Retire Smarter with Kevin Kroskey, CFP® & Tyler Emrick, CFA® CFP®

Smartly Using Retirement Accounts to Optimize Your Retirement & Tax Savings

Are you looking for ways to accelerate your savings right before retirement? How do you determine whether to save Roth or Pretax? What type of retirement account should you be using? In short, how can you use the myriad tax-advantaged accounts to optimize your retirement savings and tax advantages?
 
All these questions and more are answered as Tyler walks you through how IRA, Roth, and 401K plans work and how you can best use them to maximize your retirement savings. Hear him tell a client story to illustrate some of the lesser-known retirement account options available. Small business owners and self-employed individuals will want to pay special attention as this self-employed business owner saved over $200K in pretax savings this year, getting thousands in tax deductions and accelerating their savings as they approach retirement. 
 
Here's some of what you'll learn on this episode: 
High-level view of how Tyler looks at the structure of retirement plans. (4:43)
The bucket that most people utilize in their retirement plan. (7:25)
Where are the most under-utilized retirement plans. (12:16)
A story about a client who was looking for tax strategies to maximize benefits. (15:01)
How can individuals benefit? (23:52)
 
HAVE QUESTIONS? Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth’s credentialed and experienced professionals or visit http://bit.ly/calltruewealth.
 
Or listen to episode 45 to learn about True Wealth’s Retire Smarter Solution™ that aligns your money to your goals, overlaid with tax-smart strategies, so you can retire with confidence.

Surprising Lessons on Stock Returns and Diversification

History shows that owning companies (buying stocks) provides far superior returns vs. lending to companies (buying bonds). While most know this, most would be surprised by how many stocks lose money over time. A JP Morgan report showed this number to be 40% over a broad period from 1980-2020. And 66% of stocks failed to keep up with a broad benchmark. 
 
Hear Kevin dive into these details, portfolio implications, and touch on key characteristics of risk -- not just how much your investments move up and down (volatility) but making sure you have the dollars you need when you need them (terminal wealth dispersion). You'll be surprised by what you learn and likely question whether you are truly diversified. 
 
After all, luck or any low-probability investment strategy -- pursued consciously or not -- is not rational for your retirement dollars.  
 
Here's some of what you'll learn on this episode: 
The investment part of retirement isn't solely about the traditional motivations. (5:32)
The good part of having unique risks in your portfolio. (10:12)
What studies have shown us about market returns. (19:41)
A look at how the professionals do with picking stocks. (24:19)
HAVE QUESTIONS? Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth’s credentialed and experienced professionals or visit http://bit.ly/calltruewealth.
 
Or listen to episode 45 to learn about True Wealth’s Retire Smarter Solution™ that aligns your money to your goals, overlaid with tax-smart strategies, so you can retire with confidence.

It’s the End of the World as We Know It, and Why to Feel Fine

"It's the End of the World as We Know It (And I Feel Fine)" is a 1987 song by American rock band R.E.M.. The title may sound pessimistic or perhaps a bit delusional. Yet, hear Kevin make the analogy as to why this song -- one of his favorites -- is a perfect theme song for capitalism, creative destruction, and rational optimism about innovation and future stock returns. 
 
Here's a little of what you'll learn on this episode:
Why bad news in the headlines is nothing new. (1:39)
What a consumer sentiment survey tells us. (4:12)
Why it might actually be a good time to invest when you feel very pessimistic. (10:08)
A book that still sticks with Kevin a decade later and the lessons learned. (13:44)
What is creative destruction and how does it apply here? (17:23)
 
HAVE QUESTIONS? Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth’s credentialed and experienced professionals or visit http://bit.ly/calltruewealth.
 
Or listen to episode 45 to learn about True Wealth’s Retire Smarter Solution™ that aligns your money to your goals, overlaid with tax-smart strategies, so you can retire with confidence.

Red Flags of Investment Fraud

A $50+ million investment fraud is unwinding in northeast Ohio with a former high school basketball coach and self-proclaimed single-family real estate expert being accused of bilking investors in a ponzi scheme. You probably think, "This can't happen to me." The same can likely be said of those in the community that now have fallen victim to fraud at the hands of someone they trusted.
 
