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

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

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