Retirement Reality Podcast

Ep 23: Lies Learned in Broker School

A lot of financial professionals will tell you things that just aren’t true. That doesn’t mean they do it intentionally. Many times these professionals have been given talking points, which they might even feel to be true themselves. We want to talk about the statements you should be cautious of if you hear them from an advisor.
 
Show notes and additional resources: https://principalpreservationservices.com/ep-23-lies-learned-in-broker-school/ 
 
Today's rundown: 
1:28 – Minnesota winters have brought below-freezing temperatures once again.
3:55 – In the News: A recent CNBC article points out that an older retirement age is becoming the trend around the world. Is Mike seeing this in Minnesota and Wisconsin?
5:53 – Why we’re talking about broker lies today.
6:26 – Lie #1: ‘We have experts who can accurately predict market movement.’
7:42 – Here are the investments we see people come in with all the time.  
9:10 – Lie #2: ‘Just look at our past investment returns and you can see that we have a system that works in all markets.’
10:43 – Lie #3: ‘Your tax rate is going to be much lower in retirement.’
12:30 – Most people we work with have the majority of their savings in pre-tax accounts.                 
13:23 – The SECURE Act will have a big tax impact as wealth gets transferred from the Baby Boomer generation.
15:09 – Lie #4: ‘It’s just a paper loss. Hang in there and you’ll be fine.’
17:03 – The difference between working with a fiduciary versus the alternative.
19:49 – Mailbag Question: I told myself that if I ever hit $1 million in my portfolio, I’d move it a lot of it to cash. Now that I’m there, I feel like I can get to $1.2 million. What do you think?

Ep 22: Is Having ‘Cash’ Good or Bad

Of course we all want to have a healthy bank account and feel the security of knowing we have money at our disposal. Having plenty of cash on hand can help in the event of an emergency but building up your account too much can actually be a detriment to your retirement. Let’s talk about the situations where cash can be a benefit and the times when it can hurt you.
 
Show Notes and Additional Resources: https://principalpreservationservices.com/ep-22-is-having-cash-good-or-bad/ 
 
Today's Rundown: 
2:12 – In the News: IRS increased contribution limits for retirement accounts. How significant is this news?
4:14 – It’s all about the Benjamins. Let’s talk cash.
4:47 – What are some of the reasons you want to keep cash on hand?
7:20 – Then when is it counterproductive to have too much cash?
8:56 – How we work with clients on determining how much cash they need to have.
11:23 – Does fear drive a lot of those decisions to hold onto cash?
13:28 – What are some of the other investments outside of the market that people can put their cash in?
15:56 – Mailbag Question: I can sell my house right now for $500,000 and I only owe $100,000. I’m only 57 so I could sell the house and use that extra cash to retire early. Is that a good idea?

Ep 21: Be Aware of Bias in Financial Media

We live in an era where everyone has a platform and it’s more profitable to be entertaining than to be informative. That’s led to bias in media and finance is no exception. Let’s take a look at the most common places you’ll find bias and how to make sure you’re getting information that’s accurate for your retirement plan.
 
Show Notes and Additional Resources: https://principalpreservationservices.com/ep-21-be-aware-of-bias-in-financial-media/ 
 
Today's Rundown: 
2:06 – In the news: The Stretch IRA is going away as part of the SECURE Act. Here’s what you need to know.  
4:40 – Why did this change happen? Is it specifically a tax play for the government?
6:18 – Let’s talk ‘Fake News’
6:43 – First place to find bias: Sensationalism
9:17 – Second bias: Paid Placements
11:18 – Another bias: Wrong Audience
12:50 – An example of a common investment that doesn’t usually make sense for pre-retirees.
14:19 – Final bias: An Axe to Grind
17:58 – Mailbag Question: I have about $50,000 in cash value in an old life insurance policy. I don’t need it before so should I just cash it out and invest it somewhere else?
19:30 – There are a couple options for what you could do with that money.  