Hear Kevin discuss red flags and common scams fraudsters often use. Affinity fraud, guaranteed or high returns, and unregistered products are often well disguised into good-sounding strategies to gain your trust and dollars.
 
And be sure to pay attention to the end, when Kevin talks about public vs. private investments and the benefits of using a qualified custodian -- like Schwab, Fidelity, Pershing, and TD Ameritrade -- for the safe keeping of your assets.
 
Key topics on this episode:
3:19 - Local story that sparked this discussion
7:58 - Affinity fraud
9:58 - Sale of an unregistered security
13:58 - Private hard money lender
16:11 - Why this local Ponzi collapsed
20:48 - Why a custodian matters
22:57 - Be aware of private investments
27:39 - Any protection for this?
 
 
For more, visit us online: http://truewealthdesign.com 

Pension Lump Sums - You May Need To Act Now in 2022

Pension lump sums will be much LOWER in 2023 than 2022. Listen to Kevin give a brief intro on what is going on and then cut into a replay of episode 62, recorded in December 2020 on the same topic. 
Learn timing considerations on how to optimize your pension benefits by understanding the key variables -- interest rates and mortality -- that determine your lump sum. Company pension plans specifically discussed include Akron Children's Hospital, Bridgestone, FirstEnergy, Goodyear, Kaiser, Mercy Health, and Rockwell Automation.
Need help with your specific lump sum option? 
 
If you are eligible for a lump sum, don't delay. To give proper advice, your pension decision must be made within the context of your overall financial life plan, and this takes some time to thoughtfully put together. Call 855-TWD-PLAN (855-893-7526) or visit https://www.truewealthdesign.com/contact to get expert help.
 
Whether you have a pension from your company or not, you'll benefit from this episode. Why? Anyone can invest money with an insurance company and receive a lifetime income in the form of annuity payments. So these considerations are universal in crafting your retirement income plan.
Want more information on pension claiming strategies? Listen to Episode 38 here: https://www.truewealthdesign.com/ep-38-pension-lump-sum-or-monthly-payment 
 
Key topics on this episode: 
0:38 - Why we're pulling this show from the archives
8:53 - What you need to know about lump sums
14:22 - Why this matters
15:58 - Segment Rates
21:43 - What To Expect In The Future
26:02 - Spreadsheet Story
30:28 - Closing Thoughts

The Story of Dr. Smith

Hear the story of Dr. Smith and how his retirement concerns are likely similar to many of your own. How do I select a good advisor? What to do with my employer retirement plans? How do I transition my healthcare? Hear all of this plus estate planning issues and Dr. Smith's reflections on his retirement transition in this jam-packed episode. 
 
Key topics on this episode:
1:14 - Background on our conversation today
5:14 - How Dr. Smith found us
10:34 - Why Dr. Smith's meeting was different
11:51 - The earlier the better 
12:43 - What was important to him
16:22 - Reactive vs proactive
18:11 - Two things that everyone cares about
21:56 - Starting the customization process
23:40 - Estate planning conversation
27:39 - How the relationship changes
29:27 - Where are we now with Dr. Smith?
 
 
Learn more about our Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/
 
Have a financial question? Contact us at https://www.truewealthdesign.com/contact/
 

Understanding Your Retirement Plan Results

Kudos! You went through a retirement planning process or completed an online calculator and have the results. Now, what the heck do they mean exactly? 
 
Hear Kevin peel back the onion on understanding your retirement plan results. What are Monte Carlo simulations? What assumptions belie them? What shortcomings does this type of analysis have? How can this powerful tool be thoughtfully used to help ensure you stay on track?
 
