The Retirement Solutions Show: Recent Episodes
Oakmont Advisory
The Retirement Solutions Show offers sound advice and peace of mind when it comes to retirement planning.
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Ready to take the leap toward a more secure retirement? GET STARTED TODAY. We start with a 30-minute phone call to determine if our services fit your situation. We want to ensure we can provide solutions to your concerns before we move forward. LEARN MORE.
"The wise man bridges the gap by laying out the path by means of which he can get from where he is to where he wants to go.” -J.P. Morgan
"The individual investor should act consistently as an investor and not as a speculator. This means … that he should be able to justify every purchase he makes and each price he pays by impersonal, objective reasoning that satisfies him that he is getting more than his money’s worth for his purchase.” - Ben Graham
Get your free Oakmont Blueprint Ready to take the leap toward a more secure retirement? GET STARTED TODAY. We start with a 30-minute phone call to determine if our services fit your situation. We want to ensure we can provide solutions to your concerns before we move forward. LEARN MORE.
Get your free Oakmont Blueprint Ready to take the leap toward a more secure retirement? GET STARTED TODAY. We start with a 30-minute phone call to determine if our services fit your situation. We want to ensure we can provide solutions to your concerns before we move forward. LEARN MORE.
Get your free Oakmont Blueprint Ready to take the leap toward a more secure retirement? GET STARTED TODAY. We start with a 30-minute phone call to determine if our services fit your situation. We want to ensure we can provide solutions to your concerns before we move forward. LEARN MORE.
Get your free Oakmont Blueprint Ready to take the leap toward a more secure retirement? GET STARTED TODAY. We start with a 30-minute phone call to determine if our services fit your situation. We want to ensure we can provide solutions to your concerns before we move forward. LEARN MORE.
Timestamps * [2:51] - Managing Expectations For The Remainder Of 2020 * [8:31] - Why The Social Security Administration Failing To Explore Maximizing Your Benefit * [13:41] - The Dangers Of Outdated Heuristics * [21:34] - Asking All The Wrong Questions
Timestamps * [2:07] - Challenges In Finding Financial News Sanity * [7:06] - The Potential Costs Of Too Much Government Spending * [10:22] - Income Shortfall: The Stressful Tight Rope Walk Into Retirement * [18:07] - Tax Traps * [20:12] - New 401(k) Concept Called "Auto Portability"
Timestamps * [4:33] - When Does Too Much Optimism Become Delusion? * [8:59] - Anticipating Unanticipated Taxes * [13:27] - Sources Of Lifetime Income: To Guarantee Or Not To Guarantee? * [19:16] - Growing Numbers Of Social Security Benefits Will Be Required To Address Healthcare
Timestamps * [3:07] - Exploring The Tax Landscape With A Roth IRA * [7:55] - Target Date Funds Missing The Bullseye * [15:00] - The Stickiness Factor: Does What Your Advisor Say Stick With You? * [19:07] - There Is No Retirement Without Income * [23:05] - Socially Responsible Investing And Limited Options With Your 401(k) * [29:50] - Financial Jargon Podcast!
Timestamps * [1:15] - Are The Market And The Economy Inextricably Linked? * [8:10] - Trying To Find The High Note Amongst All The Noise * [15:53] - Emotional Aspects Going Into And In Retirement: The Importance Of Your Plan * [21:58] - Professional Compatibility And The Unquiet Mind * [29:10] - Bonus: Financial Jargon Podcast Episode!
Timestamps * [0:53] - Money Lessons From Dad And Other Fatherly Advice * [3:05] - The Unnecessary Path Of Learning Through Cruel Experience * [9:37] - Ways Covid-19 Could Affect Social Security * [16:44] - Once You Win The Game, You Stop Playing * [23:37] - Taxes: Congress Gets Creative, Why Shouldn't You?
Timestamps * [1:21] - Another Day In Phil Collins' Proverbial Paradise: Economic Data And The Market Rally * [5:49] - Are You Sufficiently Equipped To Navigate The Do-It-Yourself-Planning Landscape? * [14:52] - Do People Feel More Secure With A Financial Adviser? * [21:06] - Numbers, Graphs, And Metrics VS Values, Priorities, And Emotions
Timestamps * [0:42] - Now Is A Good Time To Review Your Retirement Strategy * [3:27] - Tough Times Don't Last, But Tough People Do * [8:42] - Understanding The Bear Market Rally * [11:37] - Wall Street Optimism Vs Main Street Pessimism * [14:38] - Missing The Forrest For The Trees * [20:15] - Dialing In The Appropriate Amount Of Risk & Underestimating Your Longevity
Timestamps * [1:28] - Not Taking Action Is An Action Itself * [4:53] - Keeping Pace With Capitol Hill * [9:29] - Cash Flow & Withdrawal Strategies: Where, When, What, Why? * [16:03] - Grab A Tourniquet! Pension Plans Are Bleeding Out * [21:20] - Don't Jump From The Plane & Build The Parachute On The Way Down
Timestamps * [2:00] - Forced Into Retirement Insufficiently Prepared * [5:22] - Good Intentions With Bad Understanding * [7:57] - Maximizing Different Sources Of Retirement Income * [14:44] - Low Interest Rates And Possible Inflation: Bonds Up Against The Ropes * [19:27] - Don't Be Down On What You're Not Up On * [22:50] - Instant Gratification In a Delayed Gratification World
Timestamps * [3:04] - False Summits, False Troughs And The Consistently Inconsistent Media Bias * [8:45] - Have A Plan. Seriously, You Need A Plan * [13:49] - There So Much More Than Just Stocks And Bonds Affecting Your Retirement * [16:38] - Go To Vegas If You Want Excitement With Investing, Not Your Nest Egg * [19:54] - How Often Are You Checking Your Retirement Account? * [22:31] - Fees: The Good, The Bad, And The Ugly
Timestamps * [1:55] - Have We Lost Confidence In Investing? * [8:53] - Warren Buffet: Timing The Market And Time In The Market * [14:06] - Understanding Your Risk Level In Full Context * [19:05] - 2020 Retirement Plan Derailment - Now What? * [21:28] - Income Planning; What's The Best Drawdown Strategy?
