Wise Money Retirement

One of the primary goals of retirement planning is to figure out how to use your retirement assets in the best way to generate the income you'll need after you stop working. But to do this, it is important to have a pretty good idea as to the amount of income you'll actually need. Estimating this is not a simple matter because there are so many things to consider. How much income will you need to pay your bills and essential living expenses? What amount do you want to spend for travel, pursuing hobbies and living your retirement dreams? How might your needs for income change over time as you age? What rate of inflation should you assume in your planning? These and other factors mean that the exact amount of income you'll want to try to plan for is not static. Instead, it's fluid and ever-changing. Therefore, establishing accurate future income targets is a complex, but necessary component to sound retirement income planning. A good financial advisor will typically spend hours, with the help of sophisticated computer programs to narrow all of this down to realistic lifetime income objectives. Once this is done, the planning job shifts to figuring out the best way to marshal all retirement assets so that they can produce this required income.   But there are many so-called professionals out there who will tell you that it's easy to cut through all this clutter and complexity by instead using a simple retirement rule of thumb. The advice is… “You'll need 70 to 80 percent of the income you made in your final years of employment in order to live a comfortable retirement.”  Well, that's easy enough.  Or is it?

There is a very definite and unbreakable connection between risk and reward. Choose a financial instrument that helps provide greater potential returns, and you inevitably increase the degree that your money will be subject to investment loss. If instead you chose safety and protection over growth, expect the compromise of lower rates of return. Many retirees become frustrated as they search for the “perfect” investment that breaks this rigid risk and reward connection. Any time you hear of people getting taken advantage of and becoming the targets of fraud and financial abuse, it is typically because they wanted to believe there is some magical way to get high returns with no risk. Unfortunately, such excellence does not exist in the world of investing. And the more a person searches for this false perfection and refuses to recognize the unyielding relationship between risk and reward, the harder it will be to achieve retirement security.

4 Steps to a Better Retirement Plan Do you have your retirement date set, or have you already retired? And how about your financial plan…. Do you have things squared away? Or are you still working on putting all the pieces together? Creating a financial plan for retirement can be a tough job. There are a lot of moving parts and a ton of uncertainty that you'll have to consider. We want to help you with some easy tips that you can follow to create a better retirement plan. These 4 areas of retirement planning are all areas that we see a certain level of misunderstanding. When we consult with clients and prospective clients each and every week, and in our daily discussions with retirees and pre-retirees, these are the areas that we see people simply get it wrong. So, today on the show we have identified 4 steps for you to take to make sure you create a better, more confident, financial plan! You still need a paycheck during retirement to live comfortably. Some people will have Social Security and/or a pension. But most people won't have enough of a paycheck to keep the same standard of living. And that group of people will be forced to take the supplemental income they need from their retirement savings nest egg. To understand your budget and income needs make sure your money is aligned with your objectives, and what your monthly income “shortfall” may be. Once you understand your shortfall and how much income your retirement savings nest egg needs to generate. Then create an effective income withdrawal and investment strategy. This is the monthly paycheck that you need still after your Social Security check and/or pension check comes in. If you still don't have enough monthly income after those income sources arrive because your budget calls for more, than you have a shortfall.

