Why are some bond investors running for the exits? Is it risky to have bonds in your portfolio? Most people associate bonds with being a “safe” play in their portfolio to balance out the “riskier” stocks. But the truth is that investing in bonds can be just as risky. So in the first part of this special episode, I’ll dive into the reason WHY investing in bonds can be a risky play.  In the second half of this episode, I’ll share a case study of a current client. It’ll include some tips and strategies that everyone can learn from and apply to their own retirement planning. (HINT: It’s all about identifying and eliminating gaps in your retirement planning). Don’t miss it!  You will want to hear this episode if you are interested in...  [2:06] Build your retirement action plan at RetirementMadeEasyPodcast.com  [2:57] The risk of investing in bonds in your retirement portfolio [9:08] What is your budget for retirement? [13:19] How much do you need to save for retirement?  [16:23] Don’t forget to factor in the cost of health insurance  [17:43] What rate of return do you need from your investments?  [18:18] How you get income from the investments in your 401k [20:26] What gaps exist in your retirement plan?  The risk of investing in bonds in your retirement portfolio What is a bond? If you buy a McDonald’s corporate bond for $10,000, you’re essentially loaning $10,000 to McDonald’s and they pay you interest for 10 years. Let’s say the interest rate is 2%. So they’re paying you $200 in interest every year. At the end of the 10 years, they give you back your $10,000. That’s the idea behind a bond. You’re getting a payment.  But let’s say interest rates dramatically rise. Now, you can buy a bond that pays a 4% interest rate. No one is going to buy your McDonald’s bond that’s paying 2% interest when they can buy a new one paying 4% interest. The bond lost value because people aren’t willing to pay more for it.  You can buy bonds individually, as well as in index or mutual funds. As of June 30th, 2022, the Fidelity® U.S. Bond Index Fund was down 10.25%. It goes to show that a fixed-income fund can lose value. As interest rates continue to rise, the values will continue to go down. Bonds can be risky in an environment where interest rates are rising.  So what should you do? Listen to hear my thoughts! A Case Study: Eliminate gaps in YOUR retirement I’ve been consulting for a couple who were concerned about their portfolio losses in 2022 and thought they may need to push their retirement. So where did we start? With a budget. (Check out my FREE budgeting tool to help you nail down your retirement budget.) Step #1: Look at your take-home pay. If you have credit card debt, your spending is exceeding your pay. If you don’t have debt, do you have an emergency fund? After crunching the numbers, we determined this couple would need 1.6 million dollars with a $40,000 emergency fund to support the retirement of their dreams. They’re just on the edge of being able to retire.  Step #2: Identify and eliminate gaps: 30% of the husband's 401k was in company stock (and it didn’t pay a dividend). If you want to retire before 59 ½ and are concerned about the early withdrawal penalty, you can take withdrawals from a 401k without the penalty. But you can’t roll the 401k to an IRA without paying the 10% early withdrawal penalty. But, they will want to roll their 401ks into a Roth IRA before they turn 72 or they’ll have to withdraw the required minimum distributions from the 401k.  Step #3: Factor in health insurance. This couple didn’t realize that COBRA would be around $800 a month EACH and would only last up to 18 months. After that, you need a game plan to get to 65 (when you are enrolled in Medicare). So we talked about what their options were.  Step #4: What rate of return do you need from your investments? This couple needed a 4.5% rate of return to get through a 30-year retirement. That piece of information was the #1 thing they felt they needed to know.  I also helped this couple determine how to withdraw money from their 401k and where to allocate it in their budget. Listen to the whole episode to learn more! Resources &amp; People Mentioned  Build your retirement action plan at RetirementMadeEasyPodcast.com  Get a FREE 30-minute retirement coaching call The Retirement Bucket Strategy Fidelity® U.S. Bond Index Fund  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

Why are some bond investors running for the exits? Is it risky to have bonds in your portfolio? Most people associate bonds with being a “safe” play in their portfolio to balance out the “riskier” stocks. But the truth is that investing in bonds can be just as risky. So in the first part of this special episode, I’ll dive into the reason WHY investing in bonds can be a risky play.  In the second half of this episode, I’ll share a case study of a current client. It’ll include some tips and strategies that everyone can learn from and apply to their own retirement planning. (HINT: It’s all about identifying and eliminating gaps in your retirement planning). Don’t miss it!  You will want to hear this episode if you are interested in... <ul> <li>[2:06] Build your retirement action plan at <a href="https://retirementmadeeasypodcast.com/resources/" rel="noopener nofollow" target="_blank">RetirementMadeEasyPodcast.com </a></li> <li>[2:57] The risk of investing in bonds in your retirement portfolio</li> <li>[9:08] What is your budget for retirement?</li> <li>[13:19] How much do you need to save for retirement? </li> <li>[16:23] Don’t forget to factor in the cost of health insurance </li> <li>[17:43] What rate of return do you need from your investments? </li> <li>[18:18] How you get income from the investments in your 401k</li> <li>[20:26] What gaps exist in your retirement plan?</li> </ul> The risk of investing in bonds in your retirement portfolio What is a bond? If you buy a McDonald’s corporate bond for $10,000, you’re essentially loaning $10,000 to McDonald’s and they pay you interest for 10 years. Let’s say the interest rate is 2%. So they’re paying you $200 in interest every year. At the end of the 10 years, they give you back your $10,000. That’s the idea behind a bond. You’re getting a payment.  But let’s say interest rates dramatically rise. Now, you can buy a bond that pays a 4% interest rate. No one is going to buy your McDonald’s bond that’s paying 2% interest when they can buy a new one paying 4% interest. The bond lost value because people aren’t willing to pay more for it.  You can buy bonds individually, as well as in index or mutual funds. As of June 30th, 2022, the Fidelity® U.S. Bond Index Fund was down 10.25%. It goes to show that a fixed-income fund can lose value. As interest rates continue to rise, the values will continue to go down. Bonds can be risky in an environment where interest rates are rising.  So what should you do? Listen to hear my thoughts! A Case Study: Eliminate gaps in YOUR retirement I’ve been consulting for a couple who were concerned about their portfolio losses in 2022 and thought they may need to push their retirement. So where did we start? With a budget. (Check out my <a href="https://retirementmadeeasypodcast.com/resources/#open-overlay" rel="noopener nofollow" target="_blank">FREE budgeting tool </a>to help you nail down your retirement budget.) Step #1: Look at your take-home pay. If you have credit card debt, your spending is exceeding your pay. If you don’t have debt, do you have an emergency fund? After crunching the numbers, we determined this couple would need 1.6 million dollars with a $40,000 emergency fund to support the retirement of their dreams. They’re just on the edge of being able to retire.  Step #2: Identify and eliminate gaps: 30% of the husband's 401k was in company stock (and it didn’t pay a dividend). If you want to retire before 59 ½ and are concerned about the early withdrawal penalty, you can take withdrawals from a 401k without the penalty. But you can’t roll the 401k to an IRA without paying the 10% early withdrawal penalty. But, they will want to roll their 401ks into a Roth IRA before they turn 72 or they’ll have to withdraw the required minimum distributions from the 401k.  Step #3: Factor in health insurance. This couple didn’t realize that COBRA would be around $800 a month EACH and would only last up to 18 months. After that, you need a game plan to get to 65 (when you are enrolled in Medicare). So we talked about what their options were.  Step #4: What rate of return do you need from your investments? This couple needed a 4.5% rate of return to get through a 30-year retirement. That piece of information was the #1 thing they felt they needed to know.  I also helped this couple determine how to withdraw money from their 401k and where to allocate it in their budget. Listen to the whole episode to learn more! Resources &amp; People Mentioned <ul> <li>Build your retirement action plan at <a href="https://retirementmadeeasypodcast.com/resources/" rel="noopener nofollow" target="_blank">RetirementMadeEasyPodcast.com </a></li> <li>Get a FREE 30-minute <a href="https://go.oncehub.com/GreggGonzalez" rel="noopener nofollow" target="_blank">retirement coaching call</a></li> <li><a href="https://retirementmadeeasypodcast.com/why-i-love-the-retirement-bucket-strategy-ep-24/" rel="noopener nofollow" target="_blank">The Retirement Bucket Strategy</a></li> <li><a href="https://fundresearch.fidelity.com/mutual-funds/ratings/316146356" rel="noopener nofollow" target="_blank">Fidelity® U.S. Bond Index Fund</a></li> </ul> Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

The Risk of Investing in Bonds, Ep #106

What does the stock market look like right now? As I’m recording this episode, the S&amp;P 500 is down around 20% for the year. In general, it’s a good gauge of the US stock market. The S&amp;P 500 is broken down into different sectors such as healthcare, utilities, energy, consumer staples, financials, and more. The only sector that is positive—or has made money—in 2022 is the energy sector. So far, energy is up 27% YTD.  Should we be concerned with how the market is performing? While I usually don’t answer this type of question, it’s coming up again and again from current clients. So in this episode of the Retirement Made Easy podcast, I’ll share a midyear market update AND answer some listener questions. If you’re worried about the state of the market—don’t miss this one! NOTE: This episode contains my opinions and observations. Any facts and figures are based on research from LPL Financial and JP Morgan’s Guide to the Markets.   &gt; You will want to hear this episode if you are interested in...  [2:00] My three-step retirement plan process [3:51] Two things to keep in mind when looking at your portfolio [11:15] LPL Financial research [13:26] How is gold doing in 2022? [14:14] Listener question #1: How should Kathy claim her social security benefits? [16:10] Listener question #2: Should Jim buy a hybrid long-term care policy? [19:19] Why I refuse to work with Wells Fargo  Two things to keep in mind when looking at your portfolio I have reviewed many portfolios over the last two years. I keep seeing the same problem: they are too heavily weighted in one sector. Technology and healthcare have had a great run, but diversification helps you over the long run. My first piece of advice would be to make sure you aren’t too heavily weighted in one sector or stock. Secondly, when the market is down, make sure your portfolio still matches your risk tolerance. When the market is going down, many people find they have taken on more risk than they have the appetite for.  What you need to know about market performance 78% of companies in the S&amp;P 500 exceeded their earnings expectations after the first quarter. We were still looking pretty good. However, I’d expect that second-quarter earnings won’t look as good. Why? The stock market is driven by corporate earnings. But short-term earnings aren’t always reflected in how certain stocks are performing. They tend to move hand-in-hand long term.  What factors slow corporate earnings? Companies are dealing with labor shortages, which decrease their growth potential. Secondly, their sales won't be as high if they can’t get the materials they need to build their products. And if they are able to sell, everything is on backorder. Lastly, inflation is out of control. The Fed is raising interest rates to combat inflation. But whenever the Fed does this, it slows the economy—which isn’t good when we’re heading into a recession.  But to speed the economy up, you need to decrease interest rates and lower taxes. The Fed is trying to combat inflation but if we end up in a recession, they have to drop them to improve the economy. It’s a double-edged sword.  How midterm election years impact the stock market We are in a midterm election year. Historically speaking, this creates market volatility. LPL Financial’s research looked at every midterm election year dating back to 1950. It looked at volatility and the drop in the S&amp;P 500 and when the market bottomed.  The S&amp;P 500 usually bottomed between August and September in midterm election years. LPL Financial found that there were significant drops (16–17%) during a midterm election year. But on average, 12 months after the bottom, the S&amp;P 500 was up 32%. If history is our guide, we can expect a rebound in the market over the next 12 months.  I answer two great listener questions about social security benefits and hybrid long-term care in this episode. Listen to hear my answers! Resources &amp; People Mentioned  Midterm Years Don’t Usually Bottom Until Later in the Year  JP Morgan Guide to the Markets  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

What does the stock market look like right now? As I’m recording this episode, the S&amp;P 500 is down around 20% for the year. In general, it’s a good gauge of the US stock market. The S&amp;P 500 is broken down into different sectors such as healthcare, utilities, energy, consumer staples, financials, and more. The only sector that is positive—or has made money—in 2022 is the energy sector. So far, energy is up 27% YTD.  Should we be concerned with how the market is performing? While I usually don’t answer this type of question, it’s coming up again and again from current clients. So in this episode of the Retirement Made Easy podcast, I’ll share a midyear market update AND answer some listener questions. If you’re worried about the state of the market—don’t miss this one! NOTE: This episode contains my opinions and observations. Any facts and figures are based on research from LPL Financial and JP Morgan’s Guide to the Markets.  &gt; You will want to hear this episode if you are interested in... <ul> <li>[2:00] My three-step retirement plan process</li> <li>[3:51] Two things to keep in mind when looking at your portfolio</li> <li>[11:15] LPL Financial research</li> <li>[13:26] How is gold doing in 2022?</li> <li>[14:14] Listener question #1: How should Kathy claim her social security benefits?</li> <li>[16:10] Listener question #2: Should Jim buy a hybrid long-term care policy?</li> <li>[19:19] Why I refuse to work with Wells Fargo</li> </ul> Two things to keep in mind when looking at your portfolio I have reviewed many portfolios over the last two years. I keep seeing the same problem: they are too heavily weighted in one sector. Technology and healthcare have had a great run, but diversification helps you over the long run. My first piece of advice would be to make sure you aren’t too heavily weighted in one sector or stock. Secondly, when the market is down, make sure your portfolio still matches your risk tolerance. When the market is going down, many people find they have taken on more risk than they have the appetite for.  What you need to know about market performance 78% of companies in the S&amp;P 500 exceeded their earnings expectations after the first quarter. We were still looking pretty good. However, I’d expect that second-quarter earnings won’t look as good. Why? The stock market is driven by corporate earnings. But short-term earnings aren’t always reflected in how certain stocks are performing. They tend to move hand-in-hand long term.  What factors slow corporate earnings? Companies are dealing with labor shortages, which decrease their growth potential. Secondly, their sales won't be as high if they can’t get the materials they need to build their products. And if they are able to sell, everything is on backorder. Lastly, inflation is out of control. The Fed is raising interest rates to combat inflation. But whenever the Fed does this, it slows the economy—which isn’t good when we’re heading into a recession.  But to speed the economy up, you need to decrease interest rates and lower taxes. The Fed is trying to combat inflation but if we end up in a recession, they have to drop them to improve the economy. It’s a double-edged sword.  How midterm election years impact the stock market We are in a midterm election year. Historically speaking, this creates market volatility. LPL Financial’s research looked at every midterm election year dating back to 1950. It looked at volatility and the drop in the S&amp;P 500 and when the market bottomed.  The S&amp;P 500 usually bottomed between August and September in midterm election years. LPL Financial found that there were significant drops (16–17%) during a midterm election year. But on average, 12 months after the bottom, the S&amp;P 500 was up 32%. If history is our guide, we can expect a rebound in the market over the next 12 months.  I answer two great listener questions about social security benefits and hybrid long-term care in this episode. Listen to hear my answers! Resources &amp; People Mentioned <ul> <li><a href="https://i0.wp.com/lplresearch.com/wp-content/uploads/2022/04/Blog-2-4.27.22.png?ssl=1" rel="noopener nofollow" target="_blank">Midterm Years Don’t Usually Bottom Until Later in the Year</a> </li> <li><a href="https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/guide-to-the-markets/" rel="noopener nofollow" target="_blank">JP Morgan Guide to the Markets</a></li> </ul> Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

The Retirement Made Easy 2022 Midyear Market Update, Ep #105

In October of every year, the Social Security Administration announces the cost of living adjustment for recipients starting that will go into effect in January the following year. So when they announce it in 2022, it will go into effect in January of 2023. Last October, they announced that the cost-of-living adjustment was 5.9%. The number they land on depends on their calculation of inflation at that time. I imagine that the adjustment they land on will be higher than last year. I’m estimating it to be somewhere between 7–9%. While this means that Social Security recipients will see an increase in their benefits, it will negatively impact what they will receive in the future. How? Learn more in this episode of the Retirement Made Easy podcast.  You will want to hear this episode if you are interested in...  [1:02] Submit your questions at RetirementMadeEasyPodcast.com [2:02] Three steps to take to create your dream retirement [4:36] Don’t forget that Medicare Part B impacts your Social Security Benefit [7:10] How inflation impacts the average person’s benefits [10:38] How the income cap on FICA taxes will impact the trust fund [13:23] Why the cost-of-living adjustment is a double-edged sword  Don’t forget that Medicare Part B impacts your Social Security Benefit Medicare Part B will be announced in November. In 2021, it went from $145 a month to $170 a month—a 14.5% increase—for the lowest earners. When you’re looking at your Social Security statement and it says your benefit is $1,200—don’t forget that Medicare Part B is deducted from your benefits. It’s automatically withdrawn once you turn 65. So if you started with $1,200 a month you’d end up with $1,030 remaining. Your Social Security benefit estimates are NOT the number you’ll actually receive. How inflation impacts the average person’s benefits As of April 2022, according to the Social Security Administration, the average retirement benefit is about $1,620 a month. If the average person is 65 and Medicare deducts $170, that leaves $1,450 a month. If the average person has a Medicare supplement plan—which costs an average of $150 a month—they’re down to $1,300 a month.  If this person doesn't have a pension, doesn’t have part-time income, and doesn’t have retirement savings to supplement their social security income, $1,300 a month is tight. That’s why retirees are getting squeezed by high inflation. By 2035, if we make no changes to the social security trust fund, it will only be able to pay out 75 cents on the dollar.  The higher the cost-of-living adjustment, the more social security recipients will be getting, which will further shrink the trust fund—sooner than expected. Benefits will likely be cut by 25% sooner. Congress needs to fix this. 70 million Baby Boomers are counting on this money. We can’t reduce their income by 25%. How the income cap on FICA taxes will impact the trust fund You pay 6.2% of your earnings—up to $147,000—to Social Security (the FICA tax). Your employer is paying another 6.2% on that $147,000. What does this mean for you? If you make $400,000, you’re only paying taxes on the first $147,000. You don’t pay into social security for any dollar above that.  I’m concerned about the social security trust remaining solvent. When people get a Social Security raise because of inflation, it puts more stress on the Social security trust fund. More money is going out than coming in, and it’s only expected to increase. If the cost of living is increasing 8–10%, more people need to be paying into Social Security. The easy solution? I share my thoughts in this episode. Give it a listen! Resources &amp; People Mentioned  Cost-of-Living Adjustment (COLA) Information for 2022 The Basics of Health Insurance in Retirement, Ep #56 Illinois Policy  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

