we get into stocks, REITs and the like. Kevin explains the balance between value and profitability in this arena. (23:00)
Sign up for our newsletter on our podcast page: https://www.truewealthdesign.com/podcast/
In this episode, hear Tyler Emrick, CFA®, CFP®, talk through what it means to be wealthy and how your own perception of personal wealth can be a powerful force that leads you astray or opens your eyes to better outcomes and, ultimately, a happier retirement.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Here are some of the assumptions we will discuss in this episode:
- What does it mean to be wealthy? (2:06)
- Your perception of wealth impacts your financial planning and your habits. (8:37)
- A comment that really stuck with Tyler recently. (12:53)
- How should you manage your wealth in retirement? (17:49)
- Thinking about how spending will impact your life. (19:54)
- Think in times and not years. (25:05)
- Be deliberate about your decisions and your approach to wealth management. (30:16)
Sign up for our newsletter on our podcast page: https://www.truewealthdesign.com/podcast/
Is the U.S. economy heading toward a recession? This question is seemingly perennial but has undoubtedly been a hot topic in the last year. Listen as Tyler Emrick, CFP®, CFA® talks you through what the data shows on how investment markets have performed in past recessions and whether being able to time recessions is likely to help your portfolio.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Here are some of the assumptions we will discuss in this episode:
- So many factors that cause people to worry about a recession. (4:03)
- Should you make portfolio changes or should you go to cash? (7:43)
- Why trying to time the market is even more difficult around a recession. (12:53)
- How the Retire Smarter Solution™ plays into building a portfolio. (17:08)
- How to approach a recession if you’re worried about your finances. (20:09)
Learn more about the Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/
We've all heard about Social Security's funding troubles. Is this why some decide to start benefits early? If Social Security were reduced, can it make sense to defer claiming? Hear Tyler Emrick, CFA, CFP, discuss a recent Wall Street Journal article on these topics as well as other recent proposals from Congress and academics that may impact the system. You paid in. Let's learn how you can get your fair share out.
Here are some of the things you’ll learn in this episode:
- Why so many people claim their benefits as early as possible due to uncertainty. (2:22)
- Does delaying your Social Security benefit help or hurt the system? (8:30)
- How your 401(k) and IRA accounts factor into your strategy for Social Security. (12:20)
- Some final thoughts from Tyler on Social Security. (18:52)
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Losing a spouse is difficult. Losing a spouse that handles your household finances is devastating. Hear Tyler Emrick, CFA®, CFP®, discuss what you need to know to ensure your household is in good financial shape after you pass and how True Wealth Design helps families when they need it the most – after a loss of a loved one.
Here are some of what we discuss in this episode:
- Experience working with families in this situation. (1:26)
- The problems that arise when just one spouse handles everything. (3:33)
- Getting a person comfortable to make decisions and take over the financial role. (8:06)
- How we advise people about the estate planning process. (10:57)
- The division of labor in the household and Tyler’s personal experience. (13:23)
- What are the typical changes for the surviving spouse? (20:21)
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
A solid retirement plan starts with making reasonable assumptions on myriad items -- your retirement lifestyle and its associated spending and what you can reasonably expect from your investments to just name a few. Poor assumptions will get you off on the wrong foot and may force you to make severe and undesirable lifestyle reductions to get back on track.
Hear Tyer Emrick, CFA®, CFP® discuss common assumptions and where they go wrong. We've all heard the saying about when you 'ass-u-me' things. Don't be a donkey. Rather, listen and learn, as you take a step on the right retirement foot.
Here are some of the assumptions we will discuss in this episode:
- The perception that the stock market is the biggest risk to retirement. (6:09)
- Families ignoring inflation in their retirement plan projections. (11:10)
- The spending assumptions that families typically make. (15:38)
- Not accounting for income changes in retirement. (18:06)
- Will you love not having a job in retirement? (21:42)
Hear our previous interview with retirement researcher Dr. David Blanchett.
Part 1 ---> https://www.truewealthdesign.com/ep-101-interview-with-retirement-researcher-dr-david-blanchett-part-1/
Part 2 ---> https://www.truewealthdesign.com/ep-102-interview-with-retirement-researcher-dr-david-blanchett-part-2/
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
There has been a lot of misinformation regarding and uncertainty caused by the recent bank failures. You may have concerns about whether your money is at risk whether at a bank or at custodians such as Charles Schwab, Fidelity, Pershing, or TD Ameritrade. Hear Kevin Kroskey, CFP®, MBA give a summary of what happened at Silicon Valley Bank and explain why your bank account should be thought of as a loan to the bank (because it is!). Conversely, he'll detail key investor protections you benefit from by not having your account a general liability of a bank but a segregated account at a custodian. He'll go further and explain how mutual funds and ETFs held in your investment accounts allow additional safeguards and segregation of your assets. You'll learn about coverage you may have through the Securities Investor Protection Corporation (SIPC), excess SIPC coverage custodians may have to protect affluent investors, and, as an example of the safeguards, what happened to investors' segregated accounts held at Lehman Brother's bankruptcy during the GFC. Here's some of what you'll learn in this episode: * So much misinformation around the banking collapse right now. (3:17) * The details of what happened and what went wrong. (8:30) * Why were investors caught off guard by the risk in commercial banking? (18:03) * Some of the differences in the way different institutions manage your money. (28:11) * Kevin's opinion on what he thinks could happen moving forward. (36:15)
Have questions? If you’re ready to explore a relationship and gain more clarity and confidence around your retirement, taxes, and investments use this link to schedule a free 15-minute call with one of our experienced and credentialed professionals.
Getting to the point where you finally decide to retire is one thing, but trying to ride off into the sunset can be an exceptionally tall task. Hear Tyler Emrick, CFA®, CFP®, talk through his five must-do items to help you feel confident about cutting the paycheck cord.
Here are the five things we'll discuss on this episode:
- Have a non-financial retirement plan. (3:27)
- Visualize and project. (8:44)
- Start measuring. (11:23)
- Create your distribution plan (18:27)
- Find an expert to help (23:09)
RELATED CONTENT: Your Hierarchy of Retirement Needs - https://www.truewealthdesign.com/ep-76-your-hierarchy-of-retirement-needs/Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.http://bit.ly/calltruewealth
Coming off a year with unprecedented interest rate hikes, everywhere you turn there is an advertisement for yields on CDs or other types of savings accounts. Clients are asking whether they should consider using these products, and if so, to what extent. Hear Tyler Emrick, CFA®, CFP® discuss pros, cons, and alternative solutions and, more importantly, how you should think about the role cash has in your broader financial, retirement, and investment planning. Here's some of what you'll learn in this episode: * What economic trends are we seeing in recent months? (1:52) * What are some alternative investments to consider? (6:58) * A story about someone we worked with who had much more cash than they realized. (10:38) * The cash discussion goes well beyond just an emergency fund. (16:08)
Have questions?Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.http://bit.ly/calltruewealth
Unemployment numbers are near historic lows, but for some white-collar professionals, that does not tell the whole story. Many are rightfully concerned their job is at risk, potentially harming a retirement plan that would otherwise be on track. Listen as Tyler Emrick, CFA®, CFP®, talks through what industries are getting hit the hardest and what you can do now to help protect your retirement in the face of job insecurity. Here's some of what you'll learn in this episode: * What we're seeing in the workforce right now. (0:52) * Studies show that people often don't work as long as they had planned. (4:17) * What are some of the signs that financial trouble might be coming for your employer? (6:17) * What is offered in an early retirement package? (10:11) * What should you consider if you get caught up in a round of layoffs? (15:11)
Check out our podcast on Pension Lump Sums: https://www.truewealthdesign.com/ep-106-pension-lump-sums-you-may-need-to-act-now-in-2022/ Have questions? Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
2022 was a tough year for stock and bond market returns. How are retirees adapting to the falling market? What decisions are they making now to set themselves up for success in the future? Listen as Tyler Emrick, CFP, CFA, shares his clients' stories to uncover their questions and how they plan to navigate the challenges posed by the current market and economic landscape. Here's some of what you'll learn in this episode: * Some of the numbers that show just how bad 2022 was for investors. (2:54) * A lot of families are using the flexibility built into their retirement plan. (5:47) * Considering taking advantage of a Roth conversion. (10:28) * We've started taking a closer look at retirees' spending to see how it's changed. (13:16) * What we're looking at inside a client's portfolio. (20:24)
Have questions? Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
The much anticipated Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0 recently passed Congress as part of the Consolidated Appropriations Act of 2023. While no single change made in this act will have the same level of effect on your retirement planning as some changes made in the original SECURE Act, passed in December 2019, there are far more provisions in this act that may impact your planning. Hear Tyler Emrick, CFP, CFA discuss some of the more impactful changes and how they will affect your planning and retirement. Here's some of what you'll learn in this episode:* What is the SECURE Act and why another update? (1:23) * Big changes to RMDs including age being pushed back again. (3:22) * The Roth changes that you can start planning for. (8:29) * Catch-up contributions for high-income earners will be required to be Roth. (11:11) * A 529 to Roth transfer will be allowed after 15 years. How can you qualify for that? (13:47) * Additional contribution increases coming in 2024 and 2025. (17:10) * A few other changes that we think you should know about. (20:18)
Have questions? Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Whether you are trying to understand better how Social Security works or looking to optimize your filing strategy, this episode is for you. Hear Tyler discuss some of the less talked about factors impacting your Social Security claiming strategy. Listen as he talks through his clients' most common questions and concerns. All to help you better understand and maximize your benefits. Here's some of what you'll learn on this episode: * How Social Security as part of income planning has changed through the years. (3:13) * How we help clients identify Social Security opportunities they have. (7:29) * The Cost Of Living Adjustment (COLA) coming in 2023. (16:05) * How we help clients determine their claiming strategy. (20:34) * Where does Social Security fit into the overall retirement planning process. (30:14)
Have questions? Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Most Americans donate to charity yearly, and many have distinct goals in their retirement plan to meet annual charitable donations. Most also give cash … the tax-efficient way to give.
Hear Kevin and Tyler discuss ways to tax-optimize your charitable giving. Whether through bunching your deductions or using donations of appreciated stock, each coupled with a donor-advised fund can help you gain a bigger tax break and meet your charitable goals in the Retire Smarter way.
Here's some of what you'll learn in this episode:
- Why we want to be more thoughtful of the why behind charitable giving. (4:20)
- Details on the current standard tax deduction amounts. (11:25)
- How you can utilize the bunching strategy to maximize deductions. (14:17)
- An example of how clients typically approach giving. (17:11)
- Assets you might consider giving instead of cash. (20:35)
Have questions?Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth’s CFP® Professionals.
http://bit.ly/calltruewealth
It's usually a life event -- retirement, Social Security age, business sale, death or inheritance -- that tends to drive people to seek financial advice. Those that tend to benefit the most from advice are those whose time is valuable and where the cost of a mistake is high (and potentially irrevocable.) Hear Kevin and Tyler talk about recent meetings they've had with people seeking help. Learn why the problem that brought them in often isn't the real problem. Rather, it's the "unknown unknowns" or the "things they think they know but just ain't so" that are more so the problem to avoid or opportunity to capitalize upon. This is an episode that many listeners will be able to relate to and cause 'aha moments.' Here's some of what you'll learn on this episode: * Some background on a recent growth award we were recently honored with. (1:15) * An example of how we help families identify and address their estate planning needs. (6:54) * Is a Roth Conversion right for you? (14:47) * The ways we typically provide the most help to people. (19:35) * Analogies for why it's important to have the right information. (24:03)
HAVE QUESTIONS? Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth’s credentialed and experienced professionals or visit http://bit.ly/calltruewealth.