Strategic Roth IRA Conversion How would you like to switch your retirement savings to an account that grows tax-free?  You can make tax-free withdrawals from the account. And you can leave a tax-free inheritance to your heirs.  Right now, there are no restrictions on converting to this tax-free oasis. So, if you're considering a Roth IRA conversion you are going to want to think taxes. Like most people, your taxable income is fixed and tied directly to your paychecks. However, the day you retire those paychecks end.  But,  the degree of control you may have over your tax may improve.  Now you can  manage the amount of income you will have to report to Uncle Sam.  You'll have control other things that determine your taxable income. It's pretty much up to you as to how much money you withdraw each year from your retirement accounts. How to Decide? You decide if you want to start your Social Security benefits as early as age 62, or delay those benefits, and any associated taxes they might trigger. It's entirely up to you as to when you might sell any stocks in your brokerage account, taxed at lower capital gains tax rate, if you want more income.  Best of all, if you have some money in a Roth IRA, by now you may have fulfilled the requirements allowing you to take withdrawals … entirely free from income taxes. Any income that is tax-free will surely bring a tear to Uncle Sam's eye. Don't have a Roth IRA?  It may not be too late. In fact, those first five or so years after you stop working may be a great opportunity to convert some of the money in your taxable retirement accounts to a tax-free Roth. One very important thing to consider is that you'll have to pay tax on the money you convert. There's no free lunch here. Every tax dollar you are forced to pay now because of any conversion will certainly be painful, but just remember that paying this tax today could save you or your heirs many more tax dollars in the future. However, the day you retire and those paychecks end, the degree of control you may have over your taxes might improve dramatically. It's a great time for some advance planning because now you can better manage the amount of income you will have to report to Uncle Sam each time April 15th rolls around. You have control other many things that determine your taxable income. It's pretty much up to you as to how much money you withdraw each year from your retirement accounts. You decide if you want to start your Social Security benefits as early as age 62, or delay those benefits, and any associated taxes they might trigger. It's entirely up to you as to when you might sell any stocks in your brokerage account, taxed at lower capital gains tax rate, if you want more income.  Best of all, if you have some money in a Roth IRA, by now you may have fulfilled the requirements allowing you to take withdrawals … entirely free from income taxes. Any income that is tax-free will surely bring a tear to Uncle Sam's eye.   Don't have a Roth IRA?  It may not be too late. In fact, those first five or so years after you stop working may be a great opportunity to convert some of the money in your taxable retirement accounts to a tax-free Roth.

Don't Out Live Your Money With These Helpful Tips A common question people ask is, “Do I have enough to money to retire?” The subtext is, “Could I run out of money before I die?” It's only natural for a pre-retiree or someone who has just recently retired to wonder if they will make it through. I've never met anyone who told me that they wanted to become a burden to their children later in life. Or that they wanted to run out of money and live in poverty in the final days that they have left. If you want to make it all the way through retirement, make sure you develop a plan longevity risks. Today, we want to discuss some tips that could help you make sure you wont out live your money.  One of people's biggest fears is that they will run out of money before they die. It's really a normal fear, and for good reason. There are several risks that make the possibility that you will go through your entire life savings too quickly a reality. We have 4 tips to help people not out live their money. #1 - Be careful following the 4 Percent withdrawal rule This tip involves spending  money you have saved a lifetime for. Many retirees today might use Social Security and pensions supplemented with regular withdrawals from their savings. A strategy that many financial advisors tend to follow is called the “4 Percent withdrawal” rule. It was created over 20 years ago and says do not take out more than 4 percent of your saving out. However, the 4 Percent assumes that 50-75% of your savings are invested in stocks. Inflation could be higher than the 3 percent historical norm. Market performance could be poor.  You could also live longer than you thought you would, or you planned for.

When it comes to maximizing Social Security retirement benefits, Americans do a horrible job. It's been reported that only about 4% of retirees make the optimal Social Security claiming decision. This means that 96% percent of those heading into retirement end up losing a total of roughly $2.1 trillion dollars. 1. Each with their own set of intricate rules and confusing lingo. This leads to confusion and ultimately is one of the reasons why so many people make bad decisions regarding their benefits. With so much at stake it is important to take the time to understand how simple it can be to get all the benefits you are entitled to. Finke, J. F. and M. (2021, February 21). How to help clients maximize Social Security benefits. ThinkAdvisor. Retrieved December 9, 2021, from https://www.thinkadvisor.com/2021/02/21/how-to-help-clients-maximize-social-security-benefits/?slreturn=20211109102244.

When it comes to maximizing Social Security retirement benefits, Americans do a horrible job. It's been reported that only about 4% of retirees make the optimal Social Security claiming decision. This means that 96% percent of those heading into retirement end up losing a total of roughly $2.1 trillion dollars. Each with their own set of intricate rules and confusing lingo. This leads to confusion and ultimately is one of the reasons why so many people make bad decisions regarding their benefits. With so much at stake it is important to take the time to understand how simple it can be to get all the benefits you are entitled to.

Being “tax-wise” is no longer a concern for only the wealthy. Many people fear that increasing tax rates might be looming on the horizon. And, considering our country's spending and growing addiction to debt, this fear may be well-founded.  Developing a “tax-wise” retirement income strategy starts with understanding the principle of tax diversification and the advantages that can result when combined with a tax-efficient retirement income strategy.