In October of every year, the Social Security Administration announces the cost of living adjustment for recipients starting that will go into effect in January the following year. So when they announce it in 2022, it will go into effect in January of 2023. Last October, they announced that the cost-of-living adjustment was 5.9%. The number they land on depends on their calculation of inflation at that time. I imagine that the adjustment they land on will be higher than last year. I’m estimating it to be somewhere between 7–9%. While this means that Social Security recipients will see an increase in their benefits, it will negatively impact what they will receive in the future. How? Learn more in this episode of the Retirement Made Easy podcast.  You will want to hear this episode if you are interested in... <ul> <li>[1:02] Submit your questions at <a href="http://RetirementMadeEasyPodcast.com" rel="nofollow" target="_blank">RetirementMadeEasyPodcast.com</a></li> <li>[2:02] Three steps to take to create your dream retirement</li> <li>[4:36] Don’t forget that Medicare Part B impacts your Social Security Benefit</li> <li>[7:10] How inflation impacts the average person’s benefits</li> <li>[10:38] How the income cap on FICA taxes will impact the trust fund</li> <li>[13:23] Why the cost-of-living adjustment is a double-edged sword</li> </ul> Don’t forget that Medicare Part B impacts your Social Security Benefit Medicare Part B will be announced in November. In 2021, it went from $145 a month to $170 a month—a 14.5% increase—for the lowest earners. When you’re looking at your Social Security statement and it says your benefit is $1,200—don’t forget that Medicare Part B is deducted from your benefits. It’s automatically withdrawn once you turn 65. So if you started with $1,200 a month you’d end up with $1,030 remaining. Your Social Security benefit estimates are NOT the number you’ll actually receive. How inflation impacts the average person’s benefits As of April 2022, according to the <a href="https://www.ssa.gov/" rel="noopener nofollow" target="_blank">Social Security Administration</a>, the average retirement benefit is about $1,620 a month. If the average person is 65 and Medicare deducts $170, that leaves $1,450 a month. If the average person has a Medicare supplement plan—which costs an average of $150 a month—they’re down to $1,300 a month.  If this person doesn't have a pension, doesn’t have part-time income, and doesn’t have retirement savings to supplement their social security income, $1,300 a month is tight. That’s why retirees are getting squeezed by high inflation. By 2035, if we make no changes to the social security trust fund, it will only be able to pay out 75 cents on the dollar.  The higher the cost-of-living adjustment, the more social security recipients will be getting, which will further shrink the trust fund—sooner than expected. Benefits will likely be cut by 25% sooner. Congress needs to fix this. 70 million Baby Boomers are counting on this money. We can’t reduce their income by 25%. How the income cap on FICA taxes will impact the trust fund You pay 6.2% of your earnings—up to $147,000—to Social Security (the FICA tax). Your employer is paying another 6.2% on that $147,000. What does this mean for you? If you make $400,000, you’re only paying taxes on the first $147,000. You don’t pay into social security for any dollar above that.  I’m concerned about the social security trust remaining solvent. When people get a Social Security raise because of inflation, it puts more stress on the Social security trust fund. More money is going out than coming in, and it’s only expected to increase. If the cost of living is increasing 8–10%, more people need to be paying into Social Security. The easy solution? I share my thoughts in this episode. Give it a listen! Resources &amp; People Mentioned <ul> <li><a href="https://www.ssa.gov/cola/" rel="noopener nofollow" target="_blank">Cost-of-Living Adjustment (COLA) Information for 2022</a></li> <li><a href="https://retirementmadeeasypodcast.com/the-basics-of-health-insurance-in-retirement-ep-56/" rel="noopener nofollow" target="_blank">The Basics of Health Insurance in Retirement, Ep #56</a></li> <li><a href="https://www.illinoispolicy.org/" rel="noopener nofollow" target="_blank">Illinois Policy</a></li> </ul> Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

How High Inflation Impacts the Future of Social Security, Ep #104

There’s an old Indian proverb that goes, “Tell me a fact, and I’ll learn. Tell me a truth, and I’ll believe. But tell me a story and it will live in my heart forever.” Story enables us to connect with concepts and make the unfamiliar, familiar. So in this episode of Retirement Made Easy, I’m going to share someone’s story to illustrate huge retirement mistakes her husband made that could’ve been avoided. She allowed me to share her story so that others could learn from it. Don’t miss this episode.  You will want to hear this episode if you are interested in...  [5:15] Mistake #1: Canceling your life insurance policy [9:19] Mistake #2: Leaving your spouse in the dark [11:20] Mistake #3: Not diversifying your retirement investments  [17:43] The right way to handle inherited IRAs  [19:15] Mistake #4: Not having a plan for retirement  Mistake #1: Canceling your life insurance policy This lady I spoke with lost her husband a few months prior to our conversation. He had made a series of bad mistakes with their retirement. She was 57 when he passed away at the age of 64.  A year before his death, he was in an accident and became disabled. Bills started piling up, so to cut costs, he canceled all of their life insurance. That was a mistake. Why? There's a disability clause in most life insurance policies that allows the disabled person to stop paying premiums. He would have been able to keep the life insurance without paying the premiums.  At the time of his death, he was collecting disability from social security. Social security gives a spousal benefit, so if one spouse passes away the other gets a monthly survivor benefit—but that only happens if your spouse is 60. Because she was 57 when he passed away, she has to wait three more years to receive that benefit.  The moral of the story? Keep your life insurance in place until your spouse is at least 60 so if you pass away they have some benefits coming their way.  Question for thought: If something happens to me, will my spouse be okay?  Mistake #2: Leaving your spouse in the dark We had to dig up all of their financial statements—retirement savings and accounts, mortgage accounts, CDs, etc. He had left his wife completely in the dark about everything. She didn’t even know how to pay any of the bills. She certainly didn’t know where anything was invested. It’s important that you keep your spouse informed about what’s going on and where everything is.  Question for thought: If something happens to me, will my spouse be able to maintain the household?  Mistake #3: Not diversifying your retirement investments Fortunately, she was the beneficiary of her husband’s retirement accounts (with their children as backups). So what was the problem? Her husband liked to do his own stock trading and investing. He invested over 90% of their life savings in ARKK. It’s a volatile fund invested in the technology sector. In 2020, this fund was up 152% and caught the eye of many investors. He shifted more than 90% of their portfolio to this one ETF. What happened?  In 2021, the fund was down over 23%. Sadly, in 2022, this fund is down more than 50% for the year. Even worse, prior to his death, the husband sold off shares of this fund to supplement his social security to pay their monthly expenses. When you retire, your investments need to produce an income you can live on. This fund doesn’t produce a dividend. The fund isn’t diversified and is far too risky to invest all of your money in it. The biggest mistake he made is that he was chasing past performance. This almost always ends in disaster.  What is this woman supposed to do next? How can you learn from her story? Listen to the whole episode to learn more from her heartbreaking circumstances so you can avoid them. Resources &amp; People Mentioned  The ARKK ETF  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

There’s an old Indian proverb that goes, “Tell me a fact, and I’ll learn. Tell me a truth, and I’ll believe. But tell me a story and it will live in my heart forever.” Story enables us to connect with concepts and make the unfamiliar, familiar. So in this episode of Retirement Made Easy, I’m going to share someone’s story to illustrate huge retirement mistakes her husband made that could’ve been avoided. She allowed me to share her story so that others could learn from it. Don’t miss this episode.  You will want to hear this episode if you are interested in... <ul> <li>[5:15] Mistake #1: Canceling your life insurance policy</li> <li>[9:19] Mistake #2: Leaving your spouse in the dark</li> <li>[11:20] Mistake #3: Not diversifying your retirement investments </li> <li>[17:43] The right way to handle inherited IRAs </li> <li>[19:15] Mistake #4: Not having a plan for retirement</li> </ul> Mistake #1: Canceling your life insurance policy This lady I spoke with lost her husband a few months prior to our conversation. He had made a series of bad mistakes with their retirement. She was 57 when he passed away at the age of 64.  A year before his death, he was in an accident and became disabled. Bills started piling up, so to cut costs, he canceled all of their life insurance. That was a mistake. Why? There's a disability clause in most life insurance policies that allows the disabled person to stop paying premiums. He would have been able to keep the life insurance without paying the premiums.  At the time of his death, he was collecting disability from social security. Social security gives a spousal benefit, so if one spouse passes away the other gets a monthly survivor benefit—but that only happens if your spouse is 60. Because she was 57 when he passed away, she has to wait three more years to receive that benefit.  The moral of the story? Keep your life insurance in place until your spouse is at least 60 so if you pass away they have some benefits coming their way.  Question for thought: If something happens to me, will my spouse be okay?  Mistake #2: Leaving your spouse in the dark We had to dig up all of their financial statements—retirement savings and accounts, mortgage accounts, CDs, etc. He had left his wife completely in the dark about everything. She didn’t even know how to pay any of the bills. She certainly didn’t know where anything was invested. It’s important that you keep your spouse informed about what’s going on and where everything is.  Question for thought: If something happens to me, will my spouse be able to maintain the household?  Mistake #3: Not diversifying your retirement investments Fortunately, she was the beneficiary of her husband’s retirement accounts (with their children as backups). So what was the problem? Her husband liked to do his own stock trading and investing. He invested over 90% of their life savings in ARKK. It’s a volatile fund invested in the technology sector. In 2020, this fund was up 152% and caught the eye of many investors. He shifted more than 90% of their portfolio to this one ETF. What happened?  In 2021, the fund was down over 23%. Sadly, in 2022, this fund is down more than 50% for the year. Even worse, prior to his death, the husband sold off shares of this fund to supplement his social security to pay their monthly expenses. When you retire, your investments need to produce an income you can live on. This fund doesn’t produce a dividend. The fund isn’t diversified and is far too risky to invest all of your money in it. The biggest mistake he made is that he was chasing past performance. This almost always ends in disaster.  What is this woman supposed to do next? How can you learn from her story? Listen to the whole episode to learn more from her heartbreaking circumstances so you can avoid them. Resources &amp; People Mentioned <ul> <li><a href="https://ark-funds.com/funds/arkk/" rel="noopener nofollow" target="_blank">The ARKK ETF</a></li> </ul> Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

How to Avoid these HUGE Retirement Mistakes, Ep #103

What should you expect from your financial advisor? Based on the questions I’m getting—and the conversations I’m having—many of you don’t know the answer to this question. And some of you have been working with the same financial advisor for 10–20 years! In this episode of the Retirement Made Easy podcast, I want to encourage you to expect more from your financial advisor: more planning, more advice, and more service. Listen to learn what you are paying for and SHOULD be getting from your financial advisor.  You will want to hear this episode if you are interested in...  [3:36] Check out the FREE Resources at RetirementMadeEasyPodcast.com [7:23] Thank you to these amazing listeners: Phil &amp; Nancy! [7:52] Your financial advisor should be able to help you [10:09] It’s time to get serious about your retirement action plan [13:19] Ask for and expect more from your financial advisor   What should you expect from your financial advisor? Many listeners are saying they’re working with a financial advisor—but they’re still asking me questions about social security. They’re still asking me questions about pensions, estate planning, tax planning, and so much more. I’m shocked how many people work with advisors who don’t know their stuff. Your financial advisor SHOULD be able to answer this for you!  You are paying your financial advisor a lot of money to help you with financial decisions. Get your money’s worth! I answer dozens and dozens of questions and am happy to do so but I’m shocked by how many people reach out to me because their advisor isn’t answering their questions. So where should you start? Set up a meeting with your financial advisor When I get a phone call, it usually goes something like this: “I’m thinking about retiring. I don’t know if I’m on track. I’ve got IRAs, Roth IRAs, and a 401k.” What’s the first thing I ask? Do you have a retirement plan?  If you want to retire at 65 and you’re 60, you have 5 years to make it work. Your plan will tell you exactly what you need to do to retire on time and what you’ll have to live on. The person calling me often says, “Well…we don’t have a retirement plan. We’re just now starting to get serious about retirement.”  If you already have a financial advisor, call them and say, “I want a retirement plan (or need to update my plan).” Make sure you cover these important questions:   When can I retire? Am I saving enough to retire on time? Should I start to save more?  With the market being down, it’s a great opportunity to update your retirement plan to see if you’re still on course. You’re not there to talk about investments, President Biden, or gas prices. You need to have productive meetings with your financial advisor.  How does your plan need to be revised or updated? If you’re just getting started, maybe it needs to be built. Talk about building a retirement action plan that will map the journey from where you are to where you want to be: comfortably retired.  Ask for more from your financial advisor Many financial advisors specialize in different areas. Some just specialize in 401k plans. Others, like myself, specialize in retirement planning (for myself, I work with people 50+). I’m not the person you call about investing in gold &amp; silver or real estate. Others specialize in life insurance and annuities.  Just like you see specialist doctors for various ailments, you want to make sure you’re meeting with the right kind of financial advisor. If your financial advisor doesn’t offer retirement plans, find one who specializes in retirement planning.  Get your money’s worth because you’re paying them—whether you realize it or not. You deserve professional advice. They’re there to plan for you. They’re there to build a bulletproof retirement action plan.  If you need help getting started, you can find my three steps to retirement at RetirementMadeEasyPodcast.com in the Resources:  The Blueprint to the Dream Retirement The budgeting tool The Retirement Action Plan  Resources &amp; People Mentioned  Check out the FREE Resources at RetirementMadeEasyPodcast.com  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

What should you expect from your financial advisor? Based on the questions I’m getting—and the conversations I’m having—many of you don’t know the answer to this question. And some of you have been working with the same financial advisor for 10–20 years! In this episode of the Retirement Made Easy podcast, I want to encourage you to expect more from your financial advisor: more planning, more advice, and more service. Listen to learn what you are paying for and SHOULD be getting from your financial advisor.  You will want to hear this episode if you are interested in... <ul> <li>[3:36] Check out the FREE Resources at <a href="http://RetirementMadeEasyPodcast.com" rel="nofollow" target="_blank">RetirementMadeEasyPodcast.com</a></li> <li>[7:23] Thank you to these amazing listeners: Phil &amp; Nancy!</li> <li>[7:52] Your financial advisor should be able to help you</li> <li>[10:09] It’s time to get serious about your retirement action plan</li> <li>[13:19] Ask for and expect more from your financial advisor </li> </ul> What should you expect from your financial advisor? Many listeners are saying they’re working with a financial advisor—but they’re still asking me questions about social security. They’re still asking me questions about pensions, estate planning, tax planning, and so much more. I’m shocked how many people work with advisors who don’t know their stuff. Your financial advisor SHOULD be able to answer this for you!  You are paying your financial advisor a lot of money to help you with financial decisions. Get your money’s worth! I answer dozens and dozens of questions and am happy to do so but I’m shocked by how many people reach out to me because their advisor isn’t answering their questions. So where should you start? Set up a meeting with your financial advisor When I get a phone call, it usually goes something like this: “I’m thinking about retiring. I don’t know if I’m on track. I’ve got IRAs, Roth IRAs, and a 401k.” What’s the first thing I ask? Do you have a retirement plan?  If you want to retire at 65 and you’re 60, you have 5 years to make it work. Your plan will tell you exactly what you need to do to retire on time and what you’ll have to live on. The person calling me often says, “Well…we don’t have a retirement plan. We’re just now starting to get serious about retirement.”  If you already have a financial advisor, call them and say, “I want a retirement plan (or need to update my plan).” Make sure you cover these important questions:  <ul> <li>When can I retire?</li> <li>Am I saving enough to retire on time?</li> <li>Should I start to save more?</li> </ul> With the market being down, it’s a great opportunity to update your retirement plan to see if you’re still on course. You’re not there to talk about investments, President Biden, or gas prices. You need to have productive meetings with your financial advisor.  How does your plan need to be revised or updated? If you’re just getting started, maybe it needs to be built. Talk about building a retirement action plan that will map the journey from where you are to where you want to be: comfortably retired.  Ask for more from your financial advisor Many financial advisors specialize in different areas. Some just specialize in 401k plans. Others, like myself, specialize in retirement planning (for myself, I work with people 50+). I’m not the person you call about investing in gold &amp; silver or real estate. Others specialize in life insurance and annuities.  Just like you see specialist doctors for various ailments, you want to make sure you’re meeting with the right kind of financial advisor. If your financial advisor doesn’t offer retirement plans, find one who specializes in retirement planning.  Get your money’s worth because you’re paying them—whether you realize it or not. You deserve professional advice. They’re there to plan for you. They’re there to build a bulletproof retirement action plan.  If you need help getting started, you can find my three steps to retirement at <a href="https://retirementmadeeasypodcast.com/resources/" rel="noopener nofollow" target="_blank">RetirementMadeEasyPodcast.com</a> in the Resources: <ol> <li>The Blueprint to the Dream Retirement</li> <li>The budgeting tool</li> <li>The Retirement Action Plan</li> </ol> Resources &amp; People Mentioned <ul> <li>Check out the FREE Resources at <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">RetirementMadeEasyPodcast.com</a></li> </ul> Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

