Today’s Objective…

“Financial security” might mean different things to different people, but for nearly everyone, finding financial security is the most important part of their retirement plan. So, how do you define financial security? (Click the featured times below to jump forward in the episode)

Tactical Points:

In The News

[1:15] RMD age change

  • Congress is working on a bill that would raise the RMD (required minimum distributions) age from 70.5 to 72. Would this be a good thing?
  • Dan was really excited when he first heard about this change and he is all for it.
  • There’s increased life expectancy and sometimes people need more time to save.
  • This will give more choices to people and opportunities to do some effective tax planning.
  • The change is part of the SECURE Act which has been proposed.

Getting To Know Dan

[2:59] Danger Dan

  • What’s the most physical danger Dan’s ever been in?
  • Dan shares a story about a plane ride with his son that included a potentially treacherous landing. It luckily ends with a bit of humor.

Mailbag

[7:26] Angie: Long-term care

  • Angie in Pataskala says she hasn’t found a long-term care policy that she likes. Are they all this expensive?
  • A lot of people don’t take the time to dig into this area of risk management.
  • When we’re younger, we need life insurance but when you’re older you still have risk but it’s a different kind of risk.
  • Traditional long-term policies are very expensive, so also look at hybrid life insurance with riders for long-term care.

Financial Security

[10:09] What Does Financial Security Mean To You?

  • Dan looks at five elements to put together an approach to build financial security.
  • You have to work on your portfolio to think about how it is being designed. Do you have enough income in retirement?
  • Taxes need to be considered because some people don’t factor in how much they will be paying in taxes. Also, look at the risk you will take. Are you going to be exposed to long-term care expenses and high healthcare costs?
  • Estate planning needs to be handled so that everything is taken care of when you’re gone.

[12:15] Definition #1: “I don’t want to be a burden on my kids, regardless of my health situation”

  • You want to make sure you have the right documents in place for your family members to make decisions.
  • What does being a “burden” mean to you? Solving this question helps a lot of people feel more financially secure.

[13:22] Definition #2: “I want to be sure that I never run out of money”

  • This is the biggest reason most people come to see Dan and it’s the solution that provides the most financial security for folks. There are a lot of variables but going through a process to be clear on your budget will give you confidence.
  • Sitting down and planning with focus and intensity is what’s needed for retirement.

[15:01] Definition #3: “After I retire, I want to be able to work part time if I want to, but not because I have to”

  • More often, people aren’t retiring FROM something but are retiring TO something else.
  • Think about how you want to spend your days when you retire.

[16:40] Definition #4: “If I need a knee replacement or a new transmission, I don’t want that to prevent me from spoiling my grandkids at Christmas”

  • When you retire, make sure your debt is paid off and have a good cash cushion.
  • You need to be able to pay for unexpected medical expenses or emergency expenses.
  • Before you retire, make sure you have all the pieces in place.

Additional Resources:

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The Host:

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