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 buckets.  Time segmentation is a strategy to invest for retirement and emphasizes its role in aligning investments with the point in time when withdrawals are needed to meet retirement income needs. 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://redefiningwealth.info/schedule/  

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 different time frames and corresponding risk profiles, investors can balance the need for income today with the potential for growth in the future.   It is important to stay informed about market trends and adapt your retirement strategy accordingly. Market volatility and economic conditions will continue to change, requiring investors to explore alternative diversification strategies and consider new factors when constructing their portfolios. By staying proactive and working with a trusted financial advisor, individuals can navigate the complexities of retirement planning and retire with confidence.   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://redefiningwealth.info/schedule/

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 choices. As investors, we are bombarded with information and tools that promise to help us make the best financial decisions. However, this abundance of choices can complicate rather than simplify our decision-making process. It can lead to biases and traps that hinder us from making sound investment decisions. Let's explore some of these traps and how to avoid them. The first trap is inertia. When faced with too many choices, some investors choose to avoid making a decision altogether and do nothing. This can be detrimental to your financial well-being, as doing nothing is still a decision in itself. To overcome this trap, it's important to have a clear understanding of your goals and the purpose behind your investment decisions. By aligning your choices with your overall plan, you can overcome inertia and take action towards achieving your financial goals. The second trap is naive diversification. This occurs when investors spread their assets among all available investment options without considering their goals, asset allocation, or cost. Naive diversification can lead to a hodgepodge of investments that may not align with your risk profile or financial objectives. To avoid this trap, it's crucial to have a well-defined asset allocation strategy that separates your safe investments from your growth investments. This strategy should be based on your risk profile and long-term goals, rather than simply picking a little bit of everything. The third trap is opting for attention-grabbing investments. It's easy to get caught up in the latest buzz and choose investments based on what you recently saw on the news or heard from friends and family. However, this can lead to impulsive decisions and overspending on investments that may not be suitable for your unique situation. To avoid this trap, it's important to do your own research and seek advice from trusted sources. Look for content that is backed by reputable research and consider how the investment aligns with your overall plan and risk tolerance. To navigate through the jungle of choices and make the best financial decisions, it's important to start with a process. This process should involve unpacking the industry jargon and deciphering the content of the information presented to you. Look for trusted sources and limit the number of options available to you. Focus on a few top options that align with your goals and consider the full range of alternatives. By narrowing down your choices and understanding the purpose behind each investment, you can make informed decisions that are in line with your financial objectives. It's also important to have a strategy call with a financial advisor who can guide you through the decision-making process. A trusted advisor can help you unpack the information and provide you with a vetted selection of options that align with your goals and risk profile. They can also help you understand the implications and potential impact of each choice, ensuring that you are making decisions that are appropriate for your unique situation. In conclusion, choice overload can be overwhelming and lead to poor investment decisions. By starting with a process, understanding your goals, and seeking advice from trusted sources, you can navigate through the sea of choices and make informed decisions that align with your financial objectives. Remember to focus on the purpose behind each investment and consider the implications and potential impact on your overall plan. With the right guidance and a clear understanding of your goals, you can make the best financial decisions for a successful retirement. The future outlook for investors is promising, as technology continues to provide us with more tools and information to make informed decisions. However, it's important to stay grounded and focused on your goals. Don't get caught up in the hype or the latest buzz. Instead, rely on a well-defined process, trusted sources, and the guidance of a financial advisor to help you navigate through the choices and make the best financial decisions for your retirement. 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://redefiningwealth.info/schedule/

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 economy. This makes loans more expensive for businesses and consumers, leading to a reduction in borrowing and spending. The Fed funds rate, which is the rate at which commercial banks charge each other for short-term loans, has a direct impact on the cost of borrowing for individuals and businesses. ​ Higher interest rates can have a negative impact on the stock market, as businesses may amend or pause plans for growth due to the increased cost of borrowing. However, it is important to note that the relationship between interest rates and the stock market is not always straightforward. In some cases, rising rates can actually be a sign of a strong economy, which can be positive for stocks. ​​In light of the current interest rate environment, it is crucial to have a well-diversified portfolio that can weather different market conditions. This means having a mix of assets that can provide both growth and stability. One approach to achieving this is through the use of a bucket strategy. ​The bucket strategy involves dividing your savings into different buckets, each with a specific purpose and time horizon. The first bucket is for immediate cash needs and should be held in liquid accounts such as high-yield savings or money market accounts. The second bucket is for intermediate-term expenses and can be invested in low-risk assets such as bonds or CDs. The third bucket is for long-term growth and can be invested more aggressively in stocks or other higher-yield investments. ​By diversifying your portfolio in this way, you can take advantage of higher fixed rates for your liquid bucket while still having the potential for growth in your long-term bucket. This approach allows you to balance risk and reward and ensure that you have access to funds when you need them while also allowing your savings to grow over time. ​​In a rising interest rate environment, we also discuss alternatives to traditional bank products. One option is a Treasury Floating Rate Fund (T-Flo), which is a low-cost, fully liquid investment linked to U.S. government debt. These funds can provide a higher yield than traditional bank accounts while still offering the safety and security of U.S. Treasury bonds. ​Another option to consider is a Multi-Year Guaranteed Annuity (MYGA), which is a type of fixed annuity that offers a guaranteed interest rate for a set period of time. MYGAs can provide a stable source of retirement income and can be a good option for those looking for a higher interest rate than what is currently available in bank CDs. ​Structured notes are also worth exploring as a fixed alternative. These notes are linked to the performance of an underlying asset, such as a stock or index, and can provide a higher yield than traditional fixed-income investments.​ While it is impossible to predict the future direction of interest rates with certainty, there are a few key factors to consider. The Federal Reserve has indicated that it plans to continue raising rates in the coming months, although the pace of rate hikes may slow down. Additionally, inflation is currently at historically high levels but is expected to decline in the months ahead. ​It is important to stay informed and regularly review your portfolio allocation to ensure that it is aligned with your risk profile and financial goals. Working with a qualified financial advisor can help you navigate the changing interest rate environment and make informed decisions about your retirement savings. 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://redefiningwealth.info/schedule/