Ep 20: Do You Need to Be Debt Free to Retire?

Do you believe you need to be completely debt free to retire successfully? Or are you okay carrying some balances beyond your working years? There are many opinions about the best way to handle debt and retirement planning, so we’ll tackle them all on today’s show.
 
Read more here: https://principalpreservationservices.com/ep-20-do-you-need-to-be-debt-free-to-retire/ 
 
Today's rundown: 
2:12 – In the News: President Trump changed his state of residence from New York to Florida for tax purposes. How often do our clients consider moving in retirement?
5:01 – Our main topic today is debt heading into retirement.
5:22 – Clients can consistently create more wealth when they don’t have debt.  
7:30 – Do you have to be debt-free heading into retirement or is that able to be managed?
8:55 – Does Mike believe there’s such a thing as ‘good debt’?
10:40 – What are some examples of bad debt?
12:04 – Car debts aren’t the best but it could make sense in certain situations.
13:38 – How do you work with clients to develop a plan to become debt-free?
15:42 – Mike and his wife overcame a lot of debt earlier in their life.
17:09 – That client Mike helped was able to retire, which was great to see.

Ep 19: The Ins and Outs of Mutual Funds

Nearly everyone invests in mutual funds at one point or another, but is that the best strategy for your retirement plan? As the landscape continues to change, we wanted to look at the ins and outs of mutual funds to give you a better understanding of what you’re buying into. We’re joined by advisor Kasey Byrd to talk about our strategy when it comes to this investment option.
 
Read more on this topic here: https://principalpreservationservices.com/ep-19-the-ins-and-outs-of-mutual-funds/ 
 
Today's rundown: 
1:12 – Welcoming on a guest today, Kasey Byrd.
2:57 – What percentage of our clients own mutual funds when they come to see us?
5:02 – Understanding expense rations and the three classes of mutual funds.  
8:14 – Explain what the term ‘loaded’ means?
9:07 – Even though they’re actively managed, mutual funds still don’t have much flexibility when downturns occur.
10:14 – What tax considerations do we need to make with mutual funds?
12:04 – So what’s the future of mutual funds? Do they have a purpose?
15:25 – Mailbag Question: My husband’s military pension is a nice benefit but I won’t get any of it when he dies. That was a mistake in retrospect but how can we address this problem moving forward?
18:08 – Mailbag Question: Because of a mutual friend, I have the opportunity to work with an advisor who works primarily with people who have $5 million or more. Do you agree that this is a great opportunity for me?

Ep 18: Are You Making These Excuses to Avoid Retiring?

Sometimes people say they don’t want to retire and they really mean it. But other times it’s just a defense mechanism to mask the opinion that they don’t feel like they can retire. Let’s look at the common excuses people make and explore the possible meanings behind why you don’t want to retire
 
Show notes and additional resources: https://principalpreservationservices.com/ep-18-are-you-making-these-excuses-to-avoid-retiring/ 
 
Today's rundown: 
2:15 – We’re talking about excuses people make for not retiring.  
2:33 – “I love my career.” What’s the deeper meaning to that statement?
4:43 – “If I’m not working, I’m going to be bored.”  
6:30 – “I don’t have enough money to retire.”
8:01 – Mike shares a recent meeting he had where they discovered the client was going to run out of money.
9:59 – The final excuse is when someone says they don’t have the confidence in their plan/portfolio.  
13:56 – Mailbag Question: I’ll be retiring in exactly one year. What’s on the list of things I need to do before I retire.
15:32 – Mailbag Question: I’m overwhelmed by how many accounts we have accumulated through our careers. How much can we consolidate and how does that all work?

Ep 17: 5 Traits Your Financial Advisor Should Have

How do you know if an advisor is a good fit? That’s a question that keeps many people from working with a professional so let’s identify the essential traits every advisor should possess. That might be easier said than done so let’s also talk about how you can determine whether an advisor has these characteristics.
 
