Retirement Starts Today Radio

 The annual Social Security beneficiary report was recently released and just like every other year that they release it, it has caused people to worry about their future. Social Security is a crucial, foundational element of most retirement income plans, so when you read headlines that it will run out soon how should you react?  Should you go about changing your retirement plans altogether? Should you file for Social Security early to ensure you get the most out of your benefit? We’ll explore these questions in this episode of Retirement Starts Today. Outline of This Episode [1:52] Will Social Security run out in 12 years? [4:44] How to fix the Social Security math problem [11:20] What you should do to prepare for a Social Security pay cut Covid has exacerbated the Social Security funding crisis The recent report released by the government was unsurprising to anyone who has been paying attention. This year’s statement revealed that the Social Security trust fund will ‘run out of money’ in 12 years which is

Have you been feeling the pull to retire? This feeling isn’t constrained to those nearing retirement age; many people have been feeling the desire to quit their jobs lately. So many workers are considering a job change that this wave of people has begun what is called “The Great Resignation.” I read about this phenomenon on The Guardian website in an article written by Elle Hunt. Elle considers 17 questions that you should ask yourself before you make the leap into the unknown. If you have been contemplating retirement or a job change you won’t want to miss this episode. Outline of This Episode [2:02] 17 questions to ask yourself if you are ready to quit your job [4:53] What do you actually want to do? [8:08] What could you gain by quitting your job? [12:55] You can’t bootstrap your mortgage Attitudes surrounding employment are changing A recent survey indicated that over 40% of people have considered a job change this year. This trend could be a byproduct of stress brought on by the pandemic, but it could

In retirement, you have all the time in the world, but are you using your time wisely? I recently read an op-ed article from CNBC about the power of delegation and it got me thinking about the way we spend our time.  On this episode of Retirement Starts today, we’ll explore that op-ed article, I'll share what I learned about inherited IRAs this week, and I’ll answer a listener question about retirement planning beyond the 4% rule.  Outline of This Episode [2:22] What I learned in my office this week [5:24] An inherited IRA example [6:35] The value of paying others to do services for you [10:55] A question about episode 193 [14:52] Check out my retirement guardrails video What is the highest use of your time? Are you planning to live your best life in retirement? If so, you may want to consider delegating various tasks that could be better handled by someone else. Even if you have lived a life of frugality you should ask yourself if doing certain tasks is the best use of your time. You may receive a better r

Since travel is on many soon-to-be retirees' must-do lists I have created this summer travel series with various travel experts. Danielle Desir from the Thought Card podcast joins me today to discuss how to travel to any destination on a budget. Recognized by Flight Network as one of the best travel hackers in the world, Danielle has figured out how to travel to bucket-list destinations on a dime. Are you ready to learn how to plan your next big trip on any budget? Listen in to discover how. Outline of This Episode [1:22] Danielle’s journey to bucket list budget travel [3:23] Identify the things that you value [7:21] Take an individual approach  [10:53] Danielle’s top destinations [12:32] How to choose to repeat a destination [15:41] Jet lag tips [20:47] Where to learn more about travel hacking with Danielle If you’re on a budget, don’t settle for inexpensive destinations, think big! Many people think that if they are on a budget they can only travel to budget-friendly places, but Danielle Desir takes a dif

 Do you have bond funds in your portfolio? Many people understand the way that bonds work, but they may not know how bond funds work. El has written in to ask this question which I will answer in the listener questions segment.  Before we get to that retirement question, we’ll take a look at a MarketWatch article titled Are You in Retirement Hell? It was such a catchy title that I had to check it out.  The article expresses the author’s struggle with finding challenge and meaning in retirement. You won’t want to miss the ways that you can avoid your own retirement hell.  Outline of This Episode [2:32] Are you in retirement hell? [5:38] How to prevent retirement hell [6:56] How do bond funds work? [12:53] What are alternative options to bond funds? [16:52] Does John have enough money to retire? Are you in retirement hell? Retirement is a time of fun and relaxation. You no longer have exhausting work schedules, long commutes, or alarm clocks waking you up every morning. Every day is yours to do as you wish. 