Adapting To The New Reality, Economic Resiliency, Preparation And The Conversational Nature Of Reality
Managing The Chaos, The Best Time For Roth Conversions Is Now, And Why Waiting For The Recovery Is A Race To The Bottom
As America Tries To "Flatten The Curve", We Have A Significant Mental Health Challenge On Our Hands With Increasingly Anxious People Living In Isolation Watching The Stock Market Whipsaw.
Market Circuit Breakers & Financial Jargon Podcast As Coronavirus Fear Continues To Grow
Recent Market volatility Approaching a "Bear Market" and the Fed Interest Rate Drop Having Negative Market Reaction
The guys discuss tax laws being written in pencil, should we count on Social Security employees to make our claiming strategy, Warren Buffet speaks on politics, and how money mistakes are like termites.
On this week's episode of the Retirement Solutions Show, we discuss how retirement funds are taxed. Plus, how we help clients get ahead of the curve when preparing to leave the working world behind. And are we overdue for a bear market?
This week on the Retirement Solutions Show, we take you behind the scenes and show you how exactly we work with our clients. And the people at Gobankingrate.com say people in New Mexico can expect to retire at age 60 with a nest egg of $760,000. We share whether this is realistic.
This week, we discuss negative investor behaviors, what to look for in a financial advisor, and why this is the time to talk about tax strategy. Plus, how we help clients wade through the sometimes choppy waters of Social Security.
In this week's episode, the dangers of "secondhand" financial advice, why having a written retirement plan is a big deal, and making sure you don't run out of money. Plus, how to simplify tax planning.
Timestamps: * [1:00] Secondhand financial advice. What is it and what to be wary of. * [7:22] Why having a written retirement plan is such a big deal * [15:20] Converting your retirement accounts into retirement income * [19:55] Why tax planning is complicated and how to simplify it
Schedule a Free 15-Minute Phone Call Ready to take the leap towards a more secure retirement? Schedule a free phone consultation with one of our advisors. We start with a 15-minute phone call to determine if our services fit your situation. We want to ensure we can provide solutions to your concerns before we move forward. Get Started.
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On this week's episode, we discuss pros and cons of the new RMD age, how rising inflation could be a problem for your nest egg, and whether the stock market is underinvested. Plus, why the next 20 years could be tough ones for the Social Security program.
Timestamps: * [1:25] How your RMDs are affected by the SECURE Act * [6:25] Why you should build inflation into your retirement plan * [13:25] Our advice to people who are worried about the stability of Social Security * [18:30] Are you missing out by keeping too much cash on the sideline?
Resources Mentioned * Financial Jargon episode on the SECURE Act * [WEBINAR] 4 Ways the SECURE Act Will Affect Your Retirement
Subscribe to the Podcast * ITUNES * STITCHER * SPOTIFY
If you enjoy the Retirement Solutions Show, we'd appreciate your feedback! Leave a review on iTunes and let us know how we’re doing. Reviews help other people in or nearing retirement find our show. CLICK HERE TO LEAVE A REVIEW.
Recency bias is when investors make decisions based on recent events or experiences. Rather than seeing the bigger picture, they become hyper-focused on recency. This can be dangerous to your retirement plan.
2020 is right around the corner and there are a few financial tasks we urge you to complete before the end of the year. Completing these tasks will help you kick off the new year on your best financial footing.
Are your anchoring beliefs controlling your investment decisions?
In this week's episode of the Retirement Solutions Show, the team at Oakmont uncovers how anchoring bias could be hurting your investment strategy.
In this week's episode of the Retirement Solutions Show, Ralph Hicks, David Hicks, Michael Hicks and Ryan Gilmore of the Oakmont Advisory Group discuss how your "herding" tendency could be harming your investment strategy.
In this week's episode of the Retirement Solutions Show, Ryan Gilmore and Ralph, David, and Michael Hicks share how loss aversion is negatively impacting investors.
On this week's episode of the Retirement Solutions Show, Ralph Hicks, David Hicks, Michael Hicks, and Ryan Gilmore share their insights on how to manage sequence risk in retirement.
For months, news headlines have been roaring about the fear of an oncoming recession. But the truth of the matter is, nobody knows when the next recession might hit.
