Don’t dread this as much as you hated hearing these words as a kid, but it’s time for a pop quiz! We’re putting retirement planning preparedness under the microscope with 5 critical questions to which you need to know the answers. So sharpen those pencils and let’s see how ready you are for retirement. Here is some of what you’ll learn on this show: How much income will you need in retirement compared to how much you’re making while working. (4:19) What’s the biggest fear for most retirees and how planning accounts for that. (6:10) How we help our clients achieve a truly diversified portfolio. (8:55) Hopefully, you’ll pick up on something during the quiz that you didn’t know about before, but if you have questions about anything we discussed on the show, please reach out and we’ll be happy to talk to you about your financial situation. Contact us: (855) 987-8888 http://principalpreservationservices.com/
On this episode, we’ll try to pick sides of some important financial debates. From bonds to life insurance, credit card debt to starting Social Security, we’ll propose several different topics to see which sides of the debates you and your advisor should probably fall on. Here is some of what you’ll learn on this show: Why it might not always be the best strategy to pay off your house as soon as you can. (2:03) How you can benefit from having life insurance in retirement. (5:00) Why annuities can provide big benefits to your financial plan even though a lot of people don’t feel they’re valuable. (6:57) Social Security benefits can begin as early as age 62 but that doesn’t mean you should be claiming them as early as possible. (13:31) If you have questions about anything we discussed on the show, please reach out and we’ll be happy to talk to you about your financial situation. For more, visit us online: http://principalpreservationservices.com
In the current market, a lot of us are looking to work with an advisor to help withstand these market turns. So, what do you need to look out for when working with a new professional? An advisor that is a jack of all trades may not be the best fit for someone approaching retirement. Similarly, if they only tell you the good news, use a lot of technical jargon, or try to predict the turns of the market you may want to reconsider. Working with an advisor is a great advantage, but working with someone that understands your situation is essential. On today’s episode, we’ll break down five red flags investors need to be aware of when looking for a new advisor. Today's key points: 0:42 – How was Ireland? 1:47 – A jack of all trades 4:32 – They only tell you good news 6:34 – Setting realistic expectations 7:38 – Using technical jargon 9:20 – Fearful to ask 10:04 – Predicting the market 12:10 – More talking than listening Read more and get additional resources here: https://principalpreservationservices.com/retirement-reality-podcast/
On this episode of the podcast, we’ve assembled a list of priorities to keep in mind as you count down the days to retirement. This won’t replace proper planning but running down this checklist will help you make sure you’re putting your best foot forward as you enter retirement. Today's key points: 0:49 – Headed to Ireland 1:53 – Get healthy 3:22 – How will you spend your free time? 4:43 – Do clients usually know? 6:06 – Post-retirement career 8:13 – Opportunities to save more 9:16 – Pay down debt 10:58 – Assess your risk 13:13 – Do you have a plan? Read more and get additional resources here: https://principalpreservationservices.com/retirement-reality-podcast/
With the great resignation sweeping the nation we’ve been hearing more and more from people that want to retire early. On today’s episode, we want to explore this topic and a recent Yahoo News article that breaks down whether you can really retire at age 55. Retiring early can present a wide variety of unique challenges, for example, what will you do if you can’t take Social Security yet? You need to consider how you’ll cover that income gap. There are various issues people who want to retire early may face, but planning ahead of time can make the transition a lot easier. Yahoo News Article: https://www.yahoo.com/video/retire-age-55-lets-run-203416606.html#:~:text=So%20can%20you%20retire%20at,Security%20retirement%20benefits%20is%2062. Today's key points: 0:43 – More people wanting to retire early 1:50 – Going to a Justin Bieber concert 2:52 – The peanut gallery term 5:01 – Social Security 6:13 – Penalties to worry about 9:02 – Healthcare expenses 11:49 – Any other challenges? 12:51 – What can you do now? 14:36 – Having guaranteed income 15:48 – Stock market’s impact on your plan 17:29 – Depends on how you want to live 18:58 – Retire whenever you want! Read more and get additional resources here: https://principalpreservationservices.com/retirement-reality-podcast/