Are you preparing for a successful retirement? If you are, you’ll need to consider more than just your finances because 80% of a successful retirement has nothing to do with money. However, when people focus on retirement planning, money is often the only thing they focus on. In the retirement headlines segment this week, we’ll check out an article from Financial Advisor Magazine titled Right Way Retirement. This article takes a look at the non-financial aspects of retirement that many financial advisors miss when it comes to retirement planning.  In the listener questions segment, I answer a question from Majid about working while collecting Social Security. Make sure to tune in until the end to hear how to complete the earnings test so that you will understand how much you can earn and how to avoid Social Security penalties. Outline of This Episode [2:12] To plan for retirement you need to stay ahead of the curve [4:00] 6 items to focus on in retirement planning [8:03] Will income from a part-time job affe

Do you have a case of frugality syndrome? Many of us are so used to saving and living frugally that we have a hard time pivoting from the accumulation stage of retirement planning into the distribution stage.  A recent retirement headline from Advisor Perspectives titled Overcoming the Frugality Syndrome caught my eye. This article discusses the difficulty that some retirees have in switching from saving to spending. I wanted to share this with you all since so many of you are diligent savers. After the retirement headlines, we move on to our listener questions segment. Wendell is concerned about having all his eggs in one custodian’s basket and Stella would like to learn about rolling a 401K into a Vanguard target-date fund.  Outline of This Episode [1:22] What is frugality syndrome? [4:18] 3 tips for overcoming frugality [8:55] A question about target-date funds [14:49] Should you consolidate accounts into one financial firm? Can too much frugality be a bad thing? Rick Kahler at Advisor Perspectives recen

How’s this for a headline? I’m 62, unemployed, living off my savings, and waiting on Social Security — ‘Can I go fishing for the next 25 years and forget about work? It naturally caught my eye since there was fishing in the title! Today we’ll check out this MarketWatch article and answer the headline’s question as well as explore the additional recommendations the article mentions on ways to make retirement savings last. In the listener questions segment, I’ll answer a complex question about borrowing against your home for a gift for a child. Once you’re done listening please head on over to our annual listener survey to make sure you voice your opinions on the trajectory of the show.  Outline of This Episode [1:22] Can I go fishing for the next 25 years? [4:58] Financial advisors weigh in on this question [14:20] Should I take out $150,000 of my IRA to help my family buy a house? [19:35] Make your voice heard--go check out our listener survey! Is it time to forget work and go fishing? A recent Market Watch

What do you think about senior living communities? Would you want to move to one? According to a recent WSJ article, occupancy in senior housing is on the decline despite the fact that baby boomers are aging and more of these communities are springing up all over the country. In the retirement headlines segment, we’ll take a look at the reasons for this phenomenon. But before we get to the retirement headlines I also want to share a conversation I had with a client about how to plan sales of his company stock. Make sure to listen in if you have a significant amount of stock in your company. You’ll want to hear what you should consider before selling.  Outline of This Episode [1:22] Identify you pain threshold when selling company stock [5:58] Boomers want to stay home [10:38] Who will win? [11:40] How does long-term care insurance play into this equation? [13:03] Don’t forget to answer our annual listener survey! Boomers want to stay home It may not be a surprise to you that seniors want to stay in their ho

Has the Covid pandemic caused you to reevaluate your life and consider early retirement? If so, you are not alone. Now that we are starting to emerge from the pandemic, many Americans have a new 'life is short' mindset. This, coupled with an upswing in investments and home values is leading many affluent Americans in a rush to retire. Check out the retirement headlines segment where we explore a recent Bloomberg article that explores this topic. Then, stick around for the listener questions where I answer a question from Randy about paying off his mortgage with a Roth IRA and if you stay until the very end you’ll hear the story behind the Retirement Starts Today theme song.  Outline of This Episode [3:22] Affluent Americans Rush to Retire in New ‘Life-Is-Short’ Mindset [7:47] There is a downside to the loss of older workers [9:32] Should we consider paying off our home loan with a Roth IRA? [16:21] The story behind the theme song Participate in our annual listener survey Every year I send out a listener sur

