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THE WARMUP

Do you know the seven deadly sins when it comes to planning for retirement? These can all be killers if you don’t address them now with your financial planner. Bob and Ryan talk through the deadly sins and undress another example of obscene financial propaganda from the news headlines.

THE WORKOUT

[1:23] Not saving enough or anything at all

  • Regardless of your generation and retirement timeline this will come back to get you.
  • People are living longer, so saving is critical.
  • Save in your 401(k), IRA, and personal accounts.

[2:24] Draining retirement savings

  • You might want to take a lump sum of money out of your accounts, but taking out large chunks of your retirement savings is a killer (if it’s not for actual retirement purposes).
  • You need to stick to your financial plan every year and embrace spending discipline.

[3:20] Not calculating retirement savings

  • Make sure your financial advisor is actually a certified financial planner, not a salesperson.
  • Put your goals in place now, it’s never too early.

[4:06] Underestimating healthcare costs

  • You’re going to need somewhere between a quarter to a half million dollars to cover healthcare related expenses.

[4:49] Ignoring long-term care costs

  • Most think Medicare will cover them, but it doesn’t.
  • You should look into insurance or using your plan to creatively cover the need. There are multiple options to explore.

[5:29] Mishandling retirement date

  • A lot of people think they can work forever.
  • The company might not need your services anymore.
  • Only about 10 percent of people who plan to work past 70 actually do it.
  • Have a date you can financially retire even if you want to keep working.

[6:14] Not setting affairs in order

  • This is not just about when you die and leaving a spouse behind.
  • Look at your family history in case you may have a diminished capacity mentally.
  • Update your legal documents, even if it was only a few years ago.

[10:09] Financial Propaganda: Time to sell?

  • There are a lot of articles out there about how scary the stock market is and that we’re dangerously close to a classic sell signal.
  • According to the article, if the 200-day moving average drops below a certain line you should sell everything.
  • If you used this formula, then in 2014 you would have sold and lost out on a lot later.
  • You get paid to wait for the market to get to an all-time high.

[13:13] Financial Propaganda: Bonds

  • Some investors are seeking savings in bonds.
  • Interest rates are going lower. Is that a dangerous sign for the market?
  • You want to make sure to meet with an advisor to set up bond investments correctly.
  • You want a fixed stream of income in retirement, but bonds are not fixed.

[18:48] Spotlight: Breaking Down A Real Person’s Financial Plan

  • Courtney Dominguez joins the show to talk about a real financial plan and its pain points.
  • Recently retired clients were concerned with their portfolio’s performance in the S&P 500.
  • They had a lot of hidden fees eating away at their returns.
  • Bob shares a story about how one of his neighbors experienced a similar issue
  • Annuities came up during the review. A good rule of thumb with an annuity is: whatever they give you, you always give something up.Courtney’s clients had a lot of current expenses covered by income sources however one of those income sources was going to end in three years.
  • It’s important to sit down with a Certified Financial Planner to make sure there is not an income gap.
  • Income streams will not typically keep up with inflation, which is one of your biggest risks in retirement.

FEATURED QUOTE

“ Investing is part art, part science. It just can’t be based on past performance and what something has done before. There are opportunities every single day in the market.” – No Payne No Gain Podcast

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