Being “tax-wise” is no longer a concern for only the wealthy. Many people fear that increasing tax rates might be looming on the horizon. And, considering our country's spending and growing addiction to debt, this fear may be well-founded.  Developing a “tax-wise” retirement income strategy starts with understanding the principle of tax diversification and the advantages that can result when combined with a tax-efficient retirement income strategy.

If you are retiring soon or recently retired, it's time to shift the fundamental reasoning for how you invest your dollars. Up until now, you have been investing for two primary reasons, to save money and to grow money. Now it's time to shift that mentality into keeping as much of your money while you spend it. When we think about retirement and what you need to focus on with your money, three things come to mind, and we think that everyone in retirement needs at least these three things in their plan – Safety, Liquidity, and Growth Potential.

In recent years, there has been a huge push in the field of “behavioral finance.” That is, what types of behaviors do people and investors exhibit that can wreak havoc on one's portfolio. That's precisely what we want to talk about on the today's show, how to avoid poor behaviors when it comes to investing and handling your hard-earned money for retirement. We've got 4 behavioral problems people tend to run into!

Planning for major life events can be very exciting, but it can also be very stressful. Some of these events may include your big wedding day, having a child, starting a new job, buying a new home, retirement, maybe even setting up a family vacation. It's important to plan properly to be successful. Today, we want to clear the air and discuss how to avoid the common misconceptions that many people often make when planning for retirement.

Did you know that inflation affects every single dollar you save, no matter where it's invested? (even sitting in that coffee can in the backyard!) Inflation is when the value of a currency is falling, and consequently, the cost of goods and services is rising. We have no control over it, and it has a big impact on our finances, yet people do not think much of it as they prepare for retirement. So today we want to go over a few ways to prepare your retirement game plan for the possible blow of inflation.

If you are listening to this show then you are likely searching for an upper edge. What for exactly? Maybe with investments, or the market, or your own personal financial plan. Or maybe you are simply trying to learn some key information that you didn't know before with hopes that said information will help you have a better chance at success when it comes to your retirement. Retirement is a pretty big deal after all, and it makes sense to double or even triple check your plan. So, what is it that you don't already know that you should know? Are there any unknowns left out there that could impact your retirement life and your chances at success? Today's show uncovers some financial planning topics and keys that might give you the upper hand.

Here's the thing: We're all living longer than any generation before us, and those numbers are only rising. With medical advancements and technological achievements, our life expectancy has increased over the years where some can expect to spend potentially three to four decades in retirement. That's about as long as you've spent working to get to retirement. But it begs the question: How will I know if I've saved enough for retirement if I don't even know how long may I live? What will I do if I just run out of money at the age of 87? It's not like you can go back to work, nor should you! In today's show, we'll discuss five ways you can run out money in retirement, and how to avoid those mistakes from happening.

There is a theory that has been going around the financial industry as of late. It really isn't anything that's brand new or “state-of-the-art.” Honestly, it's more of a concept really. And that's what good retirement planning is all about – having a theory or a concept that you can follow, that you understand, that helps you allocate your investment dollars in a way that will work for you and your specific situation. The theory or concept we are referring to is the idea of asking yourself a question: “When it comes to your money and your investments, are you focusing your decision-making process on the retirement tools, or are you focusing on a retirement strategy?” They may seem like the same thing to you. They aren't. Think about a contractor. He has a tool belt that is full of tools. But not every job he takes requires him to use every tool in that tool belt. And your retirement strategy is no different. So, today we're going to help you understand the difference between retirement tools and retirement strategies, and hopefully how to go about developing the strategy that will help you and your family in your personal and unique situation.

We get the same question from our prospective clients a lot. “Do I have enough to retire?” It's a great question to be asking if you have aspirations to retire in the near future. The problem is that the media and the news can tend to lead you to believe that you need to focus primarily on how much you have saved for retirement, instead of what you actually need on a monthly basis to live comfortably. So, we want you to think in reverse. Today's show is all about the importance of having a solid retirement income budget. Sure, you have to save a good chunk of money, and we know that is important, too. However, if you don't have a proper handle on how much money it will take each and every month to live your life, you can get yourself into trouble. What is the best way to plan for your retirement budget? Let us help you determine just that!