Episode 200! I can’t believe I’ve made it to this landmark episode. Thank you all for joining me on this journey and I hope you'll join me for the next 200. I enjoy looking back and reminiscing on previous episodes, but I don’t have to go too far back to find my most recent favorite. Episode 199 is one of my most recent favorites. In it, I interviewed world-renowned Disney expert, Lou Mongello, to discuss multigenerational Disney trips. Check it out if taking the grandkids to Disney is on your bucket list.  In this episode, we’re covering two retirement headlines. The first is from Investment News and it describes how some leading retirement experts question whether advisors should rethink their assumptions about retirement spending when creating financial plans. The 2nd retirement headline is from HumbleDollar.com titled Secret Sauce. This article describes the aspects of work that we want to hang onto, those that we might not, and it outlines six steps to design a successful and ideal retirement. Outline of

What is the number one travel goal for people approaching retirement? Disney! People young and old alike love to go to Disney. In my 15 years of retirement planning, I have discovered that a multi-generational trip to Disney is at the top of most people’s bucket lists. That is why I have brought the world’s foremost expert on Disney travel, Lou Mongello, on to Retirement Starts Today for an interview. Lou and I discuss all things Disney: the must-see attractions, when to go, how to plan, and what is so special about Disney.  Outline of This Episode [1:52] What’s so special about Disney? [4:29] What are the must-see attractions? [8:45] When to go [12:53] Plan in advance [15:56] Lou’s favorite thing at Disney What’s so special about Disney that everyone wants to go there? Since Disney is the number one bucket list item for many people there must be something extra special about it. When I ask Lou why it is so special, he is unable to quantify this phenomenon. He chalks it up to the way Disney makes us feel. I

Have you ever thought about your relationship with work? As retirement looms ahead, many people become fearful of the unknown that it brings. A common way to express this fear is to worry about money, but this fear goes beyond money. The real fear that people have about retirement is about how they will spend their time when they no longer have work to fill their days.  In 2017, Paul Millerd changed his relationship with work. After climbing the corporate ladder for 10 years he decided to slow down and become a freelancer. Listen to this conversation to hear what Paul learned from this experience and how his wisdom can help you prepare for retirement. Outline of This Episode [3:22] What kind of benefits do people see from a long break in work? [5:16] Taking the first steps towards a sabbatical [8:15] How can we use the curiosity that emerges with a sabbatical to explore retirement? [11:01] Did Paul always think this way? [13:17] Are there any types of careers that sabbaticals wouldn’t work for? [16:24] Peopl

We’ve all been sitting at home for the past year and now everyone is getting the travel bug. That’s why today we’re kicking off the Summer Travel Series with an interview with Lee Huffman. Lee hosts a podcast called We Travel There and he writes a frugal travel blog at BaldThoughts.com. I’ve been curious about the world of travel hacking, so I have plenty of questions for Lee about using travel points, how to find the best travel resources, and, of course, where to travel. Check out this interview to help you plan your summer vacation.  Outline of This Episode [1:32] Where should we get started? [5:45] What should one look for in travel points? [11:02] How saving miles and points are like saving for retirement [13:00] The go-to resources to use [17:53] Places to check out  How should we all get started traveling again? The pandemic has left many of us homebound for over a year, so now that many people are fully vaccinated, everyone is ready to get on the road again. The big question is: how should we get st

Nobody wants to think about becoming a widow or widower, but unfortunately, if you are married, there is a 50/50 chance that you could. In addition to the crushing grief that comes with losing a spouse, there are many details to take care of in that first year alone. This is why I want to share an article with you from NextAvenue.org. The article, written by Anna Byrne, outlines 7 steps that you can take to help manage that first year on your own. Anna was only 28 years old when she lost her husband, so she has firsthand experience with this overwhelming stage of life. Her professional estate planning experience also lends practical tips to the article. Don’t miss this episode so that you know what you can do to help keep your head above water during that first year alone.  Outline of This Episode [2:22] 7 steps to take to manage the first year of widowhood [8:34] My top 2 tips for a new widow or widower [10:26] A question on the ACA subsidy under the American Rescue Plan 7 steps to manage the first year of

