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

Ep 52: Investing Vs. Speculating Part 1

Investing should be scientific and process-based. Speculating is more akin to gambling and lacking fundamental support. At extremes, it is easier to discern the two but can be shades of grey in between.
Hear Kevin discuss the forward-looking nature of the stock market and times why it can make investing sense (not speculating) to look through bad economic news.
And be sure to listen to the end where Kevin discuss process-based portfolio changes made in March, as a result of changing inputs, and why Vanguard's DIY investors' portfolio inaction was the wrong thing to do.
 
Timestamps:
2:30 - Assumptions That Need To Be Made
9:20 - Looking Back On The Pandemic
13:29 - Looking Forward To The New Normal
22:30 - Rapid Changes

Ep 51: Case Study: Retiring Before Age 60 & Before You Ever Thought You Would

Like your work but hate your job? Bad boss. Terrible commute. Whatever the reason.
Hear Kevin share a story of a client who retired in her late 50s. She loved her work and taking care of her customers but hated other aspects of her job. She worked long hours and had a long commute. Taking care of her household on the weekend and trying to have a bit of fun left little space and time to seriously consider her retirement and life after work.
Perhaps this is why she was in a state of disbelief after her retirement plan showed she could retire in her 50s. The sheer thought of retiring was new and a bit scary.
And be sure to pay attention to the end to hear how things are going for her now four years retired and how she has defined phases and varied strategies to her retirement distribution planning.
 
Timestamps:
4:47 - About The Client
8:58 - The Realization Of Being Able To Retire
14:12 - Padding The Expenses 
19:44 - Healthcare When Retiring In Your 50’s
25:59 - Present-Day Planning

Ep 50: What To Do When Your Spending Goals Change After You Retire

You cut the paycheck cord and enter retirement. Then a spending goal unexpectedly increases...significantly. You can't simply continue to work longer, so what do you do?
Hear Kevin discuss real-life cases where clients had to provide financial support to their daughter going through a messy divorce and another situation where a client desired to buy a 2nd home. Though the situations were starkly different, the process to rework the retirement plan and evaluate tradeoffs was similar.
Life throws curveballs. Best to have a plan and process in place in advance on how to deal with them.
 
Timestamps:
4:18 - Client Story: Life Happens, Things Change
8:07 - Reworking The Plan For A Second Home
14:26 - Picking Up New Spending Goals
17:09 - Potentially Downsizing
18:12 - Taking A Second Look At Travel Expenses
20:14 - Providing Clarity
22:21 - Helping Clients Make Informed Decisions

Ep 49: Potential Inheritance: Include In Your Retirement Plan Or Not?

You live below your means and invest for your future ... similar to your parents. Now your parents are getting older, and it seems fairly clear they'll be leaving you an inheritance at some point. Meanwhile you're still working. Should you include the potential inheritance in your retirement plan?
Banking on an expected inheritance for your retirement plan involves risk. Hear Kevin discuss real-life cases where it was appropriate and another where it was too risky.
 
Timestamps:
6:25 - Market Update: We Are Not Out Of The Woods Yet
17:57 - Lean Towards The Conservative Side When Incorporating An Inheritance In Your Financial Plan
24:25 - 1st Client Case - Open Communication About Finances
30:03 - 2nd Client Case - Less Certainty About What The Future Holds
36:51 - 3rd Client Case - An Awkward Conversation Can Make A Great Impact On A Financial Plan

Ep 48: Why Big Tech Stocks Must Underperform

The five biggest tech stocks -- Amazon, Apple, Facebook, Google, and Microsoft -- are great businesses. They've been so successful over the last decade that they comprise about 20% of the total S&P 500 market capitalization -- a level of concentration not seen since the late 1990s. They also command higher prices (valuation) than the market as a whole.
While these companies have provided outsized growth rates and returns to investors over the last decade, there is no logical reason you should expect similar outsized growth rates and returns over the coming decade. Whether it is due to the magnitude of their success, capitalism or regulation, it will be nearly impossible to repeat their growth and success moving forward.
Listen to Kevin describe a simple thought experiment illustrating why it's mathematically impossible for past to be prologue for these tech darlings. Eventually, the music will run out. Investors will again learn the lesson that price matters ... just as they learned the same at the end of the Tech Bubble.
 
Timestamps:
6:24 - Why Do Tech Stocks Get So Much Attention?
9:46 - Looking Back At Tech Stock Growth From 2010-2019
14:57 - Why Growth Will Be Much More Difficult Going Forward
25:00 - Why Prices Matter

Ep 47: Risks & Uncertainties in Pandemics & Retirement Planning

Interesting parallels can be seen in modeling retirement projections and the Coronavirus pandemic. Small changes to inputs -- such as the rate of return or infection spread rates -- can have magnified effects on outputs -- such as ending wealth or total infections (and ultimately deaths), given similar exponential growth traits.
What is important to understand in both are the concepts of risk and uncertainty. Risk can be modeled. Uncertainty cannot yet must be planned for. Misunderstand either and things can quickly go wrong.
Hear Kevin discuss these two critical concepts. He also gives his opinion on why Ohio Governor Mike Dewine was prudent in the aggressive economic shut down in face of Coronavirus uncertainty. However, Ohio, and the U.S. at large, now need to transition back to economic functioning in light of Coronavirus risks being better understood, significantly less than what was initially believed, and to avoid second-order effects becoming more severe than those from the virus itself.
 
