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

Avoid Losing $17K Yearly From Bad Investment Decisions

Surprise! Another robust study showed investors are still underperforming and making bad investment decisions. Morningstar released its yearly "Mind the Gap" study last month, showing investors have lost on average 1.7% yearly -- that's $17,000 on a $1,000,000 portfolio -- over the last decade. Why so and how can we stop the madness?!
In this episode hear Tyler Emrick, CFA®, CFP® break down the study's results and describe how True Wealth helps families not make the same mistakes as the average investor.
Click to read Morningstar's Mind the Gap study: https://www.morningstar.com/lp/mind-the-gap
 
Here are some of the things we will discuss in this episode:
Background on the ‘Mind the Gap’ study from Morningstar.
The study found a 1.7% gap from average investor to the average fund return.
Timing the market costs investors regular and the data from the last four years shows that.
There’s always a new reason to give us the belief that we can time the market.
The illusion of control bias can lead people to believe they have more control over the outcome than they actually do.
 
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
 
Or use this link: http://bit.ly/calltruewealth
 
Learn more about the Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/

Should Retirees Change Their Portfolio Strategy Based On Predictions of the US Dollar’s Demise?

Here it comes again… F. E. A. R. This time manifest from headlines of the U.S. dollar’s demise as a reserve currency, spiraling inflation, low growth and an expressway to investment-return hell.
 
Listen to Kevin Kroskey, CFP®, MBA cut through the B.S. to understand what the economic risks are or are not and how they do or do not translate to your investment strategy. 
 
Here are some of the things we will discuss in this episode:
The questions we’ve been getting from clients about the headlines on the US dollar’s demise.
What are the biggest concerns and risks that exist currently?
We’ll sort through the historical evidence on the dollar.
Which investments would respond favorably in this environment?
We’ll explain why we think this is largely a non-issue for well-diversified investors.
 
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
 
Or use this link: http://bit.ly/calltruewealth
 
Learn more about the Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/

How Tax-Smart Income Targeting Can Allow You To Retire Earlier While Saving Taxes

Hear Tyler Emrick, CFA®, CFP®, peel back the onion on income targeting – a critical part of a successful retiree’s overall Tax-Smart Distribution Planning. Learn how this type of planning, coupled with careful “Asset Location” decisions, can save a lot in tax over a multitude of years, allowing you to potentially retire earlier, spend more, or give more.
And be sure to pay attention to how True Wealth uses these strategies to benefit clients no matter what, whether they are still working or already in retirement.  
 
Here are some of the things we will discuss in this episode:
Why we want to get into this idea of income-targeting in this show.
What exactly do we mean when we say income-targeting and how does that help us build a savings strategy.
Looking at the scenario where a family put most of their assets in pre-tax accounts.
The tax benefits that you could gain by going through all of this.
The complexities that comes with a family that has more of their assets outside of retirement accounts.
What kind of income are we going to target when we do this?
 
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
Learn more about the Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/

Income Targeting - Should We Even Care About IRMAA?

It's often beneficial to target income for tax planning purposes while working and even more so during your retirement years when you have more control over how you generate your income. Realizing income in lower brackets while avoiding higher brackets is the essence of this strategy which can quickly get complex.
In this episode, Tyler Emrick, CFA®, CFP®, reviews a recent article from Dr. James M. Dahle of the popular "The White Coat Investor" blog and podcast that suggests planning for the Medicare IRMAA surcharge doesn't matter. Hear Tyler discuss IRMAA and its impact on your tax-smart retirement income planning. And be sure to pay attention to the broader framework of how to think about income targeting, which we'll dive into in more detail in an upcoming episode.
See the reference article from Dr. James M. Dahle of the White Coat Investor here: https://www.whitecoatinvestor.com/irmaa
 
Here are some of the things we will discuss in this episode:
What is IRMAA and how does it work?
What parts of Medicare does this impact?
Details on the different thresholds.
The different planning discussions we have with people as we look at specific scenarios.
 
Check out our previous discussions on Medicare: 
Retiree Health Insurance Part 1: Medicare - https://www.truewealthdesign.com/ep-58-retiree-health-insurance-part-1-medicare/
Retiree Health Insurance Part 2: Pre-Medicare - https://www.truewealthdesign.com/ep-59-retiree-health-insurance-part-2-pre-medicare/
 
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
 

Do You Have Unrealistic Portfolio Return Expectations?

In this episode, Tyler Emrick CFA®, CFP® explores the disconnect between some investors' return expectations. Learn common mistakes people make and traps they may then fall into.
And be sure to pay attention to what historical performance tells us, and how, if the forecasts of the big institutional investors are reasonably accurate, these investors could be setting themselves up for severe disappointment.   
 