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 plunge the US economy into a recession and trigger layoffs. Inflation is another major concern for Americans, and rightly so. Despite some reports suggesting that inflation is easing, prices are still rising, albeit at a slower pace. The current core inflation rate stands at 3.2%, down from 6.5% in December 2022. However, this is still significantly higher than the Federal Reserve's target of 2%. It's important to note that we have embedded inflation that is here to stay, and we are currently experiencing 40-year highs in prices. The average American is spending 3.2% more on groceries and facing rising gas prices. If the Israel-Hamas war escalates and triggers a surge in oil prices, the situation could worsen. The Fed has been on a tightening cycle for the past 17 months, raising interest rates from 5.25% to 5.5%. They have hiked rates 11 times, the highest number in 40 years. The recent cool down in inflation has led to optimism in the markets, and it's highly unlikely that the Fed will start cutting rates anytime soon. They will likely stay the course and continue to monitor the situation. Given the uncertainty surrounding geopolitical events and their potential impact on the economy, it's crucial to have a comprehensive retirement plan in place. This plan should address future higher taxes, rising healthcare costs, and market volatility. It should also include a strategy for generating income that isn't at risk. Capital preservation should be a primary goal for retirees, as they no longer have the luxury of dollar-cost averaging through contributions to their retirement accounts. By segmenting their assets for growth and utilizing a range of investment tools, retirees can better weather market downturns and protect their nest egg. While we can't predict the future or control geopolitical events, we can take steps to protect our financial well-being. By staying informed, adjusting our plans as necessary, and working with a team of experts, we can navigate the uncertainties of the global landscape. It's important to remember that the past is not always an accurate predictor of the future, and each economic cycle is unique. However, by having a comprehensive retirement plan in place and being prepared for potential market downturns, we can better position ourselves for a secure and prosperous retirement. 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://redefiningwealth.info/schedule/

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 ensure that banks have the ability to meet the needs of depositors. However, if defaults occur, the BTFP could effectively become a form of quantitative easing. One of the key concerns with the BTFP is the potential for inflation and interest rate spikes. With inflation running at its highest levels since the 1980s, focusing on financial stability could risk creating further inflationary pressures. Additionally, the BTFP's valuation of collateral at par, regardless of the actual value, could lead to a significant deterioration in the value of long-term securities. Further, the BTFP raises questions about the need for such a massive backstop. While it was understandable during the financial crisis of 2008, the current economic climate doesn't seem to warrant such a program. The influx of liquidity through the BTFP, combined with the trillions of dollars printed during the pandemic, raises concerns about the long-term impact on the value of the dollar and the sustainability of our economy. The Federal Reserve's Bank Term Funding Program is a significant development in our financial landscape. While it may not be as well-known as quantitative easing, it has the potential to create new money and impact the value of long-term securities. As we move forward, it's crucial to keep a close eye on the implications of this program and its potential impact on inflation, interest rates, and the overall economy. By staying informed and working with a qualified financial advisor, you can navigate these uncertain times and make informed decisions about your retirement. Remember to consider all aspects of your financial life and ensure that your retirement plan is well-rounded and aligned with your goals. With careful planning and strategic decision-making, you can achieve the retirement lifestyle you've always imagined. 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://redefiningwealth.info/schedule/  

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 uncertainty about whether these measures will be effective. Fed Chair Powell acknowledges that there's still some mystery surrounding the matter.  The decision to raise interest rates can have significant implications for retirees and investors. Bonds, which are often a key component of retirement portfolios, are particularly sensitive to interest rate changes. When rates increase, the prices of existing bonds decline, as new bonds with higher interest rate payments become more appealing to investors. Bonds are having their own 2008. That doesn't mean you throw the baby out with the bathwater, as they say. Stocks really didn't do all that well last year either. And stocks are starting to come back again led by that magnificent seven. In light of the current market conditions and the potential impact of rising interest rates, it is crucial for retirees and investors to have a well-diversified portfolio and a risk management strategy in place. Traditional 60/40 portfolios may not be sufficient in navigating these complex market conditions. You have to have stop loss indicators that are designed with a goal to mitigate downside risk and remove that emotion from the investing process. Your static 60/40 portfolio doesn't do that. Your target date fund doesn't do that. Your 401K, your 403b, many of your mutual funds are not actively managed with those types of algorithms and proprietary intellectual property with rules to help navigate through different market cycles. When planning for retirement, it is essential to have a comprehensive income plan that takes into account the potential impact of interest rates and inflation. Relying solely on interest rates for generating income may not be sufficient. It is important to explore alternative options such as structured notes, index CDs, and annuities that can provide income guarantees and potentially higher returns. We are making our world-class CPA's available to you, even at this busy time of year.  You can call LS Wealth at 419-633-0955 or go to redefiningwealth.info. 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://redefiningwealth.info/schedule/  

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. Today, you'll also hear from one of my favorite money managers, Jay Pestrichelli, discussing how he's looking at investments in 2023. As always, it's important to have a solid income plan, addressing healthcare costs and taxes in retirement. Link: America in 2040 - Still a SuperPower? https://www.amazon.com/America-2040-Superpower-Pathway-Success/dp/1665500840 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://redefiningwealth.info/schedule/  

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 a couple of years ago, that opens more opportunities for investment outside of just the stock market. As always though, the very best thing you can do is work with a financial professional to create a plan that's individualized to your circumstances, like we do here at LS Wealth. Our contact info follows. 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://redefiningwealth.info/schedule/

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 direct ownership of the securities in your portfolio, which allows for more control over your investments and potentially better tax planning. This is especially valuable in the context of tax harvesting, where you can strategically sell assets to offset gains and minimize taxes. However, SMAs may not be suitable for every investor due to their higher entry requirements. Typically, SMAs require around $150,000 to $200,000 per sleeve of the portfolio. For those with smaller portfolios, a blend of SMAs and other investment options, like ETFs, can be an effective strategy to achieve diversification and control. We also touch upon the emotional aspect of investing. Emotional reactions to market news and events can lead to impulsive decisions that may harm your long-term returns. Having a well-thought-out investment strategy, as part of a comprehensive financial plan, can help you stay the course and avoid detrimental emotional reactions. Lastly, it's crucial to remember that investment decisions should align with your overall financial plan, which includes income planning, tax strategies, estate planning, and more. A holistic approach to financial planning, as encapsulated in our six-pillar Life Arc framework, can help you make informed decisions and work toward a more secure retirement. 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://redefiningwealth.info/schedule/  

