Oct 12, 2018
Today, you will learn about the questions people have when they
are forced to retire and the three emotions that can affect
financial planning greed, fear, and hope. We also talk about
Main Questions Asked:
How to prevent my emotions from getting in the way of proper
Should I accept a buyout or take my pension in one lump sum?
Key Lessons Learned:
In the News
- Whenever there's a natural disaster there's a whole lot of bad
actors who come in and take advantage of people. We hope people
affected by Hurricane Florence aren’t being taken advantage of by
shady characters or price gouging.
- Young people think older folks took Facebook away from them,
and that's why they are doing Instagram and other social media
platforms. Facebook has been a wonderful tool for grandparents to
stay in touch and track what's going on in the lives of their kids
- However, there was a data breach of 50 million profiles. You
need to be careful if you use Facebook as a login for other
accounts. It's a good idea to use some type of service like
LifeLock, so you know if there is a breach of your
People Who Are Being Forced Into Retirement
Joel wrote Forced
to Retire, and it addresses this group of folks. This book will
tell you the 7 things you need to figure out to make sure that you
are on a proper financial footing for the rest of your life.
Questions People Have and How to Get to the Answer When
Forced to Retire
- Should I accept a retirement buyout offer? Pretend money is not
an issue and think about what you would want to do. Do you enjoy
going to work? Do you feel like it's a big part of your life?
Removing money from the situation can help you decide if a
retirement buyout offer is for you. You also need to do an income
analysis to make sure that you will be okay if you do retire today.
You need to have enough money to cover all your needs for the rest
of your life.
- Should I
accept a pension buyout and receive a lump sum?This depends on
your circumstances. Doing an analysis will tell you if you will be
better off taking the buyout and rolling it over into another
account or taking the guaranteed monthly payment.
- Should I take my severance as a one-time payment or should I
take it over several months? It's usually better to spread the
payment over several months. If you take the lump sum, they are
going to take taxes out of it as if you made that amount every two
weeks. You also need to make sure it doesn't affect your
- Should I try to find another job or just make retirement work?
Many people are good savers and lived below their means, and they
don't actually need to keep working. An income analysis can help
you know if you are ready to retire or not. Retirement shouldn't be
based on an arbitrary number.
The Role Emotions Can Play in Retirement
- Greed. No one wants to say they are greedy, but a lot of people
say that they are afraid of missing out. This is where greed comes
into play. This can get clients into trouble when they start buying
high and selling low.
- Fear in general. Getting scared and selling when you shouldn't,
in an effort to protect your money. Fear can cause you to do this
that’s why it's important to have a good financial plan.
- Hope. Hope is not a strategy. Not having a plan and just hoping
you have enough to retire can leave you in trouble if an emergency
Links To Resources Mentioned
Money Map Retirement Review
your free copy of Forced to Retire
your free copy of Lump Sum Pension Payment Guide
Thank you for listening!