What You Should Expect from Your Financial Advisor, Ep #102

Too many people spend their time worrying about what they can’t control. But you have to focus on what you can control and disregard the rest. We are where we are today because of the decisions and choices we’ve made in the past. As you look ahead at your future retirement, you’ll be where you are because of the decisions you make now.  There are things you can’t control like the economy, who’s in the white house, the war in Ukraine, and more. You’re wasting your time if you spend it thinking, “If only things were different.” So in this episode of Retirement Made Easy, let’s step back and focus on what we can control: What decisions can you make that will have an impact on your retirement?   &gt;  You will want to hear this episode if you are interested in...  [4:55] Check out RetirementMadeEasyPodcast.com for FREE resources! [7:37] Focus on What You CAN Control—ignore what you can’t [10:55] You get to control your retirement accounts [13:56] You get to control your pension options [16:30] You get to control when you retire  What you can—and can’t—control Journalists use inflammatory language like, “The Market Plunges” or “The Market Soars.” These tactics are meant to scare you and get clicks. The market goes up and the market goes down. You can’t control the nature of the market and what it does. But you can control your emotions and how you react. You can also control the risk that you’re taking in your portfolio. What else can you control?   You can control how much debt you pay off You can control how much you pay in taxes and when you pay them You can control how your IRAs, 401ks, and retirement accounts are invested You can control how much is in your emergency fund You can control how much you contribute to your HSA and 401k You can control when you claim your social security benefit (and how much it pays out)  I want to encourage you to focus on what you can control. If you believe taxes are going up in 2026 when the Tax Cuts and Jobs Act expires, you can start doing Roth conversions. That’s strategic decision-making. If Congress doesn’t act, you’ll pay 15% Federal taxes instead of 12%. There’s also a possibility that they might extend the low tax environment—but we have no control over that.  You get to control your pension options Another thing you can control is how you claim a pension (If you’re lucky enough to have one). Do you choose the lump sum option? As long as the lump sum is managed properly, it can be a good choice. But if you don’t invest it properly so it lasts, you’re better off selecting the lifetime annuity option. Do you take the single-life option? The spousal 100% survivor option? What about the 75% survivor or 50% survivor option?  If I’m looking at a private pension, I’m looking at how well-funded it is. I’ve seen pensions that are 97% funded and I’ve seen some that are 60% funded. If I had a pension and the report said it was only 60% funded, and I can take a lump sum, I’d take it in a heartbeat.  Some people say, “Well my company is strong.” Guess what? 25 years ago Blockbuster was a strong company. JCPenney and Sears were strong companies. If you retire at 62, you’re projected to live until 92. What will your company look like 30 years from now? No one knows—and you can’t control it.  You get to control when you retire When someone retires, they want to draw income from their Roth IRAs, 401ks, IRAs, etc. You have a strategic decision to make. Do you want to partner with an advisor who can come up with a strategy that produces income—such as dividends and interest—that you can live off of? You can control who you work with to manage your money—and when you retire.  I have some clients who want to wait to retire until their house is paid off. Or they want to wait until they get their annual bonus. Or they want to wait until they pay off their kid’s student loans. Or they want to wait until they're 65 and qualify for Medicare and their pension is maximized. Maybe they want to wait to take social security until their full retirement age. You get the picture. There are many things that are in your control. Why not focus on those and let go of the rest?  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

Too many people spend their time worrying about what they can’t control. But you have to focus on what you can control and disregard the rest. We are where we are today because of the decisions and choices we’ve made in the past. As you look ahead at your future retirement, you’ll be where you are because of the decisions you make now.  There are things you can’t control like the economy, who’s in the white house, the war in Ukraine, and more. You’re wasting your time if you spend it thinking, “If only things were different.” So in this episode of Retirement Made Easy, let’s step back and focus on what we can control: What decisions can you make that will have an impact on your retirement?  &gt;  You will want to hear this episode if you are interested in... <ul> <li>[4:55] Check out <a href="http://RetirementMadeEasyPodcast.com" rel="nofollow" target="_blank">RetirementMadeEasyPodcast.com</a> for FREE resources!</li> <li>[7:37] Focus on What You CAN Control—ignore what you can’t</li> <li>[10:55] You get to control your retirement accounts</li> <li>[13:56] You get to control your pension options</li> <li>[16:30] You get to control when you retire</li> </ul> What you can—and can’t—control Journalists use inflammatory language like, “The Market Plunges” or “The Market Soars.” These tactics are meant to scare you and get clicks. The market goes up and the market goes down. You can’t control the nature of the market and what it does. But you can control your emotions and how you react. You can also control the risk that you’re taking in your portfolio. What else can you control?  <ul> <li>You can control how much debt you pay off</li> <li>You can control how much you pay in taxes and when you pay them</li> <li>You can control how your IRAs, 401ks, and retirement accounts are invested</li> <li>You can control how much is in your emergency fund</li> <li>You can control how much you contribute to your HSA and 401k</li> <li>You can control when you claim your social security benefit (and how much it pays out)</li> </ul> I want to encourage you to focus on what you can control. If you believe taxes are going up in 2026 when the Tax Cuts and Jobs Act expires, you can start doing Roth conversions. That’s strategic decision-making. If Congress doesn’t act, you’ll pay 15% Federal taxes instead of 12%. There’s also a possibility that they might extend the low tax environment—but we have no control over that.  You get to control your pension options Another thing you can control is how you claim a pension (If you’re lucky enough to have one). Do you choose the lump sum option? As long as the lump sum is managed properly, it can be a good choice. But if you don’t invest it properly so it lasts, you’re better off selecting the lifetime annuity option. Do you take the single-life option? The spousal 100% survivor option? What about the 75% survivor or 50% survivor option?  If I’m looking at a private pension, I’m looking at how well-funded it is. I’ve seen pensions that are 97% funded and I’ve seen some that are 60% funded. If I had a pension and the report said it was only 60% funded, and I can take a lump sum, I’d take it in a heartbeat.  Some people say, “Well my company is strong.” Guess what? 25 years ago Blockbuster was a strong company. JCPenney and Sears were strong companies. If you retire at 62, you’re projected to live until 92. What will your company look like 30 years from now? No one knows—and you can’t control it.  You get to control when you retire When someone retires, they want to draw income from their Roth IRAs, 401ks, IRAs, etc. You have a strategic decision to make. Do you want to partner with an advisor who can come up with a strategy that produces income—such as dividends and interest—that you can live off of? You can control who you work with to manage your money—and when you retire.  I have some clients who want to wait to retire until their house is paid off. Or they want to wait until they get their annual bonus. Or they want to wait until they pay off their kid’s student loans. Or they want to wait until they're 65 and qualify for Medicare and their pension is maximized. Maybe they want to wait to take social security until their full retirement age. You get the picture. There are many things that are in your control. Why not focus on those and let go of the rest?  Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="nofollow" target="_blank">Google Podcasts</a>

Focus on the Things You CAN Control in Your Retirement, Ep #101

We’ve made it to 100 episodes! So in this special edition of the Retirement Made Easy podcast, I’ll answer five questions from the first quarter of 2022. These questions cover a wide variety of topics that are all important to know, from paying off your mortgage to following the “4% rule.” Make sure you give it a listen! You will want to hear this episode if you are interested in...  [0:22] Make sure you check out RetirementMadeEasyPodcast.com! [1:39] My three-step process to help you retire  [5:13] Listener Question #1: Should Bill pay off his mortgage? [8:28] Listener Question #2: What do you need to know about annuities? [12:05] Listener Question #3: Social security and 401k distributions [16:14] Listener Question #4: Can you put your 401k in savings bonds? [17:35] Listener Question #5: Does following the 4% rule work?  Listener Question #1: Should Bill pay off his mortgage? Bill wants to retire in two years. He owes $82,000 on his home but recently inherited $100,000. Other than the mortgage, he is debt-free. Should he pay off his house when his mortgage rate is only 3%? Do you want a mortgage when you retire? I wouldn’t. You won’t be taxed on the $100,000 you inherited, so you can easily take $80,000 and pay off your mortgage. Then you can take the money you’ll be saving and beef up your emergency fund or save more for retirement.  Then you have to figure out what to do with the remaining $20,000. Who knows, maybe the inheritance will allow you to retire earlier. I recommend updating your written retirement plan to see what options are available. Listener Question #2: What do you need to know about annuities? This listener met with someone who offered them two “guaranteed” annuities. The slick salesperson said they were “free” and didn’t have fees. Is that true?  Yes, some annuities don’t have fees. If they don't have fees, they have “surrender charges.” For example, if you try to cash out within a certain timeframe (5 or 10 years, typically) you’ll have to pay a surrender charge.  Here are some questions you need to ask if you’re considering an annuity:   What is the surrender charge if you want to get out? How long do they apply?  Are their fees? What are they?  What is the purpose of the annuity?   Some people will buy an annuity for tax deferrals. Some want a fixed interest rate. Some offer lifetime income or death benefit riders. The bottom line is that I don’t like to see someone put more than 50% of their liquid net worth—i.e. retirement accounts—into annuities.  Lastly, I wouldn’t really trust someone you’d describe as “slick.” When it comes to your retirement, you want to work with someone you trust.  Listener Question #3: Social security and 401k distributions Can Roger claim half of his wife’s benefit and wait to claim his until he’s 70? The only way you could do this is if you were born on or before January 1st, 1954. It was done through a loophole called “filing a restricted application” that can’t be done anymore.  Let’s say Roger’s benefit is $3000 a month. His wife’s is $1,000 at her full retirement age. She would claim the $1,000 and Roger would claim 50%—$500. So his benefit would grow by 8% and he could claim the full $3,000 a month at 70. You can’t do this anymore.  What about survivor benefits? If Roger passes away—and his wife is over 60—she would get a survivor benefit—the higher of the two benefits if both were collecting social security. She’d also get a $255 lump-sum payment.  Lastly, I would have a discussion with your wife about listing your boys as partial beneficiaries of your 401k. If you want to gift them money from your 401k, the other option is to make a withdrawal, pay taxes on the withdrawal, and then give the money to your sons.  I answer TWO more listener questions in this episode—don’t miss it!  Resources &amp; People Mentioned  Get FREE resources at RetirementMadeEasyPodcast.com! Treasury Direct  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

We’ve made it to 100 episodes! So in this special edition of the Retirement Made Easy podcast, I’ll answer five questions from the first quarter of 2022. These questions cover a wide variety of topics that are all important to know, from paying off your mortgage to following the “4% rule.” Make sure you give it a listen! You will want to hear this episode if you are interested in... <ul> <li>[0:22] Make sure you check out <a href="http://RetirementMadeEasyPodcast.com" rel="nofollow" target="_blank">RetirementMadeEasyPodcast.com</a>!</li> <li>[1:39] My three-step process to help you retire </li> <li>[5:13] Listener Question #1: Should Bill pay off his mortgage?</li> <li>[8:28] Listener Question #2: What do you need to know about annuities?</li> <li>[12:05] Listener Question #3: Social security and 401k distributions</li> <li>[16:14] Listener Question #4: Can you put your 401k in savings bonds?</li> <li>[17:35] Listener Question #5: Does following the 4% rule work?</li> </ul> Listener Question #1: Should Bill pay off his mortgage? Bill wants to retire in two years. He owes $82,000 on his home but recently inherited $100,000. Other than the mortgage, he is debt-free. Should he pay off his house when his mortgage rate is only 3%? Do you want a mortgage when you retire? I wouldn’t. You won’t be taxed on the $100,000 you inherited, so you can easily take $80,000 and pay off your mortgage. Then you can take the money you’ll be saving and beef up your emergency fund or save more for retirement.  Then you have to figure out what to do with the remaining $20,000. Who knows, maybe the inheritance will allow you to retire earlier. I recommend updating your written retirement plan to see what options are available. Listener Question #2: What do you need to know about annuities? This listener met with someone who offered them two “guaranteed” annuities. The slick salesperson said they were “free” and didn’t have fees. Is that true?  Yes, some annuities don’t have fees. If they don't have fees, they have “surrender charges.” For example, if you try to cash out within a certain timeframe (5 or 10 years, typically) you’ll have to pay a surrender charge.  Here are some questions you need to ask if you’re considering an annuity:  <ul> <li>What is the surrender charge if you want to get out? How long do they apply? </li> <li>Are their fees? What are they? </li> <li>What is the purpose of the annuity? </li> </ul> Some people will buy an annuity for tax deferrals. Some want a fixed interest rate. Some offer lifetime income or death benefit riders. The bottom line is that I don’t like to see someone put more than 50% of their liquid net worth—i.e. retirement accounts—into annuities.  Lastly, I wouldn’t really trust someone you’d describe as “slick.” When it comes to your retirement, you want to work with someone you trust.  Listener Question #3: Social security and 401k distributions Can Roger claim half of his wife’s benefit and wait to claim his until he’s 70? The only way you could do this is if you were born on or before January 1st, 1954. It was done through a loophole called “filing a restricted application” that can’t be done anymore.  Let’s say Roger’s benefit is $3000 a month. His wife’s is $1,000 at her full retirement age. She would claim the $1,000 and Roger would claim 50%—$500. So his benefit would grow by 8% and he could claim the full $3,000 a month at 70. You can’t do this anymore.  What about survivor benefits? If Roger passes away—and his wife is over 60—she would get a survivor benefit—the higher of the two benefits if both were collecting social security. She’d also get a $255 lump-sum payment.  Lastly, I would have a discussion with your wife about listing your boys as partial beneficiaries of your 401k. If you want to gift them money from your 401k, the other option is to make a withdrawal, pay taxes on the withdrawal, and then give the money to your sons.  I answer TWO more listener questions in this episode—don’t miss it!  Resources &amp; People Mentioned <ul> <li>Get FREE resources at <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">RetirementMadeEasyPodcast.com</a>!</li> <li><a href="https://treasurydirect.gov/" rel="noopener nofollow" target="_blank">Treasury Direct</a></li> </ul> Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

The Top 5 Listener Questions of 2022, Ep #100

There are two types of people that fail miserably at retirement. One person is the type that loved their job because it gave them a sense of purpose. The other type is the spender—they struggle to stick to a budget and want an extravagant retirement. What should these two people do to have a successful retirement? Learn more in this episode of the Retirement Made Easy Podcast.  You will want to hear this episode if you are interested in...  [0:21] Check out RetirementMadeEasyPodcast.com for FREE Resources [4:37] A HUGE congratulations to George and Mary on their retirement! [6:15] Type #1: Those who struggle with a lack of purpose [9:36] Type #2: Those who spend more than they should [13:07] Your paycheck HAS to be replaced with other income  Type #1: Those who struggle with a lack of purpose Do you get up and head to work and feel a sense of purpose every single day? Is your career meaningful? When this type of person retires and they no longer have that purpose, they don’t know what to do with their time. They might relax for about a week of retirement. Then they get bored. They miss their coworkers, interaction, and sense of purpose.  How do you combat this? You can volunteer at organizations a few days a week. Or you can help babysit your grandkids. There are plenty of purposeful things you can do to fill your time that doesn’t include working full-time. But if you’re this type, before you retire, think about how you want to spend your time so you’re not left twiddling your thumbs.  You can also download and fill out my “Blueprint To a Dream Retirement” to help you navigate how you’ll spend your retirement.  Type #2: Those who spend more than they should I don’t see this often—but I see it enough. I’ve parted ways with two clients during my career because they were overspending and jeopardizing the success of their retirement. When you retire, you have to live at or below your means. You’re on a fixed income. Your pension, social security, and retirement nest egg make up the cash flow that you have to spend. If you stay within those parameters, you’ll be fine. Those that fail have a habit of spending above and beyond their monthly budget. If you spend more than you had planned, you can’t just call social security and ask for more.  So what do you do? How do you avoid overspending in retirement? You need to set a realistic budget. Secondly, you need to think about what you want from your retirement in advance. Do you want a boat? Do you want to vacation in the Bahamas? Whatever you want, share it with your financial planner ahead of time so it can become part of your retirement plan.  Your paycheck HAS to be replaced with other income The money for your monthly expenses can come from IRA withdrawals, a brokerage account, social security, and pensions. When you were working, you likely got paid every two weeks. People can struggle to budget when they’re getting only one check a month from social security. So we try to distribute money from an IRA on the 16th if the social security check comes in on the 1st, so you get paid twice a month like you’re used to.  My final tip? A retirement plan is key to helping you determine what you’ll do—and how much you’ll spend—for the rest of your life. Work with an experienced financial planner to help you build the retirement plan that will fund your dreams. Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

