My Smart Retirement

Currently, people are feeling on edge with increased interest rates and inflation. Gas, food, and living expenses have changed significantly because inflation has increased at a faster pace than we have seen in the last 40 years. We have had people ask us how inflation will impact their taxes. In this episode, we are going to answer your question and go over the various ways your taxes could be affected. Here’s some of what you’ll learn in this episode: How wage growth has been affected by taxes. (4:12) Inflation might slow, but prices are very unlikely to go backward. (6:36) How inflation can impact our taxes. (9:53) The important things to note about how inflation affects capital gains. (14:43) For more information: https://www.flemingfinancialservices.com/podcast

Just about everyone has a question, or ten, that comes up while planning for retirement. Should I delay Social Security? Am I saving enough? The list goes on. We want you to go into retirement with peace of mind, so we are answering more of your questions today. These questions are ones we have gotten frequently, so listen up, because we just might share an answer you have been looking for. Here’s some of what you’ll learn in this episode: Danny: I am going to work one more year and then I’m going to find part-time work for four more years to supplement my retirement income. Would it be better to work full-time for two more years and then retire? (2:28) Catherine: Should I use a program that will help me pay off my mortgage faster by splitting it into biweekly payments? (6:40) It’s a good time to be a little more defensive with your finances in today’s world. (9:43) Bill: Someone said I should save 15% of our income for retirement, but we are only saving 10%. Are we in trouble? (11:47) For more information:

We always talk about the money side of financial and retirement planning. But what about the mental aspect of that big life change? Today we’ll break down an article written by a Licensed Professional Counselor (Kate Schroeder) for Psychology Today, titled The Psychological Investment In Retirement. Retirement can span 25-30% of our lives so we want to be as prepared for this next chapter as possible so the earlier we can embrace this side of planning, the more we’ll be able to fully enjoy retirement. Here’s some of what you’ll learn on this episode: Why it’s so difficult to walk away from a life and routine that’s defined you for years. (4:04) Retirement is a time to embrace the person you’ve always wanted to be. (6:03) The actions you can take to be better prepared for this psychological side of retirement. (7:43) Some examples of ways our clients have found this meaning in retirement and what they’ve chosen to do. (11:58) Why it’s not easy to figure this out once you’re in retirement. (15:34) For more i

Now that people are traveling more again, many of us are packing our bags and going through the process of thinking through what goes into each suitcase. Believe it or not, this is much like financial planning. You probably haven’t paid much attention to it before, but we will explain why packing a suitcase is very similar to preparing for retirement. If you’ve ever lost a bag or had a suitcase damaged, you know that it’s important to make sure that you don’t lose everything you need. From what bags you plan on taking to how you want to group all of your things, we’ll have some fun taking you through this analogy. Here are some of the things you’ll learn on this episode: How to be prepared for losses through diversification. (2:05) Why you need to organize things in different groups or bags. (5:18) Greed can impact investing decisions negatively. (7:35) Why you should be constantly evaluating your plan. (9:20)   If you’d like to learn more, visit us online and let’s set up a time to talk --> https://www.fle

One of the things we love about financial planning is that there are many different solutions for the same scenario. You have to weigh all the different factors for an individual’s situation to determine what their best outcome might be. Today we’ll touch on a little of that as we open up the mailbag to find out what’s on your mind. The topics we’ll cover include conservative investing allocations, taking a loan out from your retirement account, lump sums or monthly payment, and handling planning on your own. These things we talk about are just opinions based on a short scenario that came in through the mailbag. When you have a question, we need to gather a lot more information because every situation could have multiple solutions. Planning takes time and we need to get as many details as possible to help provide the best possible answer for your position. But we hope our answers help explain the things we’re thinking through to give you a general idea of how to proceed.   Here are some of the things you’ll l

We make education a key focus of what we do and we always make sure clients understand how things work before taking the first step in planning. We understand that financial education isn’t provided to everyone and there are some common areas where people often get misled into believing something that they shouldn’t. This can lead to you innocently assuming certain people or companies are looking out for your best interest. On this episode, we’re going to share some of the things we wish people knew when they first came into our office to meet with us. Here are some of the things you’ll learn on this episode: What’s the motivation behind the information you find online or on tv? (7:28) An example of how annuities are used out of context. (3:35) Why a big brand or company isn’t always the best option for you. (5:23) Why we want people to be in a position for informed consent. (7:29)   MORE INFORMATION:  https://www.flemingfinancialservices.com/podcast  

You’ve most likely heard plenty of “rules” you’re supposed to follow to retire successfully. Some of these rules are stated so confidently, you’d be crazy not to immediately accept them as fact. But we don’t mind the threat of being called crazy, so Nancy and Sean will dive into some of the most popular retirement “rules of thumb” to see if they truly lead us down the path of good financial guidance or run a chance of leading us astray. You’ll always want to consult with your financial advisor for each of these rules because your situation might be different than someone else and you want the best plan for your future. Here are some of the things you’ll learn on this episode: How the rule of 100 is used to determine risk but not always perfect for each situation. (7:28) The rule of 72 is a great way to determine how long it will take your money to double based on the rate of return you’re generating. (12:31) Why dollars and percentages aren’t the same and example of how to view this. (14:02) How to apply the