Timestamps:
3:45 - How Risk And Uncertainty Affect Investing
14:37 - What Is Non-Linear Modeling?
17:32 - An Example Of Non-Linear Modeling
21:33 - The Math And Science Of The Coronavirus
35:09 - Known Unknowns

Ep 46: Rebalancing Your Portfolio: Why, How & Complexities to Overcome

Control risk? Buy low and sell high? Higher returns? Who doesn't all of these in their portfolio! And that's what portfolio rebalancing can do.
While rebalancing sounds simple in theory it quickly gets complex in practice. Hear Kevin describe rebalancing from the simple to complex and the emotional hurdles to overcome as well. Be sure you or your advisor is taking advantage of the high-probability benefits rebalancing is expected to add to your net investment returns when done right.
Have questions? Need help making sure your investments and retirement plan are on track?
Use this link to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
 
Timestamps:
4:32 - What Is Rebalancing And Why Is It Important?
7:37 - Historical Data
9:47 - Problems With Rebalancing
16:43 - Examples Of Complications 

Ep 45: Retire Smarter Solution™

Suppose you have to have surgery. Does exploratory surgery sound like something you would volunteer to undergo? Or, does a pre-determined surgical plan sound better? If you're like me, having a plan and a repeatable process sounds less risky and what I would prefer.
The same goes for retirement. Retirement spending. Health Insurance. Social Security. Investing. Taxes. These are all key and complex areas where you need to make smart decisions for retirement. So how do you thoughtfully consider and carefully integrate them into a well-crafted retirement plan? 
Listen to Kevin describe True Wealth's Retire Smarter Solution™ that aligns your money to your goals, overlaid with tax-smart strategies, so you can retire with confidence.
If you are a DYI'er that no longer wants to perform exploratory surgery or are unsure if your current advisor is doing the same, reach out to the True Wealth Team at 855-TWD-PLAN or https://www.truewealthdesign.com/ for a free 15-minute call with an experienced CFP® professional to learn how the Retire Smarter Solution™ can help you.
 
Timestamps:
1:22 - Exploratory Surgery Is Not The Solution
4:10 - What’s The Big Picture?
5:27 - What Are You Actually Spending?
8:57 - Where Is Your Income Coming From?
9:52 - Factoring In Various Risks
11:44 - Having A Concrete Plan Alleviates Fear
15:41 - Making Sure Investments Match The Plan
16:01 - Using A Tax-Smart Distribution Strategy

Ep 44: Am I Going To Be Okay? Looking Back On A Client's Retirement Plan Execution In Light Of The Coronavirus

Retirement planning (done right) has always been a continuous process. With the turmoil caused by the Coronavirus, prudent planning is having to be done and redone in short order. Things are changing quickly and you need to take a dynamic approach to your planning and investing to avoid dangers and capitalize on opportunities.
Hear Kevin dissect a ten-year client's dynamic retirement story. Learn why their withdrawal rate was more than twice the 4% rule of thumb and how their portfolio allocation has changed over time. And be sure to pay attention to the end to discover why their prudent planning has afforded them the luxury of taking a conservative investment approach or allows them to now be opportunistic.
Have questions? Need help making sure your investments and retirement plan are on track? 
Use this link to schedule a free 15-minute call with one of True Wealth's CFP® Professionals. 
http://bit.ly/calltruewealth
  
Timestamps:
1:16 - You Can’t Teach Experience
9:30 - Kevin Talks About Initially Meeting John And Jane
13:48 - Reducing Stock Allocation
16:47 - Appropriate Withdrawal Rate
19:47 - John And Jane In 2020
26:55 - Proving Your Worth Everyday

Ep 43: Financial Planning To-do's During Market Declines

Hear Kevin give an update on the current state of the markets and financial planning to-do's that need to be done through the Coronavirus turmoil. Proper execution of your financial and investment plans is required in large amounts to make sure you stay on track.
It's not all bad news out there. Many opportunities are being created that you can capitalize on.
And be sure to listen to why you may want to reconsider your Roth Conversion strategy and Social Security claiming decision in light of current circumstances.
 
Get show notes and additional resources here: https://www.truewealthdesign.com/podcast/ 
 
Timestamps:
5:02 - High Quality Bond Behavior
12:06 - Considerations For Client’s Portfolios
18:13 - What Makes A Good Advisor
26:00 - How True Wealth Is Operating Currently