Retirement Reality Podcast

Ep 93: Can you Retire at 55?

With the great resignation sweeping the nation we’ve been hearing more and more from people that want to retire early. On today’s episode, we want to explore this topic and a recent Yahoo News article that breaks down whether you can really retire at age 55.
Retiring early can present a wide variety of unique challenges, for example, what will you do if you can’t take Social Security yet? You need to consider how you’ll cover that income gap. There are various issues people who want to retire early may face, but planning ahead of time can make the transition a lot easier.
Yahoo News Article: https://www.yahoo.com/video/retire-age-55-lets-run-203416606.html#:~:text=So%20can%20you%20retire%20at,Security%20retirement%20benefits%20is%2062.
 
Today's key points: 
0:43 – More people wanting to retire early
1:50 – Going to a Justin Bieber concert
2:52 – The peanut gallery term
5:01 – Social Security
6:13 – Penalties to worry about
9:02 – Healthcare expenses
11:49 – Any other challenges?
12:51 – What can you do now?
14:36 – Having guaranteed income
15:48 – Stock market’s impact on your plan
17:29 – Depends on how you want to live
18:58 – Retire whenever you want!
 
Read more and get additional resources here: https://principalpreservationservices.com/retirement-reality-podcast/

Ep 92: Common Housing Questions from Retirees

For the majority of people in Minnesota and across the country, your house will be the most expensive asset you ever own or manage. That’s why it’s no surprise that it takes up a big slice of the financial planning conversation.
Retirement brings along another set of decisions to be made with your house so we wanted to address some of the most common ones we hear at Principal Preservation Services. From paying off your mortgage to considering a downsize, we’ll find out what Mike thinks about these housing topics and hopefully touch on something you’ve been thinking about as well.
 
Today's key points: 
0:46 – Housing questions       
2:36 – Paying off mortgage or not?
4:27 – Downsizing
6:10 – Borrow from a Home Line of Equity
8:26 – Signing house over to kids before death
10:49 – Other estate planning problems
12:09 – Reverse mortgage
14:15 – Mailbag question on anxiety around money
15:49 – Mailbag question on life insurance
 
 
Read more and get additional resources here: https://principalpreservationservices.com/retirement-reality-podcast/

Ep 91: Important Retirement Birthdays

What are the important birthdays we need to take note of when planning for retirement? There are certain milestones that have a big impact on your plan. As you approach 50, you want to really start planning strategically. If you haven’t been saving much before, once you turn 50 you can actually participate in catch-up contributions.
A few years later at 59 ½, you can start taking out of those retirement accounts without the 10% penalty. At 62 you’re eligible to take Social Security, although whether you want to do so is dependent on your plan. What other important ages do you need to keep marked on your calendar? On today’s episode, we’ll break down the most important retirement birthdays as well as answer some mailbag questions.
 
What we discuss in this episode: 
0:54 – How are is Mike doing?
2:39 – Catch-up contributions at 50
4:56 – Withdrawing early at 55
6:27 – No penalty withdrawals at 59 ½
8:33 – Social Security at 62
11:02 – Medicare at 65
12:44 – Full retirement age
14:06 – RMDs and age 72
16:04 – Get your plan done!
17:27 – Mailbag: “Can I justify a private school tuition?”
 20:16 – Mailbag: “Should I budget before meeting with an advisor?”
 
Read more and get additional resources here: https://principalpreservationservices.com/retirement-reality-podcast/

Ep 90: When Guessing in Retirement Planning Goes Wrong

If you are someone that tackles financial planning on your own without the help of a professional, you might be relying too much on the guessing game. We’ve seen the end results of retirement without a plan and many times it’s not what the retiree had envisioned.
Today we’re going to identify some of the key planning areas that people often fall short and Mike will help provide some clarity. From income needs to inflation to healthcare costs, these are all things you need to have buttoned up before you hit retirement.
 
What we discuss in this episode: 
1:31 – Monthly income needs
6:41 – Planning for major purchases
10:11 – How much impact will inflation have?
13:31 – Healthcare costs
17:20 – Mailbag question on reducing investment risk
18:48 – Mailbag question on rolling over a 401(k)  
 
Read more and get additional resources here: https://principalpreservationservices.com/retirement-reality-podcast/

Ep 89: Murky Issues That Make Retirement Planning Harder

We found a recent article in USA Today that talked about the retirement planning issues that most Americans don’t have answers for. On this episode, we’re going to breakdown the article and share a few of the key takeaways we identified.
The key with financial planning is to remove the guesswork and have a concrete strategy for income and expenses in retirement. That’s why we think you’ll get a lot out of this episode because we’ll talk about how to keep up with inflation, explain why so many people don’t understand their Social Security benefits and tell you why many people don’t have a plan for withdrawing money in retirement.
These are three key parts of determining your income plan and how much you’re going to need to feel comfortable in retirement.
 
USA Today Article: usatoday.com/story/money/personalfinance/retirement/2022/02/28/retirement-3-issues-making-planning-harder/49859935/
 
What we discuss in this episode: 
0:46 – Uncertainty around the world  
2:17 – Lack of basic knowledge
3:56 – Takeaway 1: Keeping up with inflation
6:00 – Awareness of inflation
8:06 – Takeaway 2: Social Security benefits
10:40 – Takeaway 3: Withdrawal rates
14:37 – Final thoughts
 
Read more and get additional financial resources here: https://principalpreservationservices.com/retirement-reality-podcast/ 

Ep 88: Who Even Needs an Advisor?