Sequence risk, or the order in which your investment returns occur, can change everything for you. Just as the stock market is out of our control, so is the sequence of returns that our retirement money is exposed to.
The team at Oakmont shares tips for how to manage sequence risk, including:
- Who is affected by sequence risk, when your retirement money is at risk, and why sequence risk can have a positive or negative impact on your retirement
- Why simply plugging an average rate of return into an online retirement calculator could ruin your retirement success
- How focusing on minimizing losses could jeopardize your retirement
- Specific strategies and steps you can take today to protect your money
On this episode of the Retirement Solutions Show with Oakmont Advisory Group, we discuss when to start taking Social Security and how to undo a common Social Security mistake.
The team at Oakmont Advisory Group discusses how to navigate the unpredictability of the markets and the biggest portfolio mistake we see people make.
The team at Oakmont Advisory Group shares what to expect when you meet with a financial advisor for the first time. Plus, how retirement planning can feel like a game of football.
On this week's podcast episode, we're digging into three powerful tax strategies you can use to reduce your tax obligation in retirement.
Tax strategy is a crucial component of retirement planning that is often overlooked. Some retirees see tax planning as hard, overwhelming, and stressful. On the other hand, many retirees simply don't realize the tax-reducing opportunities available to them if they make some strategic tweaks to their plan.
Ralph Hicks, Michael Hicks, and Ryan Gilmore reveal three of the most common tax-reducing strategies in this episode, including:
- The Bucket Strategy
- Roth IRAs and Conversions
- Qualified Charitable Distributions
They also discuss:
- [00:51] Why the Retirement Solutions Show transitioned from radio to podcasting
- [02:14] How the emotional response to tax planning can leave you feeling stuck
- [04:00] Why you should care about building a tax strategy into your retirement plan
- [05:55] Understanding how your retirement accounts are taxed
- [07:42] How, when, and why you might utilize the Bucket Strategy, Roth Conversions, or Qualified Charitable Distributions
- [15:03] David Hick's' latest webinar, Protect Your Retirement Savings From Uncle Sam, which is all about how to build a tax strategy in retirement
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We want to make this podcast as beneficial to you as possible. If you have a financial or retirement-related question that you'd like to hear our take on, head on over to our contact page and submit your question!
Links mentioned in this episode:
- Free Tax Planning Online Class
- The Retirement Solutions Show on Spotify
- The Retirement Solutions Show on iTunes
- The Retirement Solutions Show on Stitcher
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax advice. You should consult your own tax advisors and accountants regarding your specific situation.
This week, we come to you with a Best of Show episode. This episode is compiled of our most popular and most talked-about segments in 2019. Enjoy!
Topics discussed: * [1:05] How to build an income generation plan * [5:29] The pros and cons of moving near or in retirement * [14:27] How to know when it's time to walk away from the workforce * [21:29] Social Security planning * [28:05] Utilizing safe income in your retirement plan * [33:16] Is $1 million enough to retire comfortably? * [36:20] Paying for medical expenses in retirement * [44:58] Retiring on your own terms * [49:01] How to reduce taxes in retirement
In this episode, we celebrate Father's Day by sharing some of the financial wisdom we learned from our dads. We also share some advice for the working fathers who are in need of some financial guidance.
Then, we have a conversation about common retirement fears and how to overcome them, as well as how to transition from saving money to generating income in retirement.
Topics discussed in this episode * [1:21] Financial advice learned from our fathers * [7:23] Common retirement fears and how to overcome them * [17:10] How to generate retirement income from your nest egg * [23:28] Signs that it's time to retire * [25:00] Building a financial plan that gives you permission to spend money in retirement * [29:38] How much money you should have in the market based on your age * [35:17] How to prepare and pay for future medical expenses in retirement * [41:32] How often you should pay attention to the stock market * [46:52] When too much good news about the economy is bad for our 401(k)
Resources * Retirement savings: How to translate your nest egg into monthly income * The Financial Planners Teaching Frugal Retirees to Live It Up * 401(k) investors: As markets and the economy surge, some experts fear a downfall
There's a huge difference between having a retirement plan in your mind vs. on paper. Having a written plan gives people more retirement confidence and a greater sense of control. Yet, according to a Fidelity survey, only 18% of Americans have a written plan.
On this new episode of the Retirement Solutions Show, the team at Oakmont Advisory Group discusses why lacking a written financial plan could be a drastic mistake.
Topics covered in this episode: * [8:52] 1/3 of baby boomers say don't have a Social Security claiming strategy because it's too confusing. But how you decide to claim Social Security is one of the most important financial decisions you make. We share how to start building a strategy and an example of how we help clients uncover additional benefits. * [17:00] Many people mistakenly assume that Medicare will cover more than it does. Though it may cover doctor visits, it doesn't pay for long-term care. We discuss how you can fund possible long-term care using your assets. Plus, we explain the elusive 5-year Medicaid look back period. * [23:15] It is critical for spouses to be on the same page in retirement, especially since money is cited as the #1 thing couples argue about. We share the financial questions spouses should be asking each other and the biggest financial differences we see when we meet couples in the office. * [32:02] When it comes to our retirement savings, we can't risk making mistakes. We discuss some of the most common nest egg mistakes we see, including contributing too much to the wrong type of account. * [38:44] New analysis from the Bank of America and Merrill Lynch declares the 10-year old bull market is dead. What changes are coming to the market and how will our retirements be affected? * [41:20] For some of us, the word "retirement" is not in our vocabulary. But you still need to have a plan for retirement to protect us against the unexpected. We discuss how the planning process might differ for someone who never wants to retire vs. someone who's ready to exit the workforce.