Or listen to episode 45 to learn about True Wealth’s Retire Smarter Solution™ that aligns your money to your goals, overlaid with tax-smart strategies, so you can retire with confidence.
It's that time of year again ... the fourth quarter. Before you get enthralled with the holiday season, it's time to look back over this year and towards the next. Does your lifestyle spending match the goals you have in your plan or do your goals need to be modified to reflect reality?
Are your investments well aligned to meet your spending goals or are you exposing yourself to unnecessary lifestyle risk?
What tax moves should you make before the end of the year? And what moves should you plan for next year?
Listen to Kevin and Tyler describe the process True Wealth goes through to make sure how these important details are handled to help you stay on your retirement track and pay no more than your fair share in tax.
Here's some of what you'll learn on this episode:
- Some background on the three core items we need to be checking as the year comes to a close. (2:19)
- The changes from the past year and the recent laws that impact what we're doing this year. (6:30)
- The income targeting we do and some examples of that. (11:33)
- How inflation and the cost of living adjustments factor into end-year planning. (13:50)
- Why you have to a proactive approach to your financial plan. (18:23)
HAVE QUESTIONS? Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth’s credentialed and experienced professionals or visit http://bit.ly/calltruewealth.
Or listen to episode 45 to learn about True Wealth’s Retire Smarter Solution™ that aligns your money to your goals, overlaid with tax-smart strategies, so you can retire with confidence.
Are you looking for ways to accelerate your savings right before retirement? How do you determine whether to save Roth or Pretax? What type of retirement account should you be using? In short, how can you use the myriad tax-advantaged accounts to optimize your retirement savings and tax advantages? All these questions and more are answered as Tyler walks you through how IRA, Roth, and 401K plans work and how you can best use them to maximize your retirement savings. Hear him tell a client story to illustrate some of the lesser-known retirement account options available. Small business owners and self-employed individuals will want to pay special attention as this self-employed business owner saved over $200K in pretax savings this year, getting thousands in tax deductions and accelerating their savings as they approach retirement. Here's some of what you'll learn on this episode: * High-level view of how Tyler looks at the structure of retirement plans. (4:43) * The bucket that most people utilize in their retirement plan. (7:25) * Where are the most under-utilized retirement plans. (12:16) * A story about a client who was looking for tax strategies to maximize benefits. (15:01) * How can individuals benefit? (23:52)
HAVE QUESTIONS? Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth’s credentialed and experienced professionals or visit http://bit.ly/calltruewealth.
Or listen to episode 45 to learn about True Wealth’s Retire Smarter Solution™ that aligns your money to your goals, overlaid with tax-smart strategies, so you can retire with confidence.
History shows that owning companies (buying stocks) provides far superior returns vs. lending to companies (buying bonds). While most know this, most would be surprised by how many stocks lose money over time. A JP Morgan report showed this number to be 40% over a broad period from 1980-2020. And 66% of stocks failed to keep up with a broad benchmark. Hear Kevin dive into these details, portfolio implications, and touch on key characteristics of risk -- not just how much your investments move up and down (volatility) but making sure you have the dollars you need when you need them (terminal wealth dispersion). You'll be surprised by what you learn and likely question whether you are truly diversified. After all, luck or any low-probability investment strategy -- pursued consciously or not -- is not rational for your retirement dollars. Here's some of what you'll learn on this episode: * The investment part of retirement isn't solely about the traditional motivations. (5:32) * The good part of having unique risks in your portfolio. (10:12) * What studies have shown us about market returns. (19:41) * A look at how the professionals do with picking stocks. (24:19)
HAVE QUESTIONS? Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth’s credentialed and experienced professionals or visit http://bit.ly/calltruewealth.
Or listen to episode 45 to learn about True Wealth’s Retire Smarter Solution™ that aligns your money to your goals, overlaid with tax-smart strategies, so you can retire with confidence.
"It's the End of the World as We Know It (And I Feel Fine)" is a 1987 song by American rock band R.E.M.. The title may sound pessimistic or perhaps a bit delusional. Yet, hear Kevin make the analogy as to why this song -- one of his favorites -- is a perfect theme song for capitalism, creative destruction, and rational optimism about innovation and future stock returns. Here's a little of what you'll learn on this episode: * Why bad news in the headlines is nothing new. (1:39) * What a consumer sentiment survey tells us. (4:12) * Why it might actually be a good time to invest when you feel very pessimistic. (10:08) * A book that still sticks with Kevin a decade later and the lessons learned. (13:44) * What is creative destruction and how does it apply here? (17:23)
HAVE QUESTIONS? Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth’s credentialed and experienced professionals or visit http://bit.ly/calltruewealth.
Or listen to episode 45 to learn about True Wealth’s Retire Smarter Solution™ that aligns your money to your goals, overlaid with tax-smart strategies, so you can retire with confidence.
A $50+ million investment fraud is unwinding in northeast Ohio with a former high school basketball coach and self-proclaimed single-family real estate expert being accused of bilking investors in a ponzi scheme. You probably think, "This can't happen to me." The same can likely be said of those in the community that now have fallen victim to fraud at the hands of someone they trusted. Hear Kevin discuss red flags and common scams fraudsters often use. Affinity fraud, guaranteed or high returns, and unregistered products are often well disguised into good-sounding strategies to gain your trust and dollars. And be sure to pay attention to the end, when Kevin talks about public vs. private investments and the benefits of using a qualified custodian -- like Schwab, Fidelity, Pershing, and TD Ameritrade -- for the safe keeping of your assets. Key topics on this episode: 3:19 - Local story that sparked this discussion 7:58 - Affinity fraud 9:58 - Sale of an unregistered security 13:58 - Private hard money lender 16:11 - Why this local Ponzi collapsed 20:48 - Why a custodian matters 22:57 - Be aware of private investments 27:39 - Any protection for this? For more, visit us online: http://truewealthdesign.com
Pension lump sums will be much LOWER in 2023 than 2022. Listen to Kevin give a brief intro on what is going on and then cut into a replay of episode 62, recorded in December 2020 on the same topic.
Learn timing considerations on how to optimize your pension benefits by understanding the key variables -- interest rates and mortality -- that determine your lump sum. Company pension plans specifically discussed include Akron Children's Hospital, Bridgestone, FirstEnergy, Goodyear, Kaiser, Mercy Health, and Rockwell Automation.
Need help with your specific lump sum option?
If you are eligible for a lump sum, don't delay. To give proper advice, your pension decision must be made within the context of your overall financial life plan, and this takes some time to thoughtfully put together. Call 855-TWD-PLAN (855-893-7526) or visit https://www.truewealthdesign.com/contact to get expert help.
Whether you have a pension from your company or not, you'll benefit from this episode. Why? Anyone can invest money with an insurance company and receive a lifetime income in the form of annuity payments. So these considerations are universal in crafting your retirement income plan.
Want more information on pension claiming strategies? Listen to Episode 38 here: https://www.truewealthdesign.com/ep-38-pension-lump-sum-or-monthly-payment
Key topics on this episode:
0:38 - Why we're pulling this show from the archives
8:53 - What you need to know about lump sums
14:22 - Why this matters
15:58 - Segment Rates
21:43 - What To Expect In The Future
26:02 - Spreadsheet Story
30:28 - Closing Thoughts
Hear the story of Dr. Smith and how his retirement concerns are likely similar to many of your own. How do I select a good advisor? What to do with my employer retirement plans? How do I transition my healthcare? Hear all of this plus estate planning issues and Dr. Smith's reflections on his retirement transition in this jam-packed episode.
Key topics on this episode:
1:14 - Background on our conversation today
5:14 - How Dr. Smith found us
10:34 - Why Dr. Smith's meeting was different
11:51 - The earlier the better
12:43 - What was important to him
16:22 - Reactive vs proactive
18:11 - Two things that everyone cares about
21:56 - Starting the customization process
23:40 - Estate planning conversation
27:39 - How the relationship changes
29:27 - Where are we now with Dr. Smith?
Learn more about our Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/ Have a financial question? Contact us at https://www.truewealthdesign.com/contact/
Kudos! You went through a retirement planning process or completed an online calculator and have the results. Now, what the heck do they mean exactly? Hear Kevin peel back the onion on understanding your retirement plan results. What are Monte Carlo simulations? What assumptions belie them? What shortcomings does this type of analysis have? How can this powerful tool be thoughtfully used to help ensure you stay on track? Key points on this episode: 2:16 - What we discuss with clients 4:43 - How we display results in our dashboard 9:07 - Safety margin 17:25 - Hierarchy of expenses 19:51 - No simulations are perfect
Learn more about our Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/ Have a financial question? Contact us at https://www.truewealthdesign.com/contact/
The bear is roaring and eating away at stock and bond returns. What's an investor to do?
Hear Kevin Kroskey, CFP®, MBA and Tyler Emrick , CFA®, CFP® discuss common investment questions clients are prospective clients are asking: Should I decrease risk? Should I increase cash? Is cash better to own than bonds? Should I consider a CD or fixed annuity? Is it okay to make a strategy change or hire an advisor when markets are down?
Key points on this episode:
1:45 - Should we sell out at this point?
5:39 - Preparation is so important
8:47 - 'Coupon Kroskey'
9:58 - Cash vs Bonds
16:37 - Fixed interest rate products
21:27 - Bad time to move money?
26:49 - Other items to have on your list
Learn more about our Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/ Have a financial question? Contact us at https://www.truewealthdesign.com/contact/
Dr. David Blanchett is Head of Retirement Research formerly at Morningstar and currently at Prudential’s asset management arm PGIM. He is also an adjunct professor at The American College of Financial Services. David has been a voracious and accomplished researcher, being published in a variety of peer-reviewed articles, and receiving many ‘best paper’ awards. Today he conducts research primarily in the areas of financial planning, tax planning, annuities, and retirement.
Listen to Kevin and David do a deep dive into key assumptions made in your retirement planning – investment returns, spending assumptions, longevity, and inflation. Learn from David’s original research on retirement spending and how it is likely to decline as you age, including the positive implications it has on your planning. (Hint: you may be able to retire earlier than you think.)
Be sure to pay attention to the end where David and Kevin discuss guaranteed income, cryptocurrency, and empirical studies on quantifying the benefits of working with a trustworthy and competent advisor.
A big "thank you" to Dr. Blanchett for sharing his research and wisdom. To read David’s research, visit https://www.davidmblanchett.com/research
Learn more about our Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/ Have a financial question? Contact us at https://www.truewealthdesign.com/contact/ Key topics on this episode: 1:05 - Using the spending data to build a financial plan 2:47 - Success rate as an outcome metric 5:27 - Measuring your wants and needs 9:52 - Building guaranteed income 14:16 - Annuities 16:53 - Comparing annuities 20:21 - His recent paper on cryptocurrency 22:40 - Recent/current projects 24:21 - How an advisor adds value
Dr. David Blanchett is Head of Retirement Research formerly at Morningstar and currently at Prudential’s asset management arm PGIM. He is also an adjunct professor at The American College of Financial Services. David has been a voracious and accomplished researcher, being published in a variety of peer-reviewed articles, and receiving many ‘best paper’ awards. Today he conducts research primarily in the areas of financial planning, tax planning, annuities, and retirement.
