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

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

Ep 64: Investment Lessons To Learn From 2020

What a year 2020 was. Pandemic. Contested elections. Civil unrest. Rollercoaster investment markets.
As Churchill wrote, "Those that fail to learn from history are doomed to repeat it." Listen to Kevin discuss investment lessons you can learn from 2020 to be a smarter investor and keep your retirement on track for years to come.
 
Timestamps:
2:04 - What Stood Out In 2020?
8:02 - The Market Is Forward Looking
11:53 - Make Sure You Are Diversified
13:22 - Politics & The Market
21:57 - Sticking To The Plan
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 63: 3 Ways To Tax-Optimize Your Charitable Giving

Most Americans donate to charity and many have distinct goals in their retirement plan to meet annual charitable donations. Most also give cash ...the easiest but also least tax-efficient way to give.
Hear Kevin discuss three ways to tax-optimize your charitable giving. Whether through in-kind transfers of appreciated stock, using a donor-advised fund, or via Qualified Charitable Distributions, each can help you gain a bigger tax break and meet your charitable goals in the Retire Smarter way.
 
Timestamps:
6:48 - Making Direct Gifts Of Stocks, Or Shares Of Mutual Funds
10:58 - Navigating Donor-Advised Funds
22:05 - Using IRA Money
26:29 - Two More Considerations For QCDs
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 62: Pension Lump Sums: 2021 May Be The Best Year Ever

Pension lump sums will be much higher in 2021 than 2020. Listen to Kevin discuss timing considerations on how to optimize your pension benefits by understanding the key variables that determine your lump sum. Company pension plans specifically discussed include Akron Children's Hospital, Bridgestone, FirstEnergy, Goodyear, Mercy Health, and Rockwell Automation.
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. https://www.truewealthdesign.com/ep-38-pension-lump-sum-or-monthly-payment/
 
Check out Episodes 12 & 13 for more details about annuities. https://www.truewealthdesign.com/episode-12-behind-the-curtain-of-annuities-and-free-steak-dinners/
https://www.truewealthdesign.com/episode-13-beating-up-on-variable-annuities/
 
Timestamps:
2:58 - What Has Changed With Pension Lump Sums?
8:56 - Why These Changes Matter
10:33 - Segment Rates
16:11 - What To Expect In The Future
20:39 - Spreadsheet Story
25:04 - Closing Thoughts
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 61: The True Wealth Team Is Growing - Welcoming Ron Wyatt

We're excited to make a big announcement on this episode of Retire Smarter. Kevin is joined by True Wealth Design's newest partner, Ron Wyatt, who brings more than 25 years of financial planning experience to the firm. A lot of existing listeners will be hearing from Ron for the first time, so we'll spend some time today getting to know his background and professional journey. And new listeners will also get to learn more about Kevin's experiences.
The two will also cover why they've chosen to join forces now, and why it's going to be a benefit for all current and future clients. Join us as we celebrate the growing of True Wealth's footprint from northeast Ohio and southwest Florida to Pittsburgh!
 
Timestamps:
1:11 - Introducing Ron Wyatt
2:21 - Ron shares a little about his background
5:58 - Kevin gives a brief review of his background, including his time as a high school physics teacher
8:23 - Kevin tells us about one of his first clients, Tom, and the lessons learned from an emotional meeting in 2009
10:55 - Ron explains why he and Kevin are joining forces at True Wealth Design
16:56 - How does this impact clients? How will their experience change or remain the same with this transition?
24: 53 - Big picture: becoming a "bigger small firm"
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 60: Why The Cheapest Investment Option May Not Be The Best

The purchase price of your car is one factor to consider. But the Total Cost of Ownership -- adding in costs for insurance, fuel, maintenance and repairs, as well as the residual value upon sale -- is a better way to evaluate financial aspects of a car purchase. In doing so, the cheapest vehicle is often more expensive than initially perceived.
Same too goes for selecting investments. Many solely use the expense ratio to determine what fund to buy. But while the expense ratio is important and easily observable, it does not tell the whole story. In fact, it may tell only a small part.
Listen to Kevin describe total investment costs and related factors to consider when choosing your investments. Having a more complete view will help you make smarter decisions.
 
Timestamps:
0:53 - The Election
8:55 - Kevin’s Burrito Story
12:51 - Expense Ratios
17:24 - Securities Lending Revenue
21:16 - Helping A Client Understand This Process
24:49 - How Do You Reach A Conclusion?
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 59: Retiree Health Insurance Part 2: Pre-Medicare

Healthcare is a primary concern, especially for retirees. Transitioning from employer-provided coverage you've been on for decades is stressful. Now you have more complexity and choices than ever before. And, yes, costs may seem sky high after retiring and before Medicare.
Listen in to hear Kevin and health insurance expert Zig Novak discuss health insurance options from the time you retire to before you can begin Medicare at age 65. Should you take COBRA? What types of plans and are available for Affordable Care Act (ACA or Obamacare) plans, and how much do they cost? How do ACA tax credits work, and how valuable are they? Get informed.
Get destressed. Know what you need to about this important topic to Retire Smarter.
 
Timestamps:
4:00 - Pre-65 Healthcare Planning
8:15 - Floating Cobra
14:27 - ACA Plans
26:00 - Tax Credits
31:37 - Verifying Your Income
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 58: Retiree Health Insurance Part 1: Medicare

Healthcare is a primary concern, especially for retirees. Transitioning from employer-provided coverage you've been on for decades is stressful. Now you have more complexity and choices than ever before.
Listen in to hear Kevin and health insurance expert Zig Novak discuss Medicare-related topics. What will it cost? How may costs change as you age? What are the pros and cons of supplemental and advantage plans, and how do you decide which may be better for you?
Get informed with useful information to help you Retire Smarter.
 
Timestamps:
2:56 - Special Guest Zig Novak
5:18 - Alphabet Soup Of Medicare
8:09 - The Costs Of The Different Parts
21:28 - Services That Medicare Doesn’t Cover
23:24 - Advantage Versus Supplemental Plans
33:25 - Switching Between Plans
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth