Retirement Talk Radio's Podcast

With 2022 starting out with a lot of volatility, a lot of people are rethinking their portfolio approach. Maybe you are ready for a new advisor or perhaps you are reaching out to a professional for the first time. In any case, how do we go about finding unbiased and independent advisors in such a large industry? On today’s episode, we’ll discuss some of the key components a balanced and competent advisor should have.  Retirement planning is about a lot more than investment performance. Through the years we’ve identified 6 key areas of risk when it comes to retirement planning and you need to have an interconnected plan that addresses those risks, as we do through the Redefining Wealth Process℠. It’s important to seek out an advisor that is transparent about the process they follow, their professional designations and responsibilities, and how they are paid. At the end of the day, you’ll want an experienced advisor that cares about you and your financial goals. Further reading mentioned in today’s show: https

One of the most important components of everyone’s retirement plan is their personalized income plan. So, on today’s episode, we are going to break down the advice of two experts in the financial industry: Wade Fouad and Michael Kitces. Determining how to efficiently tap into your lifelong savings is one of the most important life decisions you are going to make. Choosing an income strategy that mirrors your preferences is key to the Redefining Wealth Process℠.  When you enter retirement, you don’t know what the market is going to do. You have to be able to balance safety and returns, structuring your financial plan around reliable income. Having the right balance between the money you need to patrician and the money you’ll rely on for income comes with our Life Art Planning System, which leans heavily on adaptive goal-based planning. Join us today as Laura and Michael discuss the best strategies for drawing income, preparing for the possibility of longevity, and what return you need to have to be successful

While the data shows a healthy economy (job growth, consumer spending, and business investments are all up) the market is still on a downward trajectory. So, what is causing this decline? Is it Russia’s fault, inflation’s fault, the Fed’s fault, or some other factor? On today’s episode we are going to break down why the market is going down and the key indicators you need to keep your eye on to ensure you are on the right financial planning path while following the Redefining Wealth Process℠.  While we hope this is a normal correction, preparing for the possibility of a recession is necessary. The cost of making money is to be able to endure these moments. Limiting drawdowns, preserving your capital, and ensuring the six core pillars of the Redefining Wealth Process℠ are established within your plan will be necessary to withstand current and future market turns. Within the Redefining Wealth Process℠, we unpack these elements with our clients, evaluating and ensuring they are on the right strategic path that p

Everyone has in their mind the concept of designing an ideal retirement savings portfolio, but should you be blindly following the same methods that people have always used? Large institutions have been telling people for decades to pump money into their tax-deferred retirement accounts, keep cash in the bank, and get your mortgage paid off. But will these status quo methods help you achieve the financial security you dream about? The Redefining Wealth Process℠ is all about taking a comprehensive approach to building your portfolio through an income blueprint. Laura and Michael will dispel many of the common planning strategies that are always promoted and break down the process we use to identify the proper financial framework through out proprietary Redefining Wealth Process℠.  The status quo will have you believe there’s nothing more to learn and tries to convince you that trusting others is you best path to success. But just because you haven’t heard of an investment, or a product, doesn’t mean you should

We spend so many years of our lives working to save and accumulate assets to create financial independence for ourselves, but most people don't realize you must plan on how you will spend during retirement.  Transitioning from accumulation to the preservation and distribution phase can be a challenge.  Do you have the ability to shift your financial mindset from saving to that of income?  Having a custom income plan is critical to long-term success and sustainability throughout retirement.   To better understand the key risks, listen as Laura and Michael breakdown the elements necessary for a strong income plan. Why it is essential to have a purpose with knowing your retirement number and not just randomly taking income.    Join us for episode 103 of the Retirement Talk Podcast as we make sure your income plan is constructed to face these retirement risks head on.   Rate, Review and Subscribe to the Podcast: https://podcasts.apple.com/us/podcast/retirement-talk-podcast-with-laura-stover/id571347188   How to