When it comes to stock market losses, we at Oakmont generally follow one golden rule: don't panic. Even USA Today says the market correction we had at the beginning of the year is no big deal. Still, it is human nature to feel rattled when the markets take a plunge.
On this new episode of the Retirement Solutions Show, we share the advice we give clients who are worried about their portfolios and how to know when it's time to take action.
Topics discussed in this episode: * [3:17] How can you worry less about stock market losses? We share the advice we give clients who are nervous about their portfolios. Having a purpose for your money and knowing how your accounts will act in certain market conditions is key. * [8:02] How fear-based news outlets can negatively affect your portfolio * [12:18] How to ensure your numbers make sense before you walk away from the workforce * [19:28] Advice for self-investors & when a self-investor might consider seeking the help of a financial advisor * [24:02] We dispell common myths about estate planning and explain the difference between wills, trusts, and beneficiary designations. * [30:38] Tips for reducing taxes on your Social Security benefits * [36:22] How much income will you need to live the lifestyle you want in retirement? We share how to turn your savings into an income generation plan. * [41:00] How downsizing or relocating could impact your retirement savings
According to a survey by Charles Schwab, people spend more time planning their vacations than they do evaluating their retirement.
Why do so many people have their retirement priorities backward?
For one, it’s a lot more fun to plan a vacation than it is to think about retirement. Additionally, it’s a lot easier to plan a 2-week vacation than it is to plan for a 20-30 year block of your life.
In the first segment of this week’s show, the guys at Oakmont spend some time evaluating common reasons why people avoid retirement planning and the lasting impact it could have on your future.
Topics covered in this episode: * [7:24] How might sequence of returns in the market affect my retirement? While there is no good time for a market downturn, it can be especially bad if it happens early in your retirement. We discuss how you can structure your portfolio to reduce market risk. * [12:42] How will you pay for healthcare in retirement? Though some expenses will go down in retirement, others will probably go up... like healthcare. We asked some of our listeners how they're planning to pay for their healthcare costs in retirement and their answers might shock you. * [18:10] What are the downsides of the "set it and forget it" strategy? Changing goals, emotional responses, and sequence of returns, to name a few. * [26:52] Why are people afraid to meet with financial advisors? Though many fear a financial advisor will make them feel stupid, we prefer to educate our clients and help them understand their financial position. * [33:42] Why don't more people complain about the fees they're paying on their retirement accounts? We share why people don't understand the fees they are paying on their accounts. * [40:13] How do we come up with a more accurate idea of how much we'll need in retirement? With 46% of us just guessing about how much we'll need, it's time for a change. * [44:46] How can you make your income last as long as you do?
On this new episode of the Retirement Solutions Show with the Oakmont Advisory Group, a new Retirement Mindset Study by Fidelity Investments reveals the changing attitudes Americans have toward retirement.
Though many of the surveyed bunch claims to feel confident about their current financial health, they lack confidence in their retirement plan. In the first segment of this week's show, the team dissects the Fidelity study, explores the cause of this spike in financial confidence, and examines a change in top concerns amongst retirees.
What you'll learn from this segment: * [1:39] 62% of respondents feel confident about their current financial health. This is likely due to the positive market performance in the last year. Despite this positivity, 75% of respondents range from feeling only somewhat confident to not confident at all about their retirement finances. * [5:05] According to respondents, the #1 retirement concern for respondents is rising healthcare and long-term care costs. 38% of respondents identified this as their #1 concern, followed by Social Security benefits (28%), and inflation (10%). * [8:44] You can lose financial progress very quickly due to medical costs. Case in point, the average couple spends $285,000 on healthcare costs after age 65.
Related: The Healthcare Hurdle: What You Need to Know If You Retire Before 65
More key takeaways from this episode: * [12:29] What is your investing style? Jack Otter, an associate publisher for Barron's, claims that most of us fall into one of two extremes... conservative or risk taker. Both of these investing styles are wrong because they don't allow for your retirement plan to be custom fit to your situation. So, how do you create a custom fit? The simple answer: it's hard. For the long answer, listen to this segment of the show. * [21:09] How can you protect your money from taxes? The team at Oakmont sheds light upon taxes in retirement. A Roth Conversion could be the answer. This is the process of moving money from a Traditional IRA to a Roth IRA. Though the conversion is a taxable event, it could lead to great tax savings if timed correctly. * [27:25] Will you be able to retire on your own terms? It can happen, but certainly not without a plan. And according to Fidelity's Retirement Mindset Study, 79% of boomers are without a plan for retirement. We share how we can meet you where you are and help get you on track for saving for retirement. * [35:14] Where will your paychecks come from in retirement? More people are looking toward annuities for "income for life." We explain the different types of annuities and how they've evolved into better financial tools over time.
Related: What Are the Different Types of Annuities?