Listen to Kevin and David do a deep dive into key assumptions made in your retirement planning – investment returns, spending assumptions, longevity, and inflation. Learn from David’s original research on retirement spending and how it is likely to decline as you age, including the positive implications it has on your planning. (Hint: you may be able to retire earlier than you think.)
Be sure to pay attention to the end where David and Kevin discuss guaranteed income, cryptocurrency, and empirical studies on quantifying the benefits of working with a trustworthy and competent advisor.
A big "thank you" to Dr. Blanchett for sharing his research and wisdom. To read David’s research, visit https://www.davidmblanchett.com/research
Learn more about our Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/ Have a financial question? Contact us at https://www.truewealthdesign.com/contact/ Key topics in this episode: 1:11 - Welcome in Dr. David Blanchett 2:15 - Reviewing his historical papers 3:39 - Important retirement variables 5:26 - What are reasonable expected returns? 9:44 - Building blocks that play into forming expectations 13:50 - Spending patterns 16:24 - Spending data and categories 21:05 - Behavioral aspects of spending
Market downturns elicit emotion. Emotional investors are more apt to make poor investment decisions. Time and again this is proven. Lather. Rinse. Repeat. Or get educated and break the cycle... Listen to Tyler Emrick, CFA, CFP stand in for Kevin and describe some common behavioral issues even smart investors often must overcome. Got a case of 'get-even-itis' (loss aversion)? Or perhaps a case of 'no-decision-itis (regret aversion)?' Look at an inheritance differently than money you worked for? Listen to these and more to be informed and help overcome behavioral hurdles that can harm your wealth. What we discuss in this episode: 0:36 - Welcome back on Tyler 2:39 - Our topic today 5:16 - Mental accounting 12:56 - Regret Aversion 19:07 - Loss Aversion 26:57 - What steps can you take to improve? Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/
2022 has been a bad year for most investors. Both stocks and most bonds are down sharply. You may be wondering why?
Hear Kevin explain what has been happening in markets with key points related to understanding diversification, risk, and four key economic regimes for investors to balance against. Learn why even a "balanced investor" has 90% of risk coming from one asset class, and why bad behavior is causing severe pain for many return-chasing investors as they go down with the ARKK.
The egghead alert may sound on this episode, but Kevin will keep things at a high, understandable level at this crucial time.
Learn more about our Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/
Listen for these key topics:
1:43 - Why we're talking about this
3:25 - Emotion creeping in
5:55 - Don't lose sight of the purpose of the money
9:30 - So many factors to changing expectations
10:32 - YTD returns we've seen
12:24 - Idea of diversification
16:16 - Recent stock values
17:45 - ARKK ETF
21:03 - The investing environment and factors that change it
23:25 - Risk from stocks vs bonds
29:02 - What's been working this year?
33:16 - Takeaways
Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/
Dr. Michael Finke is a professor and chair of Economic Security Research at The American College of Financial Services. Listen to Kevin and Michael chat about a wide range of key retirement issues, the research behind them, as well as current topics: Life expectancy differences for average vs. wealthy people, what makes a retiree happy, why Social Security is such a good deal, how inflation impacts retirees differently than workers, why the current market environment contains much bad news for retirees, and much more. A big "thank you" to Dr. Finke for sharing his original research and wisdom. No doubt this is one of those episodes you may want to find yourself listening to twice. About our guest: https://www.theamericancollege.edu/our-people/faculty/michael-finke
What we discuss in this episode:
1:05 - Shiller PE Ratio
5:01 - Behaviors
6:44 - Spending habits
11:01 - Tax rate risks
11:55 - Cognitive impairment
15:25 - Women vs men
16:36 - RMD jail
20:46 - Final thoughts
Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/
Dr. Michael Finke is a professor and chair of Economic Security Research at The American College of Financial Services.
Listen to Kevin and Michael chat about a wide range of key retirement issues, the research behind them, as well as current topics: Life expectancy differences for average vs. wealthy people, what makes a retiree happy, why Social Security is such a good deal, how inflation impacts retirees differently than workers, why the current market environment contains much bad news for retirees, and much more.
A big "thank you" to Dr. Finke for sharing his original research and wisdom. No doubt this is one of those episodes you may want to find yourself listening to twice.
About our guest: https://www.theamericancollege.edu/our-people/faculty/michael-finke
What we discuss in this episode:
0:52 - Welcome in Michael
1:48 - Time as a food consumption researcher
4:24 - Delaying gratification
8:10 - Breaking saving habits in retirement
11:08 - What research has found
13:38 - Income and spending in retirement
17:56 - High income people
20:05 - What age to plan for
25:31 - Longevity predictions
28:24 - Future of Social Security
33:50 - Social Security strategies
39:30 - Inflation expectations
Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/
In this episode, Kevin turns the tables on a handful of common misconceptions about health care costs in retirement. Find out the truth about what health coverage and long-term care actually might cost and how you can factor them into your overall retirement plan.
This is the final part of this series we're revisiting on Retirement Rules Gone Awry.
What we discuss in this episode:
1:40 - The rule we're discussing today
3:33 - So Kevin isn't worried?
5:37 - What we envision for the future of healthcare?
10:37 - Longterm care coverage
20:17 - Helping our clients make decisions
Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/
You've perhaps heard the 4 percent rule, that if you take 4% out of your investment account each year, you'll never outlive your money. Kevin talks about where this idea came from, and pokes some holes in this strategy in this third installment of Rules Gone Awry.
This is the fourth of a five-part series we're revisiting on Retirement Rules Gone Awry.
What we discuss in this episode:
1:40 - What is the 4% rule?
4:00 - Why this rule became widely adopted?
5:35 - Major problems with this rule
11:12 - What is the right answer?
14:53 - Example of someone we've worked with
18:07 - Final thoughts
Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/
There's a "rule" that says you should take 100, subtract your age, and the result tells you how much of your money you should invest in stocks. It would be awesome if retirement planning was that simple, but simple isn't always effective and that's the problem with the Rule of 100. Take a listen to find out about better ways to invest and plan for your financial future.
This is the third of a five-part series we're revisiting on Retirement Rules Gone Awry.
What we discuss in this episode:
1:40 - Today's rule
5:29 - Measuring risk
10:32 - Simple isn't always better
Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/
There's an old school of thought that says you should take social security as early as you can so that you can get the most out of it. But this is another one of those retirement rules gone awry that we enjoy picking apart on the podcast. Kevin will tell us why this retirement "rule" needs to be scraped and give us the proper lens through which to view the social security problem.
This is the second of a five-part series we're revisiting on Retirement Rules Gone Awry.
What we discuss in this episode:
1:52 - Background on this Social Security rule
4:05 - The common approaches people take to SS
5:27 - 'I won't live long enough.'
6:59 - 'I don't want to wait to spend money.'
9:21 - Worry about SS funding issues
14:29 - Different ways you can take SS
Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/
Walter was being nosy recently and asking his mom about her retirement plans. When she told him she was planning on living off of 80% of her current income during her retirement years, it raised a red flag. How did she come to that figure?
You guessed it, she didn't really have an exact answer for why she picked that number.
So Walter turns to Kevin on this week's podcast to understand how that "80% Rule" worked its way into the retirement planning vernacular and why we'd all be wiser to ignore it.
This is the first of a five-part series we're revisiting on Retirement Rules Gone Awry.
What we discuss in this episode:
1:40 - Backstory on this topic
4:28 - How do you determine the amount?
6:03 - Where does it vary from person to person?
10:40 - Why this rule falls apart
15:07 - Building customized plans
17:13 - Final thoughts
Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/
Listen as Kevin completes the podcast series discussing the book What Retirees Want (WRW) by world-famous "Age Wave" expert Ken Dychtwald, Ph.D.
Should you stay or should you go...
While many Boomers intend to not move but age in place, an increasing amount are making a change.
Learn why many more Boomers are choosing to go and where they are going to in order to improve retirement satisfaction.
Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/
What we discuss in this episode:
0:42 - Current market volatility
3:28 - Where will you call home?
5:23 - Book passage that ties into this discussion
8:57 - Age in place or move?
10:48 - Reasons retirees decide to stay
12:53 - Where are people moving to?
17:03 - Retirement regrets
18:52 - Discussing this with clients
20:18 - Continuing Care Retirement Communities
24:41 - Closing thoughts
What do retired Boomers say is the key to retirement happiness? Think about what you would say and then take a listen to learn this and more on the show.
Listen and learn as Kevin continues the podcast series, discussing the book What Retirees Want (WRW) by world-famous "Age Wave" expert Ken Dychtwald, Ph.D.
Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/
What we discuss in this episode:
0:31 - Tom Brady retiring
1:34 - Recap on what we've discussed so far
3:25 - What makes us happy
5:50 - Stress in retirement
8:58 - The idea of leisure
12:28 - Top priorities for Boomers
18:33 - Retirement destinations
25:02 - Final thoughts and action plan
Listen as Kevin discusses the book What Retirees Want (WRW) by world-famous "Age Wave" expert Ken Dychtwald, Ph.D. Learn why your expectations of how long you'll work will likely vary substantially from how long you'll actually work and why this matters.
Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/
What we discuss in this episode:
1:50 - What we're focusing on today
4:31 - Survey found retirees leaving earlier than planned
6:43 - 3 reasons why expectations don't match reality
9:28 - Don't rely heavily on those later earnings
10:54 - Why people are still working in retirement
13:19 - Client story
14:18 - Giving back/mentorship
18:03 - Takeaways from this discussion
21:10 - Having a plan
Listen as Kevin discusses the book What Retirees Want (WRW) by world-famous "Age Wave" expert Ken Dychtwald, Ph.D.
Learn how increasing wealth and longevity have transformed retirement and will continue to create more "Time Affluence."
Hear why Work, Leisure, Health, Home, Family, Finances, and Purpose are key zones impacted by this new idea of retirement and how to better think about and prepare for the softer side of retirement.
Read more and get additional financial resources here: https://www.truewealthdesign.com/podcast/
What we discuss in this episode:
0:42 - Holiday recap
1:48 - Business growing
3:20 - The book we read
7:05 - The idea of retirement through history
11:52 - Retirees today
13:08 - My grandfather's retirement
16:14 - Time affluence and its influence
18:32 - Final thoughts
Many early retirees find they must utilize Affordable Care Act (ACA or Obamacare) policies to bridge the gap from employer-provided health insurance to Medicare at age 65. ACA policies are expensive but even affluent families may be able to obtain significant tax credits -- often more than $10,000 yearly -- to offset premiums.
Hear Kevin discuss Premium Tax Credits and how to plan to obtain them. With a recent law change, these credits are even more sizable and accessible at higher income levels for 2021 and 2022 and maybe longer with pending tax legislation.