One of the toughest things many people face in life is divorce, and it can weigh heavily on your financial health on top of all the emotional stress you experience. We understand how difficult this process can be but want you to know that there are people that will help you make it through it.   While everyone’s situation will be different and there are more factors that you might consider when it comes to sorting through the financial side of the divorce. We want to open your mind and give you some things to think about if you are going through this or might be in the future.   It’s easy to want to take the path of least resistance to just get everything over with, but a financial advisor can help you make the best decisions for yourself and your retirement. Here are some of the things you’ll learn on this episode: Why keeping the house might not be the best financial outcome for you. (2:42) Are you factoring in the tax implications of all the assets getting distributed out? (5:06) An important thing to rem

On today’s episode, we’re going to explore the 4 phases in life, each being 8,000 days or 22 years: the honeymoon phase, the big decision phase, navigating longevity phase, and the solo journey phase. While they can be interchangeable each plays a special part in our lives and we have very similar phases in retirement. The Honeymoon Phase (65 to 74) This is where you are typically just entering retirement (while some people may retire earlier). These are your healthy years. You have an average of 20 more healthy years. Everything’s changed because you are retired, but physically not much has changed. What are you going to do with your time? Will you travel? Or will you spend time exploring hobbies? A lot more people are considering working into retirement as the definition of retirement evolves. These are the go-go years. The Big Decision Phase This phase is characterized by more free time and you end up making more big decisions. The worries of work have faded from your mind and now you’re stuck making decis

Let’s put retirement planning and preparation under the microscope. On today’s episode, we’re going to do a retirement planning pop quiz. Follow along and test your retirement planning skills and knowledge! At what age should you start saving for retirement? A. When you begin working B. After you buy your first home C. After you pay off all your debt. Actually, the best time to start saving is now! The quantity you put away will change on your circumstances and age. Practicing this habit early helps with saving larger portions down the road. Which of these is the best estimate of how much income you’ll need in retirement? A. 50% of your current income B. 85% of your current income C. 100% of your current income D. None of the above. Generally speaking, we look at the amount of money coming into your bank account each month. Which is a piece of your current income. But the bills you have now may not be the same bills you have in retirement. For example, the mortgage may be paid off by then. What will you do wi

Today, we’re opening up the mailbag and answering some retirement questions we get from our listeners and clients. George says he has all of his retirement savings in one IRA. Should he move some of that money elsewhere to be diversified? Since we don’t know how close George is to retirement and what his risk tolerance is we can’t give him a definite answer. Instead, what should he look at to determine the right move for him? You want to look at whether the IRA you are invested in is all in one stock or has some diversification inside the account. Do you have only one or two mutual funds? What is the size of the IRA? A smaller IRA has different diversification needs than a larger IRA. It is possible to be diversified within an IRA instead of rolling that money into a different account. Mark feels like he needs to reduce the risk in his portfolio, but he doesn’t know where to turn. He’s looked at bonds, annuities, and even cash. But all of these options have drawbacks he doesn’t like. Unfortunately, there is n

Many of us want to keep our money in our pockets. We can use financial intelligence to direct that money in the ways we want to. But, what are some ways we are losing money? On today’s episode, we’re going to break down our philosophy on keeping money in our pockets and how it's about much more than just inflation.    Whenever we have federal government deficit spending, we are going to have inflation. Our incomes and the cost of living have become unbalanced. Some of this is seen in the increased costs of an item, increased taxes, and more. The government collects from various sources. So, we must ask ourselves, where is our money going?    The money we don’t keep and direct, determines where we can put money towards our lives. There is a sales tax, income tax, state income tax, and on top of that various fees on our utility bills and more. As you can tell, there is attrition coming out of the money we earn. There’s always another hand in our pocket.    When we talk about inflation, it’s often about the cost

If you’ve ever planned a trip, planned a wedding, or planned your retirement you may have realized how fun the anticipation of the adventure was. We can’t always predict the future and a lot of pre-retirees are getting started early on their bucket list before they are in retirement. On today’s episode, we’re going to explore Mark and Mona’s journey to retirement. Theories about retirement planning are great but sometimes it’s nice to hear a true-life story. They recently retired, going through various steps and weighing their priorities before making the big change. How do your dreams, plans, and priorities compare? Both Mark and Mona enjoyed their careers and Mark liked his so much he didn’t really want to retire. Mona wanted to explore more hobbies in retirement and decided to retire a little sooner than Mark. For Mark and Mona, we set up multiple contingency plans. We prepared them for what would happen if they retired sooner or later, depending on their wishes. Because of Mona’s interests and Mark’s desi

Let’s open up the mailbag and answer some of our listener’s questions about retirement, market volatility, and more. Wanda says, “With my 6 siblings I inherited a 70-acre farm. 4 of my siblings want to sell and the rest of us want to keep it. Is it worth trying to buy out the rest of the farm? Or should we argue until we get to keep it all?” We definitely don’t recommend arguing it out with your siblings. The four that want to sell it are in the majority so you’d probably lose out on that. We’ve seen too many family members fight during an estate settlement. If it’s possible to buy out the rest of the farm, that’s probably your best approach. Certainly, have a unified plan with your siblings that want to keep it. Marty has been out of the market for several years. He’s missed out on a lot of growth. Should he wait to jump back in if there is a market crash? There are no right answers in the market. We can’t predict whether there will be a crash or not. We suggest developing a long-term investment strategy. De

The famous Elon Musk has recently predicted a recession and we often hear this worry from clients as well. It’s a big question being discussed with the down markets and high inflation. Are we entering a recession? On today’s episode, we’ll explore what it means if we are at the beginning of a recession and how well we are prepared for this possibility.  The net worth of American households has actually gone up in the past few years. If we are entering a recession, this increase in net worth will act as a bigger cushion for a lot of American families. This is especially true with the historically low debt Americans have. This savings boom has been unprecedented. Businesses are also in a stronger place than they were at the beginning of the pandemic and we are currently seeing higher profit margins. This is important if we are entering a recession, stronger profits lead to fewer layoffs and spending cuts.   All of these factors are putting the American people in a stronger position than they were at the start o

There are various debates out there around life insurance. But this investment tool can be invaluable to yourself and your family. On today’s episode, we’ll break down some good reasons you should think about getting life insurance and the benefits it could provide you and your family.  We most often think of life insurance as income replacement. When we are raising a family or have someone dependent on us, this is especially important. But, how is this different for a retired person? If you pass away, can your plan support your spouse? Life insurance is a way to ensure a surviving spouse is cared for.  Another reason to consider life insurance is the tax benefit. Your children, spouse, or other beneficiaries will be limited on the money they can take from your 401(k) or IRA. But when it comes to life insurance, those payouts are tax-free. This can also help them pay the taxes on the taxable parts of the estate they inherit. The younger you start putting away into life insurance, the cheaper those premiums wi

When planning for retirement, we hear a lot about managing risk in our portfolios. On today’s episode, we are going to approach risk in a different light. How prepared are you for the risk of needing long-term care to cope with a chronic or lifelong condition? This is the least favorite topic of many pre-retirees and retirees because most of us want to plan for the fun things: vacations, hobbies, family legacy, etc. Yet, this is one of the most important components of a healthy retirement plan. 7 out of 10 people will need some type of care in their life. Despite this statistic, many people ignore this issue or assume family will be able to take care of them. While this is a great sentiment, it doesn’t always work out this way. If you end up needing assistance, where will these funds come from? Preparing for this possibility protects us from the immense price of long-term care. There are several solutions to this problem. Long-term care insurance isn’t offered as much as it used to be, but it is still an opti

There’s this consensus that people who obtain wealth just make a lot of money or they inherited a lot of money. But the reality is most people who have a lot of money are good savers. A lot of wealth is built by people who just make a decent salary or even an average salary. They just live within their means. We’ll share some of the commonalities of people who are wealthy. They buy used cars Wealthy people often don’t buy a new car. Studies show that new car values go down in the first month by 10% and within the first year, 20%. It’s not prudent to buy a vehicle that will lose that much value. The average person has a car that’s about 5 years old. If you’re constantly making payments on a car, you’re not using your money wisely. By keeping the same car for a long time, you can save a lot. But that goes against the grain of what many people do. They don’t buy a house they can’t afford People often rationalize house purchases. But people who are good with money know a good piece of real estate is one you can a

What does a soccer game have in common with retirement planning? On today’s episode, we are going to break down the retirement playbook and what lessons we can learn from retirement’s All-Star players. We’ll break down ten critical factors you need to have in your retirement plan to score big.  The big challenge for many retirement players is replacing income for an indefinite number of years in an ever-changing economic environment. Winners have one thing in common, they plan and prepare for retirement. #1 Have a strategy A financial strategy should be written out and will break down the moves you plan to use when you need income in retirement. Calculate how much you need to save and how much you need to generate once in retirement based on realistic expectations and your desired lifestyle. #2 Start early The sooner you start planning for retirement, the more likely you are to hit that big goal. Most of the time, retirement All-Stars, give themselves plenty of time to save. You are able to recover from marke

We had a question come up recently that got us thinking about music and some of the greatest artists that have enjoyed huge financial success outside of their careers. We thought that would make for a fun discussion on the podcast so that’s what we’re going to discuss today. Nancy will take you through a handful of the most successful artists, singers and composers across different genres and pull out the financial lessons we can learn from their ventures inside and outside of music. The first person we’ll spotlight is composer Andrew Lloyd Webber, whose net worth rose to over a billion dollars. One way he did that was to create a company that help create residual income from the work he was doing, which is what we want to do with our retirement income as well. Using Social Security, pensions, and other tools allows us to create a guaranteed income for clients.         The next artist is the great Bono from the popular band U2. When you look through his portfolio, you’ll see that he has invested in major comp