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 traditional investments like stocks and bonds. Laura and Michael explore the benefits and drawbacks of real estate investing, acknowledging that every investment has its pros and cons. We emphasize the importance of viewing real estate as part of an overall investment portfolio and not in competition with other assets. We also touch on the tax advantages of real estate investing, such as 1031 exchanges, and the potential impact of changes in tax policies. One of the key takeaways from this discussion is that real estate can offer more control over your investments compared to traditional options. However, we challenge the idea that it's the only asset class that provides such control. Laura highlights the importance of choosing investments in companies that align with your values and have strong growth potential. We emphasize the need for a well-diversified portfolio that includes various asset classes. In addition to real estate, we close with another alternative asset class—options trading. Options can provide investors with a level of control over their investments while also serving as a form of insurance for their portfolios. We stress the importance of seeking expert guidance when considering options trading, as it requires specialized knowledge. In summary, this episode encourages you to evaluate your investments not just in terms of potential returns but also the "hassle factor." We believe in the power of diversification and the need to strike a balance between different asset classes to build a resilient and successful retirement portfolio. 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://redefiningwealth.info/schedule/

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 sole solution. There are potential benefits to using structured notes as part of a diversified investment strategy. Purpose-based allocation should be the priority, where different financial tools are used to address specific financial goals in retirement. Always seek professional advice and consider individual circumstances when making financial decisions. 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://redefiningwealth.info/schedule/  

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 tailored to each client's unique situation. The hosts offer complimentary strategy sessions for those seeking personalized financial guidance.   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://redefiningwealth.info/schedule/  

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 retirement plan and not the sole solution. They also mention the potential benefits of using structured notes as part of a diversified investment strategy. Purpose-based allocation should be the priority, where different financial tools are used to address specific financial goals in retirement. Always seek professional advice and consider their individual circumstances when making financial decisions. 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://redefiningwealth.info/schedule/  

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 retirement. It is important to stay informed, work with a team of professionals, and have a comprehensive retirement plan that addresses income, taxes, investments, and estate planning. 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://redefiningwealth.info/schedule/  

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 lswealthmanagement.com Schedule a Review: https://redefiningwealth.info/schedule/ Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 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/

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://redefiningwealth.info/schedule/ 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/   Timestamps (show notes): 0:00:49 Discussion on common portfolio mistakes 0:02:05 Portfolio sprawl and the importance of diversification 0:03:41 Redundant individual stock portfolios and the risks involved 0:05:59 The drawbacks of relying too heavily on mutual funds 0:07:51 The benefits of diversification and asset allocation 0:12:31 The impact of suboptimal asset location on taxes 0:18:39 The importance of dividing assets into income and growth 0:19:16 The need for a comprehensive retirement plan 0:26:45 The importance of tax alpha in retirement portfolios  

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 Connect: redefiningwealth.info lswealthmanagement.com Schedule a Review: https://redefiningwealth.info/schedule/

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 considerations for healthcare, estate planning, and rising taxes. Overall, the hosts provide valuable insights into the pitfalls of cookie-cutter portfolios and the importance of a tailored approach to retirement investing. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 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/

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 Blueprint Income Plan: https://redefiningwealth.info/schedule/   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/   Timestamps (show notes): 2:42 – Here's how RIAs are defined 5:00 – One of the big differences with LS Wealth Management 8:44 – Commissions 11:06 – How much do RIAs charge in fees? 14:27 – 3 planning options to choose from  19:39 – Why need you need strategies for taxation 24:41 – What is a fiduciary's responsibility   

Big tech has seen strong gains in 2023 and has outpaced most other sectors. In doing so, the S&P 500 has also performed well, but when you take away a handful of tech companies like Apple, Microsoft, Amazon, Meta and others, the S&P 500 is only up 2%. This is a great reminder of why overconcentration can hurt a portfolio. Being overweight in this tech position feels great when the market is doing really well because returns will be strong, but once we get a little turmoil and volatility, portfolios in that sector of the market really go down at that time. We're going to unpack this topic with Laura Stover, RFC® and Michael Wallin, CFP® on today's show and provide some context to this idea of stock market concentration. This will dovetail right into a discussion on true diversification because when you have your portfolio segmented appropriately, one down year won't determine the overall success of your investments. We'll take you through our process and break down the strategy of diversification that we adhere to. That will help keep you from worrying about the direction the market is headed and how top-heavy it's becoming.   Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/   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/   Timestamps (show notes): 6:00 – Large tech driving the gains in the S&P 500 9:53 – Why the dollars in the portfolio are the problem 11:28 – The gains are very modest for the majority of the S&P 500 15:29 – Resisting the temptation to chase the hot streak  21:58 – How to structure a portfolio for diversification

Every investor, whether you do it yourself or have professional help, needs to understand the fees they are paying because this is one of the most important factors attributing to investment performance overall. Fees can really eat into returns but they might also return better value than you would have achieved without the help. So let's unpack this idea a bit more with Laura Stover, RFC® and Michael Wallin, CFP® by taking a look at the most common fee structures you might pay a financial professional and the costs that often come with investing in certain products like mutual funds. The value you are achieving over the long run through various market conditions can help you make an assessment, but there are also many services that need to be accounted for when working with financial planners. We want to provide you with relevant information on the show today so that you can make smart financial decisions. We'll break down some of the numbers to give you a better idea of how to evaluate fees and share other considerations like revenue sharing and finding someone that aligns with your values and goals.   Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/   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/   Timestamps (show notes): 3:47 – Getting value for fee rendered 8:11 – Making sure clients know exactly what they're paying for 10:03 – Pay attention to this particular mutual fund 14:30 – The real cost of owning a mutual fund  23:05 – Revenue sharing 27:52 – Aligning with your goals and values  