Read more and get additional financial resources here: https://www.truewealthdesign.com/ep-87-how-pre-65-retirees-can-get-a-huge-healthcare-tax-credit/
What we discuss in this episode:
1:30 - The article that inspired this conversation
3:49 - Background on healthcare and tax credits
5:41 - Insurance costs and a real-life example
13:58 - Summarizing the numbers
15:07 - Planning strategies to take advantage of the credit
18:58 - Changes for 2022
22:56 - Final thoughts
Do you know what it costs to live your lifestyle? Many successful people don't. They haven't had to worry about money, live below their means, and save diligently.
Yet, when it comes to retirement planning, you need to know these costs. On one hand, you need to make sure you have enough and don't run out of money. On the other, you need these costs for proper investment and tax planning.
Hear Kevin and special guest Tyler Emrick, CFP, CFA discuss the importance of cash flow and several client stories where it made a huge impact. You'll hear different ways to measure lifestyle and how you can jump-start the planning process by taking a preapproval approach to retirement spending. And be sure to listen to the end where they'll discuss how to monitor your tax-smart distribution planning to be sure you stay on the good side of the retirement track.
Get additional financial information: https://www.truewealthdesign.com/ep-86-cash-flow-measuring-monitoring-the-heartbeat-of-your-financial-planning/
Today's rundown:
1:12 – Elf on the shelf
5:00 – Cash flow, measuring, and monitoring
11:52 – Kevin’s story about cash flow
15:02 – Tyler’s story about cash flow
20:44 – Cash flow like a mortgage pre-approval
22:03 – Tax importance with cash flow
23:12 – The fourth quarter for retired clients
28:25 – Common concerns
Resources:
https://www.truewealthdesign.com/ep-68-my-journey-as-a-financial-planner/
If you own a disproportionate amount of cash or bonds in your portfolio, you can be broadly classified as a conservative investor. With today's low-interest rates, being conservative is a tough investment row to hoe. Starting yields have been shown to explain 90%+ of returns realized from high-quality bonds. Ergo low-interest rates equal low returns. So what can you do?
Read more: https://www.truewealthdesign.com/ep-85-whats-a-conservative-investor-to-do-these-days/
Today's rundown:
0:58 – Catching up with Kevin
3:53 – “Conservative” investor in today’s world
9:16 – Getting a plan and risk
11:54 – Building a bond ladder
13:43 – Consider annuities
18:04 – Social Security deferring
19:03 – Don’t simply reach for a yield
Annuity breakdown:
https://www.truewealthdesign.com/episode-12-behind-the-curtain-of-annuities-and-free-steak-dinners/
https://www.truewealthdesign.com/episode-13-beating-up-on-variable-annuities/
Things to consider before years end:
Ep 62: Pension Lump Sums: 2021 May Be The Best Year Ever - True Wealth Design
Ep 31: Details In A Tax-Smart Retirement Distribution Plan - True Wealth Design
Ep 59: Retiree Health Insurance Part 2: Pre-Medicare - True Wealth Design
How to Get A $16,168 Tax Credit On Obamacare Even If You Are Affluent - True Wealth Design
Want a copy of True Wealth’s free report Plan Smarter for a Lower-Tax Retirement? Drop us a line and we’ll be sure to get it right out.
Having reasonable assumptions for investment returns is critically important for many reasons. These assumptions will impact your retirement plan, investment allocation, and your peace of mind.
Hear Kevin review discuss a recent letter written to his clients about the three broad categories of investments. He'll discuss high-level metrics on how attractive or expensive various parts of the stock and bond markets are and what to broadly expect in the years to come. Tune into the end when he discusses higher-yielding investments and how many investors are unwittingly taking more risk today than they realize.
Reminder: Investment returns are not guaranteed. There are costs to invest. Expectations discussed are just estimates and are probability-based (range-based) and are from Blackrock, Research Affiliates, Schwab and Vanguard per data available on their websites.
Read more: https://www.truewealthdesign.com/ep-84-investment-allocation/
Today's rundown:
0:55 – Catching up with Kevin
1:40 – Things to consider before years end
5:44 – How long does it take to start a plan?
8:13 – Investment allocation updates
11:15 – 3 categories of a portfolio
15:50 – Appreciation assets
16:21 – Vanguard and Schwab 10-year forecast
24:08 – Discount of foreign markets
26:44 – Is it more difficult to have a diversified portfolio?
28:47 – Preservation assets
31:54 – Credit risk and credit spreads
33:51 – Diversifying and DIY
Things to consider before years end:
Ep 62: Pension Lump Sums: 2021 May Be The Best Year Ever - True Wealth Design
Ep 31: Details In A Tax-Smart Retirement Distribution Plan - True Wealth Design
Ep 59: Retiree Health Insurance Part 2: Pre-Medicare - True Wealth Design
How to Get A $16,168 Tax Credit On Obamacare Even If You Are Affluent - True Wealth Design
10-year forecast from Vanguard and Schwab
If you drive a car, I'll tax the street; If you try to sit, I'll tax your seat; If you get too cold, I'll tax the heat; If you take a walk, I'll tax your feet. "Taxman" - The Beatles Biden's tax proposals have finally been put into legislation and released on September 13th. Thankfully they're not as bad as the Beatles lyrics and tax increases were also less than what was expected. Hear Kevin discuss key proposals for individuals with the good, the bad, and those that didn't make it into the bill, and be sure to pay attention to the end to hear the key things to do to keep more in your pocket. Read more: https://www.truewealthdesign.com/ep-83-bidens-american-families-tax-plan-key-changes-planning-opportunities/ Today's rundown: 1:12 - Celebrating a birthday 4:33 - Background on the proposal 6:11 - The bad 10:44 - Backdoor Roths 13:36 - IRA change for accredited investors 16:02 - The good 21:20 - Things that didn't make it in 27:18 - Planning to-do items
The 2021 Social Security Trustee's Report was recently released and the 2022 COLA is near finalized. What can we expect for the COLA and glean from the report? Tune in to hear the important points and key planning implications for your Social Security benefits. Spoiler alert: Social Security solvency is not as bad as you may be led to be believed by the media and planning strategies remain important and are more key in today's low-interest rate world. Read more: https://www.truewealthdesign.com/ep-82-social-security-update-solvency-cola-planning-strategies/ The rundown for this episode: 2:41 - Background on this topic 3:40 - Trustees report 8:07 - Solvency fixes 12:49 - Cost of Living Adjustment 17:30 - Problems that create opportunities 21:35 - Survivor benefits 22:26 - SS using outdated interest rate assumptions 26:48 - Planning implications
In the age of Covid, everyone has seemingly become a data expert .... regardless of one's understanding of data and statistics (sigh). Hear Kevin highlight some recent math errors he's observed in media, relate them to investing errors, and tie in vaccines to boot. He'll describe how making bad comparisons in identifying mutual fund category winners is subject to similar errors to drawing conclusions about the recent Cape Code headline where a Covid outbreak infected 74% of vaccinated people. He'll also explain how butter production in Bangledesh is tied to the S&P 500 and why you should (or shouldn't?) "sell in May and go away." Put your thinking cap on and happy listening! Get more information: https://www.truewealthdesign.com/ep-81-math-mistakes-in-the-media-investing-and-in-understanding-vaccines/ Key Points: 1:02 - Quick shout out for a team member 3:35 - Covid update 6:19 - Background on our topic 11:13 - Deceptive investment performance advertising 14:44 - The vaccine equivalency 19:24 - Correlation does not equal causation 25:37 - Additional examples of vaccine data and cherry-picking 36:50 - Closing thoughts
You may have acquired stock and seen it significantly rise in value over time. Now you're not sure what to do: let it ride or sell, pay taxes, and reinvest in a better portfolio. Astute investors know concentrated stock holdings are suboptimal and expose a portfolio to diversifiable risks. But simply selling regardless of tax consequences is also short-sighted. So how do they best fit into your portfolio and financial plan? Hear Kevin discuss how to think through this complex decision. He will evaluate the costs and expected benefits of making a partial or full transition and discuss how Separately Managed Accounts or SMAs can be used as a tax-smart tool to better optimize your investments in light of concentrated or low-cost basis stock positions. Even if you do not have concentrated or low-cost basis stock positions, the insights you'll get on optimizing your portfolio and drivers of its results make it worth a listen. Show notes: https://www.truewealthdesign.com/ep-80-should-i-sell-a-stock-with-a-large-taxable-gain/ What we discuss on this episode: 3:23 - Background on this tax scenario 8:15 - Selling out of your positions and then reinvesting 14:01 - Statistical modeling to find the best return 18:06 - Formulating the expected returns 19:21 - What to do with legacy holdings 23:53 - The benefit of true customization 29:57 - What to expect from your financial advisor
Have you heard of ESG? Many investors today are selecting investments in part based on Environmental, Social, and Governance (ESG) criteria.
Don't like fossil fuels, weapons, or pornography? Want to focus on companies that have diverse boards, executive teams, and overall workforce? Have religious beliefs you want to follow when it comes to investing? Then ESG may be right for you.
Hear Kevin discuss solutions for those seeking to align their investments to their ESG values and discuss challenges and investment considerations in doing so. He'll also share several recent client examples that have pursued ESG investing.
What we discuss on this episode:
1:07 - Watching the Olympics
3:26 - Why ESG has become a trendy conversation
8:46 - Where do you draw the line?
12:38 - Picking investments
17:26 - Challenges with ESG
22:04 - How many clients prioritize this?
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
Do you know a smart, financially savvy person that still hires a financial advisor? Ever wonder why they do so?
Many family stewards often seek an advisor to take care of their family's finances if they cannot. Know a couple where one spouse took care of the family finances and then passed, leaving the surviving spouse the fear and frustration of picking up the financial pieces all while going through the grieving process? Family stewards seek to avoid this.
Yet married couples often get even more and unexpected benefits from working with a financial advisor. Communication is the essence of healthy relationships. Quite often meeting with an emotionally intelligent financial advisor can enhance the communication and understanding between spouses while bringing objectivity to the financial and emotional aspects of the relationship.
Hear Kevin relate his story of when he and his wife met with a financial advisor and how it helped them get more aligned. He also shares a client story where spouses weren't on the same page regarding retirement but through open communication and sound financial planning, they are now excitedly turning the page into retirement together.
What we discuss on this episode:
1:05 - Vacation
2:43 - Why a podcast review inspired this topic
4:41 - Who will take care of my family if something happens to me?
9:07 - We need to hear what's important to both spouses
12:55 - Finding the best way to communicate
18:12 - Couples that aren't on the same page
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
What type of investor are you? Are you conservative, moderate, or aggressive?
These qualitative descriptors are how most think of risk. But what is conservative to you may not be conservative to another. Rather than using non-measurable descriptions of risk, your customized retirement plan needs to be the foundation to objectively measure risk. Then and only then can the three types of risk -- required return, risk capacity, and risk tolerance -- be accurately evaluated and aligned.
Why is this important? Take too little risk and it can be a conservative way to go broke. Take too much and you may go broke more quickly. Like the story of the Three Bears you want it just right.
Timestamps:
2:20 - What is risk tolerance?
8:30 - How this applies to our planning.