Here are some of the things we will discuss in this episode:
Why expectations are almost always higher than what reality provides.  (5:30)
We use a historical perspective to help clients understand what returns have typically looked like in previous decades.    (10:27)
Looking ahead and setting expectations for future returns.  (16:07)
Return expectations can be vastly different depending on who you talk to.  (20:09)
How to determine what approach you should take to investing.  (24:40)
 
Sign up for our newsletter on our podcast page: https://www.truewealthdesign.com/podcast/
 
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth

What’s The Big Deal With Roth Conversions And Why Should You Care?

In this episode, Tyler Emrick CFA®, CFP® talks through the financial impacts of implementing a well-thought-out Roth conversion strategy. Hear how his clients overcame the emotional struggle of paying a large upfront tax bill to build wealth and provide better outcomes for themselves and their families.  
 
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
 
Here are some of the things we will discuss in this episode:
How a Roth conversion can protect your spouse’s future. (3:28)
How legacy planning and inheritances can benefit from a Roth conversion. (8:39)
A recent scenario we worked through with a client when determining inheritance plans. (11:10)
Some of the factors that go into determining whether a Roth is right for you.  (14:46)
 
Sign up for our newsletter on our podcast page: https://www.truewealthdesign.com/podcast/

No More TINA - An Investment Update

There Is No Alternative or TINA has been used throughout history and is mostly strongly associated with the UK's Marget Thatcher. The phrase is used to signify Thatcher's claim that "the market economy is the best, right and only system that works, and that debate about this is over."
More recently, TINA was popularly used to describe the stock market in light of low interest rates and correspondingly low yield-based returns. There is no alternative to stocks. Hear Kevin Kroskey, CFP, MBA discuss why now that rates have had an unprecedented rise, it is time to say goodbye TINA and how this fits into your ever-evolving investment strategy and retirement plan.
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
We also reference Episode 85 - What's A Conservative Investor To Do? Check it out at this link: https://www.truewealthdesign.com/ep-85-whats-a-conservative-investor-to-do-these-days/
Here are some of the key points from this episode:
Let's start with the why. Key questions analyzed with clients. (5:37)
Breaking down the first asset class bucket: preservation. Kevin covers credit, term and what you should know about the yield curve inversion. (14:25)
Kevin highlights the second asset class bucket: diversifying. He'll touch on private credit and corporate direct lending. The yields might surprise you in this category. (17:50)
The third asset class bucket: appreciation. You'll be more familiar with this one as we get into stocks, REITs and the like. Kevin explains the balance between value and profitability in this arena. (23:00)
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Your Wealth, Your Retirement – How Can You Do It Better?

In this episode, hear Tyler Emrick, CFA®, CFP®, talk through what it means to be wealthy and how your own perception of personal wealth can be a powerful force that leads you astray or opens your eyes to better outcomes and, ultimately, a happier retirement.  
 
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
 
Here are some of the assumptions we will discuss in this episode:
What does it mean to be wealthy? (2:06)
Your perception of wealth impacts your financial planning and your habits.   (8:37)
A comment that really stuck with Tyler recently. (12:53)
How should you manage your wealth in retirement?  (17:49)
Thinking about how spending will impact your life. (19:54)
Think in times and not years. (25:05)
Be deliberate about your decisions and your approach to wealth management. (30:16)
 
Sign up for our newsletter on our podcast page: https://www.truewealthdesign.com/podcast/

Portfolio Moves in Light of Recession Fears

Is the U.S. economy heading toward a recession? This question is seemingly perennial but has undoubtedly been a hot topic in the last year. Listen as Tyler Emrick, CFP®, CFA® talks you through what the data shows on how investment markets have performed in past recessions and whether being able to time recessions is likely to help your portfolio.
 
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth
 
Here are some of the assumptions we will discuss in this episode:
So many factors that cause people to worry about a recession. (4:03)
Should you make portfolio changes or should you go to cash?  (7:43)
Why trying to time the market is even more difficult around a recession.  (12:53)
How the Retire Smarter Solution™ plays into building a portfolio. (17:08)
How to approach a recession if you’re worried about your finances. (20:09)
 
Learn more about the Retire Smarter Solution™: https://www.truewealthdesign.com/ep-45-retire-smarter-solution/

Social Security’s Uncertain Future & Impacts On Your Retirement

We've all heard about Social Security's funding troubles. Is this why some decide to start benefits early? If Social Security were reduced, can it make sense to defer claiming? Hear Tyler Emrick, CFA, CFP, discuss a recent Wall Street Journal article on these topics as well as other recent proposals from Congress and academics that may impact the system. You paid in. Let's learn how you can get your fair share out.
 
Here are some of the things you’ll learn in this episode:
Why so many people claim their benefits as early as possible due to uncertainty. (2:22)
Does delaying your Social Security benefit help or hurt the system? (8:30)
How your 401(k) and IRA accounts factor into your strategy for Social Security. (12:20)
Some final thoughts from Tyler on Social Security. (18:52)
 
Have questions?
Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals.
http://bit.ly/calltruewealth