Today’s Objective…

These five questions are quite common. They’re deceptively simple, and depending on your situation, they can be quite complex to answer. Beyond a simple “yes” or “no” answer, let’s hear what Dan has to say about these important retirement questions.

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

Tactical Points:

[2:29] – When to Take Social Security?

  • Social security is impacted by so many other decisions you make.
  • If you’re working and haven’t reached full retirement age you may have to pay a lot of it back in taxes.
  • Meet with somebody and make some calls in to the Social security office to find out what’s right for you.
  • This will depend on your unique situation.

[4:24] – How to Design a Truly Diversified Portfolio?

  • There’s a difference between being diversified and having a lot of stuff.
  • Sometimes accounts are redundant.
  • Real diversification is based on sound evidence-based economic theory.
  • There are 19 distinct asset categories, and you want your portfolio to have all of those.

[5:50] – What to Invest in 401(k) Funds? 

  • Dan shares about client examples of 401(k) funds.
  • There are limited choices to make it easy on the company.
  • All of it should be analyzed and followed.

[7:13] – 401(k) Rollovers

  • In the majority of cases it makes sense to do a 401(k) rollover.
  • Dan tells the story of a client who proved to be an exception and needed to take out a loan.
  • Generally, you can lower your costs and increase your investment choices in a self-directed IRA.

[8:50] – Planning for Nursing Home Care

  • Statistically speaking, we’re more likely to end up in a nursing home than not.
  • When you’re younger, you risk passing away and leaving your household in financial disarray. When you’re older, you risk needing a nursing home and/or long-term care.
  • There’s a lot of confusion around this as it relates to Medicare.
  • Dan shares an example from his own family about making a decision regarding care.

[11:56] – Mailbag: Retiring Early

  • Jeff wants to retire in five years when he turns 55. Is that a bad idea?
  • It depends on your financial and emotional readiness.
  • You will want a plan to stay active in retirement without work.
  • Understand, you could be retired for more than 30 years. You need a solid budget.
  • Do some serious planning and meet with someone to outline potential risks.
  • There’s a Monte Carlo analysis that can give you the probability of when you’ll run out of money.

[14:43] – Mind Over Money: Beliefs

  • We can change our belief if we realize they’re simply viewpoints on an issue.
  • A lot of these financial beliefs are used for self-sabotage.
  • Dan shares the story of someone who couldn’t afford to buy something but planned to do it anyway.
  • Consider how you think about money and whether or not it is helpful.

[18:33] – Getting to Know You: Bridal Party

  • How many people in your bridal party are still involved in your life today?
  • Dan shares the story of a groomsman who introduced him to Korean culture.

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