No one can predict the future of finance, so how do you make sure your portfolio is able to withstand the inevitable swings in the market? The answer is through stress testing, which has proven to be a valuable tool in financial planning. In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will walk you through how a portfolio is stress tested and explain what it's trying to accomplish. The goal is to find out whether you have the most efficient portfolio possible that can give you the most amount of return, with the least amount of risk exposure, and we'll break down how that's done. The planning process is often more important than the plan itself and this is a key part of that process. By evaluating the different planning strategies and testing them against the stresses of the market, you're better able to segregate and segment the assets in your portfolio to provide the income, growth and other elements necessary for financial security. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 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/   Timestamps (show notes): 5:52 – What exactly is a stress test? 8:59 – How this ties into segmentation 15:42 – The importance of understanding your cash needs 19:59 – Running an analysis based on portfolio design 25:34 – Why planning is more important than the plan  

We're more than halfway through 2023 and we've already seen the impact SECURE Act 2.0 has on retirement planning. These first six months have given the financial industry time to identify some of the potential pitfalls that the legislation creates for retirees. In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will walk you through these key planning items that SECURE Act 2.0 made adjustments to help you identify areas where you might need to make changes of your own. The reason why these pitfalls exist is because they deal with major planning conversations like Roths, catch-up contributions, and required minimum distributions that are moving back again. All of these things can have a big impact on your long-term success, so we want to stay on top of it now. We'll cover all the significant changes you need to be aware of, but we'll also close out the conversation with insight into Social Security strategies and how to get the most out of your benefits in retirement. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 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/   Timestamps (show notes): 2:52 – Catch-up contributions with different tax implications starting in 2024 8:22 – Investing when your employer doesn't match contributions 10:44 – The RMD age moving once again and it impacts income planning 14:33 – The flexibility provided by a Roth 401k 17:29 – Other significant changes that you need to be aware of 20:09 – Using Social Security to work as an investment for you

Fiscally conscious investors want to get the most for their money, and when it comes to working with an advisor, it's important to understand the fee structure and what value they'll provide. Now that anyone can research and access information at the click of a mouse, this question is extremely important to ask.   With more than 50 years of experience combined, Laura Stover, RFC® and Michael Wallin, CFP® understand the industry and what it takes to provide financial guidance for people working towards retirement. Those relationships, experience, and opportunity to learn from others is a huge benefit to working with someone like Laura and Michael, which is part of what we want to discuss. In this episode, we're going to break down the reasons why advisors are worth the fees they charge and how to evaluate the benefits you're receiving. Returns are important, but the things that can't be calculated like discouraging market timing and helping you avoid panic selling are two of the critical benefits to having an advisor on your side. They'll also share some data to go along with these reasons to help paint the picture. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 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/   Timestamps (show notes): 5:21 – The two ways fees are determined based on investments 8:36 – Quantifying the impact of optimal planning decisions 11:58 – Bringing increased returns with less volatility by rebalancing 15:10 – Accessing the research that advisors do 20:19 – Helping with investment strategies 23:20 – Helping clients avoid panic selling 29:09 – Discouraging market timing 31:39 – Saving you significant money in taxes

Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio. We'd venture to guess that everyone who is listening to this podcast is very familiar with this concept, but it often gets confused with asset allocation. In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will unpack diversification on this show and do so using the analogy of ice cream. We all crave this balance within our investments but you don't want to over-indulge and reduce the effectiveness of what you're trying to accomplish. All investors have to accept the idea of risk regardless of how conservative their portfolio might be, so proper diversification can help prevent too much exposure to any single type of asset or risk. Find out if you're diversified and learn more about how we help build this into our clients' portfolios. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 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/   Timestamps (show notes): 5:42 – How do you know if you're diversified? 10:44 – Why a portfolio might not reflect the returns of the market. 14:53 – Reviewing portfolios and rebalancing investments 19:35 – Is the market the most efficient way to create income?  

We know there's always another market crash in the future, but should we be worried that it's happening soon? An economist named Henrik Zeberg thinks so. He expects a massive blow-off top for equities in near future, and his belief is that the stock market could be headed to one of its biggest crashes in the coming months because the strength of the dollar is on its way down. In this episode, Laura Stover, RFC® and Steve Rumsey, CIO of Optimus Advisory Group, will weigh in on this opinion and share their view on the current state of the dollar. How does it stack up against other currencies and is the fear warranted? We'll explore whether this is a realistic possibility or if this is just another exaggerated headline. The key, as always, is to have a balanced approach and that starts with a blueprint, a custom income plan utilizing our proprietary LifeArcPlan. We'll tell you more about how that's constructed so you don't fall into the same investor behavior patterns that produce negative results during a down market. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/   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/   Timestamps (show notes): 4:56 – What's our take on this opinion? 7:09 – Should we be concerned about the US dollar? 12:03 – Breaking down investor behavior 15:53 – Steve's research into the stock market & economy 19:15 – The market becoming more volatile? 25:04 – Is the debt ceiling a bigger concern?   29:12 – Strategies people can utilize for a market crash  

You'll never be able to predict the movement of the market but understanding the cycles will make you a better investor. The market goes through different phases and building out a purposeful portfolio will help you stick to your plan through the ups and downs. In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will breakdown a recent article about stock market cycles and how to approach your investments depending on what stage you're in. When you step into retirement, you shouldn't still be an active day trader or trying to time the market. By understanding the market and having the type of strategy, you'll be able to navigate those cycles better. Join us to get a better understanding of how we build a balanced portfolio that minimizes risk and employs strategic management, and learn more about how that approach evolves in retirement.   Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/   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/   Timestamps (show notes): 2:38 – Is the market up or down right now? 5:16 – Having the right time horizon for your investments 9:09 – The key to making money is minimizing losses and allowing profits to run 12:49 – The accumulation phase of the market 18:16 – Deciding which sectors to be invested in 25:58 – Purpose based allocation inside your portfolio 30:30 – Income planning becomes so important in retirement

Many times we find that retirees only look at that investment pillar with the traditional assets in mind. They focus only on investments and ignore critical areas that also need attention.   In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will break down an article on an area of diversification that could qualify for income planning, along with tax planning and estate planning. People can be closed minded to new ideas or non-traditional investments but we want to make sure that no option is left behind.   Today's discussion on life insurance and annuities could benefit you as a volatility buffer or with tax planning, so it's worth learning more about. The goal is to utilize a fully diversified portfolio and these tools might be part of constructing that during the Redefining Wealth® process.   Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/   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/   Timestamps (show notes): 4:13 – A little history on how retirement income has changed 7:54 – The tax component of this discussion 10:27 – How life insurance fits into a portfolio 14:25 – The modified endowment contract 17:36 – Why a fiduciary is so valuable in this process 23:32 – How the deferred income annuity could benefit you 26:24 – Utilizing a fully diversified portfolio.    

