Retirement Talk Radio's Podcast

Laura Stover, RFC® discusses the concept of time segmentation and its application in allocating retirement savings for a stable income during retirement. Time segmentation involves matching investments with the point in time when they will be needed to meet retirement income needs. This strategy provides clarity, comfort, and control over retirement income and helps mitigate the effects of market volatility. We cover the four buckets of money in a time segmented approach and emphasize the importance of purpose-based allocation. The benefits of time segmentation include flexibility, optionality, and reduced risk capacity.  It’s important to work with an income specialist to determine the best strategy for individual retirement goals. Key takeaways include the significance of purpose-based allocation, the four buckets of money in a time segmented approach, and the potential benefits of time segmentation in reducing the impact of market volatility and providing flexibility and optionality to long-term growth buc

Simple diversification used to be the go-to plan for a typical portfolio. A balanced plan of stocks, bonds, and cash would simply do the trick. But that type of diversification has been proven less effective in recent years with the abundance of market volatility. Today, Laura Stover, RFC® takes on financial guru Dave Ramsey’s version of a Safe withdrawal rule.    As we approach retirement, our priorities begin to shift. While we still want to grow our money and stay ahead of inflation, protecting what we've accumulated and generating income become top priorities. Traditional diversification, which involves a mix of stocks, bonds, and cash, has proven less effective in recent years due to increased market volatility. A major risk retirees face is having a big market pullback at the same time they're withdrawing their retirement paycheck. This can lead to a negative sequence of returns To mitigate this risk, it is essential to divide assets among different baskets or segments. By separating assets into differe

Today Laura Stover, RFC®  explores the concept of choice overload and how it can affect your investment behavior and retirement planning. With so many options and information available to us, it's easy to feel overwhelmed and unsure of the best path to take. But today we will provide you with tips and insights to help you navigate through this sea of choices and make informed decisions that align with your goals and aspirations. Having more choices does not always translate to better decisions. In fact, research has shown that too many options can lead to decision paralysis or option paralysis. When faced with a multitude of choices, we tend to become indecisive and unsure of which path to take. This phenomenon has been observed in studies conducted by Stanford University, where researchers found that customers were more likely to make a purchase when presented with a limited selection of options compared to an extensive selection. Humans are simply not good at making decisions when they are overwhelmed with

Laura Stover, RFC®, takes on the topic of interest rates today, and how they relate to your financial future. It is important to consider the historical context of interest rates. Over the past few decades, interest rates have been kept artificially low by central banks around the world. This was done in an effort to stimulate economic growth and prevent deflation. However, it was only a matter of time before rates began to rise. ​ If we look back to the 1970s, interest rates were much higher than they are today, even 19% at one point. This was a period of high inflation and economic instability, and the Fed's actions were aimed at cooling down the economy and reducing inflationary pressure. ​ In comparison, the current interest rates are still relatively low. While they may feel high for those who have only experienced the last 20 years of low rates, they are nowhere near the levels seen in the past.  ​ When the Federal Reserve raises interest rates, it aims to increase the cost of credit throughout the econ

Laura Stover, RFC® looks at the ongoing Israel-Hamas war and how it might affect interest rates and your financial future.. With ongoing uncertainty about the economy, wars in Europe and the Middle East, and protests at home, it's no wonder that Americans are taking a closer look at their financial plans. In particular, we will explore the potential impact of the Israel-Hamas war on the US, the implications for interest rates, and the threat of inflation. So, let's dive in and unpack these important topics. One of the biggest questions on everyone's mind is how the escalation of the Israel-Hamas war could affect the US. Could it lead to a wider regional conflict? And what would be the consequences for the US economy? If the conflict deepens and other players such as Hezbollah and Iran become involved, it could send oil prices soaring. This, in turn, would lead to higher costs for gasoline and consumer products that rely on diesel and jet fuel for transport. The fear is that this surge in inflation could plung

