Sep 14, 2018
Joel gives a brief update about what is going on with the recent
trade tariffs, and the importance of focusing on things you can
control and having a plan in place. We also talk about how
retirement today is different than it used to be, and things to
watch out for if getting a divorce.
Main Questions Asked:
What are some of the changes in modern retirement planning?
How do I create a portfolio that acts like a pension and why do
I need to?
Is all the information at our fingertips of benefit?
How can I survive a divorce without making financial
Key Lessons Learned:
Ways That Retirement Planning Now Isn't What It Used To
- Social Security is the only retirement income stream that some
people are going to have. Pensions are rarer. You should create a
close to guaranteed stream of income.
- Life expectancies are longer, so we have a lot more years of
retirement to refund. We need to make sure that you get raises
every year and have contingencies for long-term care.
- You can’t ladder CDs and live off interest in this environment.
Typically, inflation is higher than the interest rate on CDs. Even
if they were in parity you would have to pay taxes, so you end up
- Is all the information at our fingertips a benefit? Information
is great if you’re a stock trader, but as human beings we have the
tendency to want to change things. We need to stick with the plan
and not let emotions rule.
- Volatility in the market today seems to be a lot more
pronounced. It does feel that way, but part of it is all the
information we get. It’s important to have a plan, because the
information is more in-your-face.
Financial Mistakes That People Make During a
- Forsaking other financial assets to keep the house. Don’t just
default to taking the house look at it in the context of your
entire financial picture. Talk to somebody and create a plan to
divide the assets.
- Ignoring the tax implications of retirement funds. It’s
important to understand that you are in partners with the IRS when
you get an IRA.
- Your advisor also needs to understand life insurance. Cash
value insurance is not the same as term.
- Rolling your spouse's retirement account directly into an IRA
upon getting a divorce. There is a one-time opportunity for
divorcement spouses under 591/2 to withdraw money without paying
the 10% penalty. The assets should be allocated under qualified
domestic relations order.
- Allowing emotions to cloud decision making. It is important to
get advice and not let emotions cloud your decisions.
Links To Resources Mentioned
Money Map Retirement Review
Thank you for listening!