There are two types of people that fail miserably at retirement. One person is the type that loved their job because it gave them a sense of purpose. The other type is the spender—they struggle to stick to a budget and want an extravagant retirement. What should these two people do to have a successful retirement? Learn more in this episode of the Retirement Made Easy Podcast.  You will want to hear this episode if you are interested in... <ul> <li>[0:21] Check out <a href="http://RetirementMadeEasyPodcast.com" rel="nofollow" target="_blank">RetirementMadeEasyPodcast.com</a> for FREE Resources</li> <li>[4:37] A HUGE congratulations to George and Mary on their retirement!</li> <li>[6:15] Type #1: Those who struggle with a lack of purpose</li> <li>[9:36] Type #2: Those who spend more than they should</li> <li>[13:07] Your paycheck HAS to be replaced with other income</li> </ul> Type #1: Those who struggle with a lack of purpose Do you get up and head to work and feel a sense of purpose every single day? Is your career meaningful? When this type of person retires and they no longer have that purpose, they don’t know what to do with their time. They might relax for about a week of retirement. Then they get bored. They miss their coworkers, interaction, and sense of purpose.  How do you combat this? You can volunteer at organizations a few days a week. Or you can help babysit your grandkids. There are plenty of purposeful things you can do to fill your time that doesn’t include working full-time. But if you’re this type, before you retire, think about how you want to spend your time so you’re not left twiddling your thumbs.  You can also download and fill out my “<a href="https://retirementmadeeasypodcast.com/resources/#open-overlay" rel="noopener nofollow" target="_blank">Blueprint To a Dream Retirement</a>” to help you navigate how you’ll spend your retirement.  Type #2: Those who spend more than they should I don’t see this often—but I see it enough. I’ve parted ways with two clients during my career because they were overspending and jeopardizing the success of their retirement. When you retire, you have to live at or below your means. You’re on a fixed income. Your pension, social security, and retirement nest egg make up the cash flow that you have to spend. If you stay within those parameters, you’ll be fine. Those that fail have a habit of spending above and beyond their monthly budget. If you spend more than you had planned, you can’t just call social security and ask for more.  So what do you do? How do you avoid overspending in retirement? You need to set a realistic budget. Secondly, you need to think about what you want from your retirement in advance. Do you want a boat? Do you want to vacation in the Bahamas? Whatever you want, share it with your financial planner ahead of time so it can become part of your retirement plan.  Your paycheck HAS to be replaced with other income The money for your monthly expenses can come from IRA withdrawals, a brokerage account, social security, and pensions. When you were working, you likely got paid every two weeks. People can struggle to budget when they’re getting only one check a month from social security. So we try to distribute money from an IRA on the 16th if the social security check comes in on the 1st, so you get paid twice a month like you’re used to.  My final tip? A retirement plan is key to helping you determine what you’ll do—and how much you’ll spend—for the rest of your life. Work with an experienced financial planner to help you build the retirement plan that will fund your dreams. Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

The Two Types of People Who Fail at Retirement, Ep #99

These are 5 things that you might forget about that can make a HUGE impact on your retirement. These five issues are things that you need to consider when you create a retirement plan—or they could derail your retirement. Listen to this episode of the Retirement Made Easy podcast to find out what they are (and what you can do about it). You will want to hear this episode if you are interested in...  [1:26] Check out our FREE resources at RetirementMadeEasyPodcast.com [4:46] Issue #1: Do you want to leave an inheritance? [76:30] Issue #2: Do you plan to downsize or relocate when you retire? [8:49] Issue #3: What is a 62-year-old couple facing in their life? [11:00] Issue #4: What is your plan to pay for your own care? [12:03] Issue #5: What big expenses do you have on the horizon? [17:08] Listener Question: Would I work with a stockbroker?  Issue #1: Do you want to leave an inheritance? Do you want to leave an inheritance for your kids or grandkids? Do you want to leave a gift to your church or charity? What does that look like to you? To what extent do you want to make a financial impact in their lives? Many couples don’t agree on this topic. More often than not, the wife—with a more maternal instinct—wants to take care of her kids and grandkids. The husband usually wants to make sure they’re cared for first. If you’re married, you want to be on the same page with your spouse. If it’s important to one of you to leave an inheritance, that has to be planned for.  Issue #2: Do you plan to downsize or relocate when you retire? Have you thought about moving closer to family? Or are you going to be a snowbird and retire to Florida? If you’re going to relocate or downsize, maybe it doesn’t make sense to pay off your mortgage. If you move to a state like Florida, that plays into the decisions you make as well. If you do a Roth conversion in Florida, you won’t have to pay state income tax. So it makes sense to wait until you live there to do the Roth conversion. How will the move impact your budget and cashflow? Will you have HOAs? Higher property taxes? Will utilities increase or decrease? These are all questions you need to consider, if not answer.  Issue #3: What is a 62-year-old couple facing in their life? Are your parents still living? How is their health? How far away do they live from you? Who will care for them if you retire out of state? Do you have siblings to help care for them? My mom was the oldest of three. Her parents and siblings were local. But her siblings were younger and both working. When my mother retired, instead of traveling and living out her retirement dreams, she ended up caring for her parents. She did all of their shopping, took them to doctor appointments, etc. The first years of her retirement were focused on caring for them.  Issue #4: What is your plan to pay for your own care? When the time comes, will you get a long-term care policy? Will you self-insure? What will the costs be when you need the care? It may cost less if you live in a rural area. Quality care costs around $8,000 a month in St. Louis, MO—and that’s the price today. What will it be in 20–30 years? This is a question you must consider even if you are in the best of health.  Issue #5: What big expenses do you have on the horizon? Large expenses need to be accounted for in your retirement plan. What do I mean by large expenses? Maybe you need a new vehicle. Maybe your home needs a new deck or a kitchen remodel. Maybe you want to pay off your mortgage. Maybe you want to purchase a camper. Do you have a future wedding to keep in mind? What about a child or grandchild’s student loans? You have to plan for these big expenses, goals, dreams, and visions.  If you wake up one day and decide “I want to buy a $45,000 pontoon boat” it can seriously mess up your retirement plan. But if you planned two years ahead of time, your retirement plan can be adjusted. Listen to the whole episode to hear a story about someone who didn’t plan for these types of expenses. Plus, I answer a listener question I’ve never been asked before.  Resources &amp; People Mentioned  Check out our FREE resources at RetirementMadeEasyPodcast.com  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

These are 5 things that you might forget about that can make a HUGE impact on your retirement. These five issues are things that you need to consider when you create a retirement plan—or they could derail your retirement. Listen to this episode of the Retirement Made Easy podcast to find out what they are (and what you can do about it). You will want to hear this episode if you are interested in... <ul> <li>[1:26] Check out our FREE resources at <a href="http://RetirementMadeEasyPodcast.com" rel="nofollow" target="_blank">RetirementMadeEasyPodcast.com</a></li> <li>[4:46] Issue #1: Do you want to leave an inheritance?</li> <li>[76:30] Issue #2: Do you plan to downsize or relocate when you retire?</li> <li>[8:49] Issue #3: What is a 62-year-old couple facing in their life?</li> <li>[11:00] Issue #4: What is your plan to pay for your own care?</li> <li>[12:03] Issue #5: What big expenses do you have on the horizon?</li> <li>[17:08] Listener Question: Would I work with a stockbroker?</li> </ul> Issue #1: Do you want to leave an inheritance? Do you want to leave an inheritance for your kids or grandkids? Do you want to leave a gift to your church or charity? What does that look like to you? To what extent do you want to make a financial impact in their lives? Many couples don’t agree on this topic. More often than not, the wife—with a more maternal instinct—wants to take care of her kids and grandkids. The husband usually wants to make sure they’re cared for first. If you’re married, you want to be on the same page with your spouse. If it’s important to one of you to leave an inheritance, that has to be planned for.  Issue #2: Do you plan to downsize or relocate when you retire? Have you thought about moving closer to family? Or are you going to be a snowbird and retire to Florida? If you’re going to relocate or downsize, maybe it doesn’t make sense to pay off your mortgage. If you move to a state like Florida, that plays into the decisions you make as well. If you do a Roth conversion in Florida, you won’t have to pay state income tax. So it makes sense to wait until you live there to do the Roth conversion. How will the move impact your budget and cashflow? Will you have HOAs? Higher property taxes? Will utilities increase or decrease? These are all questions you need to consider, if not answer.  Issue #3: What is a 62-year-old couple facing in their life? Are your parents still living? How is their health? How far away do they live from you? Who will care for them if you retire out of state? Do you have siblings to help care for them? My mom was the oldest of three. Her parents and siblings were local. But her siblings were younger and both working. When my mother retired, instead of traveling and living out her retirement dreams, she ended up caring for her parents. She did all of their shopping, took them to doctor appointments, etc. The first years of her retirement were focused on caring for them.  Issue #4: What is your plan to pay for your own care? When the time comes, will you get a long-term care policy? Will you self-insure? What will the costs be when you need the care? It may cost less if you live in a rural area. Quality care costs around $8,000 a month in St. Louis, MO—and that’s the price today. What will it be in 20–30 years? This is a question you must consider even if you are in the best of health.  Issue #5: What big expenses do you have on the horizon? Large expenses need to be accounted for in your retirement plan. What do I mean by large expenses? Maybe you need a new vehicle. Maybe your home needs a new deck or a kitchen remodel. Maybe you want to pay off your mortgage. Maybe you want to purchase a camper. Do you have a future wedding to keep in mind? What about a child or grandchild’s student loans? You have to plan for these big expenses, goals, dreams, and visions.  If you wake up one day and decide “I want to buy a $45,000 pontoon boat” it can seriously mess up your retirement plan. But if you planned two years ahead of time, your retirement plan can be adjusted. Listen to the whole episode to hear a story about someone who didn’t plan for these types of expenses. Plus, I answer a listener question I’ve never been asked before.  Resources &amp; People Mentioned <ul> <li>Check out our FREE resources at <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">RetirementMadeEasyPodcast.com</a></li> </ul> Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

5 Issues to Consider Before You Retire, Ep #98

In this special retirement replay, we listen to one of the most popular episodes: “The Retirement Story Everyone NEEDS to Hear.” Why is it so popular? I outline some things you need to know when you’re planning for retirement. Things like the life expectancy of the average 62-year-old, what we can learn from history about inflation, the optimal time to start withdrawing from social security—and how to apply it all to your retirement. Don’t miss this one.   &gt; You will want to hear this episode if you are interested in...  [1:36] The retirement tale everyone needs to hear [4:25] How to plan for your retirement  [5:06] What is the life expectancy for our retirees? [7:26] What average healthcare might look like [8:33] What the past shows us about inflation [16:05] What interest rates looked like 20+ years ago [16:51] Takeaways you can learn from our hypothetical couple  Resources &amp; People Mentioned  Social Security Administration  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

In this special retirement replay, we listen to one of the most popular episodes: “<a href="https://retirementmadeeasypodcast.com/retirement-story/" rel="noopener nofollow" target="_blank">The Retirement Story Everyone NEEDS to Hear.</a>” Why is it so popular? I outline some things you need to know when you’re planning for retirement. Things like the life expectancy of the average 62-year-old, what we can learn from history about inflation, the optimal time to start withdrawing from social security—and how to apply it all to your retirement. Don’t miss this one.  &gt; You will want to hear this episode if you are interested in... <ul> <li>[1:36] The retirement tale everyone needs to hear</li> <li>[4:25] How to plan for your retirement </li> <li>[5:06] What is the life expectancy for our retirees?</li> <li>[7:26] What average healthcare might look like</li> <li>[8:33] What the past shows us about inflation</li> <li>[16:05] What interest rates looked like 20+ years ago</li> <li>[16:51] Takeaways you can learn from our hypothetical couple</li> </ul> Resources &amp; People Mentioned <ul> <li>Social Security Administration</li> </ul> Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

Retirement Replay: A Hypothetical Tale of a Retired Couple, Ep #97

Finally, a retirement podcast in a language YOU can understand. Your host, Gregg Gonzalez, CFP® is a Dave Ramsey Smartvestor Pro with the heart of a teacher. Listen as Gregg shares financial &amp; retirement tips that are sure to keep you tuned in every episode. Check out podcast website http://RetirementMadeEasyPodcast.com for FREE resources.

Did you know that some months are better than others when it comes to retiring? What month YOU should retire depends on numerous factors, like what you do for a living, health insurance, your retirement portfolio, and even the weather. We’ll cover it all in this episode of the Retirement Made Easy podcast.  You will want to hear this episode if you are interested in...  [0:26] The top 5 episodes of the podcast you need to listen to [3:26] Check out FREE resources at RetirementMadeEasyPodcast.com! [5:05] The best month to retire by profession [9:03] Factor in when you can jump on Medicare/health insurance [9:40] What to do when life throws a wrench in your plan [11:56] The two months I would choose to retire [14:08] Why the weather should be taken into consideration [16:41] Consider all of the factors that will steer your decision  What is your profession? What do you do for a living? If you own a business, you’ll want to sell your business and retire in January. Why? It’s a clean slate for your taxes. You won’t be taxed on earned income PLUS whatever is due on the sale of the business.  Many teachers retire in July when they get full credit for the previous fiscal year. Teacher’s pensions are based on your best three working years. Typically, that’s your last three working years because you’ve gotten raises along the way. Some teachers will work in Summer school, which is included in the pension calculation. Does your profession impact when you can retire? Do you have a bonus to factor in? I encourage those who work in the corporate world and get a yearly bonus to wait to retire until that happens, which is usually in March. For example, bonuses from 2021 are typically paid out in March 2022. I don't see it as an ethical dilemma. That bonus was earned the previous year. It’s the same with company stock options. Once they’re issued, they’re yours.  Loko at your 401k. When are you fully vested? If you’re only 80% vested, can you wait an additional year? Then the match dollars that your employer contributed are yours once you retire. Don’t leave money on the table. Don’t walk away from a bonus you earned by retiring early. Keep listening as I talk through how health insurance options impact the month you retire in. The month I would choose to retire I would choose to retire in March but preferably in April. Why? Many people in the corporate world have sick/vacation days paid out in some capacity when they retire. I’ve seen anywhere from $5,000 to $30,000 payouts, depending on how long someone worked for their employer.  You will most likely be taxed on the vacation and sick days built up. If so, you don’t want to retire at the end of the year and have to pay taxes on a full year of earned income PLUS that payout. It may even move you into a higher tax bracket. It makes more sense from a tax standpoint to wait to retire until April. Then you have 3 months of earned income, can still contribute to an HSA, and the tax rate will be lower. What else makes April great? Better weather!  When life doesn’t give you a choice  Even if you have a great plan in place for retirement, sometimes things happen. Maybe you’re unable to keep performing the same work you were doing and have to retire early due to health reasons. Or perhaps your employer is making layoffs. Someone approaching retirement is in their peak earning years with a plethora of experience right? But employers look at them and see dollar signs. To cut costs, they’ll try and offer “early retirement” packages to people 55 and older. The truth is that sometimes when you retire is out of your hands. But if you have a choice, give this episode a listen to help you decide what month you’ll retire.  Resources &amp; People Mentioned  Check out FREE resources at RetirementMadeEasyPodcast.com!  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

Did you know that some months are better than others when it comes to retiring? What month YOU should retire depends on numerous factors, like what you do for a living, health insurance, your retirement portfolio, and even the weather. We’ll cover it all in this episode of the Retirement Made Easy podcast.  You will want to hear this episode if you are interested in... <ul> <li>[0:26] The top 5 episodes of the podcast you need to listen to</li> <li>[3:26] Check out FREE resources at <a href="http://RetirementMadeEasyPodcast.com" rel="nofollow" target="_blank">RetirementMadeEasyPodcast.com</a>!</li> <li>[5:05] The best month to retire by profession</li> <li>[9:03] Factor in when you can jump on Medicare/health insurance</li> <li>[9:40] What to do when life throws a wrench in your plan</li> <li>[11:56] The two months I would choose to retire</li> <li>[14:08] Why the weather should be taken into consideration</li> <li>[16:41] Consider all of the factors that will steer your decision</li> </ul> What is your profession? What do you do for a living? If you own a business, you’ll want to sell your business and retire in January. Why? It’s a clean slate for your taxes. You won’t be taxed on earned income PLUS whatever is due on the sale of the business.  Many teachers retire in July when they get full credit for the previous fiscal year. Teacher’s pensions are based on your best three working years. Typically, that’s your last three working years because you’ve gotten raises along the way. Some teachers will work in Summer school, which is included in the pension calculation. Does your profession impact when you can retire? Do you have a bonus to factor in? I encourage those who work in the corporate world and get a yearly bonus to wait to retire until that happens, which is usually in March. For example, bonuses from 2021 are typically paid out in March 2022. I don't see it as an ethical dilemma. That bonus was earned the previous year. It’s the same with company stock options. Once they’re issued, they’re yours.  Loko at your 401k. When are you fully vested? If you’re only 80% vested, can you wait an additional year? Then the match dollars that your employer contributed are yours once you retire. Don’t leave money on the table. Don’t walk away from a bonus you earned by retiring early. Keep listening as I talk through how health insurance options impact the month you retire in. The month I would choose to retire I would choose to retire in March but preferably in April. Why? Many people in the corporate world have sick/vacation days paid out in some capacity when they retire. I’ve seen anywhere from $5,000 to $30,000 payouts, depending on how long someone worked for their employer.  You will most likely be taxed on the vacation and sick days built up. If so, you don’t want to retire at the end of the year and have to pay taxes on a full year of earned income PLUS that payout. It may even move you into a higher tax bracket. It makes more sense from a tax standpoint to wait to retire until April. Then you have 3 months of earned income, can still contribute to an HSA, and the tax rate will be lower. What else makes April great? Better weather!  When life doesn’t give you a choice  Even if you have a great plan in place for retirement, sometimes things happen. Maybe you’re unable to keep performing the same work you were doing and have to retire early due to health reasons. Or perhaps your employer is making layoffs. Someone approaching retirement is in their peak earning years with a plethora of experience right? But employers look at them and see dollar signs. To cut costs, they’ll try and offer “early retirement” packages to people 55 and older. The truth is that sometimes when you retire is out of your hands. But if you have a choice, give this episode a listen to help you decide what month you’ll retire.  Resources &amp; People Mentioned <ul> <li>Check out FREE resources at <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">RetirementMadeEasyPodcast.com</a>!</li> </ul> Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

