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

Ep 84: Investment Allocation Update - Thinking About Your Investment Recipe

Having reasonable assumptions for investment returns is critically important for many reasons. These assumptions will impact your retirement plan, investment allocation, and your peace of mind.
Hear Kevin review discuss a recent letter written to his clients about the three broad categories of investments. He'll discuss high-level metrics on how attractive or expensive various parts of the stock and bond markets are and what to broadly expect in the years to come. Tune into the end when he discusses higher-yielding investments and how many investors are unwittingly taking more risk today than they realize.
Reminder: Investment returns are not guaranteed. There are costs to invest. Expectations discussed are just estimates and are probability-based (range-based) and are from Blackrock, Research Affiliates, Schwab and Vanguard per data available on their websites. 
 
Read more: https://www.truewealthdesign.com/ep-84-investment-allocation/
 
 
Today's rundown: 
 
0:55 – Catching up with Kevin
1:40 – Things to consider before years end 
5:44 – How long does it take to start a plan?
8:13 – Investment allocation updates
11:15 – 3 categories of a portfolio
15:50 – Appreciation assets
16:21 – Vanguard and Schwab 10-year forecast
24:08 – Discount of foreign markets
26:44 – Is it more difficult to have a diversified portfolio?
28:47 – Preservation assets
31:54 – Credit risk and credit spreads
33:51 – Diversifying and DIY
 
Things to consider before years end:
Ep 62: Pension Lump Sums: 2021 May Be The Best Year Ever - True Wealth Design
Ep 31: Details In A Tax-Smart Retirement Distribution Plan - True Wealth Design
Ep 59: Retiree Health Insurance Part 2: Pre-Medicare - True Wealth Design
How to Get A $16,168 Tax Credit On Obamacare Even If You Are Affluent - True Wealth Design
10-year forecast from Vanguard and Schwab 

Ep 83: Biden‘s ”American Families” Tax Plan - Key Changes & Planning Opportunities

If you drive a car, I'll tax the street; If you try to sit, I'll tax your seat; If you get too cold, I'll tax the heat; If you take a walk, I'll tax your feet. "Taxman" - The Beatles
 
Biden's tax proposals have finally been put into legislation and released on September 13th. Thankfully they're not as bad as the Beatles lyrics and tax increases were also less than what was expected.
 
Hear Kevin discuss key proposals for individuals with the good, the bad, and those that didn't make it into the bill, and be sure to pay attention to the end to hear the key things to do to keep more in your pocket.
 
Read more: https://www.truewealthdesign.com/ep-83-bidens-american-families-tax-plan-key-changes-planning-opportunities/ 
 
Today's rundown: 
 
1:12 - Celebrating a birthday
4:33 - Background on the proposal
6:11 - The bad
10:44 - Backdoor Roths
13:36 - IRA change for accredited investors
16:02 - The good
21:20 - Things that didn't make it in
27:18 - Planning to-do items

Ep 82: Social Security Update - Solvency, COLA, & Planning Strategies

The 2021 Social Security Trustee's Report was recently released and the 2022 COLA is near finalized.  What can we expect for the COLA and glean from the report?
 
Tune in to hear the important points and key planning implications for your Social Security benefits.
 
Spoiler alert: Social Security solvency is not as bad as you may be led to be believed by the media and planning strategies remain important and are more key in today's low-interest rate world.
 
Read more: https://www.truewealthdesign.com/ep-82-social-security-update-solvency-cola-planning-strategies/ 
 
 
The rundown for this episode: 
 
2:41 - Background on this topic
3:40 - Trustees report 
8:07 - Solvency fixes
12:49 - Cost of Living Adjustment
17:30 - Problems that create opportunities
21:35 - Survivor benefits
22:26 - SS using outdated interest rate assumptions
26:48 - Planning implications

Ep 81: Math Mistakes in the Media, Investing, and in Understanding Vaccines

In the age of Covid, everyone has seemingly become a data expert .... regardless of one's understanding of data and statistics (sigh). 
 
Hear Kevin highlight some recent math errors he's observed in media, relate them to investing errors, and tie in vaccines to boot.  
 
He'll describe how making bad comparisons in identifying mutual fund category winners is subject to similar errors to drawing conclusions about the recent Cape Code headline where a Covid outbreak infected 74% of vaccinated people. 
 
He'll also explain how butter production in Bangledesh is tied to the S&P 500 and why you should (or shouldn't?) "sell in May and go away."
 
Put your thinking cap on and happy listening!
 
 
Get more information: https://www.truewealthdesign.com/ep-81-math-mistakes-in-the-media-investing-and-in-understanding-vaccines/
 
 
Key Points: 
 
1:02 - Quick shout out for a team member
3:35 - Covid update
6:19 - Background on our topic
11:13 - Deceptive investment performance advertising
14:44 - The vaccine equivalency
19:24 - Correlation does not equal causation
25:37 - Additional examples of vaccine data and cherry-picking
36:50 - Closing thoughts 
 

Ep 80: Should I Sell a Stock With a Large Taxable Gain?

You may have acquired stock and seen it significantly rise in value over time. Now you're not sure what to do: let it ride or sell, pay taxes, and reinvest in a better portfolio.
 
Astute investors know concentrated stock holdings are suboptimal and expose a portfolio to diversifiable risks. But simply selling regardless of tax consequences is also short-sighted. So how do they best fit into your portfolio and financial plan?
 
