Today’s Objective…

Wouldn’t it be great if retirement came with a simple manual we could all follow step-by-step? It would sure make things easier. Unfortunately, there’s no such universal manual and to make matters worse, most of the conventional wisdom about the financial world also tends to lead people astray when they follow the advice blindly.

Webster’s dictionary defines conventional wisdom a generally accepted belief, opinion, judgment or prediction. It suggests, as an example, that conventional wisdom in Hollywood says that a movie can’t succeed unless it stars a famous actor or actress. But we know that prediction can be proven false immediately. Slumdog Millionaire, My Big Fat Greek Wedding and the Blair Witch Project are just a few examples of films that became massive box office hits with relatively unknown lead cast members.

Take that lesson and apply it to the financial realm. What about the conventional wisdom that it’s OK to have good debt in retirement? Is that true? How about retirement is prime time for relaxation or if your investments aren’t currently doing well then you should just try something else? On this edition of the podcast, we’ll seek to peel back the layers surrounding these common statements of conventional wisdom.

We’ll also answer Lou’s question about landing in a lower tax bracket in retirement. Dan will talk about the impact money can have on relationships in his Mind Over Money segment and we’ll find out what’s the most beautiful view he’s ever seen in the Getting To Know You feature.

(Click the featured times below to jump forward in the episode)

Tactical Points:

[1:43] Conventional Wisdom #1: Debt In Retirement Is OK

  • Dan gives his opinion of following conventional wisdom blindly.
  • Follow a simpler and different rule: get out of debt.
  • Are there times when it’s OK to go into debt?
  • Dan tells us how our attitudes toward debt should change as we get older.

[4:24] Conventional Wisdom #2: Retirement Is A Time To Relax

  • Dan tells us a story about a client who retired and then found himself very unhappy.
  • People are shifting their retirement attitudes. They’re trying to find ways to enjoy the ride along the way.
  • Dan gives a personal example of how he adds deeper meaning to his week. Look for opportunities like this that bring you joy in retirement.

[7:46] Conventional Wisdom #3: Just Try Something Else If Things Aren’t Going Well

  • The Dalbar study shows us how our knee-jerk behavior often hampers our financial efforts. “Try something else” isn’t conventional wisdom that you should follow.
  • Sometimes it’s OK to change strategies, but you need to understand certain things about your plan.
  • Dan ponders whether it’d be a good idea to treat our portfolios like a marriage where we make a long-term commitment to our plans.

[10:45] There’s A Better Plan Out There

  • Dan gives details on some resources that you might find helpful if you’re just beginning your financial and retirement journey.

[12:00] Mailbag: Lower Tax Bracket?

  • Lou has a question about being in a lower tax bracket automatically in retirement.
  • Lou is not alone. A lot of people make that assumption about being in a lower tax bracket.
  • Dan gives us an example of a common misconception about taxes as it relates to social security.
  • Most of us also have a lot of money in 401ks and IRAs and that also puts us at risk of a heavy tax burden in retirement.
  • Some folks think their taxes would go down if a spouse were to pass away, but it’s often the opposite impact because you lose some of the benefits of filing jointly.
  • Dan’s Retirement Rescue Toolkit covers a lot of these kinds of questions.

[14:28] Mind Over Money: Money & Relationships

  • Dan tells us about a younger couple that came into the office with massive student debt. Their differing views on that debt opened up a lot of key questions.
  • People going through a divorce often identify money problems as a main stressor of the marriage. Dan tells us how we can learn lessons from those who have gone through this.

[18:54] Getting To Know Dan: Beautiful View

  • What’s the most beautiful view Dan has ever seen?
  • Hint: It’s not a serene landscape…

Additional Resources:

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The Host:

TDan Betzel – ContactRetirement Trailblazer GuideRetirement Rescue Toolkit – Call: 614-472-4510