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

Ep 74: Modeling Real Estate & Business Values In Your Retirement Plan

One of the beginning steps in every retirement plan is to value your assets and project their values into the future. Valuing assets like stocks and bonds is easy (though making accurate projections becomes more difficult.) Complexity increases even more when you consider illiquid assets like real estate and business ventures.
Hear Kevin discuss how to model illiquid assets in your retirement plan. Learn why focusing on rental income is shortsighted and how scenario analysis with low to high values can be helpful for business owners.
If you ever plan to sell real estate, this episode will be helpful. And the more of your net worth is in illiquid assets, the more you need to understand these key concepts to have a well-constructed retirement plan.
 
Timestamps:
3:34 - Illiquid Assets
8:04 - What’s Caused More Interest In Real Estate?
10:00 - Common Mistakes In Real Estate
16:09 - Treat It Like A Business
19:47 - Incorporating This Into A Retirement Plan
21:47 - Projecting Illiquid Assets
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 73: What Age Should You Get Serious About Planning For Retirement?

Hear Kevin describe a conversation he recently had with a podcast listener aged 57. He's planning on working for several more years and was wondering if now is too soon to get serious about planning for retirement.
Kevin discussed the qualitative and quantitative benefits clients often get from the Retire Smarter Solution as well as some time-sensitive issues you need to address well before you retire.
While it's never too early to start, as your time becomes more valuable, your assets accumulate, and the cost of a mistake becomes larger, it tends to make sense to hire an expert. This way you can make sure you're making the most of what you have.
 
Timestamps:
1:24 - Ray’s Call With Kevin
4:54 - Getting Clarity
6:37 - Putting Together A Spending Plan
10:08 - Concrete Information
12:22 - Are Clients Better Off The Earlier They See An Advisor?
17:26 - Make The Most Of What You Have
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 72: How Your Retirement Spending Is Likely To Change With Age

In the last episode, Kevin answered a listener question on inflation. He explained why retiree spending patterns in part combat inflationary risk retirees face.
Now hear Kevin delve deeper into retiree spending patterns. If you don't want to work longer than you have to or want to spend more in retirement, this is an episode you'll want to listen to.
Traditional retirement advice of having a steadily increasing income for life is wrong for most. Rather, spending tends to decline with age at a real rate of 1% yearly although increasing healthcare costs at the end of life are common.
Carefully modeling these age-related changes and monitoring your plan over time will help you Retire Smarter.
 
Timestamps:
2:14 - Different Stages Of Spending In Retirement
8:42 - Chase Bank’s Retirement Spending Data
14:02 - David Blanchett’s Health & Retirement Study
17:06 - Getting Accurate Spending Data Into Your Plan
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 71: Inflation Expectations & Implications On Your Investments & Retirement

Your money today will buy less next year. This decline is due to inflation, which is often believed to be the silent killer for a retirement income portfolio over time.
After all the 4% spending rule had it's worst result starting in 1966 -- a time when inflation began to rise and peaked in the 1970s while economic growth was choppy at best. Might the future resemble this difficult time?
Hear Kevin answer a listener question on inflation and whether the high levels of government spending and rising deficits are likely to lead to high inflation. And, if so, what changes should be made to your planning and investing strategy?
 
Timestamps:
1:07 - Dan’s Question About Inflation
2:53 - Fundamentals Of Inflation
10:00 - What Can We Expect?
13:09 - Why Inflation Has Been Low In Recent Years
16:51 - Measuring Inflation
24:05 - Closing Thoughts
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 70: Free Money? More Stimulus Checks & Larger Healthcare Tax Credits

The government's money-printing machine is ripping. Here comes round 3 of stimulus checks and larger healthcare tax credits for many pre-Medicare retirees.
Hear Kevin discuss the 3 rounds of checks, income phaseout ranges, and planning strategies to get yours. In some cases, you may want to file your 2020 tax return sooner and in others, you may want to wait. For many retirees, we are modifying our tax-smart distribution plan midyear 2021, lowering our taxable income targets and reducing Roth conversions, to reap benefits. Otherwise, you may lose out on thousands.
As the saying goes, there is no such thing as a free lunch. We're all paying for this in the long run. May as well try to get yours now.
 
Timestamps:
3:49 - Tax Season Is Upon Us
6:07 - Eligibility & Phase Out Threshold For All 3 Stimulus Checks
19:20 - Short Term Solutions
22:07 - More Changes To Be Aware Of
27:02 - Healthcare Tax Credits
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 69: Interview Questions To Ask A Financial Advisor

It's not easy to hire a professional service provider. Even the most astute consumer only scratches the surface of truly understanding a profession they are not part of. The information gap is huge.
So how do you ensure you find a competent and trustworthy advisor?
Hear Kevin nine questions to ask your advisor. He will unpack some of the industry gobbledygook, share disclosures from brand-name Wall Street firms that will surprise you, and help you become a more informed financial-advice consumer.
Whether you currently have an advisor or are considering hiring one, this episode is a worthwhile listen.
 
