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)
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.
- Check out Dan’s YouTube Channel
[spp-tweet tweet=”Whether it’s Social Security, picking your 401(k) investment options, or doing a rollover, it can’t be seen in isolation. It’s really important that everything is seen in relationship to a larger goal and comprehensive plan. – Dan Betzel”]
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