We all have our own savings goals and dreams of retirement, but difficult markets and high inflation can be quite discouraging. Sometimes it feels like you'll never achieve what you've hoped for. So what's the secret to building wealth and reaching those goals? In this episode, Laura Stover, RFC® is joined by Darlene Tucker, CFP® and Kyle Davis who will break down an article about a path to $10 million and what it takes to reach a milestone like that. For many people, that might seem completely unattainable, but there are steps you can take now to maximize growth and get the best returns on your money.    The key to building long term wealth is consistency, having a plan, and identifying a destination you want to achieve. The numbers show that over time if you have an average rate of return that you're comfortable with and a consistency in investments, the total returns emphatically produce favorable results. There will always be bumps in the road and issues to navigate, but with a good plan, you can overcome those things. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 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/   Timestamps (show notes): 6:13 – Inflation is top of mind right now 7:51 – Consistency and planning is key 11:06 – Start with process rather than product 14:09 – The magic of compounding interest 18:51 – Steps to take to reach that $10 million goal 22:17 – The value of having a quality team on your side 29:45 – Shifting your mindset as your approach retirement 33:04 – True planning gets into so much more than retirement accounts

Being flexible with spending absolutely matters in financial planning and it often gets overlooked when people step into retirement. Most people look at their budget and the assets that they've accumulated and that's where they stop. In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will examine an article by Dr. Wade Pfau that discusses variable spending strategies. Whether it's inflation-adjusted fixed percentage rule, floor and ceiling rule, the ratchet effect, or others, we'll provide a thorough explanation of most of the spending strategies included in the article, but we'll keep it high level to help you take away the important aspects from what we want to convey. This show might be a little more academic and in-depth than normal, but don't tune out because this conversation is critical for investing and distribution. As inflation continues at a high rate and the debt ceiling issues continue to linger, you want to make sure you retirement foundation is on solid ground with the proper income plan. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/   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/   Timestamps (show notes): 5:18 – ROI becomes reliability of income in retirement 7:25 – Constant inflation-adjusted spending 11:41 – Keeping your spending constant can increase risk 15:46 – Why you might shift more distribution into the early years of retirement 17:24 – The fixed percentage rule 21:50 – Why can't the government come up with a proper spending sstrategy? 28:29 – Income planning is the foundation of a purpose-based allocation    

Our relationship with money is much like the other emotional relationships we have in other parts of our lives. We tell ourselves we're done making the same types of mistakes but end up repeating those same behaviors the next time the situation arises. The same thing happens in terms of how we invest our dollars and how we act when the market isn't going up. In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will dive into a recent article that discusses the behavioral side of investing and share what they've seen from people as they navigate the rough economic waters we find ourselves in. They'll also talk about what's being done from the Fed to improve market conditions and whether a digitalization of money is coming soon. It's important to have a financial professional on your side to help you through the good times and the bad. Understanding how our behaviors play a role in our decisions will hopefully help you avoid repeating those same mistakes both now and in the future. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/   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/   Timestamps (show notes): 4:43 – What this week's article says about decisions 7:57 – Understanding portfolio losses 13:02 – Why we feel like ‘this time is different' 18:32 – The investing questions you need to ask yourself 19:27 – The steps the Fed is taking to ease inflation 24:48 – How soon will the digitalization of money happen? 29:45 – The role perception plays in our behavior

We work with people that have investing questions all the time but there are two that investors often boil it down to. They want to know how long they need to be invested to be sure they don't lose money and how long they need to stay invested to make sure they do better than an alternative investment. In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will explain how a successful investment plan has to get measured over the long term to truly evaluate how well it has done. As they discuss, you need to have a long enough duration to let the performance of the solutions you put in place, give you the outcomes you're looking for. So how do you do that? Let's take a look at the historical data and see what some of the bright financial minds have said. Then we'll talk through the key considerations when building an investment strategy that are aimed at success over the long term. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/   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/   Timestamps (show notes): 5:36 – How a random walk applies to long term investing 8:54 – Using a football analogy to show how this works 10:20 – What the data shows us 12:58 – Our view on long term investing and the bucket approach 16:07 – The other scenarios you have to consider 19:09 – Why 20 year periods are so important 27:28 – How important are fees? 29:16 – Finding your risk capacity

The market has shown some signs that it might be turning around, but we've seen quite a bit of up-and-down over the past few years. These fluctuations have created some nice gains at times for investors, but a lack of tax planning can keep you from maximizing your financial gains. In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will delve into the power of tax harvesting and the role it plays in creating a comprehensive tax plan. Throughout the show, they will explain how ex-dividend date, the wash rule, and tax thresholds work and why these things are important for making investment decisions. If you don't have a professional helping you with this, there are a number of potential pitfalls that we'll discuss today. Join us and discover how utilizing tax harvesting can be a powerful tool in your financial planning arsenal, allowing you to make the most of your income and helping you secure a comfortable retirement. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 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/ Timestamps (show notes): 2:09 – Is the market turning around? 6:24 – Repositioning assets for tax harvesting 10:37 – How does ex-dividend date fit into this? 13:30 – Understanding the wash rule 18:16 – Tips for avoiding tax thresholds.   25:42 – Expertise needed to execute tax harvesting effectively

A year like 2022 doesn't come around too often but those significant market corrections we saw in both equities and bonds made many people begin to wonder about the effectiveness of the traditional 60/40 investment mix. Some people are even saying that there is no longer a use for this portfolio structure. To truly evaluate whether that's accurate, you have to first understand how to build a proper investment strategy. In this episode, Laura Stover, RFC® and Michael Wallin, CFP® weigh in on this topic and share their insight on building investment plans. They discuss the limitations of the traditional 60/40 portfolio and how a more dynamic bucket approach can help you better navigate the constantly changing economy. There are many different tools to help you build the right portfolio, and we'll explain how the LifeArcPlan puts a process in place to help you determine what rate of return you need and how best to achieve that over time by blending tactical management with strategic management. Hopefully this show will give you a clearer picture of how and why a plan is constructed. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 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/   Timestamps (show notes): 4:46 – Why the conservative investor was down so much in 2022, 8:19 – People need purpose-based allocations 11:25 – Diversifying into different buckets of money 16:29 – Why was the 60/40 strategy created? 20:11 – Blending tactical management with strategic management 25:37 – Is the US Dollar getting devalued?  