- [41:57] Have you stress tested your retirement plan lately? MarketWatch says anyone considering early retirement should do this first. We share how we help clients stress test their retirement plan.
Links mentioned in this episode: * Fidelity Investments' Retirement Mindset Study * Opinion: Thinking of retiring early? Stress-test everything first
On this episode of the Retirement Solutions Show, the team of financial planners at Oakmont discuss US China trade and how we should react to the news about the new tariffs.
As we continue to read breaking headlines about the negotiations, it's crucial that we have the emotional steadiness to get through this without making any irrational, emotional decisions with our money.
What you'll learn from this segment: * [1:36] David Hicks reminds listeners that a deal will happen. It's just a matter of how long our money will be held hostage to these negotiations. Times like these can play with our emotions, and it is important to trust your plan and not make emotional decisions with your money. * [3:40] We consider Warren Buffett's comments on the possibility of a trade war. * [5:17] Could inflation be a byproduct of the trade negotiations?
More key takeaways from this episode: * [9:24] Blackstone CEO Stephen Schwartzman says he's expecting markets to start cooling off. We share how we help position clients so they don't have to worry about the constant ups-and-downs of the markets. * [12:55] When you come into a large sum of money, it's important to pace yourself. We share client stories that illustrate this point. * [18:44] We discuss some of the financial decisions our clients wish they could take back or do over. Most of them involve early withdrawals from retirement accounts and inconsistency with their saving habits. We also touch on a few timeshare horror stories. * [25:39] David shares why it's important to find a balance between saving money and enjoying your money. * [29:54] Are you doing enough to prepare for retirement? Blackstone's Tony James tells Fox Business that most of us are not. We share how we help people who got a late start plan for retirement.
- [34:36] Attorney Matt Danner joins us to discuss why it's important to think about getting an actual estate plan. He also shared why Transfer on Death designations rarely ever work.
- [45:55] Few people understand how Social Security spousal benefits work, so we break it down for you. We also share some tips for maximizing your Social Security benefit.
If you enjoy listening to the Retirement Solutions Show, please consider leaving a review on iTunes or Stitcher and let us know what topic you want us to cover next. It only takes one minute!
On this new episode of the Retirement Solutions Show, the team at Oakmont discusses the future of Social Security.
Federal officials are warning that our Social Security Trust fund will run out of money in 2035. Being only 16 years away, a lot of our listeners will be collecting their benefits by then.
In our first segment, we discuss how this warning might affect current workers and retirees. We also share how younger workers can prepare for the possibility of receiving a significantly reduced benefit.
Here's what you'll learn from this segment: * [2:29] Around 20 million households have nothing but Social Security to carry them through retirement. There's no doubt that shortfall would have devastating effects on the people who rely on their benefit as their sole source of income. It could be time to start planning outside of the Social Security cocoon. We share ways to understand your budget and expenses and how you can find more cost-efficient versions of the things you enjoy. * [5:58] 2035 is only 16 years away. That means that anyone below the age of 52 today is on track to receive only 70% to 80% of their scheduled benefits. Additionally, people who are retiring in 2019 at age 62 will see benefit cuts kick in at age 78. We share advice for these groups who may not receive their full scheduled benefit. * [7:00] Fear plays a huge factor in retirement planning. Often times, it leads people to kick the can down the road and inhibits people from planning at all. We share how we help alleviate fear so that people can plan for a successful retirement.
More key takeaways from this episode: * [9:04] A recent Kiplinger article talked about the different kinds of "safe income" you should have in retirement. What does it really mean to say that one type of income is "safer" than another? Can we trust the institutions that offer this type of deal? * [11:10] The 4% withdrawal rule is a rule of thumb we hear about how much money you should take from your retirement account each year. Does this rule really work? * [15:55] Forbes magazine claims that $1 million isn't enough to fund a 30-year retirement. We share a client scenario where $1 million was more than enough and another where $1 million would've run out in the blink of an eye. This goes to show they every situation is different.
- [34:04] Matt Danner the estate planner joins us to discuss why the fear of mortality can sometimes cause people to avoid the estate planning conversation.
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[44:41] A new report from United Income finds that the number of people choosing to work past traditional retirement age has doubled since 1985. The study cites inadequate savings, disappointing Social Security benefits, and high health care costs as the main reasons. Some people need to work past 65, but we share how we've helped people who have enough money, but keep working because they're not sure that they do.
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[48:45] There are a number of strategies we can use to reduce our tax burden when we retire. We share why you should have a tax strategy that benefits you, not the IRS and how you can start repositioning your accounts.
Links mentioned in this episode: * The 2019 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds * How to Boost Retirement Income by Making It Safer * Why Retiring On $1 Million Isn't As Good As It Looks * America's Elderly Are Twice as Likely to Work Now Than in 1985
If you enjoy listening to the Retirement Solutions Show, please consider leaving a review on iTunes or Stitcher and let us know what topic you want us to cover next. It only takes one minute!
If you're nearing retirement and there was one mistake you could correct that would improve your chances, would you want to know what it was? Probably! According to The Street, the most common mistake people are making is failing to have a plan.
We've said it before, but we'll say it again... you need to have a retirement plan. In our first segment of this week's show, we share why creating a plan is much more involved than you might think.
Does your retirement plan grow with you? Does it make mid-course corrections? Does it account for more than just a savings plan? If not, you'll want to tune in.
Here's what you'll learn from this segment: * [1:34] When we need a haircut, we visit a barber. When we need help with our lawn, we hire a landscaper. Generally speaking, when we need help, we hire an expert, because it makes our lives easier. Why is it, then, that so many people hesitate to seek help from a financial planner? * [3:52] Some believe they can sit down, talk about their intentions, and call it a retirement plan. It's much more involved than that. Ralph identifies the one dozen plus items your retirement plan needs to account for. * [6:08] Is retirement planning a task you can realistically handle on your own?
More key takeaways from this episode: Why people dread financial planning * [9:31] One in four people surveyed by Goldman Sachs said they'd rather go to the dentist than deal with their financial planning. Why do so many people dread it so much? * [10:37] Is your pride getting in the way of your retirement success? Often times, we find that people are too prideful meet with an advisor and admit they have no clue what they're doing. * [13:10] Having a random assortment of investments is NOT a financial plan.
Planning for the future when we don't know what's in store * [18:00] Mick Jagger is 75, a vegan, and works out 3 hours a day. On the other hand, Keith Richards is 75, not a vegan, and well, the pictures speak for themselves. Guess who ends up having heart surgery? Mick! This just goes to show that none of us know what's in store when it comes to our health and other areas of our life that might impact our financial future. How can we be prepared?
- [20:35] When you slow down and take a deeper look at your future, more specific concerns start to surface.
- [22:03] When it comes to your longevity, your attitude matters.
What should you look for in a financial advisor? * [23:00] It's human nature to want to work with someone you like, but that's not enough. In fact, if likability is all your advisor has to offer, that's a problem. * [26:00] You want your advisor to be likable, but you also want them to be honest. Ralph discloses some of the hardest, most honest conversations we've had to have with our clients.
Can you trust Consumer Price Index charts? * [29:03] According to an article in Forbes, you can't rely on government inflation numbers when developing retirement and spending plans. The guys share why you should assume your inflation rate will be higher than predicted.
Estate planning pop-up clinics * [34:05] Attorney Matt Danner explains how his upcoming Estate Planning Pop-Up Clinics eliminate some of the barriers that prevent people from creating an estate plan.
Do you need a financial plan if you don't plan to retire? * [44:14] People who don't think they'll ever retire often don't take the time to create a plan. This can be a huge mistake! The guys discuss why you should make a plan with "What If?" scenarios just in case you should need it.
The American Dream is changing * [47:20] The "American Dream" used to be having a nice long career and saving enough to retire at 65, without ever having to worry about money again. It's not that simple anymore. Your retirement is not your parents' retirement, and your longevity isn't the same either. The guys share advice on achieving the new American Dream.
Links mentioned in this episode: * Keeping Finances at Arm’s-Length? You’re Not Alone * The Big Retirement Planning Mistake You Want To Avoid * A "New Era" Of Retirement: This Is What It Means For You
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This new episode of the Retirement Solutions Show begins with a discussion on Conventional Financial Wisdom (CFW). CFW leads us to believe many ideas about retirement that simply aren't true nowadays.
The guys discuss some of the most common retirement myths they see people falling victim to and how to educate yourself for a better retirement.
Here's what you'll learn in this segment: * [1:20] There are several pieces of Conventional Financial Wisdom that, if followed, can lead you off course as you plan for retirement. We share some of the most common assumptions and myths. * [6:12] CFW tells us that expenses will go down in retirement. Scott Stiegler challenges you to take a vacation and not go anywhere... will your expenses go down or will you get bored and seek entertainment ($$$)? Additionally, in retirement, your number of tax reductions can go down, making your expenses go up. * [7:38] Ralph Hicks discusses the 3 phases of retirement (Go-Go, Slow-Go, and No-Go) and how factoring them into a written plan can alleviate financial stress.
More key takeaways from this episode: * [9:05] Yahoo Finance warns that a market downturn in the last 3-5 years before retirement could "demolish" your portfolio, but we keep hearing that if we don't stay in the market, inflation will eat of our savings. The guys share advice about investing risk for people in their 50s and 60s. * [11:34] The day you retire is a crucial time in your financial life because it's when your wealth is at its peak. It's also when you have the most probability of impacting your retirement, whether positively or negatively, based on how you start managing your money. * [12:47] What happens if there is a market downturn in the next few years? We share tips for people in their 50s and 60s who could be impacted by this. * [16:05] We give wealth management tips for people who would rather stay out of the stock market. * [16:45] More people are turning to roboadvisors nowadays. We share some of the benefits a roboadvisor can offer, as well as some of their limitations. * [19:03] Technology has changed the financial world. It has improved the ways people can manage their money. It has also allowed more people to get invested. However, more complexities arise as you approach retirement, and most roboadvisors aren't able to provide many benefits past that point. * [22:57] Are all financial advisors the same? We share some of the key differences you should consider when selecting an advisor. * [33:58] Attorney Matt Danner answers questions about estate planning. What is an estate plan? Do I need one? Are there any barriers to getting one? Hint: they're not just for rich people. * [44:49] 70% of people responding to a Prudential survey say they are stressed about money. Will we ever reach a point where we don't have stress about our financial situation? David Hicks thinks so, and he shares how you can get there.