A lot of us don’t have the time or knowledge to properly dedicate to a robust financial plan, that’s why having a financial advisor is so important. But, who really needs a financial advisor? Probably, most of us. Are you a procrastinator? A financial plan is certainly not the place you want to procrastinate.
Maybe you don’t know where to start. There’s so much information out there! For a lot of people, the hardest part is starting. There might be a lot of things out there you aren’t considering and that can set you behind on your plan without you even knowing it. The closer you get to retirement, the harder it is to recover from mistakes. On today’s episode, we’ll discuss who really needs a financial advisor and why.
 
What we discuss:
2:21 – Are you a procrastinator?
4:10 – Do you know where to start?
5:45 – You don’t know what you don’t know
7:14 – Once you get into your 50s and 60s
8:42 – Are you too busy?
10:13 – All the conflicting opinions
14:43 – Mailbag: “My kids are grown; do I still need life insurance?”
16:22 – Mailbag: “I want to travel; I need a higher income in retirement. Is that irresponsible?”
 
Get additional financial information: https://principalpreservationservices.com/retirement-reality-podcast/

Ep 87: Planning for Things We Can’t Predict

How do you plan for things you can’t predict? There are a lot of factors in life that we can’t be sure will happen, but with proper planning we can prepare for them financially. No one can predict the next market crash. However, we know it will happen eventually. When we do planning, we want your retirement to be the same, whether the market is good or bad.
There’s really no way to know what healthcare will cost or look like in the future. You have to factor in healthcare in your overall retirement plan. The healthcare you are offered at your employer will look different once you are in retirement. On today’s episode, we’ll discuss four areas in financial planning where you can’t predict the future, but you can still plan for it.
 
What we discuss:
0:52 - Wishing for warmer weather
2:44 – When will the next market crash be?
6:00 – Planning for healthcare costs
9:03 – Planning for future tax obligations
12:10 – It’s not easy to keep up with taxes
12:57 – How do you plan for longevity?
16:29 – Mailbag: “I want to retire, should I sell the building my business is in?”
18:11 – Mailbag: “My company is having a pension buyout, should I retire now?”
 
 
Get additional financial information: https://principalpreservationservices.com/retirement-reality-podcast/

Ep 86: Don’t Fumble in the Retirement Red Zone

We are talking about finances and football today! Like a quarterback protects the ball, you need to protect your finances, especially as you enter the retirement red zone. What is the retirement red zone? It's the 10 years before you retire and the 10 years after.
You need to really focus during this time and nail down the details of your plan. Make sure your game plan is in place. Time is no longer on your side, you need to avoid big mistakes and think about the long-term. We’ll discuss this crucial time period, the common mistakes people make in the red zone, and how having a plan will help you.
 
Get additional financial information: https://principalpreservationservices.com/ep-86-dont-fumble-in-the-retirement-red-zone/ 
 
What we discuss:
0:31 – Finance and football
2:29 – New YouTube channel!
4:25 – What is the retirement red zone?
4:59 – Why is this a crucial time period?
7:13 – Common mistakes that people make
9:59 – Are people more emotional?
11:25 – Why is planning easier in the retirement red zone?
15:27 – Mailbag: “Am I stuck in my job or is there a way I can retire early?”
17:28 – Mailbag: “I have $150,000 in the bank is that bad?”

Ep 85: How the “Great Resignation” Could Impact Your Retirement

What do you know about the “Great Resignation”? There’s been a lot of people leaving their jobs lately, either to take a break or to retire early. We’ve seen it with some of our clients even. With this huge shift in the workplace, we want to discuss how it could impact your retirement plan if you decide to leave your job.
What should you be aware of when it comes to Social Security and your retirement accounts if you quit your job? You’ll have to keep in mind if you do take a break, your Social Security payment calculations could change later on. Don’t think of your 401(k) as a rainy-day fund either. However, make sure you take it with you if you do go to a new job. A lot of people are thinking about retiring early and having a stable plan is the first step to realizing that goal.
 
Forbes Article: https://www.forbes.com/advisor/retirement/great-resignation/
 
Get additional financial information: https://principalpreservationservices.com/ep-85-how-the-great-resignation-could-impact-your-retirement/
 
What we discuss:
1:31 - Happy New Year!
2:25 – Retirement planning during the great resignation
4:10 – The impact of the pandemic
5:05 – Taking a break from Social Security
6:56 – 401(k) as a rainy-day fund
9:05 – Take your 401(k) with you
11:37 – Leaving before a potential match
14:18 – Cover your basis before you retire early
18:15 – Mailbag: “How much stock in the company I work for is too much?”
20:20 – Mailbag: “How do I get myself motivated to save more for retirement?”

Ep 84: 5 Signs You Are in Good Financial Health

Are you in good financial health? On today's episode, we'll discuss 5 signs you are in shape when it comes to your finances. Are you spending less than you make? If not, it’s probably time to take another look at your budget. This is especially important in retirement when you’re no longer getting a paycheck.
When it comes to taxes are you aware of what you'll be paying and when? Other signs you are in good financial health include being on the same page with your spouse and having a retirement income plan. If you can answer yes to these 5 signs, you are probably financially healthy!
 
Get additional financial information: https://principalpreservationservices.com/ep-84-5-signs-you-are-in-good-financial-health/
 
What we discuss:
2:08 – Are you spending less than you make?
3:41 – Do you understand future tax consequences?
6:29 – Do both you and your spouse know enough?
8:11 – Do you have a retirement income plan?
9:04 – Do you worry about your financial future?
12:24 – Any other bonus signs to look out for?
13:45 – Mailbag: “Where do we start with new investments?”
15:28 – Mailbag: “How can we plan for retirement with separate accounts?”