The famous boxer Mike Tyson once said, “Everyone has a plan until they get punched in the mouth.” He meant it about his opponents, but we can apply that same idea to financial planning in the middle of a volatile market. How will you react when things first get difficult? Should you trust your instincts or stick to a well-defined process that you already put in place? In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will delve into the critical distinctions between risk tolerance and risk perception as it relates to investment strategies. They explore the role of emotions, information consumption, and self-awareness in making investment decisions, and offer valuable insights on creating a comprehensive retirement plan while avoiding common mistakes. Managing your portfolio through a volatile market all begins the process, and we'll give you insight into how our Redefining Wealth® process helps you build a plan that avoids these mistakes and helps to secure a stable future for you and your family.   Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/   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/   Timestamps (show notes): 5:28 – How do you react when the turbulence first begins? 11:13 – What is the difference between risk tolerance and risk perception? 20:47 – What's the best way to process all the information and how it applies to you? 25:33 – Putting a process in play and sticking to it.

Reaching retirement doesn't mean you can put your plan in cruise control because plenty of risks remain. One that all recent retirees are dealing with is the sequence of returns risk. This is an overlooked risk when someone is stepping into retirement that doesn't get nearly enough attention, in our opinion. The five years before and the first five years in retirement are the most critical because of the risk that comes from the order (or sequence) from which your investment returns occur. If the market declines a lot in the early years of retirement, your withdrawals could significantly reduce the longevity of the portfolio. In this episode, Laura Stover, RFC® and Darlene Tucker, CFP® will tackle this risk head-on and explain the impact it can have over the course of your retirement. Plus, they'll take you through some of the safeguards that can be put in place to protect you from the inevitable downturns in the market to ensure savings can last you throughout retirement.   Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/   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/   Timestamps (show notes): 4:06 – What is sequence of return risk and why is it important? 8:52 – What are some of the safeguards you can put in place? 14:57 – You can't just eliminate market risk altogether 22:11 – Average rate of return vs dollars in the portfolio 28:52 – Segregation of asset types is key  

For many people, the goal in life is to have enough wealth that you can pass it on to people or organizations you care most about, and your advisor should be a key partner in helping you with that estate planning. However, not every financial professional is equipped to help you secure your legacy and give you that peace of mind. In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will discuss the importance of estate planning and how to ensure your financial advisor is qualified to guide you through the process. Listen to their insights on the consequences of neglecting non-probate assets, the advantages of using a revocable living trust for your IRA, and how to determine the right trust structure for your unique situation. There's a lot of great information online to help guide you through this process but if you truly want protection for your estate, you need to make sure you have correct verbiage about how assets go in and when/if they can come out in the future and that's the role professionals play. Our goal is to help you build a plan that's effective and efficient, and we'll share how the LifeArcPlan is designed to help us do that. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 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/   Timestamps (show notes): 4:37 – Why the structure of an inheritance is so important. 8:28 – If you receive an inheritance, how do you approach that extra income from a tax standpoint? 12:19 – The benefits of putting a trust in place. 17:54 – Understanding the importance of beneficiaries. 22:32 – The different type of trusts and how they're structured.  

We spend most of our life saving and investing to accumulate as much wealth as possible before retirement, but there's not nearly as much thought and research given to how you take that money out once you're in retirement. Decumulation, in our mind, is one of the most important planning challenges because the fundamental nature of decumulation is much different from accumulating assets. In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will identify the four unique risks that decumulation presents in retirement: sequence of returns, longevity, taxes and spiking expenses. We'll take you through each of these individually and explain the potential problems that arise if you haven't planned for them. That's why we make sure our Redefining Wealth® process puts an income plan in place before you step into the decumulation stage. It's essential to do that before you transition because of these risks and the huge issues they pose. You also want to have the right balance between the different types of investment buckets and the right amount of liquidity in order as you build that plan, and you'll learn more about that in this show. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 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/   Timestamps (show notes): 3:28 – Why decumulation and accumulation are so different 7:24 – Sequence of return risk 12:14 – Longevity risk   14:47 – Tax risk 21:51 – Spiking expense risk

When things are down, everyone's risk profile gets much more conservative. Emotions shift as the market does, and we spend a lot of time consulting clients to help them keep balance. One of the products that we discuss more in this type of environment is the fixed index annuity, which people often love or hate. FIAs are designed as competition to banking products, and they're built to help make sure individuals are not in a position of losing value based upon market conditions. Right now, most people would love to see that hedge of protection around their principle. That's why we're focusing our attention on FIAs for this episode. Laura Stover, RFC® and Michael Wallin, CFP® will help you better understand the role these annuities play in a plan, how they help balance out a portfolio, and the impact market volatility has on this investment.   Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 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/   Timestamps (show notes): 4:24 – Is now the time with interest rates increasing? 8:40 – How bonds and FIAs fit in the same portfolio 13:33 – How volatility factors in to the FIA   18:05 – Floating rate funds 22:25 – Is this the year to add an FIA?