Links mentioned in this episode: * Here's why the last 5 years before retirement are so critical * 4 Strategies to Help Curb Your Financial Stress
Today's episode begins with a conversation on retirement optimism. Fifty-seven percent of people surveyed by CNBC say they feel "more confident" about their ability to retire than they did just three years ago. Why the sudden spike in optimism?
Kevin Hassett, chairman of the Council of Economic Advisers, thinks it comes down to two factors: income growth and a strong performance from equity markets.
In our first segment, we discuss whether this retirement optimism is justified and tips for navigating the current economic situation.
Here's what you'll learn from this segment: * [1:53] Income growth and the strong performance of the equity market could be contributing to retirement optimism, according to Kevin Hassett, chairman of the Council of Economic Advisers. In addition, we are seeing more encouragement from the media to have a financial plan. Ralph Hicks believes having a plan gives you more confidence. * [5:00] Should we be optimistic when looking at the current economic situation? Though optimism is great, Ralph suggests you remain realistic. Your financial life should not be driven by emotions. * [8:49] We tend to follow crowds when it comes to complex situations like retirement planning. When the news tells us the market is booming, we want in. When we hear how well our friend's portfolio is doing, we want what they have. However, failing to account for personal factors like your age, risk tolerance, and financial goals could put your future in danger.
More key takeaways from this episode: * [10:30] According to the Motley Fool, one of the lesser-known facts about Social Security is that the program is designed to pay you the same amount of lifetimes benefits, regardless of when you file your claim. Is this true? Ralph says there are a number of factors to consider before deciding whether to take your Social Security benefits. * [13:14] Ryan Gilmore advises you not to look at your retirement accounts in isolation. Instead, you should look at how all the pieces fit and work together. * [15:14] There can be a lot of moving parts that make up your retirement plan. It is important to have an advocate who will help you make the right decisions. * [18:30] Democrats and Republicans are working together on something good. It's called the SECURE Act, and it's a bill that, among other things, will allow you to save for retirement longer by pushing back age for required distributions. The guys share some of the high points of the new bill, as well as some of the possible issues it could encounter. * [25:35] How much money do you waste each month? A survey from TD Ameritrade says the average baby boomer spends $638 per month on non-essentials. Ralph emphasizes the importance of developing a spending plan that works towards your goals while allowing you to have fun with your money. Ryan shares the story of how saving a few hundred dollars extra a month helped one couple drastically improve their probability of success in retirement. * [38:22] If you are over 50 and still working, there's a 56% chance you're going to be laid off before you retire, according to a recent study by ProPublica and the Urban Institute.
- [45:16] Inflation is a real risk to retirement. It needs to be built into your strategy and woven into your plan. Social Security has a built-in inflation strategy, but does your pension or your 401(k)?
- [47:25] Have you heard of the bucket approach to managing your money? This approach encourages you to have 3 types of money: liquid, conservatively invested, and aggressively invested. The guys share whether this is a smart approach to retirement planning and how it could work as a tax strategy, as well.
Links mentioned in this episode: * Trump advisor Kevin Hassett attributes rise in retirement savings optimism to strong economy and stock market * David Hicks' market update webinar * Why 1 Common Social Security Strategy Might Backfire on You * How This New Bill Could Impact Your Retirement * 42% of Baby Boomers Are Putting Their Retirement at Risk With This Mistake * Forced Retirement: Getting Upright When Your World Turns Upside Down
Time and again, we hear stories about people who are afraid of retirement. It's not always financial fears that scare them. Rather, it's emotions that get in the way.
Many workers equate their career with their identity. These people find themselves feeling a bit lost when they finally leave the workforce (whether by choice or by force).
Having placed so much weight on their work over the past 50 years, they don't know who they are anymore.
One of the best pieces of advice we've ever heard is, "Don't retirement from a job. Retire to something else."
That's why, on this new episode of the Retirement Solutions Show with Oakmont Advisory Group, we discuss finding meaning in life beyond work.
Key takeaways: * Why the fear of the unknown keeps people from retirement * Have a retirement date in mind and work mindfully towards it. * Live life as you go, because there are no guarantees in life. * Find an advisor who will be a partner on your journey and will take your financial situation personally.
Other topics discussed: * [9:38] The cost of waiting to seek help with retirement planning. Why you should take action sooner than later. * [11:53] How retirement planning has evolved of the past 45 years. * [19:48] The importance of having a written financial plan. * [25:00] Drunk shopping and other common financial mistakes we see far too often. * [29:15] What you need to know about taxes and your Social Security benefits. * [34:40] Attorney Matt Danner on how easy it can be to go from an "OK" legacy plan to a "GOOD!" estate plan. * [42:45] Understanding fees on your retirement accounts. * [47:47] Why two-income couples are often less prepared for retirement.
Many of us assume that we'll be in a lower tax bracket when we retire. But, in our new retirement reality, that's not always the case.
On this week's episode of the Retirement Solutions Show, we discuss the variety of factors that can either lower or increase our tax obligations in retirement.