Hear Kevin discuss how to think through this complex decision. He will evaluate the costs and expected benefits of making a partial or full transition and discuss how Separately Managed Accounts or SMAs can be used as a tax-smart tool to better optimize your investments in light of concentrated or low-cost basis stock positions.
 
Even if you do not have concentrated or low-cost basis stock positions, the insights you'll get on optimizing your portfolio and drivers of its results make it worth a listen.
 
Show notes: https://www.truewealthdesign.com/ep-80-should-i-sell-a-stock-with-a-large-taxable-gain/ 
 
What we discuss on this episode: 
 
3:23 - Background on this tax scenario
8:15 - Selling out of your positions and then reinvesting
14:01 - Statistical modeling to find the best return
18:06 - Formulating the expected returns
19:21 -  What to do with legacy holdings
23:53 - The benefit of true customization 
29:57 - What to expect from your financial advisor
 

Ep 79: Aligning Your Investments With Your Values

Have you heard of ESG? Many investors today are selecting investments in part based on Environmental, Social, and Governance (ESG) criteria.
Don't like fossil fuels, weapons, or pornography? Want to focus on companies that have diverse boards, executive teams, and overall workforce? Have religious beliefs you want to follow when it comes to investing? Then ESG may be right for you.
Hear Kevin discuss solutions for those seeking to align their investments to their ESG values and discuss challenges and investment considerations in doing so. He'll also share several recent client examples that have pursued ESG investing.
 
What we discuss on this episode: 
1:07 - Watching the Olympics
3:26 - Why ESG has become a trendy conversation
8:46 - Where do you draw the line?
12:38 - Picking investments
17:26 - Challenges with ESG
22:04 - How many clients prioritize this?
 
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 78: Unexpected Benefits Married Couples Get From A Financial Advisor

Do you know a smart, financially savvy person that still hires a financial advisor? Ever wonder why they do so?
Many family stewards often seek an advisor to take care of their family's finances if they cannot. Know a couple where one spouse took care of the family finances and then passed, leaving the surviving spouse the fear and frustration of picking up the financial pieces all while going through the grieving process? Family stewards seek to avoid this.
Yet married couples often get even more and unexpected benefits from working with a financial advisor. Communication is the essence of healthy relationships. Quite often meeting with an emotionally intelligent financial advisor can enhance the communication and understanding between spouses while bringing objectivity to the financial and emotional aspects of the relationship.
Hear Kevin relate his story of when he and his wife met with a financial advisor and how it helped them get more aligned. He also shares a client story where spouses weren't on the same page regarding retirement but through open communication and sound financial planning, they are now excitedly turning the page into retirement together.
 
What we discuss on this episode: 
1:05 - Vacation
2:43 - Why a podcast review inspired this topic
4:41 - Who will take care of my family if something happens to me?
9:07 - We need to hear what's important to both spouses
12:55 - Finding the best way to communicate
18:12 - Couples that aren't on the same page
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 77: How Risky of an Investor Are You? (And How Do You Really Know?)

What type of investor are you? Are you conservative, moderate, or aggressive?  
These qualitative descriptors are how most think of risk. But what is conservative to you may not be conservative to another.  Rather than using non-measurable descriptions of risk, your customized retirement plan needs to be the foundation to objectively measure risk. Then and only then can the three types of risk -- required return, risk capacity, and risk tolerance -- be accurately evaluated and aligned.
Why is this important? Take too little risk and it can be a conservative way to go broke. Take too much and you may go broke more quickly. Like the story of the Three Bears you want it just right.
 
Timestamps:
2:20 - What is risk tolerance?
8:30 - How this applies to our planning.
12:38 - Taking emotions out of the risk conversation
18:14 - Client examples
22:45 - Ongoing process for every individual
 
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 76: Your Hierarchy of Retirement Needs

Many think retirement planning is all about number crunching. While undoubtedly important, you first need to consider the personal and social aspects of your ideal life and retirement. Then align your resources to best support it.
 
You may recall from your studies psychologist Abraham Maslow's work on the Hierarchy of Needs. Maslow's work translates to retirement quite well. Interestingly, many types of needs are met at least in part through work. Take work out of the equation and those needs remain. So how do you meet them in retirement, so you can be a happy and fulfilled self-actualizer?
 
Hear Kevin discuss Maslow's work and how it relates to retirement. He'll discuss real-life stories of how clients have retired but struggled to meet needs without work with the hope of helping you avoid the same.
 
 
Timestamps:
0:58 - Back from first successful camping trip
4:03 - What does this hierarchy have to do with finance?
6:39 - Looking back on undergrad school
12:37 - Moving up the pyramid
15:27 - Client stories to illustrate this idea
26:12 - Differences between gender
30:21 - Exploring these levels with clients
 
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 75: 10-Year Return Expectations

Having reasonable assumptions for investment returns is critically important for many reasons. These assumptions will impact your retirement plan, investment allocation, and your peace of mind.
Why peace of mind? Well, if you are expecting something unreasonable, no doubt you're likely to be dissatisfied and more likely to be undisciplined.
Hear Kevin review 10-year return forecasts from leading money managers Blackrock and Research Affiliates. What are domestic and foreign stocks likely to do? How about bonds and real estate?
Tune in to find out and become a more informed investor.
 
Timestamps:
4:05 - Gauging Expectations For A Retirement Plan
11:32 - Why 10 Years?
14:50 - Diving Into The Data
29:07 - How Well Have These Predictions Done?
33:51 - How Kevin Uses These Expectations When Putting Together A Retirement Plan
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth