Retirement Reality Podcast
Ep 24: Retirement Planning and Farming

Ep 24: Retirement Planning and Farming

February 27, 2020

We spend a lot of time we researching and gathering information but some of the best guidance for retirement planning can be found right in front of us. We’ll show you that’s the case by taking farming and extracting five lessons that you can apply to your planning strategy.


Show notes and additional resources: 


Today's rundown: 

1:02 – Mike and his family own a hobby farm with multiple animals.

2:20 – Let’s take farming and relate it to retirement planning.   

2:33 – The first lesson is understanding liquid vs non-liquid assets.

5:08 – The second lesson we can find in the chicken and the egg. 

8:13 – The third lesson is protecting yourself from risk like predators on a farm.

10:34 – Long-term care is another predator people don’t always consider.

11:53 – Hidden fees is the last one that can attack your ‘chickens.’

12:30 – The fourth lesson is a diversity of crops to make sure your business isn’t too reliant on any one asset.                                                                                                                                                            

15:39 – The final lesson can be taken from the rooster.   

17:31 – Mailbag question: I’d really like to meet with a financial advisor but my husband says we’re fine handling our investments ourselves. Is that okay to do on our own?

Ep 23: Lies Learned in Broker School

Ep 23: Lies Learned in Broker School

February 20, 2020

A lot of financial professionals will tell you things that just aren’t true. That doesn’t mean they do it intentionally. Many times these professionals have been given talking points, which they might even feel to be true themselves. We want to talk about the statements you should be cautious of if you hear them from an advisor.


Show notes and additional resources: 


Today's rundown: 

1:28 – Minnesota winters have brought below-freezing temperatures once again.

3:55 – In the News: A recent CNBC article points out that an older retirement age is becoming the trend around the world. Is Mike seeing this in Minnesota and Wisconsin?

5:53 – Why we’re talking about broker lies today.

6:26 – Lie #1: ‘We have experts who can accurately predict market movement.’

7:42 – Here are the investments we see people come in with all the time.  

9:10 – Lie #2: ‘Just look at our past investment returns and you can see that we have a system that works in all markets.’

10:43 – Lie #3: ‘Your tax rate is going to be much lower in retirement.’

12:30 – Most people we work with have the majority of their savings in pre-tax accounts.                 

13:23 – The SECURE Act will have a big tax impact as wealth gets transferred from the Baby Boomer generation.

15:09 – Lie #4: ‘It’s just a paper loss. Hang in there and you’ll be fine.’

17:03 – The difference between working with a fiduciary versus the alternative.

19:49 – Mailbag Question: I told myself that if I ever hit $1 million in my portfolio, I’d move it a lot of it to cash. Now that I’m there, I feel like I can get to $1.2 million. What do you think?

Ep 22: Is Having ‘Cash’ Good or Bad

Ep 22: Is Having ‘Cash’ Good or Bad

February 13, 2020

Of course we all want to have a healthy bank account and feel the security of knowing we have money at our disposal. Having plenty of cash on hand can help in the event of an emergency but building up your account too much can actually be a detriment to your retirement. Let’s talk about the situations where cash can be a benefit and the times when it can hurt you.


Show Notes and Additional Resources: 


Today's Rundown: 

2:12 – In the News: IRS increased contribution limits for retirement accounts. How significant is this news?

4:14 – It’s all about the Benjamins. Let’s talk cash.

4:47 – What are some of the reasons you want to keep cash on hand?

7:20 – Then when is it counterproductive to have too much cash?

8:56 – How we work with clients on determining how much cash they need to have.

11:23 – Does fear drive a lot of those decisions to hold onto cash?

13:28 – What are some of the other investments outside of the market that people can put their cash in?

15:56 – Mailbag Question: I can sell my house right now for $500,000 and I only owe $100,000. I’m only 57 so I could sell the house and use that extra cash to retire early. Is that a good idea?

Ep 21: Be Aware of Bias in Financial Media

Ep 21: Be Aware of Bias in Financial Media

February 6, 2020

We live in an era where everyone has a platform and it’s more profitable to be entertaining than to be informative. That’s led to bias in media and finance is no exception. Let’s take a look at the most common places you’ll find bias and how to make sure you’re getting information that’s accurate for your retirement plan.


Show Notes and Additional Resources: 


Today's Rundown: 

2:06 – In the news: The Stretch IRA is going away as part of the SECURE Act. Here’s what you need to know.  

4:40 – Why did this change happen? Is it specifically a tax play for the government?

6:18 – Let’s talk ‘Fake News’

6:43 – First place to find bias: Sensationalism

9:17 – Second bias: Paid Placements

11:18 – Another bias: Wrong Audience

12:50 – An example of a common investment that doesn’t usually make sense for pre-retirees.

14:19 – Final bias: An Axe to Grind

17:58 – Mailbag Question: I have about $50,000 in cash value in an old life insurance policy. I don’t need it before so should I just cash it out and invest it somewhere else?

19:30 – There are a couple options for what you could do with that money.