Americans have been falling behind on retirement planning for some time now, and the past two years have only increased the difficulty to save money and grow a nest egg. This recent trend emphasizes the importance of proper planning, and we want to share some of the best retirement strategies to consider in 2023. Much of what Laura Stover, RFC® and Michael Wallin, CFP® will discuss in this episode involves tax planning along with income and investment planning. Some of the planning items we'll cover are spousal IRAs, Roth IRAs, IULs, and strategies for small business owners, and all of these aim to benefit you over the long-term. As we'll explain throughout our discussion today, tax diversification is every bit as important as investment diversification. Understanding how to best utilize taxable, tax-deferred, and tax-free accounts to build that investment strategy likely will prove to be very beneficial in the years ahead. That's why take the team approach and rely on the strengths of multiple people to build the best plan for you. If you want to learn more, get in touch and start that conversation. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 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/   Timestamps (show notes): 3:36 – Taking advantage of the spousal IRA 5:55 – Weighing the tax benefits of a Roth IRA 12:39 – Consider funding an Indexed Universal Life (IUL) 16:04 – Tax diversification is so important 19:35 – Strategies for small business owners and those who are self-employed 21:45 – The Thrift Savings Plan for federal employees

If you go back to October of 2022, you'll find the worst 12-month period ever for bonds. With the pressure on the economy, bonds struggled right alongside many other investments. The last year showed us many investors move to bonds during periods of volatility, and many of those same people couldn't understand why bonds deteriorated and values declined. Just three years earlier in 2019, the bond market was king and returns were substantial. So these investments are typically thought of as safer, but as we've seen, that's not always true. In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will look at the recent history of bonds and help you better understand how they work and how they are utilized in a well-balanced financial portfolio. Plus, they'll share alternative investments that people might choose to reduce risk. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 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/   Timestamps (show notes): 3:54 – Bond returns over the past few years 6:02 – How to determine if bonds are a proper investment 11:16 – How bonds actually work 15:21 – Are we in a recession? 23:05 – Bonds as part of a well-balanced portfolio 27:47 – Investments that might be better for you

For the vast majority of retirees, there will come a time when the IRS comes calling and you're required to start taking money out of qualified retirement accounts. These required minimum distributions (RMDs) are a great planning opportunity and a chance to have some control over taxation, but you need to be prepared ahead of time. In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will get back to the basics and provide a great overview on how to plan for your first RMD. With SECURE 2.0 Act moving the age back to 73 this year, there's even more time to make planning decisions, like moving dollars into a Roth account.   When it comes time to start taking these RMDs, you'll need to consider the amount that's required for the year, which accounts you'll pull that from, and where you'll distribute the money to. Our Redefining Wealth®  process is strategic in how you approach each of these steps to help you get the most out of the money you've saved for retirement while limiting the taxes you're going to owe the IRS. Whether you're about to take your first RMD or have already started, understanding these strategies will help put you on the best path for retirement. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 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/   Timestamps (show notes): 7:17 – Strategies to consider ahead of RMDs. 11:32 – Determining which accounts to pull your RMDs from first. 13:43 – How do you actually take the distribution? 15:18 – Failing to take the RMD results in a costly penalty   19:54 – How this fits into your income plan.

It's that time of the year where taxes become top of mind as people look through income over the past year to get their filing in order, but taxes need to be at the forefront of your financial planning throughout the year. The problem is tax planning isn't simple. It takes years of experience and education to have a thorough grasp on what you owe, especially as your income sources expand.  We want to spend some time discussing taxable income on this episode to help you get a better understanding of what you'll be responsible for in retirement. Taxes come in many different forms in retirement and it takes more than just a yearly check-up to stay on top of what you owe. Laura Stover, RFC® and Michael Wallin, CFP® will take you through the different types of income sources and talk through some of the tools and strategies we utilize with our clients. Planning is a key pillar of Redefining Wealth® and something we should be mindful of on an ongoing basis. That's why we have a CPA on the team that helps with discussions around tax harvesting, life insurance, capital gains, Roth conversions and more. By prioritizing tax planning throughout the year, you'll be in a much stronger position financially in retirement and avoid a huge surprise each April. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/  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/  Timestamps (show notes): 5:48 – What is taxable income?  11:57 – How do you get more money in the tax-free bucket?  17:31 – Is it too late to make meaningful tax changes if you've already retired?  20:24 – How does the death of a spouse impact income and taxes?  24:37 – The tools we use for tax planning     

A declining market will make any retiree uncomfortable, and it could put your future in jeopardy if you haven't thought through your withdrawal strategy. Many retirees struggle to shift their mindset from accumulation to distribution so let's talk about how to determine how much you should be taking out of your accounts each year in retirement. In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will tell you what the data says and explain the considerations you need to make when structuring a retirement income plan. Maybe the biggest factor you'll face is sequence risk, which is the risk of encountering different market conditions early in retirement which puts a portfolio in jeopardy of not lasting a lifetime. Once you get into retirement, that sequence of return becomes very important because all that you built could go away just as fast depending on the timing of these withdrawals. Traditional financial strategies say a 4% withdrawal each year is safe, but how accurate is that? Last year's suggest rate had reduced to 3.3% but that has crept back up to 3.8% this year. These numbers might apply to you, but you won't know until you build a proper plan. It all starts with a framework and our LifeArcPlan works with clients to input their data to determine a safe withdrawal rate based on a number of factors. We'll take you through it all on this show to help you protect everything you've worked so hard to build. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/   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/   Timestamps (show notes): 3:19 – Why this topic is so important right now 6:45 – The silver lining for people about to retire 13:36 – How inflation is gobbling up returns 21:03 – Changing your mindset in retirement away from accumulation 25:33 – What you need to consider when building your plan

The recent passing of SECURE Act 2.0 brought about a long list of planning opportunities, but the change in age for required minimum distributions will give advisors a chance to think outside the box on RMD strategies. Now that the age has increased to 73, retirees and pre-retirees have even more time to evaluate options to start reducing retirement accounts in the most tax efficient way possible. Here's what you should be asking: what strategies can I put in place that allows my money to be working for me and eliminates my future taxation? In this episode, Laura Stover, RFC® and Michael Wallin, CFP® will share a few of the creative solutions that could be on the table for you. Taking a tax-proactive approach is one of the pillars of our Redefining Wealth® process and RMDs provide a great chance to accomplish that. Our tax team can provide a wonderful walk-through and help our clients evaluate ways to reduce these accounts down based on your goals and what you're trying to achieve. Let's use these SECURE Act 2.0 changes to jumpstart the discussion and help save you the most money possible over time. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 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/ Timestamps (show notes): 4:44 – Why the tax rates today might give you more reason to take out more. 6:56 – Taking control of your future taxation by pulling money out ahead of 73.   9:06 – Are pre-RMDs a good strategy? 15:36 – When should you consider a Roth conversion? 21:38 – Using Qualified charitable distributions to lower tax rates    