Key points on this episode: 
 
2:16 - What we discuss with clients
4:43 - How we display results in our dashboard
9:07 - Safety margin
17:25 - Hierarchy of expenses
19:51 - No simulations are perfect
 
 
Learn more about our Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/
 
Have a financial question? Contact us at https://www.truewealthdesign.com/contact/

Mailbag - Bear Market Investment Questions

The bear is roaring and eating away at stock and bond returns. What's an investor to do?
Hear Kevin Kroskey, CFP®, MBA  and Tyler Emrick , CFA®, CFP®  discuss common investment questions clients are prospective clients are asking:  Should I decrease risk? Should I increase cash? Is cash better to own than bonds? Should I consider a CD or fixed annuity? Is it okay to make a strategy change or hire an advisor when markets are down?
 
Key points on this episode: 
1:45 - Should we sell out at this point?
5:39 - Preparation is so important
8:47 - 'Coupon Kroskey'
9:58 - Cash vs Bonds
16:37 - Fixed interest rate products
21:27 - Bad time to move money?
26:49 - Other items to have on your list
 
Learn more about our Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/
 
Have a financial question? Contact us at https://www.truewealthdesign.com/contact/
 
 

Interview with Retirement Researcher Dr. David Blanchett Part 2

Dr. David Blanchett is Head of Retirement Research formerly at Morningstar and currently at Prudential’s asset management arm PGIM. He is also an adjunct professor at The American College of Financial Services. David has been a voracious and accomplished researcher, being published in a variety of peer-reviewed articles, and receiving many ‘best paper’ awards. Today he conducts research primarily in the areas of financial planning, tax planning, annuities, and retirement.  
Listen to Kevin and David do a deep dive into key assumptions made in your retirement planning – investment returns, spending assumptions, longevity, and inflation. Learn from David’s original research on retirement spending and how it is likely to decline as you age, including the positive implications it has on your planning. (Hint: you may be able to retire earlier than you think.) 
Be sure to pay attention to the end where David and Kevin discuss guaranteed income, cryptocurrency, and empirical studies on quantifying the benefits of working with a trustworthy and competent advisor. 
A big "thank you" to Dr. Blanchett for sharing his research and wisdom.  To read David’s research, visit https://www.davidmblanchett.com/research 
Learn more about our Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/
 
Have a financial question? Contact us at https://www.truewealthdesign.com/contact/
 
Key topics on this episode: 
1:05 - Using the spending data to build a financial plan
2:47 - Success rate as an outcome metric
5:27 - Measuring your wants and needs
9:52 - Building guaranteed income
14:16 - Annuities
16:53 - Comparing annuities
20:21 - His recent paper on cryptocurrency
22:40 - Recent/current projects
24:21 - How an advisor adds value
 

Interview with Retirement Researcher Dr. David Blanchett Part 1

Dr. David Blanchett is Head of Retirement Research formerly at Morningstar and currently at Prudential’s asset management arm PGIM. He is also an adjunct professor at The American College of Financial Services. David has been a voracious and accomplished researcher, being published in a variety of peer-reviewed articles, and receiving many ‘best paper’ awards. Today he conducts research primarily in the areas of financial planning, tax planning, annuities, and retirement.  
Listen to Kevin and David do a deep dive into key assumptions made in your retirement planning – investment returns, spending assumptions, longevity, and inflation. Learn from David’s original research on retirement spending and how it is likely to decline as you age, including the positive implications it has on your planning. (Hint: you may be able to retire earlier than you think.) 
Be sure to pay attention to the end where David and Kevin discuss guaranteed income, cryptocurrency, and empirical studies on quantifying the benefits of working with a trustworthy and competent advisor. 
A big "thank you" to Dr. Blanchett for sharing his research and wisdom.  To read David’s research, visit https://www.davidmblanchett.com/research 
Learn more about our Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/
 
Have a financial question? Contact us at https://www.truewealthdesign.com/contact/
 
Key topics in this episode:
1:11 - Welcome in Dr. David Blanchett
2:15 - Reviewing his historical papers
3:39 - Important retirement variables
5:26 - What are reasonable expected returns?
9:44 - Building blocks that play into forming expectations
13:50 - Spending patterns
16:24 - Spending data and categories
21:05 - Behavioral aspects of spending