Retirement Reality Podcast

Your advisor is here to help you make the best financial decisions for your future, but there are still some unreasonable things to expect from them. It’s important, as a client, to stay down to earth when it comes to your financial expectations. On today’s episode, we will be discussing 4 requests that are probably a little too unreasonable to ask of your advisor.
Do you want big returns without risk? Well, you are probably going to have to take on at least some risk to get there. Can you ask an advisor to lower their fees? Some people wonder if there is a way to get out of paying taxes on retirement accounts like a 401(k) or IRAs. Although you can roll over these accounts to a Roth, you’ll still have a tax bill. What if you don’t want to be involved in the planning process? It’s crucial your advisor understands you and your expenses so being involved to some degree is required. We’ll also answer three mailbag questions about retiring early, risk, and working until the age of 70.
 
Get additional financial information: https://principalpreservationservices.com/episode-81-4-unreasonable-requests-for-your-advisor/
 
What we discuss:
1:14 – Enjoying fall
2:26 – I want big returns, but I don’t want any risk
6:03 – Can you reduce your fees?
9:42 – How can I get out of paying taxes on my 401(k) or IRA?
12:03 – Do I have to be involved in the planning process?
15:12 – Mailbag: What steps should I take to retire at 55?
17:05 – Mailbag: How much should I have at risk in my portfolio?
19:38 – Mailbag: I’m single, should I work until I am 70?

Whether you choose to invest in a tax-deferred account or not, you will need to have a tax plan. Knowing which accounts could benefit your situation is important. Today, Mike is going to break down different types of accounts and the pros and cons we see with each.
The accounts you should be investing in will depend a lot on your income level and retirement goals. Many of us have invested in tax-deferred accounts. Once you are in retirement you will have to start paying taxes on withdrawals. If you decide to pay taxes now, that may be helpful in the future. Make sure you have a plan for these taxes that fit into your current financial budget. Either way, tax planning is an essential part of our retirement plan. We will also be opening up two mailbag questions today about business ownership and long-term care coverage.
 
Get additional financial information: https://principalpreservationservices.com/ep-80-tax-pros-and-cons/
 
What we discuss:
0:47 – Pros and cons of different accounts
2:07 – Tax-deferred accounts
4:37 – Tax ‘free’ accounts
7:49 – Taxable accounts
10:19 – CD tax consequences
12:23 – Life insurance
16:13 – Mailbag: Sell a business or retain ownership?
17:39 – Mailbag: Should we keep long-term care coverage?
 

When our financial growth is going well it can create a false sense of overconfidence. You want to stay vigilant about protecting your financial plan. 
On today’s episode, we are going to discuss places in our finances that we can be overconfident in. Even if the stock market has been great for the past 10 years, that’s no indication of how it will look in the next 5 or ten years. Some of us have an ideal number we want to reach in order to retire, but this may cause a false sense of security and overconfidence.
So, how should we prepare for these circumstances and protect our overall retirement plan?
 
Get additional financial information: https://principalpreservationservices.com/ep-79-overconfidence-in-retirement-planning/
 
What we discuss: 
0:44 – Pride cometh before the fall
1:53 – Mike goes to Greece
3:38 – The stock market
7:16 – 1 million dollars for retirement
9:11 – Rules of thumb
11:40 – Investment products
13:55 – Decision-making process
17:59 – Mailbag: Do I really need an emergency fund?
19:06 – Mailbag: My advisor doesn’t reach out to me?
 

Pension options, Social Security, and investments are all among the topics that you should be addressing with your significant other. Finding the right balance between both of your risk tolerances can help you better manage your future income. Even if you both have a plan on saving for retirement, you will also need to plan on what your retirement will look like. Do you both want to travel or stay close to family? Should you sell your current home or the vacation home? On today's episode, we are talking about some common financial mistakes couples make and what decisions you need to address together.
 
Read and get additional financial information: https://principalpreservationservices.com/ep-78-retirement-decisions-to-make-as-a-couple/
 
What we discuss: 
1:00 – Couples as clients
2:06 – Pension options
6:27 – Social Security
8:59 – Should spouses come in together?
10:24 – 401k and IRAs
12:49 – Managing risk together
15:14 – Retirement planning together
19:22 – Mailbag: Am I in trouble with investing?
21:35 – Mailbag: Roth or Traditional 401(k)

When it comes to our finances, there are certain things that we shouldn't wait to address. A few of the most common things people tend to put off in their finances include taxes in retirement planning, paying off debt, Social Security, and making a financial plan. Whether you can wait on some of these topics will depend a lot on your situation. Mike is going to discuss some general rules and advice about waiting to act on these financial decisions.
 
Read and get additional financial information: https://principalpreservationservices.com/ep-77-can-you-wait-on-these-financial-decisions/
 
What we discuss on the episode: 
1:24 – Catching up with Mike
3:29 – Paying taxes on investments
5:43 – Paying off debt
9:01 – Legal and estate documents
12:09 – Taking out Social Security
15:29 – Creating a financial plan
18:27 – Mailbag: Starting a business
20:35 – Mailbag: Required minimum distributions

So you’re experiencing some concerning symptoms with your finances? Let’s visit with the money ‘doctor’ Mike Kojonen to see what financial prescriptions you might need to keep your retirement on track.
 
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-76-what-the-financial-doctor-ordered/ 
 
What we discuss on this episode: 
1:17 – Summer update  
4:34 – Dizziness from market volatility 
6:44 – Paralysis in financial decision-making because of too many options 
8:40 – Anxiety from watching the news everyday 
10:21 – High blood pressure from anger about receiving bad advice in the past  
12:58 – Losing sleep about not having enough money for retirement 
16:40 – Mailbag question on which accounts to withdraw from first
18:19 – Mailbag question on robo advisors 

If they age is the price we pay for wisdom, then we should possess a strong fundamental understanding of our finances by the time we reach retirement. As we get older, our view of money changes and our perspective of what’s most important in our retirement plan will evolve.
 
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-75-how-age-wisdom-play-into-financial-planning/ 
 
What we discuss on this episode: 
1:55 – Perspective of money changing with age
3:59 – What would you have done differently?  
6:22 – Worry more or less later in life?
7:59 – Leaving a legacy  
12:36 – How we view risk  
15:38 – Mailbag questions on giving money to children   
17:37 – Mailbag question on dividend-paying stocks  

All the hard work and time you spend during your working career should be enjoyed in retirement, but what type of motivation do you have? Let’s explore some of the primary motivations that people have for retirement and how planning can help you reach that.
 
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-74-what-retirement-are-you-living-for/ 
 
What we discuss on this episode: 
1:52 – Spending more time with your family
3:53 – Want to buy stuff
6:10 – The desire to travel
8:56 – Helping your grandchildren with college  
11:15 – Donating to a charity
13:32 – Mailbag question on money creating stress in a relationship
14:30 – Mailbag question on Social Security

So much of the financial world is focused on accumulating money and you can find plenty of advice on how to save and invest. But there aren’t nearly as many resources for navigating the period of time after your retirement through decumulation. On this episode, we’ll point to 5 things you need to know about spending down and managing the assets you’ve accumulated throughout life.
 
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-73-5-things-you-must-know-about-decumulation-to-retire-successfully/ 
 
What we discuss on this episode: 
2:20 – Lack of support
4:16 – Fear of spending is real
5:56 – Risks in retirement
7:29 – Focusing on tax consequences
9:59 – Leveraging your lifetime income
12:34 – Mailbag question on divorce settlement
14:17 – Mailbag question on saving and interest rates

Just about everyone is familiar with the phrase diversification and what it means in financial planning, but what does it take to be properly diversified?
On this episode of the podcast, we’ll break it down to the three worlds of money and explain why finding balance among these will provide you with the diversification you need to have a successful retirement. Each of these play a key role in planning and it’s important that you find the right mix for investing your money.
You can listen to the full episode or use the timestamps below to find a specific segment.
1:12 – The Banking World
5:25 – The Insurance World
10:37 – The Wall Street World
17:18 – Finding balance with our clients
20:23 – Mailbag question on old 401K accounts
22:12 – Mailbag question on taxes in retirement
 
For additional financial planning resources, visit us online at http://principalpreservationservices.com