With rising inflation and now an inverted yield curve, are we headed towards a recession? The interest rate paid on our short-term debt has exceeded the interest paid on our long-term debt of the same quality. So, what does this mean for investors? On today’s episode we’ll unpack the inverted yield curve, the concerns investors should be aware of, what to anticipate for the remainder of the year, and the strategies you can implement to protect your plan now and in the future.  This inverted yield curve and a contraction in the market could indicate a coming recession, but this is not absolute. We are in a unique situation as we usually don’t see rising interest rates and a contraction in the market at the same time. Typically, when markets contract on the equity side we can find safety in bonds but with rising interest rates that might not be the case this time. However, it’s always important to keep your perspective in check and prevent yourself from making quick, emotional reactions to the market.  The best

Prices have been steadily climbing for some time now. What is driving this unprecedented increase in inflation and how can you insulate your financial future from these black swan events? Many retirees are aware of risk and volatility within the market, but inflation itself can be a silent killer that lowers your future buying power when it comes to things like gas, groceries, and health care costs.  We have recently hit a 40-year high with inflation at 8.5%. Most experts still expect us to be facing high inflation rates a year from now, some are even predicting the possibility of a recession. Unpacking inflation and how it can impact your investments and retirement future is essential. If you aren’t incorporating this into your future income plan you may find yourself taking too much risk on in the future to make up for those losses. Bonds and fixed income are also subject to the risk of inflation as they are inversely related to interest rates and an increase in rates can result in a drop. So, how do we mak

Could Joe Biden’s new tax proposal impact you and your retirement plan? On today’s episode, we’re breaking down Joe Biden’s proposal of a 20% billionaire tax, the looming financial crisis, and what you can do to protect yourself and your future against rising taxes. The billionaire tax proposal is expected to reduce the deficit over the next decade. However, this is coming after a $3.9 trillion dollar spending bill, meaning the proposed reduction from the billionaire tax would only be a tiny percentage.   Deficit spending continues to rise but capitalism proves to be the best way to move forward and pay off our national debt. While this proposal is called the “billionaire tax” it would impact anyone with more than 100 million directly. They will pay a minimum of 20% each year on their capital gains. Yet, it’s quite possible average Americans could also feel these effects when it comes to their assets on a granule level.  Along with rising interest rates this proposal could be alarming for many reasons. Your a

Anywhere from 50% to 60% of Americans don’t have a will. Does this surprise you? However, more and more people are becoming more aware of the 6th pillar of the Redefining Wealth Process, estate planning. On today’s episode, we are continuing our conversation on estate planning and why it’s so important for you and your family. We will explore the key documents you need to consider when building out your estate plan and the types of trusts that may be applicable to your situation.    Your Power of Attorney is really the starting point for a sound estate plan. This document is essential for everyone, whether you have a trust or will. You’ll need a Power of Attorney for both your finances and healthcare. You need someone that can step in if incapacitation has occurred. Even with legal documents, sometimes custodians request an order from probate or their own documents. If you’re doing estate planning yourself rather than with a financial professional and attorney, these are the nuances you’ll probably be missing

No matter your age, having an estate plan is something we all need to think about. On today’s episode, we’ll explore the importance of having an estate plan and some things you may not be considering when it comes to that plan.  Over the past few years, we’ve certainly seen that things can change quickly. Keeping our essential documents updated is more important than ever. A will is a legal document that spells out your wishes when it comes to the care of your children or the distribution of your assets. While many people establish one when their children are born, most of us forget to update it later on in life.   Estate planning isn’t just about your assets, living documents impact you if you become ill as well. It can be costly, time-consuming, and stressful for your loved ones if these documents are not in place. It’s not all about you, don’t leave a mess for your loved ones! Join us today as we explore the importance of an updated will, the difference between a will and a trust, some of the estate planni