12:38 - Taking emotions out of the risk conversation
18:14 - Client examples
22:45 - Ongoing process for every individual
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
Many think retirement planning is all about number crunching. While undoubtedly important, you first need to consider the personal and social aspects of your ideal life and retirement. Then align your resources to best support it. You may recall from your studies psychologist Abraham Maslow's work on the Hierarchy of Needs. Maslow's work translates to retirement quite well. Interestingly, many types of needs are met at least in part through work. Take work out of the equation and those needs remain. So how do you meet them in retirement, so you can be a happy and fulfilled self-actualizer? Hear Kevin discuss Maslow's work and how it relates to retirement. He'll discuss real-life stories of how clients have retired but struggled to meet needs without work with the hope of helping you avoid the same.
Timestamps:
0:58 - Back from first successful camping trip
4:03 - What does this hierarchy have to do with finance?
6:39 - Looking back on undergrad school
12:37 - Moving up the pyramid
15:27 - Client stories to illustrate this idea
26:12 - Differences between gender
30:21 - Exploring these levels with clients
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
Having reasonable assumptions for investment returns is critically important for many reasons. These assumptions will impact your retirement plan, investment allocation, and your peace of mind.
Why peace of mind? Well, if you are expecting something unreasonable, no doubt you're likely to be dissatisfied and more likely to be undisciplined.
Hear Kevin review 10-year return forecasts from leading money managers Blackrock and Research Affiliates. What are domestic and foreign stocks likely to do? How about bonds and real estate?
Tune in to find out and become a more informed investor.
Timestamps:
4:05 - Gauging Expectations For A Retirement Plan
11:32 - Why 10 Years?
14:50 - Diving Into The Data
29:07 - How Well Have These Predictions Done?
33:51 - How Kevin Uses These Expectations When Putting Together A Retirement Plan
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
One of the beginning steps in every retirement plan is to value your assets and project their values into the future. Valuing assets like stocks and bonds is easy (though making accurate projections becomes more difficult.) Complexity increases even more when you consider illiquid assets like real estate and business ventures.
Hear Kevin discuss how to model illiquid assets in your retirement plan. Learn why focusing on rental income is shortsighted and how scenario analysis with low to high values can be helpful for business owners.
If you ever plan to sell real estate, this episode will be helpful. And the more of your net worth is in illiquid assets, the more you need to understand these key concepts to have a well-constructed retirement plan.
Timestamps:
3:34 - Illiquid Assets
8:04 - What’s Caused More Interest In Real Estate?
10:00 - Common Mistakes In Real Estate
16:09 - Treat It Like A Business
19:47 - Incorporating This Into A Retirement Plan
21:47 - Projecting Illiquid Assets
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
Hear Kevin describe a conversation he recently had with a podcast listener aged 57. He's planning on working for several more years and was wondering if now is too soon to get serious about planning for retirement.
Kevin discussed the qualitative and quantitative benefits clients often get from the Retire Smarter Solution as well as some time-sensitive issues you need to address well before you retire.
While it's never too early to start, as your time becomes more valuable, your assets accumulate, and the cost of a mistake becomes larger, it tends to make sense to hire an expert. This way you can make sure you're making the most of what you have.
Timestamps:
1:24 - Ray’s Call With Kevin
4:54 - Getting Clarity
6:37 - Putting Together A Spending Plan
10:08 - Concrete Information
12:22 - Are Clients Better Off The Earlier They See An Advisor?
17:26 - Make The Most Of What You Have
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
In the last episode, Kevin answered a listener question on inflation. He explained why retiree spending patterns in part combat inflationary risk retirees face.
Now hear Kevin delve deeper into retiree spending patterns. If you don't want to work longer than you have to or want to spend more in retirement, this is an episode you'll want to listen to.
Traditional retirement advice of having a steadily increasing income for life is wrong for most. Rather, spending tends to decline with age at a real rate of 1% yearly although increasing healthcare costs at the end of life are common.
Carefully modeling these age-related changes and monitoring your plan over time will help you Retire Smarter.
Timestamps:
2:14 - Different Stages Of Spending In Retirement
8:42 - Chase Bank’s Retirement Spending Data
14:02 - David Blanchett’s Health & Retirement Study
17:06 - Getting Accurate Spending Data Into Your Plan
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
Your money today will buy less next year. This decline is due to inflation, which is often believed to be the silent killer for a retirement income portfolio over time.
After all the 4% spending rule had it's worst result starting in 1966 -- a time when inflation began to rise and peaked in the 1970s while economic growth was choppy at best. Might the future resemble this difficult time?
Hear Kevin answer a listener question on inflation and whether the high levels of government spending and rising deficits are likely to lead to high inflation. And, if so, what changes should be made to your planning and investing strategy?
Timestamps:
1:07 - Dan’s Question About Inflation
2:53 - Fundamentals Of Inflation
10:00 - What Can We Expect?
13:09 - Why Inflation Has Been Low In Recent Years
16:51 - Measuring Inflation
24:05 - Closing Thoughts
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
The government's money-printing machine is ripping. Here comes round 3 of stimulus checks and larger healthcare tax credits for many pre-Medicare retirees.
Hear Kevin discuss the 3 rounds of checks, income phaseout ranges, and planning strategies to get yours. In some cases, you may want to file your 2020 tax return sooner and in others, you may want to wait. For many retirees, we are modifying our tax-smart distribution plan midyear 2021, lowering our taxable income targets and reducing Roth conversions, to reap benefits. Otherwise, you may lose out on thousands.
As the saying goes, there is no such thing as a free lunch. We're all paying for this in the long run. May as well try to get yours now.
Timestamps:
3:49 - Tax Season Is Upon Us
6:07 - Eligibility & Phase Out Threshold For All 3 Stimulus Checks
19:20 - Short Term Solutions
22:07 - More Changes To Be Aware Of
27:02 - Healthcare Tax Credits
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
It's not easy to hire a professional service provider. Even the most astute consumer only scratches the surface of truly understanding a profession they are not part of. The information gap is huge.
So how do you ensure you find a competent and trustworthy advisor?
Hear Kevin nine questions to ask your advisor. He will unpack some of the industry gobbledygook, share disclosures from brand-name Wall Street firms that will surprise you, and help you become a more informed financial-advice consumer.
Whether you currently have an advisor or are considering hiring one, this episode is a worthwhile listen.
Timestamps:
5:05 - Questions To Ask A Financial Advisor
11:13 - Are You A Fiduciary Legally Acting In My Best Interest 100% Of The Time?
15:49 - How Do You Get Paid?
25:19 - What Are Your Qualifications?
32:44 - Planning Process
34:21 - What’s Your Investment Philosophy?
39:45 - How Many Clients Do You Have?
43:32 - How Will Our Relationship Work?
48:06 - Will You Require Me To Sell All My Investments To Work With You?
49:36 - Who’s Your Custodian?
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
Fish mislabeling was once rampant in the US. Thought you were getting Red Snapper? Surprise! You get porgy or tile fish. Deceptive marketing for profits at best and exposing consumers to serious health risks, including food allergens and heavy metals in pregnant women at worst.
Sadly, many 'financial advisors' are similarly mislabeled and may cause financial harm. After all, you just need a 70% on a multiple-choice test and a high school diploma to become registered (and the high school diploma is optional.)
So how do you ensure you're hiring a true professional: one who is both competent and trustworthy?
Listen to Kevin Kroskey, CFP® and special guest Tyler Emrick, CFP® share a behind-the-scenes conversation on the training (or lack thereof) they received when entering in the profession. Hear Tyler describe his journey from starting a top-10 firm (in terms of advisor headcount) where sales were prioritized over clients, and then spending a decade at one of the largest custodians where having in excess of 500 customers precluded personal relationships and quality advice. And learn why being a CERTIFIED FINANCIAL PLANNER Professional is the minimum competency to be a professional, but is just the minimum and not indication the definition of a good advisor.
This inside-baseball-type conversation will shed light to help you become a more informed consumer and help you get your Red Snapper throughout your retirement.
Tyler's Bio: https://www.truewealthdesign.com/team/tyler-emrick/
Timestamps:
1:45 - Tyler’s Background
5:14 - Fish Mislabeling
9:09 - Large Firm Experiences
15:17 - Lack Of High-Level Planning
20:48 - Seeking More
24:46 - Biggest Surprise When Working With Clients
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
Putting the odds of investing and retirement success in your favor should be a given as is being diversified. But what does diversification really mean? Ten stocks? One hundred stocks? Two asset classes or ten?
Building on the concept of standard deviation -- or degree of variability -- in investment returns, hear Kevin take the idea of diversification farther. Diversification is not just minimizing variability or owning the S&P 500. It's also reducing the risk of underperformance by owning the stocks and assets classes that will deliver higher returns and reducing the variability in dollar outcomes from your portfolio.
Miss just a few of the best performing stocks each year or abandon an underperforming asset class whose future returns are now higher, and your portfolio will deliver more disparate results that are more likely to put you into the poorhouse. And that's no way to run a retirement portfolio to last your lifetime.
The geek alert is sounded again for this episode but you don't have to be an investment geek to get significant value from this one.
Timestamps:
6:41 - Terminal Wealth Dispersion
11:23 - Reducing Risk
14:20 - Bill Bernstein’s Studies
18:32 - How This Impacts Retirement Planning
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
If your head is in the freezer and your feet in the oven, on average you may feel quite comfortable despite suffering from two extremes. San Diego type weather on the other hand will leave you consistently comfortable over time.
Averages are commonly used to discuss investment returns, but they are an oversimplification. You don't receive average returns. Compound returns drive your dollar growth and the variability in returns -- or standard deviation -- causes the compound return to always be less than the average return.
Listen to Kevin discuss this core building-block concept and how it relates to your investments, risk, diversification, and retirement planning success. You may hear the geek alert on this episode, but having an understanding of standard deviation can help you be a better, more disciplined investor and put the odds of retirement success more in your favor.
Timestamps:
3:54 - Re-Cap On Topics From Episode 65
6:28 - Bell Curve
10:49 - Health Analogy
15:00 - Proper Expectations
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
Inevitably you will have some investments perform better than others in your portfolio. A normal, human response is to seek pleasure and avoid pain or sell the underperformer and buy what has done well. But does that make investing sense?
Listen to Kevin discuss critical concepts of diversification and probability and why process matters more than outcomes. Hear an example of this being applied in professional basketball and playing probabilities in blackjack.
In sticking to a good process, good outcomes are more likely to result. In focusing on outcomes, you are more at risk of stampeding over the cliff with the uninformed herd and wrecking retirement.
Check the four-part Your Investing Process Series, mentioned in this episode:
https://www.truewealthdesign.com/your-investing-process-part-1/
https://www.truewealthdesign.com/your-investing-process-part-2/
https://www.truewealthdesign.com/your-investing-process-part-3/
https://www.truewealthdesign.com/your-investing-process-part-4/
Timestamps:
0:43 - Defining Underperforming Investments
2:12 - Is The Investment Or Asset Class Underperforming?
4:32 - Metrics To Consider When Choosing Investments
6:57 - Getting Rid Of Underperforming Stocks
8:35 - Terminal Wealth Dispersion
12:32 - People Don't Invest Rationally
14:47 - Using Probability In Your Favor
20:38 - Planning For Different Outcomes
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
What a year 2020 was. Pandemic. Contested elections. Civil unrest. Rollercoaster investment markets.