For the majority of people in Minnesota and across the country, your house will be the most expensive asset you ever own or manage. That’s why it’s no surprise that it takes up a big slice of the financial planning conversation. Retirement brings along another set of decisions to be made with your house so we wanted to address some of the most common ones we hear at Principal Preservation Services. From paying off your mortgage to considering a downsize, we’ll find out what Mike thinks about these housing topics and hopefully touch on something you’ve been thinking about as well. Today's key points: 0:46 – Housing questions 2:36 – Paying off mortgage or not? 4:27 – Downsizing 6:10 – Borrow from a Home Line of Equity 8:26 – Signing house over to kids before death 10:49 – Other estate planning problems 12:09 – Reverse mortgage 14:15 – Mailbag question on anxiety around money 15:49 – Mailbag question on life insurance Read more and get additional resources here: https://principalpreservationservices.com/retirement-reality-podcast/
What are the important birthdays we need to take note of when planning for retirement? There are certain milestones that have a big impact on your plan. As you approach 50, you want to really start planning strategically. If you haven’t been saving much before, once you turn 50 you can actually participate in catch-up contributions. A few years later at 59 ½, you can start taking out of those retirement accounts without the 10% penalty. At 62 you’re eligible to take Social Security, although whether you want to do so is dependent on your plan. What other important ages do you need to keep marked on your calendar? On today’s episode, we’ll break down the most important retirement birthdays as well as answer some mailbag questions. What we discuss in this episode: 0:54 – How are is Mike doing? 2:39 – Catch-up contributions at 50 4:56 – Withdrawing early at 55 6:27 – No penalty withdrawals at 59 ½ 8:33 – Social Security at 62 11:02 – Medicare at 65 12:44 – Full retirement age 14:06 – RMDs and age 72 16:04 – Get your plan done! 17:27 – Mailbag: “Can I justify a private school tuition?” 20:16 – Mailbag: “Should I budget before meeting with an advisor?” Read more and get additional resources here: https://principalpreservationservices.com/retirement-reality-podcast/
If you are someone that tackles financial planning on your own without the help of a professional, you might be relying too much on the guessing game. We’ve seen the end results of retirement without a plan and many times it’s not what the retiree had envisioned. Today we’re going to identify some of the key planning areas that people often fall short and Mike will help provide some clarity. From income needs to inflation to healthcare costs, these are all things you need to have buttoned up before you hit retirement. What we discuss in this episode: 1:31 – Monthly income needs 6:41 – Planning for major purchases 10:11 – How much impact will inflation have? 13:31 – Healthcare costs 17:20 – Mailbag question on reducing investment risk 18:48 – Mailbag question on rolling over a 401(k) Read more and get additional resources here: https://principalpreservationservices.com/retirement-reality-podcast/
We found a recent article in USA Today that talked about the retirement planning issues that most Americans don’t have answers for. On this episode, we’re going to breakdown the article and share a few of the key takeaways we identified. The key with financial planning is to remove the guesswork and have a concrete strategy for income and expenses in retirement. That’s why we think you’ll get a lot out of this episode because we’ll talk about how to keep up with inflation, explain why so many people don’t understand their Social Security benefits and tell you why many people don’t have a plan for withdrawing money in retirement. These are three key parts of determining your income plan and how much you’re going to need to feel comfortable in retirement. USA Today Article:usatoday.com/story/money/personalfinance/retirement/2022/02/28/retirement-3-issues-making-planning-harder/49859935/ What we discuss in this episode: 0:46 – Uncertainty around the world 2:17 – Lack of basic knowledge 3:56 – Takeaway 1: Keeping up with inflation 6:00 – Awareness of inflation 8:06 – Takeaway 2: Social Security benefits 10:40 – Takeaway 3: Withdrawal rates 14:37 – Final thoughts Read more and get additional financial resources here: https://principalpreservationservices.com/retirement-reality-podcast/
A lot of us don’t have the time or knowledge to properly dedicate to a robust financial plan, that’s why having a financial advisor is so important. But, who really needs a financial advisor? Probably, most of us. Are you a procrastinator? A financial plan is certainly not the place you want to procrastinate. Maybe you don’t know where to start. There’s so much information out there! For a lot of people, the hardest part is starting. There might be a lot of things out there you aren’t considering and that can set you behind on your plan without you even knowing it. The closer you get to retirement, the harder it is to recover from mistakes. On today’s episode, we’ll discuss who really needs a financial advisor and why. What we discuss: 2:21 – Are you a procrastinator? 4:10 – Do you know where to start? 5:45 – You don’t know what you don’t know 7:14 – Once you get into your 50s and 60s 8:42 – Are you too busy? 10:13 – All the conflicting opinions 14:43 – Mailbag: “My kids are grown; do I still need life insurance?” 16:22 – Mailbag: “I want to travel; I need a higher income in retirement. Is that irresponsible?” Get additional financial information: https://principalpreservationservices.com/retirement-reality-podcast/