What Month Should You Retire? Ep #96

What can you do to help you achieve your goal of retiring at age 70? When you write goals down, you increase your odds of completing them by 10x. So the first thing you can do to increase your odds of retiring at 70 is to write down: “My goal is to retire at age 70.” Now, you need to write down other things you can do to maximize your chances of reaching your goal.  You might write down, “I will delay my social security benefit until age 70.” That would maximize your social security. However, I’ve run retirement plans where it makes the most sense to collect social security at full retirement age instead. Then you can invest those dollars in things like growth mutual funds.  What other things can you add to your lease to achieve your goal of retiring at 70? Listen to this episode of The Retirement Made Easy podcast to learn more!  You will want to hear this episode if you are interested in...  [0:22] A BIG thank you to my listeners [5:56] The importance of writing down your goals [8:40] Claim social security at age 70 [10:02] #1: Pay off your house or downsize [10:53] #2: Consider taking on a part-time job [13:58] #3: Find ways to save more for retirement  [16:08] #4: Review how your retirement accounts are invested [18:44] #5: Sit down with a retirement planner   #1: Pay off your house or downsize You might want to pay off your mortgage before you retire. Or, you can downsize into a smaller home prior to retirement to save more money leading to retirement. I had one client who still lived in a 4,000-square-foot house after his kids grew up and moved out. He never used the second level or the basement. But he had a hard time selling it because it was where he raised his kids. But the best strategy for him was to downsize.  #2: Consider taking on a part-time job Retirement doesn’t have to be all or nothing. I know multiple clients who work part-time in retirement because it keeps them busy. Secondly, it brings in extra income, which means you don’t have to tap into your retirement accounts as much. Ask your boss if you can still work 15–20 hours a week. Many pre-retirees are surprised to find that their boss is completely on board with keeping them on part-time. I don’t know what you’re good at or what you’re passionate about but there will be a part-time venture out there for you.  #3: Find ways to save more for retirement You can save more money for retirement by cutting your expenses. I always recommend setting a budget. You can use resources like EveryDollar, Mint.com, or even my free budgeting tool. One area where many people should consider trimming their budget is life insurance. I’m not saying to go out and cancel your plan. However, it’s probably a good time to review it. If you’re in your 60s, your kids are raised, and your home is paid off—do you really need life insurance? Don’t throw your money away on life insurance premiums for coverage you don’t need. Take that money and invest it for your future. I’m certain if you look at your budget you’ll find something you can trim to save more money.  #4: Review how your retirement accounts are invested You need to review your retirement accounts and make sure that they are working for you. Are they helping you get closer to your goal of retiring at 70? I spoke with someone who decided to take an IRA and purchase a CD. The CD paid an interest rate that was less than 1%. If you’re already behind funding your retirement accounts, a 1% return per year isn’t going to cut it. Inflation is north of 8% (averaging 3% per year). If your retirement is chugging along by 3.75%, you’re falling behind. You have to pick up the pace. You can’t drive in the slow lane and expect 1% to get you to where you need to be.  #5: Sit down with a retirement planner  A retirement planner can help you determine how realistic your plan is. They can also help you:  Determine how much money you need to save Calculate the rate of return you need on your investments Choose the debt to pay off between now and 70 What holes do they see in your retirement plan? How much part-time income do you need to supplement social security, pensions, and your retirement nest egg?  A retirement planner can help you make your checklist as realistic as possible and bring you ever closer to your goal of retiring at age 70. Whatever you do—write down your goals.  Resources &amp; People Mentioned  My FREE budgeting tool Mint EveryDollar  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

What can you do to help you achieve your goal of retiring at age 70? When you write goals down, you increase your odds of completing them by 10x. So the first thing you can do to increase your odds of retiring at 70 is to write down: “My goal is to retire at age 70.” Now, you need to write down other things you can do to maximize your chances of reaching your goal.  You might write down, “I will delay my social security benefit until age 70.” That would maximize your social security. However, I’ve run retirement plans where it makes the most sense to collect social security at full retirement age instead. Then you can invest those dollars in things like growth mutual funds.  What other things can you add to your lease to achieve your goal of retiring at 70? Listen to this episode of The Retirement Made Easy podcast to learn more!  You will want to hear this episode if you are interested in... <ul> <li>[0:22] A BIG thank you to my listeners</li> <li>[5:56] The importance of writing down your goals</li> <li>[8:40] Claim social security at age 70</li> <li>[10:02] #1: Pay off your house or downsize</li> <li>[10:53] #2: Consider taking on a part-time job</li> <li>[13:58] #3: Find ways to save more for retirement </li> <li>[16:08] #4: Review how your retirement accounts are invested</li> <li>[18:44] #5: Sit down with a retirement planner </li> </ul> #1: Pay off your house or downsize You might want to pay off your mortgage before you retire. Or, you can downsize into a smaller home prior to retirement to save more money leading to retirement. I had one client who still lived in a 4,000-square-foot house after his kids grew up and moved out. He never used the second level or the basement. But he had a hard time selling it because it was where he raised his kids. But the best strategy for him was to downsize.  #2: Consider taking on a part-time job Retirement doesn’t have to be all or nothing. I know multiple clients who work part-time in retirement because it keeps them busy. Secondly, it brings in extra income, which means you don’t have to tap into your retirement accounts as much. Ask your boss if you can still work 15–20 hours a week. Many pre-retirees are surprised to find that their boss is completely on board with keeping them on part-time. I don’t know what you’re good at or what you’re passionate about but there will be a part-time venture out there for you.  #3: Find ways to save more for retirement You can save more money for retirement by cutting your expenses. I always recommend setting a budget. You can use resources like EveryDollar, <a href="http://Mint.com" rel="nofollow" target="_blank">Mint.com</a>, or even my <a href="https://retirementmadeeasypodcast.com/resources/#open-overlay" rel="nofollow" target="_blank">free budgeting tool</a>. One area where many people should consider trimming their budget is life insurance. I’m not saying to go out and cancel your plan. However, it’s probably a good time to review it. If you’re in your 60s, your kids are raised, and your home is paid off—do you really need life insurance? Don’t throw your money away on life insurance premiums for coverage you don’t need. Take that money and invest it for your future. I’m certain if you look at your budget you’ll find something you can trim to save more money.  #4: Review how your retirement accounts are invested You need to review your retirement accounts and make sure that they are working for you. Are they helping you get closer to your goal of retiring at 70? I spoke with someone who decided to take an IRA and purchase a CD. The CD paid an interest rate that was less than 1%. If you’re already behind funding your retirement accounts, a 1% return per year isn’t going to cut it. Inflation is north of 8% (averaging 3% per year). If your retirement is chugging along by 3.75%, you’re falling behind. You have to pick up the pace. You can’t drive in the slow lane and expect 1% to get you to where you need to be.  #5: Sit down with a retirement planner  A retirement planner can help you determine how realistic your plan is. They can also help you: <ul> <li>Determine how much money you need to save</li> <li>Calculate the rate of return you need on your investments</li> <li>Choose the debt to pay off between now and 70</li> <li>What holes do they see in your retirement plan?</li> <li>How much part-time income do you need to supplement social security, pensions, and your retirement nest egg?</li> </ul> A retirement planner can help you make your checklist as realistic as possible and bring you ever closer to your goal of retiring at age 70. Whatever you do—write down your goals.  Resources &amp; People Mentioned <ul> <li>My FREE <a href="https://retirementmadeeasypodcast.com/resources/#open-overlay" rel="noopener nofollow" target="_blank">budgeting tool</a></li> <li><a href="https://mint.intuit.com/" rel="noopener nofollow" target="_blank">Mint</a></li> <li><a href="https://www.ramseysolutions.com/ramseyplus/everydollar" rel="noopener nofollow" target="_blank">EveryDollar</a></li> </ul> Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

How to Achieve Your Goal of Retiring at Age 70, Ep #95

Yes, you read the title right—there are some questions that I can’t answer. In this episode of the Retirement Made Easy podcast, I dissect questions submitted by Jerry, Dean, and Jean. All three asked great questions that I just can’t answer. So in this episode, I’ll explain why I can’t answer them, the information I would need to give an informed answer, and things each listener needs to question for themselves. You will want to hear this episode if you are interested in...  [4:28] Speculative investments are never the answer [10:40] Retirement decisions must be made with your significant other [15:50] How age differences impact retirement planning [16:57] Why joint ownership can be dangerous  Speculative investments are never the answer Jerry expects the price of a barrel of oil to soon be over $200. He’s wondering if he should shift part of his portfolio to energy stocks and mutual funds to take advantage of the opportunity. It’s a great question that I can’t answer. Why? I need to know more about Jerry’s situation.   What is a portion of your portfolio?  What is your risk tolerance?  What is your overall goal?   I don’t like speculating on things that might happen. I design a portfolio based on each person’s unique situation and what they’re trying to accomplish. How is your portfolio designed to get you to your retirement goals? If you can’t answer that, you need to rethink things.  I met with a potential client who wanted to take half of his portfolio and invest it in GM and invest the other half in Ford. It was his entire life savings from working for 40 years. I told him that I couldn’t work with him. GM went bankrupt and the stock went to zero. Half of his portfolio was gone. Fortunately, Ford stock rebounded. But that was a risk he should NOT have taken. His decisions were based on speculation. Retirement decisions must be made with your significant other Dean, a listener from Indiana, is 63-years-old and his wife is 53. He’s retiring in December of 2022. He’s wondering when he should claim his social security, which choice makes the most sense for a pension election, and if he should pay off his house if he has the cash to do so. There’s so much more I’d need to know to answer these questions. When I look at a husband and a wife, they are a team. Decisions must be made that benefit both of them. If Dean’s wife has great genes and will live far longer than him, he should consider taking the joint survivor option for his pension. Dean didn’t provide lump-sum details (if they exist). Does his wife have a pension? Does he have life insurance? But the key is that a couple needs to make decisions together. So many factors must be discussed with a fiduciary to make the best decision possible. If you have the cash available and paid off your house, what does it leave in an emergency fund? Generally speaking, I like to see people retiring without a mortgage. Retiring debt-free can be a huge weight off of your shoulders. Then you can spend money on things that will enhance your life in retirement.  How do age differences between spouses impact retirement planning? Listen to hear my thoughts!  Why joint ownership can be dangerous Jean has recently experienced some sad changes in her life. To make sure that her son is her sole beneficiary, she put his name on her house and all checking and savings accounts. She also changed her will to name him as the sole beneficiary of everything. She’s wondering if she made the right choice.  My answer? I don’t know. You’ve made your son the legal owner of half of everything you own. If he was a rotten person, he could write checks and spend through your accounts. Whenever you name someone as a joint owner of any account, you run that risk. Secondly, if he has debts, someone could come after all of your assets. While hypothetical, these are risks you must be aware of.  What else do you need to be mindful of? Listen to the whole episode for some more thoughts you should consider!  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

Yes, you read the title right—there are some questions that I can’t answer. In this episode of the Retirement Made Easy podcast, I dissect questions submitted by Jerry, Dean, and Jean. All three asked great questions that I just can’t answer. So in this episode, I’ll explain why I can’t answer them, the information I would need to give an informed answer, and things each listener needs to question for themselves. You will want to hear this episode if you are interested in... <ul> <li>[4:28] Speculative investments are never the answer</li> <li>[10:40] Retirement decisions must be made with your significant other</li> <li>[15:50] How age differences impact retirement planning</li> <li>[16:57] Why joint ownership can be dangerous</li> </ul> Speculative investments are never the answer Jerry expects the price of a barrel of oil to soon be over $200. He’s wondering if he should shift part of his portfolio to energy stocks and mutual funds to take advantage of the opportunity. It’s a great question that I can’t answer. Why? I need to know more about Jerry’s situation.  <ul> <li>What is a portion of your portfolio? </li> <li>What is your risk tolerance? </li> <li>What is your overall goal? </li> </ul> I don’t like speculating on things that might happen. I design a portfolio based on each person’s unique situation and what they’re trying to accomplish. How is your portfolio designed to get you to your retirement goals? If you can’t answer that, you need to rethink things.  I met with a potential client who wanted to take half of his portfolio and invest it in GM and invest the other half in Ford. It was his entire life savings from working for 40 years. I told him that I couldn’t work with him. GM went bankrupt and the stock went to zero. Half of his portfolio was gone. Fortunately, Ford stock rebounded. But that was a risk he should NOT have taken. His decisions were based on speculation. Retirement decisions must be made with your significant other Dean, a listener from Indiana, is 63-years-old and his wife is 53. He’s retiring in December of 2022. He’s wondering when he should claim his social security, which choice makes the most sense for a pension election, and if he should pay off his house if he has the cash to do so. There’s so much more I’d need to know to answer these questions. When I look at a husband and a wife, they are a team. Decisions must be made that benefit both of them. If Dean’s wife has great genes and will live far longer than him, he should consider taking the joint survivor option for his pension. Dean didn’t provide lump-sum details (if they exist). Does his wife have a pension? Does he have life insurance? But the key is that a couple needs to make decisions together. So many factors must be discussed with a fiduciary to make the best decision possible. If you have the cash available and paid off your house, what does it leave in an emergency fund? Generally speaking, I like to see people retiring without a mortgage. Retiring debt-free can be a huge weight off of your shoulders. Then you can spend money on things that will enhance your life in retirement.  How do age differences between spouses impact retirement planning? Listen to hear my thoughts!  Why joint ownership can be dangerous Jean has recently experienced some sad changes in her life. To make sure that her son is her sole beneficiary, she put his name on her house and all checking and savings accounts. She also changed her will to name him as the sole beneficiary of everything. She’s wondering if she made the right choice.  My answer? I don’t know. You’ve made your son the legal owner of half of everything you own. If he was a rotten person, he could write checks and spend through your accounts. Whenever you name someone as a joint owner of any account, you run that risk. Secondly, if he has debts, someone could come after all of your assets. While hypothetical, these are risks you must be aware of.  What else do you need to be mindful of? Listen to the whole episode for some more thoughts you should consider!  Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

3 Listener Questions that I CAN’T Answer, Ep #94

Roth conversions are a useful tool that you should consider taking advantage of as you approach retirement. If you have a Roth IRA, it would grow tax-free for life. When you take withdrawals in retirement, they will be tax-free. With a traditional IRA, you pay taxes whenever you take withdrawals. So if you take a $5,000 withdrawal, you have to pay Federal and State income taxes. But when should you start doing Roth conversions? Listen to this episode of Retirement Made Easy to hear my thoughts.  &gt; You will want to hear this episode if you are interested in...  [3:20] How to get a FREE retirement assessment [5:26] Why I don’t talk about cryptocurrency [8:52] What you need to know about the Secure Act 2.0 [15:12] The basics of Roth conversions  What you need to know about the Secure Act 2.0 The Secure Act 2.0 will likely pass in the senate with minor changes. Here’s what you need to know. If a student is paying toward student loan debt, their company can “match” that payment and contribute it to the student’s 401k—even if the student isn’t directly contributing any money to the 401k. Employers are being incentivized to help students pay off loans. If you contribute to a 401k and you’re over 50, the most you can currently contribute is up to $27,000 per year. Part of it is the $6,5000 catch-up allowed when you turn 50 (If you’re under 50, you can contribute $20,500) The catch-up allowance will be increased from $6,500 to $10,000 for anyone 60 or older.  Currently, once you turn 72, you must start taking required minimum distributions from your IRA and pay taxes on the money. This bill will change the age requirement gradually. By 2032, the RMD age will be 75. This gives people three more years where they aren’t forced to pay taxes on RMDs.  This bill is huge. It will allow you more time for your money to grow tax-deferred. Who wouldn’t want an extra three years? You can also use those three extra years to do Roth conversions in a lower tax bracket.  The basics of Roth conversions Kathy is in her early 50s and her husband is in his mid-fifties. They’re trying to figure out if they should wait until later in life to start doing Roth conversions. Kathy’s husband will likely retire in five years, but she wants to work a few more years. When does it make sense to do Roth conversions?  The first question I’d ask is, what will your income bracket be now, next year, or in five years? If you’re moving to states like FL, TN, or TX that don’t have state income tax, you will not have to pay income tax on those Roth conversions. It may make sense to wait to do Roth conversions until you’re an official resident of one of those states.  Keep in mind that in 2026, the 2017 Tax Cuts and Jobs Act will end. This means that tax rates will become higher. The 12% tax rate will increase to 15%. The 22% bracket will jump to 25%. The 24% will jump to 28%. When you look at doing Roth conversions, you want to maximize how much you can convert but still stay within your current tax bracket. It’s a calculated and precise process that is best executed when done by a professional.  Roth IRAs allow you the ability to have control over your lifetime tax liability. You’re never forced to take distributions and when you do, they’re tax-free. This gives you a say over how your income is taxed in the future. The Roth IRA is a powerful tool. Listen to the whole episode to learn more!  Resources &amp; People Mentioned  Get a FREE retirement assessment Check out the resources on our website The National Study of Millionaires   Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