As Churchill wrote, "Those that fail to learn from history are doomed to repeat it." Listen to Kevin discuss investment lessons you can learn from 2020 to be a smarter investor and keep your retirement on track for years to come.
Timestamps:
2:04 - What Stood Out In 2020?
8:02 - The Market Is Forward Looking
11:53 - Make Sure You Are Diversified
13:22 - Politics & The Market
21:57 - Sticking To The Plan
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
Most Americans donate to charity and many have distinct goals in their retirement plan to meet annual charitable donations. Most also give cash ...the easiest but also least tax-efficient way to give.
Hear Kevin discuss three ways to tax-optimize your charitable giving. Whether through in-kind transfers of appreciated stock, using a donor-advised fund, or via Qualified Charitable Distributions, each can help you gain a bigger tax break and meet your charitable goals in the Retire Smarter way.
Timestamps:
6:48 - Making Direct Gifts Of Stocks, Or Shares Of Mutual Funds
10:58 - Navigating Donor-Advised Funds
22:05 - Using IRA Money
26:29 - Two More Considerations For QCDs
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
Pension lump sums will be much higher in 2021 than 2020. Listen to Kevin discuss timing considerations on how to optimize your pension benefits by understanding the key variables that determine your lump sum. Company pension plans specifically discussed include Akron Children's Hospital, Bridgestone, FirstEnergy, Goodyear, Mercy Health, and Rockwell Automation.
Whether you have a pension from your company or not, you'll benefit from this episode. Why? Anyone can invest money with an insurance company and receive a lifetime income in the form of annuity payments. So these considerations are universal in crafting your retirement income plan.
Want more information on pension claiming strategies? Listen to Episode 38. https://www.truewealthdesign.com/ep-38-pension-lump-sum-or-monthly-payment/
Check out Episodes 12 & 13 for more details about annuities. https://www.truewealthdesign.com/episode-12-behind-the-curtain-of-annuities-and-free-steak-dinners/
https://www.truewealthdesign.com/episode-13-beating-up-on-variable-annuities/
Timestamps:
2:58 - What Has Changed With Pension Lump Sums?
8:56 - Why These Changes Matter
10:33 - Segment Rates
16:11 - What To Expect In The Future
20:39 - Spreadsheet Story
25:04 - Closing Thoughts
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
We're excited to make a big announcement on this episode of Retire Smarter. Kevin is joined by True Wealth Design's newest partner, Ron Wyatt, who brings more than 25 years of financial planning experience to the firm. A lot of existing listeners will be hearing from Ron for the first time, so we'll spend some time today getting to know his background and professional journey. And new listeners will also get to learn more about Kevin's experiences.
The two will also cover why they've chosen to join forces now, and why it's going to be a benefit for all current and future clients. Join us as we celebrate the growing of True Wealth's footprint from northeast Ohio and southwest Florida to Pittsburgh!
Timestamps:
1:11 - Introducing Ron Wyatt
2:21 - Ron shares a little about his background
5:58 - Kevin gives a brief review of his background, including his time as a high school physics teacher
8:23 - Kevin tells us about one of his first clients, Tom, and the lessons learned from an emotional meeting in 2009
10:55 - Ron explains why he and Kevin are joining forces at True Wealth Design
16:56 - How does this impact clients? How will their experience change or remain the same with this transition?
24: 53 - Big picture: becoming a "bigger small firm"
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
The purchase price of your car is one factor to consider. But the Total Cost of Ownership -- adding in costs for insurance, fuel, maintenance and repairs, as well as the residual value upon sale -- is a better way to evaluate financial aspects of a car purchase. In doing so, the cheapest vehicle is often more expensive than initially perceived.
Same too goes for selecting investments. Many solely use the expense ratio to determine what fund to buy. But while the expense ratio is important and easily observable, it does not tell the whole story. In fact, it may tell only a small part.
Listen to Kevin describe total investment costs and related factors to consider when choosing your investments. Having a more complete view will help you make smarter decisions.
Timestamps:
0:53 - The Election
8:55 - Kevin’s Burrito Story
12:51 - Expense Ratios
17:24 - Securities Lending Revenue
21:16 - Helping A Client Understand This Process
24:49 - How Do You Reach A Conclusion?
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
Healthcare is a primary concern, especially for retirees. Transitioning from employer-provided coverage you've been on for decades is stressful. Now you have more complexity and choices than ever before. And, yes, costs may seem sky high after retiring and before Medicare.
Listen in to hear Kevin and health insurance expert Zig Novak discuss health insurance options from the time you retire to before you can begin Medicare at age 65. Should you take COBRA? What types of plans and are available for Affordable Care Act (ACA or Obamacare) plans, and how much do they cost? How do ACA tax credits work, and how valuable are they? Get informed.
Get destressed. Know what you need to about this important topic to Retire Smarter.
Timestamps:
4:00 - Pre-65 Healthcare Planning
8:15 - Floating Cobra
14:27 - ACA Plans
26:00 - Tax Credits
31:37 - Verifying Your Income
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
Healthcare is a primary concern, especially for retirees. Transitioning from employer-provided coverage you've been on for decades is stressful. Now you have more complexity and choices than ever before.
Listen in to hear Kevin and health insurance expert Zig Novak discuss Medicare-related topics. What will it cost? How may costs change as you age? What are the pros and cons of supplemental and advantage plans, and how do you decide which may be better for you?
Get informed with useful information to help you Retire Smarter.
Timestamps:
2:56 - Special Guest Zig Novak
5:18 - Alphabet Soup Of Medicare
8:09 - The Costs Of The Different Parts
21:28 - Services That Medicare Doesn’t Cover
23:24 - Advantage Versus Supplemental Plans
33:25 - Switching Between Plans
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
Proper investment diversification works ... even when you don't want it to. With the US stock market and particularly large technology stocks having the wind at their backs recently, many are eschewing diversification to chase these high flyers.
As the saying goes, if we forget history, we are doomed to repeat it. In that spirit, hear Kevin tell a tale of two decades.
First is the Lost Decade of the 2000s when, after the Tech Bubble burst, US investors lost money for an entire decade from 2000 to 2009. Second is the recent decade from 2010 to 2019 where US stocks screamed. The two are starkly different and instructive. Combining the entire 20 years allows you to clearly see the benefits of discipline and diversification.
What will the 2020s hold? Only time will tell, but today resembles the late 1990s in some ways. Importantly, in retirement, you can't afford to have a Lost Decade.
Timestamps:
6:15 - The Problem With Stock Splits
13:41 - Our Current Environment Is Similar To The Late 1990’s
18:50 - Areas That Are Not Doing Well
22:11 - The Way Diversification Works
25:12 - Avoiding Recency Bias
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
Biden or Trump? Republicans or Democrats? Who will be better for the economy and your investments? These are questions many are asking with the election quickly approaching.
Many let their political beliefs influence their investment strategy, but should they? Hear Kevin discuss what the evidence shows and how our political beliefs may influence our perceptions of reality. Get ready to check your alternative facts at the door and get real.
Timestamps:
6:24 - Keep Politics Separate From Investing
10:47 - Pew Research Poll
14:33 - Perception Becomes Reality
19:49 - Peter Schiff Making The Right Economic Call, But Not The Right Investing Call
29:39 - We Have Beliefs, But 200 Years Of History Is More Insightful
Paying a lower tax rate today vs. what you would otherwise pay in the future on pre-tax IRA/401k dollars is a good move. They way you can do so is by converting money to a Roth IRA and paying tax in the year of the conversion.
The 2017 Tax Cuts and Jobs Act (TCJA) lowered tax rates and significantly widened tax brackets on individuals. Current law has the tax rates under the TCJA in effect through the 2025 tax year and increasing to pre-TCJA rates and brackets in 2026.
Yet, tax rates may go higher sooner. Many election models are currently forecasting Biden to win and for the Senate to flip blue. Assuming these come to fruition, the Biden Tax Plan calls for tax increases to occur before 2026. Then there are the trillions of dollars in unprecedented fiscal stimulus added to the government’s books to deal with the COVID crisis. At some point, the mounting debt has to be paid for, and various taxes are the way it must be paid.
Thus 2020 may be the last best year for conversions. Hear Kevin discuss these considerations in detail to empower you to take action to reduce your tax risk and improve your after-tax, spendable wealth.
Timestamps:
4:16 - Why Roth Conversions Should Be Considered Right Now
12:34 - Current Law
16:09 - What Could Be Potentially Coming Down The Road
20:15 - Items To Consider When Tax Planning
25:55 - Sense Of Urgency
Some 24% of those 56 and older say the pandemic has caused them to push back their planned retirement date, according to a survey conducted by The Harris Poll on behalf of The Nationwide Retirement Institute. Hear Kevin discuss key variables you should consider as you plan through the COVID-induced uncertainty, including items that may nudge you to retire now and others that result in waiting.
Timestamps:
6:45 - Kevin's First Impressions On Postponing Retirement Due To Pandemic
10:35 - Case Study (Mark And Linda Consider Pros And Cons Of Retiring)
16:28 - It All Starts With A Plan
18:04 - Unemployment Considerations
20:47 - Healthcare Considerations
21:56 - Further Considerations In Delaying Retirement
65% of Institutional Investors surveyed in late June believe the market is factoring in the long-term impact of the coronavirus "too little" while only 5% said "too much," implying the market is overvalued. Yet, the market has continued to go up. Has it come too far too fast?
Hear Kevin discuss the topic in detail and explain why our brain function predisposes us to make investing mistakes, including blindly chasing investment returns and firmly entering the world of speculation (while abandoning principled and process-based investing). He even attempts to work in stories about Homer Simpson, Halloween, Thanksgiving, and pre-modern man to illustrate his points. Quite a feat to attempt. You won't be disappointed.
Timestamps:
5:34 - Are Markets Factoring In The Impact Of The Coronavirus Appropriately?
9:54 - How Do We Define The Term “Market?”
15:34 - Too Big, Too Fast?
19:19 - An Important Lesson From The Simpsons
25:00 - Breaking The Herd Mentality
Investing should be scientific and process-based. Speculating is more akin to gambling and lacking fundamental support. At extremes, it is easier to discern the two but can be shades of grey in between.
Hear Kevin discuss the forward-looking nature of the stock market and times why it can make investing sense (not speculating) to look through bad economic news.
And be sure to listen to the end where Kevin discuss process-based portfolio changes made in March, as a result of changing inputs, and why Vanguard's DIY investors' portfolio inaction was the wrong thing to do.
Timestamps:
2:30 - Assumptions That Need To Be Made
9:20 - Looking Back On The Pandemic
13:29 - Looking Forward To The New Normal
22:30 - Rapid Changes
Like your work but hate your job? Bad boss. Terrible commute. Whatever the reason.
Hear Kevin share a story of a client who retired in her late 50s. She loved her work and taking care of her customers but hated other aspects of her job. She worked long hours and had a long commute. Taking care of her household on the weekend and trying to have a bit of fun left little space and time to seriously consider her retirement and life after work.