Do you consider being rich and being wealthy the same thing? In the book by Morgan Housel, The Psychology of Money, the author argues that these words mean two different things. In this episode of Retirement Starts Today, we’ll explore the difference between rich and wealthy as well as the connotation of the word money.  Outline of This Episode [1:42] A review of the psychology of money [4:30] The difference between being rich and wealthy [6:13] How to declutter the filing cabinet Thank you for 1 million downloads I want to thank you all for helping me hit an exciting podcasting milestone. In May of this year (2021), we hit 1 million lifetime downloads. Wow! When I started this podcast several years ago I was thrilled to reach 100 listeners a month, so this kind of reach boggles my mind. Thank you for joining me on this journey. To celebrate this milestone, I have an extra heaping helping of retirement headlines today. Both articles hail from the Wall Street Journal. The first article, written by Jason Zwie

Are you one of the many that are being held back from early retirement by the exorbitant cost of health insurance? If so, you won't want to miss this episode. This week’s retirement headline comes from Carolyn McClanahan at AdvisorPerspectives.com and it outlines the enhanced health insurance subsidies that stem from the American Rescue Plan (ARP).  You’ll want to stick around for the listener questions segment if you are a fan of retirement podcasts. I have a treat for you all as I crowdsource the answer to John’s question about asset location. Listen in to hear 4 different answers from voices that you may recognize. Outline of This Episode [2:12] Could the American Rescue Plan be the answer to your health care before Medicare question? [5:05] What do you need to do to act? [8:49] An asset location question from John [10:01] Peter Lazaroff’s answer [12:02] Roger Whitney’s answer [15:45] Taylor Schulte answer [18:44] Chad Smith’s answer Could the ARP be the answer to your health care before Medicare questio

I’m sure you’ve all heard about the 4% rule for retirement planning. This rule is great for speculating your likelihood of success, but it isn’t always the best rule to follow in practice.  Druce Vertes at AdvisorPerspecives.com offers a different approach to implementing the original 4% Rule. On this episode of Retirement Starts Today, we’ll dive into his technical article which explores the idea of making the normally rigid 4% rule more flexible to maximize spending for different levels of risk aversion. I’m always looking for innovative ways to help you turn your retirement portfolio into income and that’s exactly what we’re exploring this week. Tune in to hear how to tweak the 4% rule and maximize your spending in retirement.  Outline of This Episode [2:52] Infinite risk aversion [9:04] Constant relative risk aversion [14:06] Thoughts on 401K rollovers What exactly is the 4% rule? The original 4% rule was theorized by Bill Bengen in the 1990s. This rule is handy for napkin math but doesn’t allow much fl

As you prepare yourself for retirement, you probably have a vision of your retired self traveling, spending more time on your hobbies, or with loved ones. Retirement will give you time for all that and more. I read an article recently that describes the 6 phases of retirement. I had never defined it that way before, but this was an interesting way to delineate a natural progression of this time period. Press play to learn what these 6 phases are.  Outline of This Episode [1:42] There are 6 identifiable phases in retirement [4:25] If you retire mid-year, is it better to reduce pretax and post-tax deductions? [7:06] What should we do if our RMD rules violate our safe spending rules? [11:04] What about using the 4% rule? The natural progression of retirement Have you ever thought about the natural phases of retirement? This week’s retirement headline is written by Andy Millard from AndyTheAdvisor.com. In the article, Andy mentions that much like the 5 stages of grief, retirement can also be broken into 6 ident

Have you ever considered going back to school? Early retirement can be a fantastic time to explore new learning opportunities.  In this episode of Retirement Starts Today, we’ll take a look at a Market Watch article that describes the burgeoning culture of adult learning for those at or near retirement age. We’ll continue by exploring many higher education programs across the United States that are aimed at people aged 50 and above. Make sure to stick around for the listener questions segment where I answer a question about using home equity as long-term care insurance. You’ll hear my opinion on the matter and learn how much home equity you may need to make this strategy work.  Outline of This Episode [1:36] It’s time to rebalance [4:22] Have you considered taking an adult gap year? [8:32] Real-world examples of retirement age students [12:51] Using your home’s equity as long term care insurance [17:19] How much home equity would you need? It’s time to rebalance We all know that the market has had an incred