Roth conversions are a useful tool that you should consider taking advantage of as you approach retirement. If you have a Roth IRA, it would grow tax-free for life. When you take withdrawals in retirement, they will be tax-free. With a traditional IRA, you pay taxes whenever you take withdrawals. So if you take a $5,000 withdrawal, you have to pay Federal and State income taxes. But when should you start doing Roth conversions? Listen to this episode of Retirement Made Easy to hear my thoughts. &gt; You will want to hear this episode if you are interested in... <ul> <li>[3:20] How to get a FREE retirement assessment</li> <li>[5:26] Why I don’t talk about cryptocurrency</li> <li>[8:52] What you need to know about the Secure Act 2.0</li> <li>[15:12] The basics of Roth conversions</li> </ul> What you need to know about the Secure Act 2.0 The Secure Act 2.0 will likely pass in the senate with minor changes. Here’s what you need to know. If a student is paying toward student loan debt, their company can “match” that payment and contribute it to the student’s 401k—even if the student isn’t directly contributing any money to the 401k. Employers are being incentivized to help students pay off loans. If you contribute to a 401k and you’re over 50, the most you can currently contribute is up to $27,000 per year. Part of it is the $6,5000 catch-up allowed when you turn 50 (If you’re under 50, you can contribute $20,500) The catch-up allowance will be increased from $6,500 to $10,000 for anyone 60 or older.  Currently, once you turn 72, you must start taking required minimum distributions from your IRA and pay taxes on the money. This bill will change the age requirement gradually. By 2032, the RMD age will be 75. This gives people three more years where they aren’t forced to pay taxes on RMDs.  This bill is huge. It will allow you more time for your money to grow tax-deferred. Who wouldn’t want an extra three years? You can also use those three extra years to do Roth conversions in a lower tax bracket.  The basics of Roth conversions Kathy is in her early 50s and her husband is in his mid-fifties. They’re trying to figure out if they should wait until later in life to start doing Roth conversions. Kathy’s husband will likely retire in five years, but she wants to work a few more years. When does it make sense to do Roth conversions?  The first question I’d ask is, what will your income bracket be now, next year, or in five years? If you’re moving to states like FL, TN, or TX that don’t have state income tax, you will not have to pay income tax on those Roth conversions. It may make sense to wait to do Roth conversions until you’re an official resident of one of those states.  Keep in mind that in 2026, the 2017 Tax Cuts and Jobs Act will end. This means that tax rates will become higher. The 12% tax rate will increase to 15%. The 22% bracket will jump to 25%. The 24% will jump to 28%. When you look at doing Roth conversions, you want to maximize how much you can convert but still stay within your current tax bracket. It’s a calculated and precise process that is best executed when done by a professional.  Roth IRAs allow you the ability to have control over your lifetime tax liability. You’re never forced to take distributions and when you do, they’re tax-free. This gives you a say over how your income is taxed in the future. The Roth IRA is a powerful tool. Listen to the whole episode to learn more!  Resources &amp; People Mentioned <ul> <li><a href="https://retirementmadeeasypodcast.com/pre-retirement-assessment/" rel="noopener nofollow" target="_blank">Get a FREE retirement assessment</a></li> <li>Check out the <a href="https://retirementmadeeasypodcast.com/resources/" rel="noopener nofollow" target="_blank">resources</a> on our website</li> <li><a href="https://www.ramseysolutions.com/retirement/the-national-study-of-millionaires-research#:~:text=Ramsey%20Solutions%20conducted%20the%20largest,%2C%20teacher%2C%20management%20and%20attorney." rel="noopener nofollow" target="_blank">The National Study of Millionaires</a> </li> </ul> Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

The Importance of Roth Conversions, Ep #93

This episode of the Retirement Made Easy podcast is a mix of the old and the new. I revisit some listener questions that are currently relevant as well as answer a NEW question that’s debunking a once-popular social security disbursement method. What is it? You’ll have to give this episode a listen to learn more.   &gt; You will want to hear this episode if you are interested in...  [1:40] Get your FREE pre-retirement assessment [2:15] Question #1: Debunking the “file and suspend” disbursement method [6:07] Question #2: Required minimum distributions and Roth conversions [7:18] Question #3: Do you take the lump-sum pension or monthly checks? [10:16] Question #4: What’s the best way to pay for Medicare part B? [13:45] Question #5: Should you invest in Series I Savings Bonds? [16:03] Question #6: What an inheritance means for your retirement  Debunking the “file and suspend” disbursement method After doing some research, Paul concluded that filing and suspending his benefit at his full retirement age would be the best scenario for him. Why? At any point after full retirement, he could go back to social security and say he messed up and wanted to claim his benefit at his full retirement age. What would happen? They’d write him a check for a lump sum for the difference of those years.  Here’s the problem with the file and suspend method: The Bipartisan Act of 2015 eliminated the lump sum option. Now, if you file and suspend, they will NOT write you a lump sum. While this idea doesn't work anymore, we’ve certainly used this method in the past. Another popular loophole was to file a restricted application for your spouse. If Paul’s benefit was $3,000 and his wife’s was $2,000 a month, Paul could file a restricted application. His wife would still get the $2,000 but he’d get half of her benefit—$1,000. Then, he’d let his own benefit defer until age 70 and collect it when it’s higher. Unfortunately, this strategy was also done away with because of the 2015 Bipartisan Act. Do you take a lump-sum pension or monthly checks? This particular listener is worried her husband's pension won’t be there down the road because her uncle’s pension went bankrupt. She thinks he should take the lump sum because they don’t need the monthly income. Why? They can live comfortably on social security. What should she do? Firstly, I’d like to point out that I need more information. I’d want to see how well-funded the pension is and whether or not it offers a partial lump-sum option. If so, you could still get the monthly check and then roll the lump sum into a Roth IRA.  Secondly, what other retirement resources do you have? If you don’t have enough saved for retirement and are relying on social security and this pension, then you’ve got liquidity concerns and it makes sense to take the lump sum. You have to invest the money to make sure it lasts as long as you do. Listen to hear what else I think you need to consider when it comes to pensions.  How to pay for Medicare part B if you delay social security  This listener wants to delay their social security until age 70. He’s currently 63 and wants to retire at 65 and jump on Medicare. What’s the best way for him to pay for medicare part B if he’s delaying social security disbursements? The Medicare part B premium is income-abased. For most people, it will start at $148.50 per month. It comes out of your social security benefit.  The cost of Medicare Part B is increasing to $170.10 in 2022 (increasing 14.5%). What do I recommend? Take advantage of an HSA. Build that up prior to retirement and use it to pay for Medicare part B premiums, dental and vision expenses, deductibles, copays and coinsurance, medicine, and more. I understand that not everyone has access to HSAs but if you do, take advantage of it. Should you choose a medicare supplement or advantage plan? Listen to hear my thoughts.  Question #5: Series I Savings Bonds  We talked about using Series I Savings Bonds to be a hedge against inflation in episode #91. Through April 2022, the interest rate is set at 7.12%. Should you consider it for an emergency fund? That’s completely up to you. The interest rate is based on inflation (which is through the roof this year) and is paid every 6 months. Sometime in April, they’ll announce the next interest rate. Series I Savings Bonds are limited to $10,000 per person, so a couple could invest up to $20,000. Check out the treasury website to learn more! Listen to the whole episode to hear all of the questions!  Resources &amp; People Mentioned  Get your FREE pre-retirement assessment Series I Savings Bonds  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

This episode of the Retirement Made Easy podcast is a mix of the old and the new. I revisit some listener questions that are currently relevant as well as answer a NEW question that’s debunking a once-popular social security disbursement method. What is it? You’ll have to give this episode a listen to learn more.  &gt; You will want to hear this episode if you are interested in... <ul> <li>[1:40] Get your FREE pre-retirement assessment</li> <li>[2:15] Question #1: Debunking the “file and suspend” disbursement method</li> <li>[6:07] Question #2: Required minimum distributions and Roth conversions</li> <li>[7:18] Question #3: Do you take the lump-sum pension or monthly checks?</li> <li>[10:16] Question #4: What’s the best way to pay for Medicare part B?</li> <li>[13:45] Question #5: Should you invest in Series I Savings Bonds?</li> <li>[16:03] Question #6: What an inheritance means for your retirement</li> </ul> Debunking the “file and suspend” disbursement method After doing some research, Paul concluded that filing and suspending his benefit at his full retirement age would be the best scenario for him. Why? At any point after full retirement, he could go back to social security and say he messed up and wanted to claim his benefit at his full retirement age. What would happen? They’d write him a check for a lump sum for the difference of those years.  Here’s the problem with the file and suspend method: The Bipartisan Act of 2015 eliminated the lump sum option. Now, if you file and suspend, they will NOT write you a lump sum. While this idea doesn't work anymore, we’ve certainly used this method in the past. Another popular loophole was to file a restricted application for your spouse. If Paul’s benefit was $3,000 and his wife’s was $2,000 a month, Paul could file a restricted application. His wife would still get the $2,000 but he’d get half of her benefit—$1,000. Then, he’d let his own benefit defer until age 70 and collect it when it’s higher. Unfortunately, this strategy was also done away with because of the 2015 Bipartisan Act. Do you take a lump-sum pension or monthly checks? This particular listener is worried her husband's pension won’t be there down the road because her uncle’s pension went bankrupt. She thinks he should take the lump sum because they don’t need the monthly income. Why? They can live comfortably on social security. What should she do? Firstly, I’d like to point out that I need more information. I’d want to see how well-funded the pension is and whether or not it offers a partial lump-sum option. If so, you could still get the monthly check and then roll the lump sum into a Roth IRA.  Secondly, what other retirement resources do you have? If you don’t have enough saved for retirement and are relying on social security and this pension, then you’ve got liquidity concerns and it makes sense to take the lump sum. You have to invest the money to make sure it lasts as long as you do. Listen to hear what else I think you need to consider when it comes to pensions.  How to pay for Medicare part B if you delay social security  This listener wants to delay their social security until age 70. He’s currently 63 and wants to retire at 65 and jump on Medicare. What’s the best way for him to pay for medicare part B if he’s delaying social security disbursements? The Medicare part B premium is income-abased. For most people, it will start at $148.50 per month. It comes out of your social security benefit.  The cost of Medicare Part B is increasing to $170.10 in 2022 (increasing 14.5%). What do I recommend? Take advantage of an HSA. Build that up prior to retirement and use it to pay for Medicare part B premiums, dental and vision expenses, deductibles, copays and coinsurance, medicine, and more. I understand that not everyone has access to HSAs but if you do, take advantage of it. Should you choose a medicare supplement or advantage plan? Listen to hear my thoughts.  Question #5: Series I Savings Bonds  We talked about using Series I Savings Bonds to be a hedge against inflation in <a href="https://retirementmadeeasypodcast.com/two-ways-to-counter-the-impact-of-inflation-ep-91/" rel="nofollow" target="_blank">episode #91</a>. Through April 2022, the interest rate is set at 7.12%. Should you consider it for an emergency fund? That’s completely up to you. The interest rate is based on inflation (which is through the roof this year) and is paid every 6 months. Sometime in April, they’ll announce the next interest rate. Series I Savings Bonds are limited to $10,000 per person, so a couple could invest up to $20,000. Check out the <a href="https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm" rel="noopener nofollow" target="_blank">treasury website</a> to learn more! Listen to the whole episode to hear all of the questions!  Resources &amp; People Mentioned <ul> <li><a href="https://retirementmadeeasypodcast.com/pre-retirement-assessment/" rel="noopener nofollow" target="_blank">Get your FREE pre-retirement assessment</a></li> <li><a href="https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm" rel="noopener nofollow" target="_blank">Series I Savings Bonds</a></li> </ul> Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

Answering Popular Listener Questions, Ep #92

Mcdonald’s has over 38,000 restaurants across the world. They’ve closed all of their locations in Russia, which equates to about 2% of McDonald’s restaurants. Other companies—such as Apple—are following suit. How will those companies’ actions impact your portfolio? Before sanctions, Russia’s stock market represented about 2% of the Emerging Market Index (MSCI). With the sanctions, the MSCI is kicking out Russian companies. This means that you'd no longer be susceptible to the Russian market.  What do you need to remember? US markets are emotional. With the war ensuing, it will stir the market, which tends to make the market go down—or even up—temporarily. The Russian/Ukraine conflict coupled with rising inflation has investors on edge. What could you do with your investments to fight the rising inflation? Learn more in this episode of Retirement Made Easy. You will want to hear this episode if you are interested in...  [3:04] Check out our free resources at RetirementMadeEasy.com [4:40] What’s happening in Russia and Ukraine [7:30] How the conflict impacts your investments  [10:29] How raising interest rates impacts the market [13:24] Idea #1 to fight rising inflation: buy bonds [15:00] Idea #2 to fight rising inflation: dividends [17:56] The potential suspension of state gas tax [19:38] Diversify your portfolio across industries  What’s happening in Russia and Ukraine The gross national income per person per capita in Ukraine makes it the poorest country in Europe. It’s a large grain and natural gas exporter. The country also has a large aerospace presence. Putin doesn’t want Ukraine to join NATO, the world’s most powerful military alliance, created in 1949. NATO consists of 30 member nations (including the United States). If you’re a member of NATO and are attacked, the other nations will come to your aid.  NATO made an agreement in 1991 that stated they would not expand further east. Putin believes that NATO has breached that agreement. He doesn’t want Ukraine to join NATO. He wants a say in the country’s future. Ukraine is attractive to Putin because it borders Russia and its southern border backs up to the Black Sea (a huge advantage for the export/import industry). Is all of this upheaval impacting your investments? There are likely other factors at play—the talk of inflation, the FED raising interest rates, etc How rising interest rates impact the market According to Forbes, five out of nine times the Federal Reserve raised interest rates, one month later the S&amp;P 500 was up. In four out of nine cases, the S&amp;P 500 was down. It’s pretty close to a 50/50 split.  During the past five consistent interest rate hikes by the FED, 4 out of 5 times, the S&amp;P 500, Dow Jones, and NASDAQ were positive. If you’re looking for a strong correlation that shows rising interest rates coincide with falling stock markets, you’ll be disappointed. We do NOT see a strong correlation. While rising interest rates mean it will be more expensive for you to borrow money (i.e. get a loan to buy a house) it’s great for the banks and the financial industry. It’s good for the “Savers” out there because those who have money in CDs, money markets, and savings accounts will see their earned interest trend upward. How can you fight the rising inflation and come out stronger? There are two ways. Idea #1 to fight rising inflation: buy bonds Series I savings bonds saw a 7.12% interest rate in November. You can purchase $10,000 worth of Series I savings bonds per person per year from the government. Every six months, the interest rate they pay is adjusted based on inflation. Why are they paying 7.12%? Because inflation is out of control.  As inflation is brought under control, interest rates begin to drop off. That’s one opportunity to look at to take advantage of higher interest. But you have to consider keeping them for five years. If you sell them early, you have to pay back some of the interest you would have earned.  Idea #2 to fight rising inflation: dividends Many publicly traded companies had fantastic years in 2021. Because of this, many companies increase the dividends they pay their shareholders. The Dow Jones contains 30 of the largest US companies (companies like Disney, Coca-Cola, Microsoft, etc.). Of those 30 companies, 27 of them pay dividends to their shareholders.  All of these companies are also included in the S&amp;P 500 (the largest 500 publicly-traded companies in the US). They make up 25-30% of the value of the S&amp;P 500. The median dividend increase in the S&amp;P 500 in the 4th quarter of 2021 was 8.46%.  Many retirees are dependent on the income they get from their investments. It’s good to know these companies are increasing their dividends significantly. A portfolio that’s focused on dividends can help you counter rising inflation.  Resources &amp; People Mentioned  How Does The Stock Market Perform When Interest Rates Rise? Can You Believe the Price of Gas?  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