Key takeaways: * Things like Social Security, Required Minimum Distributions, and Pensions can affect your tax obligations because they are seen as "ordinary income" in the eyes of the IRS. * Taxes are "on sale" right now due to the Trump Tax Plan, but they will likely increase in the future. * An understanding of investment conversion opportunities and timing can greatly impact your tax obligations.
Other topics discussed in this episode: * [9:23] Steps we can take to "spring clean" our investments. * [17:39] How we help clients feel confident that their savings will last the duration of their retirement. * [23:48] How to plan for an enjoyable retirement when you don't have a huge income. * [30:10] We share some big retirement goals we've helped our clients achieve. * [36:26] Attorney Matt Danner on the importance of choosing a planner with a team-based approach. * [48:08] Why healthcare is something you need to prepare for.
Peter Lynch ran the Fidelity Magellan Fund between 1977 and 2000. During that time, the fund was up an impressive 2700%!
Lynch appeared on a TV commercial telling us how easy it is to be an investor.
“Everyone can do well in the stock market, ” he said. “You have the skills, you have the intelligence, it doesn’t require any education. All you have to have is patience, do a little research, and you’ve got it.”
Is it really that simple?
On this week’s episode of the Retirement Solutions Show, we discuss the realities of investing in the stock market.
Key takeaways: * Human involvement accounts for the majority of market losses. * “Forgetful Investors Performed Best” (Fidelity study mentioned by Ryan) * Steady pace wins the race.
Other topics discussed in this episode: * [9:40] How to guard against exhausting your nest egg. * [21:37] A Texas man is getting attention for planning to spend his retirement in a Holiday Inn – what does this say about long-term care in retirement? * [24:12] Tax-savings ideas you could be taking advantage of. * [36:48] Simplifying estate planning. * [46:25] Money questions to ask before deciding if you’re ready to retire.
There’s a lot of talk in Congress about forcing wealthy Americans to pay more in taxes. The latest example of that is a bill that would impose a new tax on all stock trades.
But, could these things actually end up costing allof us more?
On this episode of the Retirement Solutions Show, we discuss whether we should be concerned about these new tax proposals.
The bottom line A proposal is just a proposal. Worrying about it now could lead us to make fear-based decisions, which never ends well. If tax changes are made, we can adapt to them (if necessary) at that time.
Other topics discussed in this episode: * [7:18] How do we know if the amount we’ve saved for retirement will match the amount we need? * [13:15] The general age at which we can best benefit someone. * [19:15] Could a market crash be considered an opportunity? * [25:49] How to prepare for challenges that might force you to retire earlier than planned. * [34:16] How to start the estate planning conversation * [44:52] Advice for those inheriting retirement accounts
On this episode of the Retirement Solutions Show, we share lessons we should take away from the 2008 financial crisis
What we learned from the 2008 financial crisis:
- Learn how to capture your gains.
- Utilize safe strategies and risk strategies.
- Stress-test your portfolio to see if it could withstand another market crash.
- Uncover your Risk Tolerance.
Other topics discussed in this episode:
[8:30] What should investors pay attention to in the news?
[10:15] The cost of waiting to act on your finances.
[18:10] Steps to take when you're 10 years, 5 years, 1 year, and 3 months away from retirement.
[32:00] How to let go of doubt and fear when retirement planning.
[47:40] What sort of factors to consider as you think about where you want to live in retirement.
Once you set an actual date for your retirement, there are a lot of things you need to do. MONEY magazine says the most important one is to “map out” your future expenses. Ralph Hicks and David Hicks discuss how to craft a successful retirement spending plan.
After that, we hear a lot of talk these days about a “retirement crisis.” Former U.S. Senator Heidi Heitkamp tells CNBC too many people expect the government to solve the problem, when there’s really not much that Congress can do. Instead, you may need to rely solely on your own savings. We share how you can start converting your savings into regular retirement income.
Then, when it comes to retirement, we all dream about having “financial freedom.” But sometimes we’re not sure how to achieve that. So, we asked for some advice from Jocko Willink, a former Navy SEAL commander and author of the best-seller “Discipline Equals Freedom.” And we share how we help our clients with financial discipline.
And thirty-seven years ago, we were all amazed when Sony introduced us to a brand-new way of listening to music… but now, most stores have dropped CDs because streaming has made them obsolete. Do retirement strategies ever become obsolete, or are they generally pretty good at standing the test of time?
That and more on today's episode of the Retirement Solutions Show with Oakmont Advisory Group.
One of the tricks to making your nest egg last is to withdraw enough money to enjoy yourself, but not so much that you run out. So, how do you come up with the right number? We share a few withdrawal strategies to consider.
Then, in October 187,000 people with Fidelity retirement accounts opened their quarterly statements to find that they were 401(k) “millionaires.” Unfortunately, nearly a third (29%) of those same people opened their most recent statements to find that their balance has dropped below the million-dollar mark. Is that what we have to look forward to in retirement – a nest egg that bounces up-and-down to the whims of the market?
After that, we share our thoughts on trying to minimize taxes in retirement.
Then, we get a physical once a year and we go to the dentist twice a year, but what about your retirement plan? Does that need regular check-ups, too?
That and more on this week's episode of the Retirement Solutions Show with the guys at Oakmont.