Laura Stover, RFC® discusses the Federal Reserve's Bank Term Funding Program (BTFP) today, a topic that is often overlooked but has significant implications for our economy.This program, which was introduced in response to the failures of banks earlier this year, has the potential to create new money and impact the value of long-term securities. Let's dive deeper into this issue and explore its implications. To understand the BTFP, we first need to differentiate it from quantitative easing (QE). QE is a Fed open market operation that involves buying bonds out of the market to ease monetary conditions. On the other hand, the BTFP is a credit facility that allows bondholders to use their bonds as collateral for a loan. While both tools aim to add liquidity to the system, the BTFP specifically targets bondholders with heavy capital losses. The BTFP is essentially a generous version of the old discount window, providing a direct loan from the Federal Reserve to banks. This program aims to prevent market panic and

Laura Stover, RFC® is discussing the recent decision by the Federal Reserve to leave interest rates unchanged and the potential implications for retirees and investors. We will also explore the ongoing efforts by the Fed to combat inflation and the impact it may have on the economy. The Federal Reserve recently announced that it would be keeping interest rates unchanged at its October meeting. While the market initially responded favorably to this decision, there is still uncertainty about the possibility of rate hikes in the future. The Fed will meet again in December, and if inflation remains high, there is a chance that rates may be raised. This week’s featured article from The Washington Post titled "The Fed is Still Pushing to Get Inflation Down. Do People Feel it?" highlights the ongoing efforts by the Federal Reserve to control inflation. The Fed has been raising interest rates in an attempt to cool down an overheating economy and bring inflation back to its target of 2%. However, there is still uncert

Laura Stover, RFC is solo today for a special episode as we cover this week’s featured article from Kiplinger “Consistency Is the Key to Investing When You're Retired.”  We need to focus on consistent returns rather than average returns or market fluctuations. While volatility may be advantageous during the accumulation phase, it can be detrimental to retirees who rely on their investments for income. We also are covering ongoing news events, such as the Israel-Mideast situation andthe debt ceiling.  What effects could these events have on investing and retirement? As always, it’s important to use non-correlated strategies and options to hedge against volatility and manage risk.  We hear from other financial authorities in today’s show, including David Walker, the seventh comptroller general of the United States.  His book questions whether we will still be a superpower by 2040, and he outlines several things he believes the US Government should do, especially as it relates to the ever-growing debt ceiling. T

Laura Stover, RFC® is joined by guest co-host Darlene Tucker, CFP® today. This week’s weekend brief comes from Forbes:  “5 Predictions For An Economic ‘Soft Landing’ That Were Totally Wrong.”  With a lot of uncertainty in the world, and now 2 wars going on, investors are asking what that means for their futures.  Are we in for a soft landing?  Before we answer that, Darlene and I look at some history - 5 times that media called for a soft landing, but got it totally wrong.  This happened in 1973, 1980, 1981-1982,  1989-1991, and of course in 2007-2009.   In each one of these examples, the “landing” was anything but soft. Of course, past performance does not guarantee future results.  But while some analysts are calling for a soft landing now, in late 2023, there are steps you can take to protect your portfolio and your retirement future.  Much of America’s debt is in credit cards.  Darlene reminds us that taking a good hard look at our spending habits can be helpful.   And with interest rates higher than just

In this week’s  Retirement Talk podcast, with Laura Stover, RFC®, and Michael Wallin, CFP®, we delve into the major advantages of separately managed accounts (SMAs), a topic that doesn't often make its way into the podcasting world. SMAs can be a game-changer for those nearing retirement or already in retirement. SMAs offer direct ownership of investments, reduced transaction costs, and the potential for tax harvesting. These benefits set them apart from traditional mutual funds or ETFs, which are more commonly discussed in the financial world. Mutual funds, for example, are essentially a pool of investments shared among many investors, often with low minimum investment requirements. While they offer diversification, they lack individual control over the underlying assets. ETFs, on the other hand, are a hybrid of mutual funds with lower costs but less active management. The key distinction with SMAs is that they provide personalized investment options tailored to your specific goals and preferences. You have

Laura Stover, RFC®, and Michael Wallin, CFP®, discuss this week’s featured article from the weekend brief: "Investment Trade Offs: Why You Should Know Your Return on the Hassle Spectrum."  It's a critical consideration for investors, especially in today's financial landscape. We discuss the fascinating story about a couple who decided to invest in real estate back in 2018. They were making around $2,500 a month from their investment property. While that might not sound bad, it came with a price—late-night calls, maintenance, dealing with tenants, and taking on additional debt. The pivotal question is: Is it worth the hassle when you evaluate the return on investment? This concept, known as "Return on Hassle," urges us to consider not just the expected return from an investment but also the time, effort, and work associated with it. In the case of real estate, it encompasses finding tenants, property maintenance, dealing with debt, and other tasks that are often seen as "hassles" when compared to more traditio

Today, Laura Stover, RFC® and Michael Wallin, CFP® discuss the importance of planning for retirement income and the role of annuities in retirement planning. They start by emphasizing the significance of having a solid plan in place, especially in the face of economic uncertainties like the pandemic, supply chain disruptions, inflation, and market corrections. Over one-third of Americans over the age of 50 regret not having a lifetime income source, as revealed by a recent survey.  We highlight the role of annuities in providing structured, guaranteed income during retirement and stress the need to identify the right annuity product for one's specific situation. Annuities are designed for income purposes rather than accumulation, which makes it important to choose a reputable insurance company. Laura and Michael discuss various types of annuities, including multi-year guaranteed annuities and fixed indexed annuities. They emphasize that annuities should be a part of a comprehensive retirement plan and not the

In this episode of Retirement Talk: The Redefining Wealth Show, Laura Stover, RFC® and Michael Wallin, CFP® delve into what clients value most in a financial advisor. They emphasize the importance of effective communication between clients and advisors and the need for a well-defined process that aligns discussions with clients' long-term goals. They also discuss the significance of a seasoned financial advisor with a broad spectrum of knowledge and a team approach to address various financial needs.  The episode highlights the value of behavioral finance in helping clients make informed decisions, particularly in uncertain market conditions. Additionally, the hosts touch on the advantages of working with independent advisors who prioritize clients' interests and provide objective advice.  We spend a few minutes revisiting last week’s topic, annuities, and why it’s important to have a team in place to help you navigate this complex area. The episode underscores the importance of a comprehensive financial plan

Today, Laura Stover, RFC® and Michael Wallin, CFP® discuss the importance of planning for retirement income and the role of annuities in retirement planning. They start by emphasizing the significance of having a solid plan in place, especially in the face of economic uncertainties like the pandemic, supply chain disruptions, inflation, and market corrections. They mention that over one-third of Americans over the age of 50 regret not having a lifetime income source, as revealed by a recent survey.  We highlight the role of annuities in providing structured, guaranteed income during retirement. They stress the need to identify the right annuity product for one's specific situation, and how annuities are designed for income purposes rather than accumulation. It’s important to choose a reputable insurance company. Laura and Michael discuss various types of annuities, including multi-year guaranteed annuities and fixed indexed annuities. They emphasize that annuities should be a part of a comprehensive retiremen

Laura Stover, RFC® and Michael Wallin, CFP® discuss the Baby Boomer Dilemma documentary and its implications for pre-retirees and retirees. The film talks about many topics we routinely cover on the show- the growing national debt crisis, the potential for higher tax rates in the future, and the need for proactive tax planning. The national debt has exceeded $32 trillion and is expected to rise further, potentially leading to higher tax rates in the future. Effective tax rates for Americans could reach 45% by 2030, according to predictions by experts. We also cover the current state of the economy and the possibility of a recession in 2024. The market is currently experiencing a recovery, but there are concerns about a potential recession next year. It is crucial to have  a well-diversified tax plan that includes a mix of deferred, tax-free, and taxable accounts to optimize retirement income  Roth conversions can be a valuable strategy to take advantage of current lower tax rates and create tax-free income in