Perhaps this is why she was in a state of disbelief after her retirement plan showed she could retire in her 50s. The sheer thought of retiring was new and a bit scary.
And be sure to pay attention to the end to hear how things are going for her now four years retired and how she has defined phases and varied strategies to her retirement distribution planning.
Timestamps:
4:47 - About The Client
8:58 - The Realization Of Being Able To Retire
14:12 - Padding The Expenses
19:44 - Healthcare When Retiring In Your 50’s
25:59 - Present-Day Planning
You cut the paycheck cord and enter retirement. Then a spending goal unexpectedly increases...significantly. You can't simply continue to work longer, so what do you do?
Hear Kevin discuss real-life cases where clients had to provide financial support to their daughter going through a messy divorce and another situation where a client desired to buy a 2nd home. Though the situations were starkly different, the process to rework the retirement plan and evaluate tradeoffs was similar.
Life throws curveballs. Best to have a plan and process in place in advance on how to deal with them.
Timestamps:
4:18 - Client Story: Life Happens, Things Change
8:07 - Reworking The Plan For A Second Home
14:26 - Picking Up New Spending Goals
17:09 - Potentially Downsizing
18:12 - Taking A Second Look At Travel Expenses
20:14 - Providing Clarity
22:21 - Helping Clients Make Informed Decisions
You live below your means and invest for your future ... similar to your parents. Now your parents are getting older, and it seems fairly clear they'll be leaving you an inheritance at some point. Meanwhile you're still working. Should you include the potential inheritance in your retirement plan?
Banking on an expected inheritance for your retirement plan involves risk. Hear Kevin discuss real-life cases where it was appropriate and another where it was too risky.
Timestamps:
6:25 - Market Update: We Are Not Out Of The Woods Yet
17:57 - Lean Towards The Conservative Side When Incorporating An Inheritance In Your Financial Plan
24:25 - 1st Client Case - Open Communication About Finances
30:03 - 2nd Client Case - Less Certainty About What The Future Holds
36:51 - 3rd Client Case - An Awkward Conversation Can Make A Great Impact On A Financial Plan
The five biggest tech stocks -- Amazon, Apple, Facebook, Google, and Microsoft -- are great businesses. They've been so successful over the last decade that they comprise about 20% of the total S&P 500 market capitalization -- a level of concentration not seen since the late 1990s. They also command higher prices (valuation) than the market as a whole.
While these companies have provided outsized growth rates and returns to investors over the last decade, there is no logical reason you should expect similar outsized growth rates and returns over the coming decade. Whether it is due to the magnitude of their success, capitalism or regulation, it will be nearly impossible to repeat their growth and success moving forward.
Listen to Kevin describe a simple thought experiment illustrating why it's mathematically impossible for past to be prologue for these tech darlings. Eventually, the music will run out. Investors will again learn the lesson that price matters ... just as they learned the same at the end of the Tech Bubble.
Timestamps:
6:24 - Why Do Tech Stocks Get So Much Attention?
9:46 - Looking Back At Tech Stock Growth From 2010-2019
14:57 - Why Growth Will Be Much More Difficult Going Forward
25:00 - Why Prices Matter
Interesting parallels can be seen in modeling retirement projections and the Coronavirus pandemic. Small changes to inputs -- such as the rate of return or infection spread rates -- can have magnified effects on outputs -- such as ending wealth or total infections (and ultimately deaths), given similar exponential growth traits.
What is important to understand in both are the concepts of risk and uncertainty. Risk can be modeled. Uncertainty cannot yet must be planned for. Misunderstand either and things can quickly go wrong.
Hear Kevin discuss these two critical concepts. He also gives his opinion on why Ohio Governor Mike Dewine was prudent in the aggressive economic shut down in face of Coronavirus uncertainty. However, Ohio, and the U.S. at large, now need to transition back to economic functioning in light of Coronavirus risks being better understood, significantly less than what was initially believed, and to avoid second-order effects becoming more severe than those from the virus itself.
Timestamps:
3:45 - How Risk And Uncertainty Affect Investing
14:37 - What Is Non-Linear Modeling?
17:32 - An Example Of Non-Linear Modeling
21:33 - The Math And Science Of The Coronavirus
35:09 - Known Unknowns
Control risk? Buy low and sell high? Higher returns? Who doesn't all of these in their portfolio! And that's what portfolio rebalancing can do.
While rebalancing sounds simple in theory it quickly gets complex in practice. Hear Kevin describe rebalancing from the simple to complex and the emotional hurdles to overcome as well. Be sure you or your advisor is taking advantage of the high-probability benefits rebalancing is expected to add to your net investment returns when done right.
Have questions? Need help making sure your investments and retirement plan are on track?
Use this link to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Timestamps:
4:32 - What Is Rebalancing And Why Is It Important?
7:37 - Historical Data
9:47 - Problems With Rebalancing
16:43 - Examples Of Complications
Suppose you have to have surgery. Does exploratory surgery sound like something you would volunteer to undergo? Or, does a pre-determined surgical plan sound better? If you're like me, having a plan and a repeatable process sounds less risky and what I would prefer.
The same goes for retirement. Retirement spending. Health Insurance. Social Security. Investing. Taxes. These are all key and complex areas where you need to make smart decisions for retirement. So how do you thoughtfully consider and carefully integrate them into a well-crafted retirement plan?
Listen to Kevin describe True Wealth's Retire Smarter Solution™ that aligns your money to your goals, overlaid with tax-smart strategies, so you can retire with confidence.
If you are a DYI'er that no longer wants to perform exploratory surgery or are unsure if your current advisor is doing the same, reach out to the True Wealth Team at 855-TWD-PLAN or https://www.truewealthdesign.com/ for a free 15-minute call with an experienced CFP® professional to learn how the Retire Smarter Solution™ can help you.
Timestamps:
1:22 - Exploratory Surgery Is Not The Solution
4:10 - What’s The Big Picture?
5:27 - What Are You Actually Spending?
8:57 - Where Is Your Income Coming From?
9:52 - Factoring In Various Risks
11:44 - Having A Concrete Plan Alleviates Fear
15:41 - Making Sure Investments Match The Plan
16:01 - Using A Tax-Smart Distribution Strategy
Retirement planning (done right) has always been a continuous process. With the turmoil caused by the Coronavirus, prudent planning is having to be done and redone in short order. Things are changing quickly and you need to take a dynamic approach to your planning and investing to avoid dangers and capitalize on opportunities.
Hear Kevin dissect a ten-year client's dynamic retirement story. Learn why their withdrawal rate was more than twice the 4% rule of thumb and how their portfolio allocation has changed over time. And be sure to pay attention to the end to discover why their prudent planning has afforded them the luxury of taking a conservative investment approach or allows them to now be opportunistic.
Have questions? Need help making sure your investments and retirement plan are on track?
Use this link to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Timestamps:
1:16 - You Can’t Teach Experience
9:30 - Kevin Talks About Initially Meeting John And Jane
13:48 - Reducing Stock Allocation
16:47 - Appropriate Withdrawal Rate
19:47 - John And Jane In 2020
26:55 - Proving Your Worth Everyday
Hear Kevin give an update on the current state of the markets and financial planning to-do's that need to be done through the Coronavirus turmoil. Proper execution of your financial and investment plans is required in large amounts to make sure you stay on track.
It's not all bad news out there. Many opportunities are being created that you can capitalize on.
And be sure to listen to why you may want to reconsider your Roth Conversion strategy and Social Security claiming decision in light of current circumstances.
Get show notes and additional resources here: https://www.truewealthdesign.com/podcast/
Timestamps:
5:02 - High Quality Bond Behavior
12:06 - Considerations For Client’s Portfolios
18:13 - What Makes A Good Advisor
26:00 - How True Wealth Is Operating Currently
We're in a crisis ... different from 2008. The pandemic and prudent, social-distancing response is causing fear, uncertainty, and now panic in financial markets.
Listen to Kevin explain the current state of the markets and how this crisis is currently materially different from 2008. Be sure to pay attention to why -- from a financial perspective -- our country is better positioned to navigate through these troubled times by dusting off 2008's playbook, and what you need to do to keep your plan on track.
Have questions? Need help making sure your investments and retirement plan are on track? Use this link to schedule a free 15-minute call with one of our Certified Financial PlannerTM Professionals ---> http://bit.ly/calltruewealth
Get show notes and additional resources here: https://www.truewealthdesign.com/podcast/
Timestamps:
0:57 - Update: The Podcast Is Moving To Weekly Installments
3:41 - How Kevin & His Team Have Adapted To The Situation
8:21 - Where We Stand Now
21:20 - How The Bond Market Has Been Affected
34:11 - Keeping A Level Head With All Of The Changes
Timing the market sounds great, especially during times of market distress like that caused by Cornovirus (COVID-19) concerns. Who wouldn't want to participate only in the ups while avoiding the downs!? Sadly, the only way market timing will work is for you to get lucky, which is no way to invest your life savings.
Listen to Kevin describe the theoretical reasoning about why market timing does work and investigate both the academic research as well as the actual record of mutual funds that follow timing strategies. It's interesting to see how the research has been verified in practice by these funds.
Instead of falling victim to the allure of market timing, Kevin describes the current situation and prudent, processed-based response to help you tune out the noise and stay on track.
Episode 27 Investing Process: https://retiresmarter.podbean.com/e/your-investing-process-part-1/
Timestamps:
3:15 - Cluster Effect
7:58 - Different Types Of Asset Allocations
14:00 - Why Staying In The Market Long Term Is So Important Instead Of Market Timing
21:56 - Mutual Fund Evidence
25:52 - Things Are Bad Right Now, But Market Timing Isn’t The Answer
Shocks like the Coronavirus (COVID-19) or Russia's assault on oil prices can't be predicted. Yet, your financial life plan must be able to weather shocks and your investment strategy respond appropriately.
Investors are not only concerned about their health but are questioning what to do about their money. Listen to Kevin describe the current situation and prudent, processed-based response to help you tune out the noise and stay on track.
Timestamps:
2:45 - Kevin looks to put the past week of volatility into perspective.
8:54 - A lot of people have been reaching out recently to address their financial picture.
14:47 - Kevin is still making 401(k) contributions personally, despite the down market.
16:35 - All we tend to hear on the news is negativity.
21:25 - A look back at the health of the economy before the Coronavirus impact and what that tells us about when we get through this crisis.
Useful Info:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-TWD-PLAN or 855-893-7526
Congress has agreed on something! Your retirement accounts are not estate planning vehicles. (Sigh.) Provisions in the SECURE Act are now law as of 2020 and impact all IRA owners.
Listen to Kevin simplify the laws and unpack the 3 key changes. The good news is that if you're doing proper planning, you are likely less at risk than conventional media headlines and other financial advisors are reporting.
And be sure to pay listen at the end, when Kevin describes what premortem and postmortem strategies could help you and your family keep more of your hard-earned money.
Useful Info:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-TWD-PLAN or 855-893-7526
Pension lump sums are higher in 2020 than 2019. But which should you prefer? Listen to Kevin discuss how to financially evaluate the decision as well as what research shows retirees prefer.
Whether you have a pension from your company or not, you'll benefit from this episode. Why? Anyone can invest money with an insurance company and receive a lifetime income in the form of annuity payments. So these considerations are universal in crafting your retirement plan.
