Financial Choices Matter

We often see people making certain assumptions about retirement that just aren’t correct. Let’s explore some of those on today's show. Contact: Phone Number: 480-513-1830 Website: https://pelletoncapital.com/ Show Notes:  1:07 - Headline: General Motors Selling Only Electric Vehicles By 2035 4:42 - Main Topic: Never Make Assumptions 5:16 - I’ll Spend Less In Retirement 8:08 - My Taxes Will Be Lower In Retirement 10:19 - Helping Children 13:01 - I’ll Never Be Able To Retire 16:01 - Boe Asks If He Can Leave His Entire 401(k) To His Son

We run through the laundry list of top concerns that many retirees and pre retirees have. Charles discusses how he address them and what is the underlying theme that is causing those concerns. Contact: Phone Number: 480-513-1830 Website: https://pelletoncapital.com/ Show Notes:  2:04 - Main Topic: Client Concerns 2:17 - What Are Some Top Concerns? 4:01 - Dog Analogy 8:00 - Wall Street Has Set Low Expectations 14:00 - Elon Musk’s Recent Rise In Wealth

What’s the most interesting thing in the investment world? We talk about the concept of innovation causing disruption in various industries, what that means and why it might be something worth paying attention to. Contact: Phone Number: 480-513-1830 Website: https://pelletoncapital.com/ Show Notes:  1:46 - Main Topic: Innovation Causing Disruption 3:22 - Ecommerce 5:53 - Interesting Statistics 11:21 - People Don’t Like Change

Have you ever stopped to think about your journey of learning all that you have about money and finances? Did you parents shape your financial views most heavily? Is there a TV or radio expert that has influenced you most? Or have you learned everything from a book or Google? Contact: Phone Number: 480-513-1830 Website: https://pelletoncapital.com/ Show Notes:  2:13 - Main Topic: Retirement Statistics 2:30 - 17% Of American Workers Are Confident They Can Retire 5:04 - The Average 65 Year Old Woman Has A Life Expectancy Of 20.7 More Years 8:00 - 16.5% Of Our Country’s Population Is 65+ 11:09 - The Average Retiree Faces Around 300K Of Out Of Pocket Medical Expenses 12:39 - 20% Of People Have Had A Written Plan Done 16:12 - Getting To Know: Who Besides Your Parents, Taught You The Most About Life?

Have you ever stopped to think about your journey of learning all that you have about money and finances? Did you parents shape your financial views most heavily? Is there a TV or radio expert that has influenced you most? Or have you learned everything from a book or Google? Contact: Phone Number: 480-513-1830 Website: https://pelletoncapital.com/ Show Notes:  2:01 - Main Topic: Where All My Financial Knowledge Comes From 2:35 - Financial Celebrities 6:39 - Best Financial Books 9:34 - Family Members 10:26 - What Got Charles Into The Financial Realm? 11:38 - Is Technology Helping, Or Hurting? 13:44 - Favorite Economist? 15:46 - Diana Asks If Life Insurance Is A Legitimate Retirement Strategy

There are many more risks to guard against in retirement planning than most people realize. Let’s explore some of the planning risks we all face and how to prepare for them. Contact: Phone Number: 480-513-1830 Website: https://pelletoncapital.com/ Show Notes:  1:38 - Main Topic: The Different Types Of Risk 2:17 - Market Risk 3:29 - Inflation Risk 5:01 - Tax Rate Risk 5:44 - Longevity Risk 10:04 - Mailbag: Ellen Asks If She Should Refinance Her Mortgage 15:24 - Getting To Know You: How Did You Decide On Your Children’s Names?

Let’s explore some of the things you should be thinking about and checking on as we wrap up 2020 and begin 2021. Contact: Phone Number: 480-513-1830 Website: https://pelletoncapital.com/ Show Notes:  2:40 - Main Topic: End Of Year Planning 2:55 - Should We Be Maxing Out Our Retirement Contributions? 3:48 - Reviewing The CARES Act 5:04 - Tax-Loss Harvesting 5:33 - Evaluating Tax-Deductible Charitable Contributions 7:45 - Roth Conversions 10:05 - What’s A CFP & RIA? 14:07 - Mailbag: What’s Your Opinion On Flipping Houses As An Investment Strategy?