If you’re trying to build wealth, sharp market downturns can be your biggest enemy. But these downturns are not uncommon and we want you to be prepared to overcome these market dips. On today’s episode, esteemed money manager, Jay Pestrichelli joins us to discuss buy and hedge retirement planning. He’s the author of Buy and Hedge as well as the owner and co-founder of ZEGA Financial.  Over the long term the market usually performs well, yet with all the volatility we’ve seen throughout the start of 2022 many of us are getting nervous. Even before this year, Jay notes the S&P has had violent volatility that has evolved over several years. Looking at these turns in the market it really comes in 3-to-5-year waves. The most current starting in February of 2020. What does this mean for investors? It means that volatility comes in cycles and is something that we need to prepare for.  ZEGA and the Redefining Wealth process utilize hedging in a lot of portfolios that can bring nice returns as opposed to a traditi

We discuss many different money management tools on our show but having a defined process is perhaps the most important thing investors need to consider when constructing their plan. Having a process allows you and your assets to perform at peak capacity. Customized to each individual a process should cover your income needs, investments, tax planning, estate planning, and liquidity.  While many of us may be tempted to chase the market, we want to ensure we have a consistent rate of return, especially as we inch closer to retirement. Your plan needs to cover both inflationary and non-inflationary expenses when constructing a cash flow analysis. Once you know how much cash you need in retirement you can position your assets to achieve those goals.  A financial framework like the one we follow in the Redefining Wealth Process is a financial baseline that gives many clients the confidence they need in both the accumulation and decumulation phase of financial planning. On today's episode, we'll explore the import

‘Heads I win, tails you lose.’ In this uncertain time, investors are facing a lot of volatility. We often discuss using tactical management and algorithms to prevent losses but what other tools are available? How can we win when the market goes up and when the market goes down? We can always be certain the market will do one of three things: go up, go down, or go sideways. So we have to prepare and properly protect ourselves for all three outcomes. On today's episode, we'll discuss the value of a tail hedge, managing tail risk, using a tail hedge versus an algorithm, and how this insurance tool fits into your overall portfolio construction.    Facing a black swan event and managing loss becomes much more significant as you reach retirement. In the same way, we protect our home, our car, and our health with insurance we should also be protecting our portfolio. By managing your tail risk, you are able to utilize insurance within your portfolio. This allows you to stay competitive when the market goes up and you

Special Guest, CFA, Portfolio Manager David Wagner of Aptus Advisors, joins us on today’s episode to discuss the various factors contributing to market volatility in 2022. As a portfolio manager David is constantly studying the market, understanding the impact it has on investors. Should we expect a recession? What will bring down inflation? David will share his expertise on these topics and more during our show.  The market has been in a tailspin and a lot of factors are playing into this. From a geopolitical standpoint, there’s a lot of uncertainty so we are seeing some bearish trajectories. But this may be a buying opportunity according to David.  The Russian invasion of Ukraine could really impact Americans’ wallets when it comes to energy and consumer spending, but only time will tell. We are still expecting rate hikes despite this conflict and David assumes this won’t change. The Fed tends to avoid uncertainty when possible. On the other hand, David sees inflation as mostly a supply problem and somethin

Are you dreading this upcoming income tax season? It may be time to switch from tax preparation to tax planning. Strategic planning can reduce your overall tax burden, making this time of the year a lot less stressful. You should be working with a tax professional that is a part of your overall financial planning team.  One of the first steps in tax planning is projecting your future income. This means looking at your accounts, tax brackets, and your projected taxes with an as-is scenario. If you are in your earning years you have to understand the impact of earning even on more dollar and what that does to your overall tax plan. In contrast, a lot of retirees are leaving money on the table. Strategic tax planning can save you stress, time, and money.  We also want to be able to make knowledgeable decisions about our future income, predicting where taxes are going to go and how far. Unfortunately, we can’t predict the future, but there are strategies to proactively pay taxes now instead of waiting for higher