Laura Stover, RFC® and Michael Wallin, CFP® discuss why 1966 was the worst year to retire and why it matters in 2023. They explore the market downturn in 1966 and its impact on retirees, as well as the similarities and differences between that time period and the current economic climate. The market downturn in 1966 was a harbinger for difficult times ahead, with inflation and recessions following in the years to come. The current economic climate has similarities to 1966, with factors such as civil unrest, war, supply chain issues, and a contracting labor force. The lack of pensions for retirees today makes them more vulnerable to market volatility and the need for a solid income plan. Stress testing and having a diversified investment strategy can help retirees navigate uncertain times and increase their probability of success. Rate, Review and Subscribe to the Podcast: https://podcasts.apple.com/us/podcast/retirement-talk-podcast-with-laura-stover/id571347188 How to Connect: redefiningwealth.info lswealth

Investors often underestimate the risk in their portfolio.  Today, Laura Stover and Michael Wallin break down 5 common portfolio mistakes, as outlined by Christine Benz in Morningstar.  They are portfolio sprawl, when your assets often overlap and have too high a correlation A redundant individual stock portfolio can be risky as well. For example, if you are overly weighted in tech stocks, what happens if there is a chip shortage? Other risks include also-ran mutual funds, asset allocation not formed by the plan, and suboptimal asset allocation. It is crucially important to develop a plan that works for your individual situation, and stick to it.  This includes modifying your portfolio when necessary. Rate, Review and Subscribe to the Podcast: https://podcasts.apple.com/us/podcast/retirement-talk-podcast-with-laura-stover/id571347188 How to Connect: redefiningwealth.info lswealthmanagement.com Schedule a Review: https://redefiningwealth.info/schedule/ Redefining Wealth® Custom Blueprint Income Plan: https://

Retirement planning involves mitigating risk and understanding the various risks that retirees face. Laura Stover and Michael Wallin break down these risks today, including reduced earnings capacity, visible spending constraint, heightened investment risk, unknown longevity, spending shocks, compounding inflation, and declining cognitive abilities. It is important to have a comprehensive retirement plan that addresses these risks and provides a reliable income stream. Retirees must also be aware of the sequence of return risk, which can deplete wealth rapidly if negative returns occur early in retirement. Compounding interest can be a great way to grow your nest egg, but triple compounding in reverse can have a significant impact on retirement income. Reliability of income is crucial in retirement, and a solid plan is necessary to ensure a comfortable retirement. Rate, Review and Subscribe to the Podcast: https://podcasts.apple.com/us/podcast/retirement-talk-podcast-with-laura-stover/id571347188   How to Con

In this episode, Laura Stover and Michael Wallen discuss the concept of a cookie-cutter retirement portfolio and its implications for retirees. They start by addressing the recent news of the US being downgraded due to its high debt levels. They explain how the ability to pay off debt and the impact of rising interest rates can affect the economy and investors. The hosts then delve into the topic of cookie-cutter portfolios, which refers to a one-size-fits-all approach to investing. They highlight the limitations of such portfolios, especially for retirees who have different risk profiles and income needs. They emphasize the importance of customization and diversification in investment strategies, as well as the need for adaptability in changing market conditions. Laura and Michael also discuss the benefits of working with a financial advisor who can provide personalized advice and access to a wide range of investment options. They stress the importance of having a well-rounded retirement plan that includes c

Once you make the decision to take the next step toward ensuring a solid financial future, the next is who you should work with. There are all types of financial professionals that provide a variety of services, and one that we get asked about is the registered investment advisor or RIA. Are they an individual financial advisor or is it a company? In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will provide some clarification as to the role an RIA plays in financial planning and uncover why these differences between professionals may be important to you. By understanding and recognizing the type of advisor that’s going to fit your needs, you’ll have the confidence to trust the process and work toward your financial goals. This will be one of the most crucial decisions you’ll make regarding your money so knowing what an RIA is and how that differs from a CFP®, CPA, broker, insurance agent and others will arm you with the knowledge you need to choose what’s best for you. Redefining Wealth® Custom B