Want to grade your preparedness for retirement? Here are five key questions you need to ask yourself. Your answers will help determine how ready you are for retirement. Contact: Phone Number: 480-513-1830 Website: https://pelletoncapital.com/ Show Notes:  1:29 - Main Topic: Retirement Preparedness Quiz 1:58 - Do You Know How Much You Have? 3:46 - Do You Know How Much You Spend? 6:05 - Do You Know How Much Risk You Have? 10:20 - Do You Know What You’re Paying In Fees? 12:44 - Do You Know What Your Retirement Income Streams Will Look Like? 16:30 - Getting To Know You: What’s Something You Look Back On And Say, “What Was I Thinking?”

If you look up quotes about diversification from famous investors, you might come across one from renowned investor Warren Buffet that will certainly raise your eyebrows. It goes, “Diversification is protection against ignorance. It makes little sense if you know what you are doing.” Yet, we’ve always heard about diversification being one of the keys to success for retirement planning. How can these seemingly different ideas both be right? Contact: Phone Number: 480-513-1830 Website: https://pelletoncapital.com/ Show Notes:  1:29 - Main Topic: Is Diversification For Suckers? 2:33 - How Does The Average Person Usually Define Diversification? 4:40 - Charles’ Perspective On Diversification 7:00 - How Much Does Charles See The Average Investor Placing An Emphasis On Diversification 8:00 - Is It Possible To Be Too Diversified? 11:58 - Mailbag: Diane Asks About Self-Insuring For Long-Term Care

This episode is all about addressing the most frequently asked questions about 401(k)s. Contact: Phone Number: 480-513-1830 Website: https://pelletoncapital.com/ Show Notes:  1:30 - Main Topic: 401(K) FAQs 1:49 - Taking A 401(K) Loan 4:13 - Roth Option 6:15 - Finding The Right Advisor 10:52 - Mailbag: Sally Asks If She Is Eligible For Half Of Her Ex-Husband’s Social Security Benefit

People often overlook the estate planning side of preparing for retirement. There are a lot of misunderstandings about trusts and wills and the roles they play in the equation. On this episode, we’ll explore some of the critical questions you should ask about these strategies as you prepare for retirement. Contact: Phone Number: 480-513-1830 Website: https://pelletoncapital.com/ Show Notes:  1:29 - Main Topic: Wills & Trusts 2:03 - Why Are Wills & Trusts Important? 3:52 - How Do You Know If A Will Or Trust Is Right For You? 5:00 - A Will Doesn’t Mean You Won’t Avoid Probate 5:49 - Is A Trust Just For Money? 7:28 - How Much Do They Cost? 8:31 - What Role Does An Advisor Play When Considering These Options? 10:32 - Mailbag: Ian Asks If His Long-Term Care Policy Has Enough Coverage

Vanguard’s “How America Saves 2020” report is packed with lots of intriguing stats and findings about Americans and how they save for retirement in the crazy year that is 2020 (most of the recent data is technically from 2019 although some figures are current through the Spring of 2020). Let’s look at some of the top takeaways from the study and how you might compare to the “normal” savings behaviors of Americans. Show Notes:  1:14 - Main Topic: Statistics On How Americans Save 1:47 - 100 Million Americans Use A Defined Contribution Plan 4:00 - Average Number Of Funds Used In These Plans Are 2.4 5:36 - 34% Of Participants Didn’t Contribute Enough To Meet Their Employer’s Match 6:46 - Is There A Reason To Not Meet An Employer Match? 7:56 - 80% Of Participants Still Had Assets With A Previous Employer 9:26 - 96% Of Those Assets Are Able To Be Rolled Over Into Something Else 11:16 - Tristen Has Asks About How Divorcing Later In Life Might Affect Retirement

We get a lot of questions about how the house (or houses) fit into retirement plans. From downsizing to rental properties to interest rates, let’s explore some of the top retirement questions as it relates to all things housing. Show Notes:  2:03 - Main Topic: This One’s On The House 2:25 - Pay Off The House, Or Enjoy The Low Interest Rates? 3:30 - Is It Wise To Downsize? 5:14 - Is A Rental Property A Good Idea? 7:06 - What Complications Have You Seen When Handling Real Estate In An Estate, Or Legacy Plan? 8:53 - Taking Care Of Our Bodies As We age 9:57 - Life Is About Contribution 12:52 - Shelby Asks If Retirement Spending Starts To Decrease After The First 5 Years

Living a long time isn’t supposed to be a bad thing and it almost seems counterintuitive to categorize it as a risk. But it is. Let’s take a look at how longevity plays a role in a financial plan and have an honest conversation about how deal with the “problem” of living too long. Show Notes:  1:12 - Main Topic - Longevity Risk 2:25 - How Old Is Your Oldest Client? 2:39 - Oldest Person In Your Family? 3:20 - Who Is The Oldest Person You Have Personally Known? 4:00 - Why Is Living Long Risky? 7:02 - Have People Prepared For Longevity Appropriately? 9:10 - Client Story 11:00 - Starting The Conversation 15:07 - Millie Says She Was Going To Get Serious About Retirement Within The Next Year, But Wants Out Of Her Job Now