January ended up being a pretty volatile month in the market. With inflation, geopolitical tension, and rising interest rates we may see more volatility in the near future. What is the danger this poses to our retirement? A fear of outliving your money coupled with recency bias can lead to an unbalanced portfolio. Portfolio failure, running out of money in retirement, is directly related to volatility. However, there are tools and strategies to navigate a choppy market.  Think of standard deviation as a relative risk rating. Lower standard deviation means lower risk or volatility. Using a Monte Carlo simulation spreadsheet, we can forecast the probability of potential failure rates. We have to examine how much risk you are taking in relation to the return you need for a successful retirement. You want to build a plan with the highest probability of success.  How could you still go broke in your portfolio with a 20% return?  If we have two portfolios and put a million in each:   Say Portfolio A made 60% the fi

As we’ve seen in the past month, volatility is back in the market. Why are we seeing this volatility and what can we do to protect our retirement plan? We’ve seen some robust gains in the past few years, but that might soon be changing. With changes from the Fed, interest rate hikes, and geopolitical tension the market is likely to see more ups and downs.  In most cases, people aren’t great at making decisions under pressure, especially when it’s an emotional choice dealing with their own finances. This is the advantage of working with an advisor. You are working with someone that understands volatility and they can keep you level-headed when the market starts to turn. On today’s episode, we’ll explore ways you can protect yourself against a bear market through diversification, risk management, and more. Review the article mentioned in today’s show >> Today’s episode and show notes can also be accessed by visiting: https://redefiningwealth.info/91-how-to-defend-against-a-bear-market/ Rate & Review and S

For many of us a 401(k) is our primary saving tool for retirement. So, why is the 401(k) now being considered a disaster? Most people don’t have a lot of background in investing when they start saving, defaulting instead to the guidance of their employers. Originally developed to be a bonus in accordance with a pension, the 401(k) was not designed to be a stand-alone account to depend one’s retirement on. However, that's where many people's financial plans stand today.  Consequently, 401(k) plans were never analyzed as a replacement retirement vehicle, therefore, no one scrutinized the long-term practicality of using a 401(k) in this way. As we’ve seen more and more companies step away from pensions, we’ve also seen more investment in this type of account.  For big companies and wall street the 401(k) was a big win, for the average American people, not so much. It’s been a poor substitute for a pension plan. On today’s episode, we’ll explore the history of the 401(k) and whether it can be considered a disastr

There is no perfect portfolio that will fit everyone’s needs. Instead, we must ask ourselves what the perfect portfolio looks like for our individual lives. The market is a risky endeavor, so you really need to understand how much volatility you are comfortable with and how much is necessary to support the longevity of your retirement. Not everyone will look at risk in the same way. You'll need to think about the entire framework of your plan, updating it when necessary. In order to start building the perfect portfolio, experts suggest focusing on your principles, process, and path.  Do you need professional assistance to help with your plan? This will depend on what they bring to the table, professionals can certainly help prevent blind spots in your plan. Can you pinpoint your comfort zone when it comes to financial gains and losses? Doing so can certainly be difficult if you are used to making emotional decisions. On today’s episode, we’ll explore 7 principles that are necessary to consider when building y

Everyone has worries in life, especially when it comes to money. Does money have the power to change your life? It certainly can take care of our basic necessities. However, worrying too much can lead to questionable decision-making and unhealthy levels of stress. An obsession with your bank account may be a sign of deeper anxieties that money can’t solve. If you feel this way you are not alone, especially in today’s world.  People may react to returns in their portfolio by taking on more risk. But is this wise? It really depends on where you are in your retirement planning journey. Perhaps you had a bad experience in the market and now you are a conservative investor. Do you really know how much risk you are taking on though? We want to avoid making those emotional decisions when we can, that’s why having a financial advisor is so important. On today’s episode, join us as we discuss the correlation between money, happiness, and our financial future.    Review the article mentioned in today’s show >>    Toda