Mcdonald’s has over 38,000 restaurants across the world. They’ve closed all of their locations in Russia, which equates to about 2% of McDonald’s restaurants. Other companies—such as Apple—are following suit. How will those companies’ actions impact your portfolio? Before sanctions, Russia’s stock market represented about 2% of the Emerging Market Index (MSCI). With the sanctions, the MSCI is kicking out Russian companies. This means that you'd no longer be susceptible to the Russian market.  What do you need to remember? US markets are emotional. With the war ensuing, it will stir the market, which tends to make the market go down—or even up—temporarily. The Russian/Ukraine conflict coupled with rising inflation has investors on edge. What could you do with your investments to fight the rising inflation? Learn more in this episode of Retirement Made Easy. You will want to hear this episode if you are interested in... <ul> <li>[3:04] Check out our free resources at <a href="http://RetirementMadeEasy.com" rel="nofollow" target="_blank">RetirementMadeEasy.com</a></li> <li>[4:40] What’s happening in Russia and Ukraine</li> <li>[7:30] How the conflict impacts your investments </li> <li>[10:29] How raising interest rates impacts the market</li> <li>[13:24] Idea #1 to fight rising inflation: buy bonds</li> <li>[15:00] Idea #2 to fight rising inflation: dividends</li> <li>[17:56] The potential suspension of state gas tax</li> <li>[19:38] Diversify your portfolio across industries</li> </ul> What’s happening in Russia and Ukraine The gross national income per person per capita in Ukraine makes it the poorest country in Europe. It’s a large grain and natural gas exporter. The country also has a large aerospace presence. Putin doesn’t want Ukraine to join NATO, the world’s most powerful military alliance, created in 1949. NATO consists of 30 member nations (including the United States). If you’re a member of NATO and are attacked, the other nations will come to your aid.  NATO made an agreement in 1991 that stated they would not expand further east. Putin believes that NATO has breached that agreement. He doesn’t want Ukraine to join NATO. He wants a say in the country’s future. Ukraine is attractive to Putin because it borders Russia and its southern border backs up to the Black Sea (a huge advantage for the export/import industry). Is all of this upheaval impacting your investments? There are likely other factors at play—the talk of inflation, the FED raising interest rates, etc How rising interest rates impact the market According to Forbes, five out of nine times the Federal Reserve raised interest rates, one month later the S&amp;P 500 was up. In four out of nine cases, the S&amp;P 500 was down. It’s pretty close to a 50/50 split.  During the past five consistent interest rate hikes by the FED, 4 out of 5 times, the S&amp;P 500, Dow Jones, and NASDAQ were positive. If you’re looking for a strong correlation that shows rising interest rates coincide with falling stock markets, you’ll be disappointed. We do NOT see a strong correlation. While rising interest rates mean it will be more expensive for you to borrow money (i.e. get a loan to buy a house) it’s great for the banks and the financial industry. It’s good for the “Savers” out there because those who have money in CDs, money markets, and savings accounts will see their earned interest trend upward. How can you fight the rising inflation and come out stronger? There are two ways. Idea #1 to fight rising inflation: buy bonds Series I savings bonds saw a 7.12% interest rate in November. You can purchase $10,000 worth of Series I savings bonds per person per year from the government. Every six months, the interest rate they pay is adjusted based on inflation. Why are they paying 7.12%? Because inflation is out of control.  As inflation is brought under control, interest rates begin to drop off. That’s one opportunity to look at to take advantage of higher interest. But you have to consider keeping them for five years. If you sell them early, you have to pay back some of the interest you would have earned.  Idea #2 to fight rising inflation: dividends Many publicly traded companies had fantastic years in 2021. Because of this, many companies increase the dividends they pay their shareholders. The Dow Jones contains 30 of the largest US companies (companies like Disney, Coca-Cola, Microsoft, etc.). Of those 30 companies, 27 of them pay dividends to their shareholders.  All of these companies are also included in the S&amp;P 500 (the largest 500 publicly-traded companies in the US). They make up 25-30% of the value of the S&amp;P 500. The median dividend increase in the S&amp;P 500 in the 4th quarter of 2021 was 8.46%.  Many retirees are dependent on the income they get from their investments. It’s good to know these companies are increasing their dividends significantly. A portfolio that’s focused on dividends can help you counter rising inflation.  Resources &amp; People Mentioned <ul> <li><a href="https://www.forbes.com/advisor/investing/how-interest-rates-affect-stock-market/#:~:text=The%20Impact%20of%20Fed%20Interest%20Rate%20Hikes&amp;text=This%20can%20lead%20businesses%20to,digit%20percentage%20returns%20on%20stocks." rel="noopener nofollow" target="_blank">How Does The Stock Market Perform When Interest Rates Rise?</a></li> <li><a href="https://www.politico.com/news/2022/03/16/gas-prices-pressure-governors-taxes-00017292" rel="noopener nofollow" target="_blank">Can You Believe the Price of Gas?</a></li> </ul> Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

Two Ways to Counter the Impacts of Inflation, Ep #91

Years ago, a gal I’m going to call “Robin” came to us and asked about our pre-retirement assessment. She wanted to retire at the end of the year and wanted to make sure she was on track. She brought us 401k, IRA, social security, and pension statements. She was curious how much she had to live on in retirement. We could NEVER have predicted what happened next. Listen to this episode of Retirement Made Easy to learn from her story.  You will want to hear this episode if you are interested in...  [0:21] Michael Jordan still needed a basketball coach [2:05] Check out FREE resources at RetirementMadeEasyPodcast.com [3:35] The unexpected outcome of Robin’s pre-retirement assessment [9:27] The importance of diversifying your portfolio [12:48] What we did to get Robin back on track  The unexpected outcome of Robin’s pre-retirement assessment Robin still had a hefty mortgage and a car loan. However, she had three different old 401ks in addition to a new plan. She also had a couple of small pensions. But there were missing pieces in her statements. Specifically, we couldn’t find the balance of her 401k from when she had worked with JCPenney. When she left Penney's, her 401k was around $300,000, so she estimated that it was at $800,000. But I didn’t want to guess—I wanted to be sure.  So we found the custodian of the 401k, verified Robin’s identity, and found out the balance. Her 401k had dwindled to a measly $18,273. Robin laughed, thinking it was a joke—but it wasn’t. What happened? The majority of the retirement plan was invested in JCPenney stock. Which, at the time, was close to $1 a share. Now, they’ve filed bankruptcy and are practically out of business.  After hearing this, Robin broke down in tears. She was relying on that money to fund her retirement years. We set another meeting to reconvene next week. Sadly, we did have to push her retirement date. But we knew where she stood and made a plan to move forward—starting with diversifying her portfolio.  The importance of portfolio diversification  The first thing we did was diversify her 401k—and got out of the JC Penney stock, which eventually went to zero. What happened that caused their stock to tank? In 2011, JC Penney hired a new CEO, Ron Johnson. He was the pioneer of Apple’s retail outlets and was expected to transform the JCPenney brand.  When I was young, my mother would get coupons in the mail from JCPenney. She’d wait for a large sale, take the coupons, and purchase clothes for me and my brother. If she didn’t have the coupons, she wouldn’t shop there. Their entire customer base did the same thing.  But the new CEO eliminated coupons and switched to seasonal sales. He put their money into store renovations to make them more upscale. What happened? Those two ideas were part of JCPenney’s downfall. Customers were unhappy and sales plummeted. The stock price tanked and they filed for bankruptcy.  Meanwhile, Robin had moved on to other stores. She wasn’t looking in the rearview mirror and keeping track of JCPenney. She assumed her 401k was diversified and continuing to grow like her other retirement accounts. That’s why it’s important to know that your retirement portfolio is diversified.  What we did to get Robin back on track for retirement We got to work and put together a retirement plan for Robin. It included:  Downsizing Robin’s house and paying off her mortgage Pay off her car loan so she’s debt-free Cutting unnecessary life insurance policies Increasing the amount Robin was saving for retirement Consolidated her pensions into a single account Incorporating tax planning into her retirement plan Pushing her social security benefits   Robin had only been saving 10% for retirement (with a company match). We told her she’d have to save 29% of her earnings for retirement. We looked at her social security and decided she had to wait and claim her benefit until age 70 when her social security benefit will be completely optimized.  These were the biggest changes we made. It’s been several years now and Robin is on track to retire in 2024. Every time we meet, she brings up the pre-retirement assessment meeting. It was a huge wake-up call for her. The years leading up to retirement are the perfect time to get an opinion on your retirement plan.  While Robin’s example doesn’t happen to everyone, there may be some gaps you need to fill. If you need help filling those gaps and want to be prepared for retirement, connect with me to get your pre-retirement assessment today.  Resources &amp; People Mentioned  Get a FREE pre-retirement assessment  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

Years ago, a gal I’m going to call “Robin” came to us and asked about our pre-retirement assessment. She wanted to retire at the end of the year and wanted to make sure she was on track. She brought us 401k, IRA, social security, and pension statements. She was curious how much she had to live on in retirement. We could NEVER have predicted what happened next. Listen to this episode of Retirement Made Easy to learn from her story.  You will want to hear this episode if you are interested in... <ul> <li>[0:21] Michael Jordan still needed a basketball coach</li> <li>[2:05] Check out FREE resources at <a href="http://RetirementMadeEasyPodcast.com" rel="nofollow" target="_blank">RetirementMadeEasyPodcast.com</a></li> <li>[3:35] The unexpected outcome of Robin’s pre-retirement assessment</li> <li>[9:27] The importance of diversifying your portfolio</li> <li>[12:48] What we did to get Robin back on track</li> </ul> The unexpected outcome of Robin’s pre-retirement assessment Robin still had a hefty mortgage and a car loan. However, she had three different old 401ks in addition to a new plan. She also had a couple of small pensions. But there were missing pieces in her statements. Specifically, we couldn’t find the balance of her 401k from when she had worked with JCPenney. When she left Penney's, her 401k was around $300,000, so she estimated that it was at $800,000. But I didn’t want to guess—I wanted to be sure.  So we found the custodian of the 401k, verified Robin’s identity, and found out the balance. Her 401k had dwindled to a measly $18,273. Robin laughed, thinking it was a joke—but it wasn’t. What happened? The majority of the retirement plan was invested in JCPenney stock. Which, at the time, was close to $1 a share. Now, they’ve filed bankruptcy and are practically out of business.  After hearing this, Robin broke down in tears. She was relying on that money to fund her retirement years. We set another meeting to reconvene next week. Sadly, we did have to push her retirement date. But we knew where she stood and made a plan to move forward—starting with diversifying her portfolio.  The importance of portfolio diversification  The first thing we did was diversify her 401k—and got out of the JC Penney stock, which eventually went to zero. What happened that caused their stock to tank? In 2011, JC Penney hired a new CEO, Ron Johnson. He was the pioneer of Apple’s retail outlets and was expected to transform the JCPenney brand.  When I was young, my mother would get coupons in the mail from JCPenney. She’d wait for a large sale, take the coupons, and purchase clothes for me and my brother. If she didn’t have the coupons, she wouldn’t shop there. Their entire customer base did the same thing.  But the new CEO eliminated coupons and switched to seasonal sales. He put their money into store renovations to make them more upscale. What happened? Those two ideas were part of JCPenney’s downfall. Customers were unhappy and sales plummeted. The stock price tanked and they filed for bankruptcy.  Meanwhile, Robin had moved on to other stores. She wasn’t looking in the rearview mirror and keeping track of JCPenney. She assumed her 401k was diversified and continuing to grow like her other retirement accounts. That’s why it’s important to know that your retirement portfolio is diversified.  What we did to get Robin back on track for retirement We got to work and put together a retirement plan for Robin. It included: <ul> <li>Downsizing Robin’s house and paying off her mortgage</li> <li>Pay off her car loan so she’s debt-free</li> <li>Cutting unnecessary life insurance policies</li> <li>Increasing the amount Robin was saving for retirement</li> <li>Consolidated her pensions into a single account</li> <li>Incorporating tax planning into her retirement plan</li> <li>Pushing her social security benefits </li> </ul> Robin had only been saving 10% for retirement (with a company match). We told her she’d have to save 29% of her earnings for retirement. We looked at her social security and decided she had to wait and claim her benefit until age 70 when her social security benefit will be completely optimized.  These were the biggest changes we made. It’s been several years now and Robin is on track to retire in 2024. Every time we meet, she brings up the pre-retirement assessment meeting. It was a huge wake-up call for her. The years leading up to retirement are the perfect time to get an opinion on your retirement plan.  While Robin’s example doesn’t happen to everyone, there may be some gaps you need to fill. If you need help filling those gaps and want to be prepared for retirement, connect with me to get your pre-retirement assessment today.  Resources &amp; People Mentioned <ul> <li>Get a FREE <a href="https://retirementmadeeasypodcast.com/pre-retirement-assessment/" rel="noopener nofollow" target="_blank">pre-retirement assessment</a></li> </ul> Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

Why a Pre-Retirement Assessment is Imperative to Retirement Success, Ep #90

What is long-term care insurance? Do you need long-term care insurance? How much does it cost? When should you buy it? Is it a good deal—or is it a ripoff? Long-term care insurance is a necessity for some and completely unnecessary for others. You want to make informed decisions about your future. That’s why I’m going to share how it works and what it covers in this episode of The Retirement Made Easy Podcast. You will want to hear this episode if you are interested in...  [2:48] Check out FREE resources at RetirementMadeEasyPodcast.com [4:02] What is traditional long-term care insurance? [11:52] Who needs longer long-term care? [13:01] How much of a benefit do you buy?  What is traditional long-term care insurance? Whenever you need long-term care, a physician must sign-off that you’re unable to complete two of the six activities of daily living:  Bathing Dressing Toileting Transferring Eating Continence   My late grandfather was diagnosed with Parkinson’s disease. At some point, he was unable to dress without assistance and he was unstable when transferring. He qualified for long-term care insurance. Once you qualify, you don’t have to pay your premiums and you start receiving the benefit. It’s tax-free and will kick in after an elimination period, usually around 90 days later.  Long-term care policies will pay for home health care or assisted living. My grandfather had an in-home nurse that helped throughout the week and eventually he moved into assisted living. You want to purchase a policy that can pay for both.  Choosing the benefit period of your policy You also get to pick the benefit period, usually a number between 2–5 years. The premium will be far higher for a longer policy. How long do you need the policy to pay out? The average woman needs long-term care for 3.7 years versus only 2.2 years for men. The premium is also a lot lower to insure a male versus female. Why? Women have a higher likelihood of using the policy versus men. If you can only afford care for one spouse, choose the wife. When my grandmother was in assisted living, there were 95 women to every 5 men.  How much of a benefit do you buy? Some states have higher long-term care expenses (which tend to increase as you get older). Let’s say that it’s around $7,000 a month in Missouri. You don’t want to purchase a policy that covers the entire $7,000. Why? Because social security, pensions, and retirement accounts can be used toward the cost as well. Instead, you could purchase a $4,000 policy. Don’t pay more than you need to in premiums. A made-up 60-year-old couple Michael and Mary are non-smokers of average health in the state of Missouri. How much would it cost them for a $5,000 a month benefit with a 3% compounding inflation as long as they own the policy? For Michael, it’s $209 a month. For his wife, it’s $356 a month. For both of them, it’s $566 a month—even with a discount that they give you if both spouses apply and purchase long-term care insurance.  Is there an alternative to long-term care insurance? The other way to purchase long-term care insurance is as a life insurance policy with a long-term care rider. If you don’t use the long-term care benefits, it’s a life insurance policy that will pay out to your spouse or loved ones tax-free. It’s called a hybrid life insurance long-term care. The premiums are far higher because the insurance company is on the hook either way. These premiums are NOT fixed. Insurance companies can raise them whenever they want.  Resources &amp; People Mentioned  LongTermCare.gov The average long-term care expense by state Mutual of Omaha Long-Term Care Insurance  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

What is long-term care insurance? Do you need long-term care insurance? How much does it cost? When should you buy it? Is it a good deal—or is it a ripoff? Long-term care insurance is a necessity for some and completely unnecessary for others. You want to make informed decisions about your future. That’s why I’m going to share how it works and what it covers in this episode of The Retirement Made Easy Podcast. You will want to hear this episode if you are interested in... <ul> <li>[2:48] Check out FREE resources at <a href="http://RetirementMadeEasyPodcast.com" rel="nofollow" target="_blank">RetirementMadeEasyPodcast.com</a></li> <li>[4:02] What is traditional long-term care insurance?</li> <li>[11:52] Who needs longer long-term care?</li> <li>[13:01] How much of a benefit do you buy?</li> </ul> What is traditional long-term care insurance? Whenever you need long-term care, a physician must sign-off that you’re unable to complete two of the six activities of daily living: <ul> <li>Bathing</li> <li>Dressing</li> <li>Toileting</li> <li>Transferring</li> <li>Eating</li> <li>Continence </li> </ul> My late grandfather was diagnosed with Parkinson’s disease. At some point, he was unable to dress without assistance and he was unstable when transferring. He qualified for long-term care insurance. Once you qualify, you don’t have to pay your premiums and you start receiving the benefit. It’s tax-free and will kick in after an elimination period, usually around 90 days later.  Long-term care policies will pay for home health care or assisted living. My grandfather had an in-home nurse that helped throughout the week and eventually he moved into assisted living. You want to purchase a policy that can pay for both.  Choosing the benefit period of your policy You also get to pick the benefit period, usually a number between 2–5 years. The premium will be far higher for a longer policy. How long do you need the policy to pay out? The average woman needs long-term care for 3.7 years versus only 2.2 years for men. The premium is also a lot lower to insure a male versus female. Why? Women have a higher likelihood of using the policy versus men. If you can only afford care for one spouse, choose the wife. When my grandmother was in assisted living, there were 95 women to every 5 men.  How much of a benefit do you buy? Some states have higher long-term care expenses (which tend to increase as you get older). Let’s say that it’s around $7,000 a month in Missouri. You don’t want to purchase a policy that covers the entire $7,000. Why? Because social security, pensions, and retirement accounts can be used toward the cost as well. Instead, you could purchase a $4,000 policy. Don’t pay more than you need to in premiums. A made-up 60-year-old couple Michael and Mary are non-smokers of average health in the state of Missouri. How much would it cost them for a $5,000 a month benefit with a 3% compounding inflation as long as they own the policy? For Michael, it’s $209 a month. For his wife, it’s $356 a month. For both of them, it’s $566 a month—even with a discount that they give you if both spouses apply and purchase long-term care insurance.  Is there an alternative to long-term care insurance? The other way to purchase long-term care insurance is as a life insurance policy with a long-term care rider. If you don’t use the long-term care benefits, it’s a life insurance policy that will pay out to your spouse or loved ones tax-free. It’s called a hybrid life insurance long-term care. The premiums are far higher because the insurance company is on the hook either way. These premiums are NOT fixed. Insurance companies can raise them whenever they want.  Resources &amp; People Mentioned <ul> <li><a href="https://acl.gov/" rel="noopener nofollow" target="_blank">LongTermCare.gov</a></li> <li><a href="http://genworth.com/aging-and-you/finances/cost-of-care.html" rel="noopener nofollow" target="_blank">The average long-term care expense by state</a></li> <li><a href="https://www.mutualofomaha.com/long-term-care-insurance/plans" rel="noopener nofollow" target="_blank">Mutual of Omaha Long-Term Care Insurance</a></li> </ul> Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