Show notes and additional resources: https://principalpreservationservices.com/5-traits-your-financial-advisor-should-have/ 
 
Today's rundown: 
1:23 – Excited for the new year and what 2020 will bring.
2:42 – In the News: For the first time in 37 years, the inventory of homes is at its lowest level nationally. Is that the case in Minnesota and Wisconsin as well?
6:13 – Personality trait: Trust. How do you identify if someone is trustworthy?
8:20 – Trait: Likeability. How can you assess whether or not you want to work someone?
9:45 – Trait: Area of expertise that matches your needs.
11:50 – Trait: Good listener. You need someone that can key in on what your needs are.
13:39 – Trait: Problem Finder
16:50 – Mike adds one final trait to the list: full disclosure.

Ep 16: Top 5 Biggest Social Security Misunderstandings

There’s plenty of misinformation and rumors in the world of Social Security and that might cause a little anxiety when it comes time to claim your benefit. On this show, we’ll look to clear up the top 5 misunderstandings about Social Security.
 
Show Notes and Additional Resources: https://principalpreservationservices.com/top-5-biggest-social-security-misunderstandings/ 
 
Today's Rundown: 
1:19 – What goals does Mike have for the company in 2020?
2:22 – Reflecting on 2019
3:30 – In the News: A baggage handler at an airport in Nevada was giving financial advice to more than 900 people and even charging them a fee before the SEC charged him with fraud.
5:36 – Moving into our main topic today on Social Security misunderstandings.  
6:05 – No. 1: Social Security is going broke.
8:09 – No. 2 and 3: Some people say you need to start as early as possible while others say delaying as long as possible is the best strategy.
9:52 – No. 4: The Social Security Administration office will help you determine the best strategy for claiming your benefits.
13:07 – No. 5: Assuming that you don’t have to pay any taxes on your Social Security.  
15:26 – Getting to Know Mike: What do you do to relax after a long day or a long week of work?

Ep 15: Finding the Silver Lining in 4 Challenging Financial Situations

Not everything goes as planned when it comes to your financial life, but how will you respond to difficult situations? We’ll look at some negative circumstances that many retirees and pre-retirees face and help you find the silver lining.
 
Show Notes and Additional Resources: https://principalpreservationservices.com/finding-the-silver-lining-in-4-challenging-financial-situations/
 
On This Episode: 
1:19 – What’s happening around the office during the holiday season.
3:38 – Let’s talk about the difficult situations we sometimes face and how to find the silver lining.
4:01 – First situation: Your company forces you into an early retirement.
7:04 – Second situation: You find out your insurance premiums are going up.  
9:34 – Third situation: Your company is doing away with pensions.
11:54 – Fourth situation: Your company gets bought out and you have to get used to new management.
14:28 – Mailbag question: I’m selling one of my rental properties in a month or two and don’t plan to buy another one. What’s the best thing to do with the money from that sale?
17:25 – Mailbag question: Are there really no tax obligations to rolling over my 401k?

Ep 14: 5 Critical Estate Planning Mistakes to Avoid

Not everyone wants to leave a financial legacy behind, but for those that do, it’s important to eliminate the common estate planning mistakes. We’ll identify five key missteps that people make when building and managing an estate plan so that you’ll be able to leave exactly what you want to the people that mean the most to you.
 
Show Notes and Additional Resources: https://principalpreservationservices.com/5-critical-estate-planning-mistakes-to-avoid/ 
 
On This Episode:  
1:20 – It’s been a busy but great year.
2:22 – Today our topic is avoiding estate planning mistakes.
2:45 – Mistake 1: Failing to plan for expenses that can be foreseen like healthcare.  
4:30 – Mistake 2: Failing to update beneficiary designations.
6:18 – Which accounts should you be starting with when you go back to update beneficiaries.
7:34 – Mistake 3: Failing to take those steps to avoid conflict among heirs and family members.
11:01 – Mistake 4: Transferring your real estate while you’re still living instead of at death.
13:56 – Mistake 5: Not considering the tax implications of your estate.