Company pension plans specifically discussed include Akron Children's Hospital, FirstEnergy, Goodyear, Mercy Health, and Rockwell Automation.
Useful Info:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-TWD-PLAN or 855-893-7526
Sue is a recent widow and has gone through significant life and money transitions. Listen to Sue's unique story and learn why her financial concerns are likely the same as yours. And be sure to listen to why Sue refused to shake hands at the end of our initial meeting and what she did instead.
Useful Info:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-TWD-PLAN or 855-893-7526
Avoiding Ohio income tax is key for many snowbirds. The old adage of just having to be out of Ohio for 6 months never was correct. Listen to Kevin explain the key steps in documenting your Ohio nonresidency.
Useful Info:
Request The Ohioan's Guide To Snowbirding In Florida: https://www.truewealthdesign.com/contact/
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-TWD-PLAN or 855-893-7526
It's that time of year again. The northern states are filled with grey skies and cold, wind, and snow. If you're thinking of heading south for the winter, here are four key considerations to making your snowbird experience a success.
Useful Info:
10 Best Retirement Cities Episode: https://retiresmarter.podbean.com/e/top-10-best-retirement-cities/
Request The Ohioan's Guide To Snowbirding In Florida: https://www.truewealthdesign.com/contact/
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-TWD-PLAN or 855-893-7526
Things in life and planning aren't necessarily cut and dry. You may take several paths to reach your destination. But which one may be best? Listen to Kevin discuss a retirement situation where several strategic paths existing and how he and his team came to the preferred path in creating an integrated, tax-smart distribution plan.
Useful Info:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-TWD-PLAN or 855-893-7526
It's common to see articles or to-do lists for year-end tax planning. But these often lack substance and fail to answer why a strategy may or may not make sense for you. Listen to Kevin describe a simplified framework to understand your tax situation and then how to thoughtfully consider what tax-smart strategies make sense for you.
Useful Info:
Randall Munroe's "What If" Book: https://www.amazon.com/What-Scientific-Hypothetical-Questions-International/dp/0544456866
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-TWD-PLAN or 855-893-7526
We want it all in life and for our retirement. We want the city where we live to have it too -- affordability, a plethora of activities, fantastic quality of life, and great healthcare. Learn the 10 best cities as ranked by Wallethub and what makes them great. Some may even surprise you. Tune in and start envisioning where you want to be in retirement and plan for how to get there.
Useful Info:
Wallethub Article: https://wallethub.com/edu/best-places-to-retire/6165/?fbclid=IwAR2ZvsUK1mW06MMlHootGpCS_2QJGllrLSgaa6NDKVlKdBoQNjBEIRiI31Y
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-TWD-PLAN or 855-893-7526
You made it to retirement and seem to have enough. Now how do you go about recreating your paycheck and distributing money from your savings and investments and to do so in a tax-smart way. How do you do it? Listen to Kevin describe the process True Wealth goes through to make sure these important distribution details are handled to help you stay on your retirement track and pay no more than your fair share in tax.
Useful Info:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-TWD-PLAN or 855-893-7526
While your asset allocation recipe is the most important portfolio decision, we still want good ingredients. Listen to Kevin explain the broad differences in active and passive (indexed) ingredients, the evidence behind each, and some exceptions to where an indexing approach may not work as well.
Useful Info:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-TWD-PLAN or 855-893-7526
Your asset allocation recipe is the most important portfolio decision, and there are a few different flavors of asset allocation. Listen to Kevin describe the differences and what the evidence shows works best.
Useful Info:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-TWD-PLAN or 855-893-7526
Now that you understand the basic building blocks of an investing process, listen to Kevin explain what key factors investing science has shown to drive stock and bond returns over time and which to favor to build a better portfolio. Kevin also explains a recent phenomenon in stock prices that is reminiscent of the late 1990s Tech Bubble as it relates to one of the key factors that drive stock returns.
Useful Info:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-TWD-PLAN or 855-893-7526
Do you have an investment process? Most people don't understand their advisor's process (if they have one). Yet, in investing, you cannot control your investment results, but you can control your process, which should lead to better results over time. Listen to Kevin give you a high level of a science-based investing process you can understand without having to get a graduate degree in Finance.
For related content, click here to listen to Episode 14 on Expected Investment Return Forecasts.
Useful Info:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-TWD-PLAN or 855-893-7526
Most financial people only focus on your assets. Listen to Kevin share four examples of clients where better incorporating a holistic view of their finances -- assets and liabilities included -- made a significant financial improvements in each of their lives.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
Believe it or not Congress actually agrees on something ... that your beneficiaries shouldn't be allowed to stretch IRA required distributions over their lifetime. Listen in to hear Kevin talk about this likely law change is an issue, who is mostly affected (hint: larger IRA owners), and what to do about it.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
How much money do you have in international investments? How much should you have? Listen to Kevin discuss what the science of investing says and why you are likely underallocated to international markets. And be sure to listen to the end where he shares a story of a recent conversation with a new client related to international investing.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
Financial life planning is being purposeful in continually moving your life in the direction you desire and then matching your finances to support it. Said another way, it is financial planning done right. Listen to Kevin share a story of a client evaluate trade-offs and find a work-life balance that is better for them. He also shares a story of how he and his wife made big life changes after their first child was born ... changes that would require Kevin to work several more years before they will reach financial independence. Whether you are in the heart of your working years or at retirement, this is one episode you won't want to miss.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
Social Security’s future solvency is a regular discussion point when considering your retirement planning. Simply put: can you rely on receiving what is shown on your Social Security statement? Tune in to hear the latest nuggets from the 2019 Social Security Trustee’s report – he read it so you don’t have to – and what Kevin believes to be the most likely reforms.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
Jane is in her mid 60s. She recently inherited money from her father and is soon to be getting remarried. She had two advisors – her own and now dad’s advisor – but didn’t have the clarity and confidence she felt she needed around her money and these big life transitions. Listen to Kevin share her story as she considered what she really wanted from a relationship with an advisor and wrestled with whether she had the type of financial situation to justify paying an advisor for help.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
When choosing investment vehicles, for many people the most important factor is the guarantee that they'll receive a certain amount of income across their lifetime. But what exactly will that guarantee cost you? We'll find out on the fifth and final episode in the Retirement Income Planning Series.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
When building a financial plan that's based around investing, it's important to take into account a handful of dynamic elements that will likely vary quite a bit throughout your retirement. Tune in to our fourth installment of the series to hear how you can organize your plan around dynamic market expectations, dynamic allocations, and dynamic spending.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
If you're taking a probability-based approach to investing as we discussed in the first part of this series, you'll need to build a strategy for how to most efficiently invest your savings to provide an income throughout retirement. That's where the Total Return Portfolio comes into play.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
We continue on with the series by discussing a lesser known type of risk called bad-timing risk. What happens when you retire into a bad period in the market? How can a few years of negative returns affect the outcome of your retirement?
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
For many people, one of the biggest fears going into retirement is where money will come from when you're no longer receiving a paycheck. That's why creating a retirement income plan is so essential. Join us as we go over the basic strategies for building a retirement income plan on this first episode of the new series.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
When it comes to building a holistic retirement plan, all of the individual pieces should be working together harmoniously, whether that's planning, investing, or taxes. Let's talk about why integrated advice is often hard to come by, and why it's crucial to building a successful retirement plan.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
You've likely heard that making short-term predictions about the market is just about impossible, but what about long-term predictions? Can experts accurately anticipate what will happen over the next 10 years? Kevin discusses a recent Morningstar article by Christine Benz about what you can take away from long-term stock and bond return predictions.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
If you listened to Episode #12, you heard the rundown on just about every type of annuity except the variable annuity. So what exactly is involved in a variable annuity, and why is it almost like a four-letter word to so many in the retirement community? Kevin will give you the details on what these annuities do, what you should look out for, and if there ever truly is a reason you would want to invest in one.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
Have you ever received an invitation to attend a steak dinner seminar event to learn about a financial product? Were you pitched an annuity? This is a popular phenomenon in the financial advising world and it's one that drives Kevin a little crazy. Join us on this episode as we take a peek behind the annuity curtain and talk about what's really happening at these free steak dinners.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
People struggle to keep their New Year's Resolutions. Instead, let's talk about what real goal setting looks like. Kevin will share some tips he's picked up from various coaches over the years that have proved fruitful in his own life and talk about how you can apply them going into the new year.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
Time for part 2 of our conversation on the retirement rule gone awry that you'll be in a lower tax bracket at retirement. On this episode, we'll showcase a scenario where following this rule really puts you off track.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
Let's continue our series on breaking down some of the retirement "rules" that have gone awry. This week, we'll begin a two-part series on the retirement rule that you should plan to be in a lower tax bracket in retirement. Is that really true? Listen to this week's podcast to find out.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
In this episode, Kevin turns the tables on a handful of common misconceptions about health care costs in retirement. Find out the truth about what health coverage and long-term care actually might cost and how you can factor them into your overall retirement plan.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
You've perhaps heard the 4 percent rule, that if you take 4% out of your investment account each year, you'll never outlive your money. Kevin talks about where this idea came from, and pokes some holes in this strategy in this third installment of Rules Gone Awry.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
There's a "rule" that says you should take 100, subtract your age, and the result tells you how much of your money you should invest in stocks. It would be awesome if retirement planning was that simple, but simple isn't always effective and that's the problem with the Rule of 100. Take a listen to find out about better ways to invest and plan for your financial future.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
There's an old school of thought that says you should take social security as early as you can so that you can get the most out of it. But this is another one of those retirement rules gone awry that we enjoy picking apart on the podcast. Kevin will tell us why this retirement "rule" needs to be scraped and give us the proper lens through which to view the social security problem.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
Walter was being nosy recently and asking his mom about her retirement plans. When she told him she was planning on living off of 80% of her current income during her retirement years, it raised a red flag. How did she come to that figure? You guessed it, she didn't really have an exact answer for why she picked that number. So Walter turns to Kevin on this week's podcast to understand how that "80% Rule" worked its way into the retirement planning vernacular and why we'd all be wiser to ignore it.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
There is a lot of obsessing over creating a stress-free experience in retirement. But life doesn't really work that way. We can still experience happiness and joy in retirement, even if there's still a few stressful moments along the way. Don't buy into another one of those retirement rules gone awry, that a truly stress-free retirement is attainable. Kevin will show us how to root your financial plan in realistic terms.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
Unfortunately, many financial advisors fall into one camp or another. They're either a great relationship person or they're extremely focused on planning details. Kevin will tell us about a couple who called him recently after experiencing one of those scenarios and how it cost them a lot of money. Listen to this episode of "Retire Smarter" to find out why you should work with an advisor who respects the unique details of your situation, while also developing a strong working relationship with you. Only having both will lead to clarity and confidence in your decision making about your financial future.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/
We often have a lot of unrealistic expectations about retirement. And there’s nothing wrong with that if we reel ourselves back toward reality before making major decisions. Let’s talk about some of the ways our retirement expectations get out of whack and what more realistic scenarios should look like.
For more about True Wealth Design, visit: http://www.truewealthdesign.com/