Timestamps:
5:05 - Questions To Ask A Financial Advisor
11:13 - Are You A Fiduciary Legally Acting In My Best Interest 100% Of The Time?
15:49 - How Do You Get Paid?
25:19 - What Are Your Qualifications?
32:44 - Planning Process
34:21 - What’s Your Investment Philosophy?
39:45 - How Many Clients Do You Have?
43:32 - How Will Our Relationship Work?
48:06 - Will You Require Me To Sell All My Investments To Work With You?
49:36 - Who’s Your Custodian?
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 68: My Journey As A Financial Planner

Fish mislabeling was once rampant in the US. Thought you were getting Red Snapper? Surprise! You get porgy or tile fish. Deceptive marketing for profits at best and exposing consumers to serious health risks, including food allergens and heavy metals in pregnant women at worst.
Sadly, many 'financial advisors' are similarly mislabeled and may cause financial harm. After all, you just need a 70% on a multiple-choice test and a high school diploma to become registered (and the high school diploma is optional.)
So how do you ensure you're hiring a true professional: one who is both competent and trustworthy?
Listen to Kevin Kroskey, CFP® and special guest Tyler Emrick, CFP® share a behind-the-scenes conversation on the training (or lack thereof) they received when entering in the profession. Hear Tyler describe his journey from starting a top-10 firm (in terms of advisor headcount) where sales were prioritized over clients, and then spending a decade at one of the largest custodians where having in excess of 500 customers precluded personal relationships and quality advice. And learn why being a CERTIFIED FINANCIAL PLANNER Professional is the minimum competency to be a professional, but is just the minimum and not indication the definition of a good advisor.
This inside-baseball-type conversation will shed light to help you become a more informed consumer and help you get your Red Snapper throughout your retirement.
Tyler's Bio: https://www.truewealthdesign.com/team/tyler-emrick/
 
Timestamps:
1:45 - Tyler’s Background
5:14 - Fish Mislabeling
9:09 - Large Firm Experiences
15:17 - Lack Of High-Level Planning
20:48 - Seeking More
24:46 - Biggest Surprise When Working With Clients
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 67: Beyond Diversification: Terminal Wealth Dispersion

Putting the odds of investing and retirement success in your favor should be a given as is being diversified. But what does diversification really mean? Ten stocks? One hundred stocks? Two asset classes or ten?
Building on the concept of standard deviation -- or degree of variability -- in investment returns, hear Kevin take the idea of diversification farther. Diversification is not just minimizing variability or owning the S&P 500. It's also reducing the risk of underperformance by owning the stocks and assets classes that will deliver higher returns and reducing the variability in dollar outcomes from your portfolio.
Miss just a few of the best performing stocks each year or abandon an underperforming asset class whose future returns are now higher, and your portfolio will deliver more disparate results that are more likely to put you into the poorhouse. And that's no way to run a retirement portfolio to last your lifetime.
The geek alert is sounded again for this episode but you don't have to be an investment geek to get significant value from this one.
 
Timestamps:
6:41 - Terminal Wealth Dispersion
11:23 - Reducing Risk
14:20 - Bill Bernstein’s Studies
18:32 - How This Impacts Retirement Planning
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 66: Proper Investment Expectations & Standard Deviation

If your head is in the freezer and your feet in the oven, on average you may feel quite comfortable despite suffering from two extremes. San Diego type weather on the other hand will leave you consistently comfortable over time.
Averages are commonly used to discuss investment returns, but they are an oversimplification. You don't receive average returns. Compound returns drive your dollar growth and the variability in returns -- or standard deviation -- causes the compound return to always be less than the average return.
Listen to Kevin discuss this core building-block concept and how it relates to your investments, risk, diversification, and retirement planning success. You may hear the geek alert on this episode, but having an understanding of standard deviation can help you be a better, more disciplined investor and put the odds of retirement success more in your favor.
 
Timestamps:
3:54 - Re-Cap On Topics From Episode 65
6:28 - Bell Curve
10:49 - Health Analogy
15:00 - Proper Expectations
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 65: Should You Continue To Hold An Underperforming Investment?

Inevitably you will have some investments perform better than others in your portfolio. A normal, human response is to seek pleasure and avoid pain or sell the underperformer and buy what has done well. But does that make investing sense?
Listen to Kevin discuss critical concepts of diversification and probability and why process matters more than outcomes. Hear an example of this being applied in professional basketball and playing probabilities in blackjack.
In sticking to a good process, good outcomes are more likely to result. In focusing on outcomes, you are more at risk of stampeding over the cliff with the uninformed herd and wrecking retirement.
 
Check the four-part Your Investing Process Series, mentioned in this episode:
https://www.truewealthdesign.com/your-investing-process-part-1/
https://www.truewealthdesign.com/your-investing-process-part-2/
https://www.truewealthdesign.com/your-investing-process-part-3/
https://www.truewealthdesign.com/your-investing-process-part-4/
 
Timestamps:
0:43 - Defining Underperforming Investments
2:12 - Is The Investment Or Asset Class Underperforming?
4:32 - Metrics To Consider When Choosing Investments
6:57 - Getting Rid Of Underperforming Stocks
8:35 - Terminal Wealth Dispersion
12:32 - People Don't Invest Rationally
14:47 - Using Probability In Your Favor
20:38 - Planning For Different Outcomes
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth