Retirement Reality Podcast

Ep 63: Why Variable Annuities Are the Liver & Onions of the Financial World

Variable annuities are a bit of an outcast, the liver and onions of the financial world. Why is that? What are the pros and cons? Mike explains on the show. 
 
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-63-why-variable-annuities-are-the-liver-onions-of-the-financial-world/ 
 
What we discuss on this show: 
2:27 – Why variable annuities are hated on
5:31 – Do many people have variable annuities
7:25 – Many people don’t know they have variable annuities
8:50 – Fees
12:11 – Can you get out of a variable annuity
14:44 – Mailbag: Helping mom after dad dies
16:30 – Mailbag: Should I do a Roth conversion

Ep 62: In Financial Planning, the Customer Isn’t Always Right

You know the saying, “The customer is always right.” Well, that’s not always the case in the financial world. On this episode of the Retirement Reality Podcast, Mike Kojonen explains why you should rely on your advisor’s expertise.
 
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-62-in-financial-planning-the-customer-isnt-always-right/ 
 
What we discuss on this show: 
2:28 – Telling the customer they’re wrong
3:28 - Now is the time to get in or out of the market
6:20 - This is what I want to invest in. I want you to pick the exact funds.
8:19 - I don't need a will, life insurance, long-term care insurance, etc.
10:23 – Feelings about fees
12:24 – I don’t know if this plan is going to work
14:14 – Mailbag: Should I self-insure?
16:18 – Mailbag: Are reverse mortgages a bad idea?

Ep 61: Is Diversification for Suckers?

What does diversification mean to you? And is it good financial strategy? On this episode of the Retirement Reality Podcast, Mike Kojonen breaks down the reasons why it’s not always a good financial strategy. 
 
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-61-is-diversification-for-suckers/ 
 
What we discuss on this show: 
1:58 – Get to know you: Mike’s go-to karaoke song?
4:01 – Warren Buffet quote about diversification
4:54 – Definition of diversification
7:07 – What is diversification?
8:36 - How much emphasis should be put on diversification?
9:34 - Is it possible to be “too diversified?”
11:08 – Mike describes diversification scenario
14:26 – Be prepared

Ep 60: Frequently Asked Questions About 401Ks

Most people have a 401K or other retirement plan, but it’s not as simple as contributing money and collecting it when you retire. There are a lot of decisions you can make about investments, loans, rollovers and more.
 
Read more and get additional financial resources: https://principalpreservationservices.com/ep-60-frequently-asked-questions-about-401ks/ 
 
What we discuss on this show: 
2:09 - Should I accept 401K advice from my company?
3:37 - Should I take out a 401K loan?
5:45 - Are 401K rollovers a good idea?
7:25 – Should people consider target date funds?
9:36 – Should you invest enough to get match or more?
11:46 – Should you use a Roth option?
15:02 – Mailbag: Is $250,000 enough for long-term care coverage?
16:53 – Mailbag: Should I move my investments to cash?

Ep 59: Common Retirement Mistakes and Concerns of Baby Boomers

We’re talking specifically to Baby Boomers on this episode. What are the most common challenges, fears and goals of this generation? What are some of the mistakes Boomers often make and how can they be avoided?
 
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-59-common-retirement-mistakes-and-concerns-of-baby-boomers/ 
 
What we discuss on this show: 
3:00 – Challenges of Baby Boomers
4:30 – Have people failed to save enough without a pension?
5:56 – Baby Boomers’ fears
8:55 – What mistakes do Baby Boomers make?
13:01 – Mailbag: Can I use this money to buy a car or should I invest it?
14:23 – Mailbag: How reliable is my 401K estimated income statement?

Ep 58: Five Financial Commandments to Follow

On this episode, we share five commandments that should be written on stone tablets in your retirement plan.
 
Read more here: https://principalpreservationservices.com/ep-58-five-financial-commandments-to-follow/
 
What we discuss on this show:
4:13 – Mike talks about a place he never wants to visit again
7:43 – Thou shall not compare your investments to the stock market without the proper context
9:21 - Thou shalt not give up before giving your strategy enough time to play out.
10:59 – Thou shalt not chase big returns too late in life.
13:39 – Thou shalt not ignore costs and fees.
16:42 – Thou shalt not overlook the importance of rebalancing and diversifying.
19:46 – Mailbag: Can I get half of my ex-husband’s Social Security benefit

Ep 57: What You Should Know About Wills and Trusts

Let’s talk about estate planning, specifically wills and trusts. Find out what’s right for you, how much it costs and more.
 
Read more on the topic here: https://principalpreservationservices.com/ep-57-what-you-should-know-about-wills-and-trusts/ 
 
What we discuss on this show:
2:10 – Getting to know you question
5:39 – Why estate planning is so important
7:19 – Will or trust?
10:41 - You don’t need a lot of assets for a trust
14:14 – What does it cost to set up will vs. trust
16:40 - Financial adviser’s role
18:30 – Mailbag: Should I give my son this inheritance?

Ep 56: Five Common Financial Mistakes in Hindsight

Have you ever looked back on a financial decision and thought, “I wish I would have done that differently”? Decisions about money are a lot easier with the benefit of hindsight. On this episode of the Retirement Reality Podcast, Mike Kojonen looks at five common money mistakes people have made this year.
 
Read more and get additional financial resources here: https://principalpreservationservices.com/39703-2/ 
 
What we discuss on this show:
2:19 – Getting out of the market
4:59 – Not knowing your risk factor
6:51 – Not knowing your social security options
9:15 – Not putting money in a Roth IRA
12:21 – Retiring too early and going back to work
15:30 – Mailbag: Should I try to get a tax refund?
17:12 – Mailbag: Redo our kitchen or save more for retirement?

Ep 55: How Does Your Retirement Savings Compare to Average American?

Have you ever wondered how your savings plan compares to the average American? Vanguard released a report with stats on retirement accounts and we’re going to look at some of the most interesting data to come out of the past year.
 
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-55-how-does-your-retirement-savings-compare-to-average-american/ 
 
Read the full Vanguard report: https://institutional.vanguard.com/ngiam/assets/pdf/has/how-america-saves-report-2020.pdf
 
What we discuss on this show: 
6:01 – Majority of assets in 401Ks or something similar
7:41 – Maximizing your 401K contributions
8:58 – 1 in 5 use Roth or after-tax option
10:08 – Statistics on employer matches
12:39 – Average rates of return
16:24 – Leaving money with former employer
19:40 – How we help educate clients
21:53 – 76% of people have balanced strategies

Ep 54: Five Outdated Financial Strategies

Just like technologies change and become outdated, so do some retirement planning strategies. Let’s look at five financial strategies and determine whether or not they still apply. 
 
Read more and get additional financial resources here: https://principalpreservationservices.com/ep-54-five-outdated-financial-strategies/
 
What we discuss on the show: 
2:34 – 4% rule
4:00 – 10/5/3 rule
7:10 - as you get older, move money from stocks to bonds
9:37 - $1 million retirement target
12:17 - you’ll need less money in retirement
15:11 – Mailbag: Should I invest differently based on the election?