Many financial issues impact us all the same. But, of course, other challenges have varying impacts from person to person because our situations are all unique. Let’s take a look at some of the financial and retirement challenges that are unique to women. We also discuss some rules of thumb and get Charles' take on them. Show Notes:  2:00 - Main Topic - Financial Issues That Are Challenging For Women 3:29 - Level Of Engagement Women Have Throughout Retirement Planning Process 5:00 - Spouse That Handled Money Passes Away First 6:49 - Why Do Some Women Find Themselves In A Difficult Situation? 8:14 - Specific Challenges Faced By A Widowed Woman 9:50 - Piece Of Advice For The Husbands 10:42 - Second Topic - Retirement Rules 11:06 - The 10%, 4%, 25X, & The 80% Rule 13:13 - The Rule Of 72 14:06 - The Rule of 2.67 15:14 - The Rule Of 100

How complex should a financial plan be? On one hand, a single page plan sounds nice and easy to understand. But is that comprehensive enough if it can fit on one page? Show Notes:  2:07 - Headline: The Market Rebounding 5:44 - Main Topic: Are Complicated Portfolios Necessary? 6:19 - What Do You Typically See When It Comes To The Length Of The Financial Plan? 7:11 - Misconception Between Portfolio And The Plan 8:49 - The Rule Of 11 10:22 - Not Every Advisor Is The Right Fit 13:44 - Mailbag: Nancy Asks If She Should Invest In Her Employer’s Stock

There are some financial planning blunders that are interesting to talk about but are quite rare in reality. On the other hand, there are some financial planning mistakes that happen far too often. Let’s talk about the mistakes so many people have made in the past it has made them “classic”. Show Notes:  1:13 - Headline: 72% Of American Say They Will Prioritize Financial Planning Once Pandemic Is Over 3:15 - Classic Pre-Retiree Mistakes 4:03 - Mistake #1: Investing Like You’re In Your 20’s 5:09 - Mistake #2: Taking Social Security As Soon As Possible 6:49 - Mistake #3: Focusing On Tax Preparation Rather Than Tax Planning 8:10 - Mistake #4: Assuming The Majority Of Healthcare Expenses Will Be Covered By Medicare 9:15 - Mistake #5: Taking On Additional Risk To Make Up For Lost Time 11:20 - Mailbag: Rork Asks If His Is Getting All The Information He Needs From His Financial Advisor

Step into the classroom and let’s take a look at some financial terms, define them, and find out if they’re important for the typical investor and saver to know about them. Show Notes:  3:06 - Main Topic: Financial Dictionary  3:35 - Accelerated Death Benefit  4:21 - AGI  5:28 - Fundamental Analysis 6:09 - Margin Account  7:11 - High Yield/Junk Bonds  9:31 - Sammantha Asks, “Should I Let The Kids Know About Our Plans To Leave An Inheritance?”  11:25 - What”s Buggin’ Charles?   

It seems that most people don’t have a clear picture of whether they should contribute to a traditional IRA or a Roth. Let’s discuss how to determine what’s best for you. Show Notes:  1:23 - Headline: More Than 25% Of Americans Are Raiding Their Retirement Accounts Because Of COVID-19 4:16 - Traditional IRA Vs. Roth IRA - The Basic Definitions 5:10 - Why Are So Many In The Traditional Account? 6:11 - Is The Current Tax Environment We’re In A Catalyst For More People Wanting To Do Roth Conversions? 8:04 - Who Should Be Contributing To A Roth? 8:23 - Who Should Not Be Contributing To A Roth? 10:14 - Marshall Wonders If Paying The Penalty To Take Out His Variable Annuity Is Worth Avoiding The High Fees 12:37 - What’s Buggin’ Charles?

Let’s talk about some of the common mistakes that we see being made time and time again by retirees and pre-retirees. Show Notes:  2:24 - Bonds Are A Safe Investment 5:19 - Avoiding The Idea of Long Term Care Needs 8:43 - Guarding Against Market Declines 10:49 - Categorizing Different Investment Vehicles As Always Good, Or Always Bad 14:03 - Not Having A Plan In Place 16:06 - Beverly Asks If She Has Enough Diversification Between Her 33 Mutual Funds