The start of 2023 brought us another round of retirement changes with SECURE Act 2.0 officially taking effect and there are a number of important provisions that retirees need to be aware of.  In this episode, Laura Stover, RFC® and Michael Wallin, CFP®  will take you through the changes they've identified as being most impactful for retirees and make sure you have a good understanding of what this means moving forward. SECURE Act 2.0 creates additional planning opportunities that you might want and they'll explain why.  If you haven't had the chance to look through this new legislation, make sure to listen in to find out more about what's changing for required minimum distributions, qualified charitable distributions, catch-up contributions, and more. We can't cover everything in this episode, but this should give you a great starting point for the next conversation with your advisor. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/   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/   Timestamps (show notes): 3:12 – The required minimum distribution age is moving back again.   7:54 – Catch-up provisions and inflation adjustments 11:04 – An extended RMD credit for qualified accounts 15:45 – Changes to qualified charitable distributions 21:22 – A new exception to the penalty for tax on qualified plan distribution   25:17 – Qualifying for a hardship distribution in retirement accounts

Investors use rate of return to make decisions and evaluate performance all the time, but they often get misled by the average return. With the market showing some positive signs to start the new year, this is a timely topic to discuss on the podcast and we'll do that by exploring a Kiplinger article about rate of return that we featured in our Weekend Brief.  Laura Stover, RFC® and Michael Wallin, CFP® will sort out the differences between the average and actual rate of return to make sure investors know which to use when building a properly diversified portfolio for retirement. It's not what happens in a short duration, short period of time that you need to focus on. Instead, you want to look at your average rate of return for an extended period. That way you can evaluate solutions during a down market that will help you get back on track for the rate of return necessary to make your plan successful. So we'll walk you through how we integrate rate of return into the Redefining Wealth® process and show you why the bucket strategy and time horizons also play a key role in determining your investment strategy.  Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/   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/   Timestamps (show notes): 5:32 – How is average rate of return calculated? 7:47 – Why average rate of return can be misleading for investing. 10:57 – Calculating actual rate of return 14:32 – Sequence of return risk 19:18 – Millenials have a different perspective 21:36 – Measuring your capacity for risk

Despite seeing a few positive days to begin the new year, investors are still in the midst of the longest bear market in nearly 15 years and plenty of economic doubt and uncertainty remains in 2023. This sustained bear market has made investors weary and wondering what they need to do to not only survive, but thrive in these difficult conditions.   Laura Stover, RFC® and Michael Wallin, CFP® will lay out a clearly defined checklist that any investor can follow to position their investments in the best way possible regardless of the current market movement. This structure and framework is core to the Redefining Wealth® planning system and we'll explain how it all fits into the bear market checklist.   Knowing your time horizons and focusing on the returns that you need to be successful is just a piece of the investment strategy you'll need to weather whatever this year brings, but knowing exactly how to structure your portfolio will help give you confidence in good times and bad.   Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/   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/   Timestamps (show notes):   6:58 – Reflecting back on 2022 12:06 – The segmentation of assets 16:32 – Make sure you're truly diversified 22:05 – Focus on the returns YOU need 25:32 – Investing for the long run.

No matter how experienced you are with money, there's always room to grow and learn. It's a characteristic you'll find in the most successful people, including one of the greatest investors of all time, Warren Buffett. Today's show will focus on the life and career of the man born in the years following the Great Depression, who displayed his entrepreneurial drive at an early age and turned that into one of the great American success stories.   So what can we learn from Buffett that anyone can apply to their own financial plan? Laura Stover, RFC® and Michael Wallin, CFP® will look back at the path Buffett has taken during his career and the characteristics that have made him so successful. The things he can teach us aren't just for the wealthiest investors. Buffett rose up through hard work and strict financial discipline to become what he is today, and that story can benefit us all.   As you'll learn, Buffett had a fierce desire for independence, and the method for that was money. He chased information and education from a young age and relied on experts to further his knowledge in the areas he was most interested in. That hunger for learning, coupled with his approach to investing that focused on value, compounding interest, and consistent returns, is a blueprint for success that we'll explore on this episode. Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/ 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/   Timestamps (show notes): 5:59 – Buffett's entrepreneurial pursuits started early 8:06 – It begins with the right mindset 13:44 – His obsession with reading and learning 21:55 – A story of racetrack betting that shows his diligence to be analytical   25:39 – Who was his financial role model? 32:19 – Summarizing the lessons learned  

The extended downturn in the market has given investors a chance to re-evaluate their portfolio and rethink the strategy that best fits their needs in retirement. Dividend-paying stocks are often a popular choice, especially in times like these, because they can help offset poor returns in a down year. One criteria to use when searching for a strong company is the dividend yield, which is how much a company pays out in dividends each year relative to its stock price. Where we want to help you out on this episode is by putting into perspective how this yield can be helpful for retirees because some companies offer high growth potential but pay out low dividends while other companies don't grow as quickly but pay higher dividends. The dividend ratio can help you understand what to expect from your investments so Laura Stover, RFC® and Michael Wallin, CFP® will make sure you have a good grasp on what this yield is and why it matters for your retirement.  We think there should be more than one way to garner income in retirement and these dividends could provide a nice compliment to your other income options. We'll take you through some of the considerations to make when building your stock basket because dividend yield in conjunction with a total return approach can create a strong investment position for your retirement.   Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/   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/   Timestamps (show notes):  2:45 – How dividends are often distributed. 5:13 – Understanding how dividend yields change based on stock price 8:14 – Putting together your stock basket 11:26 – Generating retirement income through dividends   14:06 – Top performing dividend yields 16:44 – How we structure a portfolio