The Basics of Long-Term Care Insurance, Ep #89

A listener recently messaged me and said that investing in the stock market—when it’s this volatile—feels like gambling at a casino. Intrigued by her observation, I dove into some research. In this episode of Retirement Made Easy, I share the results of my research and answer the question: Is investing in a volatile market the same as gambling? Don’t miss it! You will want to hear this episode if you are interested in...  [2:58] Check out FREE resources at RetirementMadeEasyPodcast.com [4:22] Is investing in a volatile market the same as gambling? [10:21] You’re gambling if you’re trying to time the market [11:44] Company earnings drive performance  [13:37] How have things changed since the 1950s?  [15:58] Submit questions that you want answered!  The odds of winning at popular casino games I can’t argue this fact: The stock market has been extremely volatile in 2022 (which we covered in episode #87). But you should not base your investments on short-term volatility. Instead, a wise investor invests long-term based on meeting long-term goals. If you’re talking about day-trading, it does feel more like gambling to me. I’ve known multiple people who’ve lost their shirts trying to day-trade. That’s not investing.  But how does long-term investing compare to gambling? Bloomberg wrote an article published on 12/31/2020 that compared investing to gambling. According to the article, these are the odds at winning at various casino games:  You have a 40% chance of winning at a slot machine You have a 44.7% chance of winning at roulette You have a 48% chance of winning at blackjack You have a 48.6% chance of winning at Craps You have a 46.6% chance of winning at poker You have a 23% chance of winning at Keno  Note that they are ALL under 50%. The casino knows that the longer you play, the lower your odds become, and the more money goes back to the house. That’s why they offer free “refreshments”—to keep you hooked longer.  This study then looked at the Dow Jones Industrial Average from 1901 to 2020. If you were invested for an entire year in one-year rolling periods (120 different timeframes), your odds of making money was 74.2%. The longer you let time work for you, the higher your odds of success.   Three-year periods: Your odds of making money were 86.5%. Five-year periods: Your odds of making money were 90%.  10-year periods: Your odds of making money were 97% 15-year periods: Your odds of making money were 99.9%  The longer you stay invested, the higher your odds of success. DISCLAIMER: Obviously, I wouldn’t advise you to invest all of your money in one basket. This is for illustrational purposes only.  When are you actually gambling? People who are diving in and out of the market and trying to time it are the one’s gambling. Why? Because they’re short-term focused. They’ve lost sight of their long-term goals. It’s similar to the people who buy a new car every year or two. They’re always “investing” in the newest shiniest toy. But it’s hard to build wealth if you’re buying a brand new car every year. They take the depreciation and eat it upfront. Dave Ramsey would tell you—unless your net worth is $1 million—you should never buy a brand new vehicle. Buy an older vehicle and pay cash for it. Let the initial owner eat the depreciation. Company earnings drive performance  Another Bloomberg study on the S&amp;P 500 looked at performance and earnings. The long-term trend was upward over time. The study also looked at the S&amp;P 500 Stock Market Index and found that there was a 97% correlation. It was driven by the earnings of the companies—which makes sense. So what drives performance? The company earnings behind them. Successful investing over the long haul gives you an optimistic outcome for the future.  Why do I believe it’s getting better all the time? Listen to the whole episode to hear a study done by Stephen Moore and Julian Simon comparing the 1950s to current day America.  Resources &amp; People Mentioned  Get a FREE pre-retirement assessment It's Getting Better All the Time by Stephen Moore and Julian Simon  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

A listener recently messaged me and said that investing in the stock market—when it’s this volatile—feels like gambling at a casino. Intrigued by her observation, I dove into some research. In this episode of Retirement Made Easy, I share the results of my research and answer the question: Is investing in a volatile market the same as gambling? Don’t miss it! You will want to hear this episode if you are interested in... <ul> <li>[2:58] Check out FREE resources at <a href="http://RetirementMadeEasyPodcast.com" rel="nofollow" target="_blank">RetirementMadeEasyPodcast.com</a></li> <li>[4:22] Is investing in a volatile market the same as gambling?</li> <li>[10:21] You’re gambling if you’re trying to time the market</li> <li>[11:44] Company earnings drive performance </li> <li>[13:37] How have things changed since the 1950s? </li> <li>[15:58] Submit questions that you want answered!</li> </ul> The odds of winning at popular casino games I can’t argue this fact: The stock market has been extremely volatile in 2022 (which we covered in <a href="https://retirementmadeeasypodcast.com/how-to-navigate-the-volatile-market-ep-87/" rel="noopener nofollow" target="_blank">episode #87</a>). But you should not base your investments on short-term volatility. Instead, a wise investor invests long-term based on meeting long-term goals. If you’re talking about day-trading, it does feel more like gambling to me. I’ve known multiple people who’ve lost their shirts trying to day-trade. That’s not investing.  But how does long-term investing compare to gambling? Bloomberg wrote an article published on 12/31/2020 that compared investing to gambling. According to the article, these are the odds at winning at various casino games: <ul> <li>You have a 40% chance of winning at a slot machine</li> <li>You have a 44.7% chance of winning at roulette</li> <li>You have a 48% chance of winning at blackjack</li> <li>You have a 48.6% chance of winning at Craps</li> <li>You have a 46.6% chance of winning at poker</li> <li>You have a 23% chance of winning at Keno</li> </ul> Note that they are ALL under 50%. The casino knows that the longer you play, the lower your odds become, and the more money goes back to the house. That’s why they offer free “refreshments”—to keep you hooked longer.  This study then looked at the Dow Jones Industrial Average from 1901 to 2020. If you were invested for an entire year in one-year rolling periods (120 different timeframes), your odds of making money was 74.2%. The longer you let time work for you, the higher your odds of success.  <ul> <li>Three-year periods: Your odds of making money were 86.5%.</li> <li>Five-year periods: Your odds of making money were 90%. </li> <li>10-year periods: Your odds of making money were 97%</li> <li>15-year periods: Your odds of making money were 99.9%</li> </ul> The longer you stay invested, the higher your odds of success. DISCLAIMER: Obviously, I wouldn’t advise you to invest all of your money in one basket. This is for illustrational purposes only.  When are you actually gambling? People who are diving in and out of the market and trying to time it are the one’s gambling. Why? Because they’re short-term focused. They’ve lost sight of their long-term goals. It’s similar to the people who buy a new car every year or two. They’re always “investing” in the newest shiniest toy. But it’s hard to build wealth if you’re buying a brand new car every year. They take the depreciation and eat it upfront. Dave Ramsey would tell you—unless your net worth is $1 million—you should never buy a brand new vehicle. Buy an older vehicle and pay cash for it. Let the initial owner eat the depreciation. Company earnings drive performance  Another Bloomberg study on the S&amp;P 500 looked at performance and earnings. The long-term trend was upward over time. The study also looked at the S&amp;P 500 Stock Market Index and found that there was a 97% correlation. It was driven by the earnings of the companies—which makes sense. So what drives performance? The company earnings behind them. Successful investing over the long haul gives you an optimistic outcome for the future.  Why do I believe it’s getting better all the time? Listen to the whole episode to hear a study done by Stephen Moore and Julian Simon comparing the 1950s to current day America.  Resources &amp; People Mentioned <ul> <li>Get a FREE <a href="https://retirementmadeeasypodcast.com/pre-retirement-assessment/" rel="noopener nofollow" target="_blank">pre-retirement assessment</a></li> <li><a href="https://www.amazon.com/Its-Getting-Better-All-Time-ebook/dp/B004YJPK3A" rel="noopener nofollow" target="_blank">It's Getting Better All the Time</a> by Stephen Moore and Julian Simon</li> </ul> Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

Investing is NOT the Same as Gambling, Ep #88

Does the volatile stock market make you uneasy? It’s easy to lose sight of the purpose of your investments when you’re reading the latest headlines or watching the news—especially with what’s happening with Russia and Ukraine. The market seems to be plunging in response. I understand why this makes you uneasy. That’s why in this episode of Retirement Made Easy I help you decide what to do with your retirement portfolio.  You will want to hear this episode if you are interested in...  [0:56] The fundamentals of golf [4:24] How to get a FREE retirement assessment [5:25] What’s causing the volatility in the market? [9:34] It’s time to reevaluate your risk profile [11:58] Sometimes patience is the answer [13:39] Should you change your investment strategy? [15:53] A working portfolio versus retired portfolio [16:56] Panic is NEVER the answer  What’s causing the volatility in the market? 2022 is starting off very volatile. We’re seeing headlines like, “The Market Plunges 800 Points” or “The Market Soars 300 Points.” We’re seeing high inflation. We’re seeing “Now hiring” signs everywhere we look. Millions of jobs are going unfilled. During COVID, 3 million women across the US decided to exit the workforce to be stay-at-home moms because finding consistent childcare was difficult if not impossible.  The supply chain is a mess. People are ordering furniture that they won't see for nine months to a year. Trucking and shipping companies are offering large sign-on bonuses and still can't get enough people to work. Gas prices are soaring. Even worse, the crisis between Ukraine and Russia is also creating volatility. The Fed is going to raise interest rates four times in 2022 (after an expectation of 2–3 times) to decrease inflation. These are the many factors leading to the volatility in the market.  It’s time to reevaluate your risk profile Since we don’t know when the market volatility will end, this is a good time to look at your investment portfolio. If the volatility is keeping you up at night, maybe you need to reevaluate how your portfolio is invested. The market had been on a steep incline. Perhaps your portfolio is risky-heavy because of this. Maybe you haven’t rebalanced your portfolio and now is the right time to scale back. Look at the risk score of your portfolio and see if it still matches your tolerance.  Let’s say you’re a moderate investor with a risk score of 50. But your portfolio risk score is currently at an 80–85. That doesn’t match. Your portfolio is out of balance. It’s like checking the air pressure in your tires. You often don’t pay attention to the tire pressure until something is wrong. It’s time to make sure your portfolio is in line with your risk score. Should you change your investment strategy? With everything happening across the globe, how do you approach the decision-making process? If your portfolio is too risky and out of balance, you can scale it back. But have your goals changed? If they have, then it makes sense to revisit your retirement strategy. The goals you have for retirement absolutely dictate how your portfolio should be allocated. If at ANY time your long-term goals change, you need to make modifications to your strategy.  I worked with a nice couple who had been retired for a couple of years. They had two granddaughters. After a serious medical issue incapacitated their daughter, they stepped in and adopted their granddaughters. It wasn’t on their radar when they retired. They had to make drastic changes to their retirement goals. So we made amendments to their portfolio because their needs had changed.  Sometimes patience is the answer Your investments will always go up and down in value. Some portfolios will go up and down more often than others, depending on their risk profile. It’s generally not a good idea to let short-term interruptions in the market impact your long-term goals. If you’re a long-time listener, you know I often state that no one can consistently time the market. Ever. If you agree with this premise, you have to let time work for you. You do this by designing a retirement strategy that gets you through retirement. What do you do if your portfolio is balanced? What if your goals haven’t changed? I share how you should respond to the market in this episode of the Retirement Made Easy podcast.  Resources &amp; People Mentioned  Episode #6: The Retirement Story Everyone Needs to Hear  Connect With Gregg Gonzalez  Email at: Gregg@RetireSTL.com  Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube    Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts

Does the volatile stock market make you uneasy? It’s easy to lose sight of the purpose of your investments when you’re reading the latest headlines or watching the news—especially with what’s happening with Russia and Ukraine. The market seems to be plunging in response. I understand why this makes you uneasy. That’s why in this episode of Retirement Made Easy I help you decide what to do with your retirement portfolio.  You will want to hear this episode if you are interested in... <ul> <li>[0:56] The fundamentals of golf</li> <li>[4:24] How to get a FREE retirement assessment</li> <li>[5:25] What’s causing the volatility in the market?</li> <li>[9:34] It’s time to reevaluate your risk profile</li> <li>[11:58] Sometimes patience is the answer</li> <li>[13:39] Should you change your investment strategy?</li> <li>[15:53] A working portfolio versus retired portfolio</li> <li>[16:56] Panic is NEVER the answer</li> </ul> What’s causing the volatility in the market? 2022 is starting off very volatile. We’re seeing headlines like, “The Market Plunges 800 Points” or “The Market Soars 300 Points.” We’re seeing high inflation. We’re seeing “Now hiring” signs everywhere we look. Millions of jobs are going unfilled. During COVID, 3 million women across the US decided to exit the workforce to be stay-at-home moms because finding consistent childcare was difficult if not impossible.  The supply chain is a mess. People are ordering furniture that they won't see for nine months to a year. Trucking and shipping companies are offering large sign-on bonuses and still can't get enough people to work. Gas prices are soaring. Even worse, the crisis between Ukraine and Russia is also creating volatility. The Fed is going to raise interest rates four times in 2022 (after an expectation of 2–3 times) to decrease inflation. These are the many factors leading to the volatility in the market.  It’s time to reevaluate your risk profile Since we don’t know when the market volatility will end, this is a good time to look at your investment portfolio. If the volatility is keeping you up at night, maybe you need to reevaluate how your portfolio is invested. The market had been on a steep incline. Perhaps your portfolio is risky-heavy because of this. Maybe you haven’t rebalanced your portfolio and now is the right time to scale back. Look at the risk score of your portfolio and see if it still matches your tolerance.  Let’s say you’re a moderate investor with a risk score of 50. But your portfolio risk score is currently at an 80–85. That doesn’t match. Your portfolio is out of balance. It’s like checking the air pressure in your tires. You often don’t pay attention to the tire pressure until something is wrong. It’s time to make sure your portfolio is in line with your risk score. Should you change your investment strategy? With everything happening across the globe, how do you approach the decision-making process? If your portfolio is too risky and out of balance, you can scale it back. But have your goals changed? If they have, then it makes sense to revisit your retirement strategy. The goals you have for retirement absolutely dictate how your portfolio should be allocated. If at ANY time your long-term goals change, you need to make modifications to your strategy.  I worked with a nice couple who had been retired for a couple of years. They had two granddaughters. After a serious medical issue incapacitated their daughter, they stepped in and adopted their granddaughters. It wasn’t on their radar when they retired. They had to make drastic changes to their retirement goals. So we made amendments to their portfolio because their needs had changed.  Sometimes patience is the answer Your investments will always go up and down in value. Some portfolios will go up and down more often than others, depending on their risk profile. It’s generally not a good idea to let short-term interruptions in the market impact your long-term goals. If you’re a long-time listener, you know I often state that no one can consistently time the market. Ever. If you agree with this premise, you have to let time work for you. You do this by designing a retirement strategy that gets you through retirement. What do you do if your portfolio is balanced? What if your goals haven’t changed? I share how you should respond to the market in this episode of the Retirement Made Easy podcast.  Resources &amp; People Mentioned <ul> <li>Episode #6: <a href="https://retirementmadeeasypodcast.com/retirement-story/" rel="noopener nofollow" target="_blank">The Retirement Story Everyone Needs to Hear</a></li> </ul> Connect With Gregg Gonzalez <ul> <li>Email at: <a href="mailto:Greg@retirestl.com" rel="noopener">Gregg@RetireSTL.com</a> </li> <li>Podcast: <a href="https://retirementmadeeasypodcast.com/" rel="noopener nofollow" target="_blank">https://RetirementMadeEasyPodcast.com</a></li> <li>Website: <a href="https://stlouisfinancialadvisor.com" rel="noopener nofollow" target="_blank">https://StLouisFinancialAdvisor.com</a></li> <li>Follow Gregg <a href="https://www.linkedin.com/in/gregggonzalez/" rel="noopener nofollow" target="_blank">on LinkedIn</a></li> <li>Follow Gregg <a href="https://www.facebook.com/STLRetirementAdvisors/" rel="noopener nofollow" target="_blank">on Facebook</a></li> <li>Follow Gregg <a href="https://www.youtube.com/channel/UC-HvgBM6-vV17X_9EzzBOpg?view_as=subscriber" rel="noopener nofollow" target="_blank">on YouTube</a></li> </ul> Subscribe to Retirement Made EasyOn <a href="https://podcasts.apple.com/us/podcast/retirement-made-easy/id1521858151" rel="noopener nofollow" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/2ayGvo6IoD1VeEMGKm0kr5?si=XCK7f-2pT-u-AE8EJ5wQ8A" rel="noopener nofollow" target="_blank">Spotify</a>, <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8xZmQ1NmQ4NC9wb2RjYXN0L3Jzcw==" rel="noopener nofollow" target="_blank">Google Podcasts</a>

How to Navigate the Volatile Market, Ep #87

Finally, a retirement podcast in a language YOU can understand. Your host, Gregg Gonzalez, CFP® is a Dave Ramsey Smartvestor Pro with the heart of a teacher. Listen as Gregg shares financial &amp; retirement tips that are sure to keep you tuned in every episode. Check out podcast website <a href="http://RetirementMadeEasyPodcast.com" rel="nofollow" target="_blank">http://RetirementMadeEasyPodcast.com</a> for FREE resources.

RETIREMENT MADE EASY

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