By now you have probably figured out that we believe success in retirement is tied closely to your retirement income. Do you have a paycheck in retirement that you can rely on, like a pension? How about your Social Security check, does it pay you enough to live your life comfortably? If the answer is no, then you most certainly need to focus on positioning your retirement dollars properly to develop a regular paycheck through a normal systematic withdrawal. But, what's the best way to do it? Should you take a chance with the stock market and see if the money lasts as long as you do? Or, should you help protect the money and buy an annuity or CD? Today, we want to talk about the importance of making sure you have a plan for how the income will continue to roll in during retirement. In reality, diversifying your income sources is probably in your best interests.

When it comes to a well funded retirement you need a strategy that build your assets at the same time it helps to protect them against taxes, inflation, and the general costs of living. Roland goes over the different ways these can cut into your carefully accumulated savings.

You know, there is a key element of investing that NO ONE seems to be talking about, and how that element plays a BIG role in investing successfully. Roland and Lindsay discuss how identifying this element in your plan is crucial to helping invest successfully.

When trying to grow your overall wealth, investing is arguably one of the best ways to reach those goals. At Roland Financial we passionately believe that women should be investing, and this episode talks about why we believe that.

Sure, you've heard of dividend paying stocks and possibly that they can create passive income, but, how? Roland dives into this topic to help you understand how these can become another stream of income for you especially during retirement

There has been a lot of discussion recently about rising inflation, but even at low rates, can secretly eat away at your carefully accumulated retirement savings. Roland shares some way to help avoid inflation creeping up on your retirement nest egg.

If the current climate has you thinking about retiring early, this episode will help you answer three important questions related to early retirement. 

There are a TON of questions you might have while trying to find the right financial professional. Leah and Roland go over the most common questions they hear from clients

Leah and Roland discuss some habits you should consider eliminating. Mindless spending, paying for subscriptions you don’t use or when was the last time you calculated all the money you spend on eating out? Find out how breaking these financial habits could set you ahead for your financial future.

Do you know how taxes could affect your retirement income, possibly including your Social Security and 401k & IRA withdrawals? Leah and Roland discuss how to calculate your tax rate and to be aware of your tax burden in retirement.

Do you know how taxes could affect your retirement income, possibly including your Social Security and 401k & IRA withdrawals? Leah and Roland discuss how to calculate your tax rate and to be aware of your tax burden in retirement.

Once I retire, I can stop investing…I’ll help my kids pay for college before I retire…No one really retires anymore…Roland and Leah cover how we tend to tell ourselves sweet little lies like these and how we can avoid falling for them, once we understand where they come from.

I’ll spend less when I retire…My taxes will be lower when I retire….What’s the point, I’ll never be able to retire… Roland and Leah cover how we tend to tell ourselves sweet little lies like these and how we can avoid falling for them, once we understand where they come from.

With the possibilities of too much debt, little savings, or stalled wages, Americans fall victim to retirement crises every day. The following statistics may scare you into jumpstarting your financial future. 

There are plenty of good retirement options out there, but sticking to a single plan won’t help you achieve your goals. Here are 9 Options to help Fund Your Retirement

Retirement may come with a few questions, like “How much money do I need to retire?” or “How will I pay for Medical Expenses in Retirement?”. Roland and Leah go over these questions and more to help you understand what kind of retirement YOU can have!

When planning for retirement, many people express concerns about affording healthcare, but too few are actually making plans to cover their costs. Most don't understand how to make these plans, or even how to estimate the money they'll need for care.

At some point, you get to a spot where your financial planning might need to shift a little bit.  We believe this is when you begin seeing retirement in your near future. But what does that look like?

10 steps that can help you map out what you might need, both financially and emotionally, to increase your chances of being happy when you retire.

Ready for Retirement 101?  These are the top 8 questions you need to ask to help you attract the retirement you really want! 

Making good financial decisions isn't just about providing for the distant future; it's about cutting down on the very concerns you feel each day. To help you get in control of your finances, this podcast discusses 10 potentially avoidable mistakes you could avoid.

Counting down to retirement? Learn what you can do in your last five years working to help make your retirement exciting and rewarding.

What little expenses are hiding in your monthly budget? Children's bills? Unused services? Find more ways to cut fat from your budget this week on the Wise Money Podcast.

How much money will you need to live comfortably in retirement? More seniors are declaring bankruptcy; Why? Key benefits you need to know for planning ahead for retirement?

This episode focuses on: Improving confidence in saving for your retirement. Learning how to generate guaranteed lifetime income. Uncovering and avoid money pits after you’ve stopped working