Retire With Style

Episode 115: Intro to Long-Term Care Planning

In this episode, Wade and Alex introduce the long-awaited arc on long-term care planning. They discuss the importance of planning for long-term care and the impact it can have on retirement. They define what a long-term care need is and explain the activities of daily living (ADLs) that determine eligibility for long-term care benefits. They also highlight the distinction between ADLs and incidental activities of daily living. The episode concludes with a preview of the next episode, which will cover the costs and prevalence of long-term care. Listen now to learn more.
 
Takeaways
Long-term care planning is a crucial aspect of retirement planning, as it can have a significant impact on financial security and the well-being of individuals and their families.
A long-term care need is defined as requiring assistance with activities of daily living (ADLs) for more than 100 days. The six common ADLs include bathing, continence, dressing, eating, toileting, and transferring.
Cognitive impairment, such as dementia, may also trigger the need for long-term care, depending on the policy's definition.
It is important to distinguish between ADLs and incidental activities of daily living, as only ADLs typically qualify for long-term care benefits.
The next episode will cover the costs and prevalence of long-term care, providing further insights into planning for this important aspect of retirement.
Chapters
 
00:00 Introduction to Long-Term Care Planning
03:01 Personal Experiences and the Importance of Long-Term Care Planning
08:58 Budgeting for Long-Term Care
14:12 Determining the Amount to Set Aside for Long-Term Care
21:36 The Demographics and Increasing Need for Long-Term Care
26:39 Defining a Long-Term Care Need
27:56 Activities of Daily Living (ADLs) and Cognitive Impairment
32:46 Incidental Activities of Daily Living
36:53 Summary and Next Steps
 
Links 
Join the waitlist for the next Retirement Income Challenge by visiting risaprofile.com/podcast 
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
 
This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

Episode 114: RWS Live (not really): Answering Your Safe Withdrawal Rate & Annuity Questions (Part 8)

In this episode, Alex and Wade answer questions on safe withdrawal rates, annuities, and retirement planning. They discuss the considerations for investing in a Qualified Longevity Annuity Contract (QLAC) and the difference between immediate and deferred annuities. They also explore the use of Single Premium Immediate Annuities (SPIAs) in combination with Fixed Index Annuities (FIAs) and the benefits of buffer assets in reducing sequence risk. Additionally, they address the challenges of finding automatic options for equity investments and provide insights for individuals who are considering retirement but are unsure about their options. Listen now to learn more.
 
Takeaways
Consider the insurance aspect of annuities and view them as a way to protect against longevity risk and provide guaranteed income in retirement.
When deciding between investing and buying a QLAC, focus on the insurance benefits and peace of mind rather than potential investment returns.
SPIAs and FIAs can be used in combination to provide both guaranteed income and growth potential in retirement.
Buffer assets can help reduce sequence risk and allow for a higher withdrawal rate from an investment portfolio.
Retirement decisions should not be solely based on financial considerations, but also on personal fulfillment and well-being.
Chapters
 
00:00 Introduction and Q&A on Safe Withdrawal Rate and Annuities
02:06 Considerations for Investing in a QLAC
04:16 Viewing Annuities as Insurance Products
06:07 Choosing Between Investing and Buying a QLAC
08:45 Using SPIA and FIA in Combination
16:59 Using Safe Withdrawal Rate and RMDs
21:37 Buffer Assets and Sequence Risk
24:47 Automatic Options for Equity Investments
28:40 Considering Retirement Options
 
Links 
Registration for the next Retirement Income Challenge is OPEN: Learn more and join us for this LIVE 4-Day event starting on March 4th-7th, 2024 from 12:00 -2:00 PM ET each day by visiting risaprofile.com/podcast 
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
 
This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"

Episode 113: RWS Live (not really): Answering Your RISA and Asset Allocation Questions (Part 7)

In this episode, Wade and Alex discuss various topics related to retirement planning and investment strategies. They address questions about reconciling portfolio structure when spouses have different orientations, allocating between growth and value stocks, estimating healthcare expenses in retirement, investing in high-yielding stocks, using closed-end funds for retirement income, and implementing a reverse glide path for early retirement. We'll also discuss various retirement planning topics, including managing the sequence of returns risk in early retirement, blending time segmentation and total return strategies, balancing safety first and commitment orientation, and the impact of RMDs on immediate annuities. Listen now to learn more.
 
Takeaways
When spouses have different orientations, it's important to find a middle ground that considers risk preferences and liquidity needs.
The RISA framework helps determine retirement income strategies but doesn't provide specific guidance on asset allocation decisions.
Estimating healthcare expenses in retirement should be part of the overall budget and doesn't require a separate reserve.
Investing in high-yielding stocks or funds can be risky and may not provide the desired income or diversification.
Closed-end funds may not be an efficient or recommended strategy for retirement income due to concentration and leverage risks.
A reverse glide path, starting with a lower stock allocation and gradually increasing it, can help manage sequence of returns risk in early retirement. When retiring early, managing sequence of returns risk can be achieved by using a lower withdrawal rate, which may reduce the need for a reverse equity glide path.
The glide path can be a way to blend time segmentation and total return strategies, such as using a bond ladder for the start of retirement and gradually increasing equity allocation.
Balancing safety first and commitment orientation in retirement planning involves considering contractual protections, such as annuities, while not going overboard with them.
RMDs and immediate annuities: The Secure Act 2.0 allows the excess income from an immediate annuity to be applied towards other RMDs, providing more flexibility for retirees.
Chapters 
 
00:00 Introduction
03:07 Reconciling Portfolio Structure
09:02 Allocation Decisions
13:05 Healthcare Expenses in Retirement
20:13 Allocation Decisions: Growth vs. Value Stocks
31:12 Investing in High-Yielding Stocks
36:21 Using Closed-End Funds for Retirement Income
39:24 Implementing a Reverse Glide Path
40:31 Managing Sequence of Returns Risk in Early Retirement
42:27 Blending Time Segmentation and Total Return
44:54 Balancing Safety First and Commitment Orientation
45:25 RMDs and Immediate Annuities
 
 
Links 
Registration for the next Retirement Income Challenge is OPEN: Learn more and join us for this LIVE 4-Day event starting on March 4th-7th, 2024 from 12:00 -2:00 PM ET each day by visiting risaprofile.com/podcast 
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
 
This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

Episode 112: RWS Live (not really): Answering Your Reverse Mortgage Questions (Part 6)

In this episode, Wade and Alex discuss housing and reverse mortgages. They address the issue of pirated books on Amazon and warn listeners to ensure they are purchasing the legitimate copy of the Retirement Planning Guidebook! They then delve into the topic of using retirement savings for purchasing a house and the potential drawbacks of relying solely on a reverse mortgage. The impact of higher mortgage rates on obtaining a reverse mortgage is also explored, along with the misconceptions surrounding reverse mortgages. The episode concludes with a discussion on the metrics to consider when implementing a reverse mortgage. Listen now to learn more! 
 
Takeaways
Using retirement savings for purchasing a house may not be a responsible strategy.
Higher mortgage rates can affect the benefits of a reverse mortgage.
There are misconceptions surrounding reverse mortgages.
Metrics such as the ratio of home value to investment portfolio can guide the decision to implement a reverse mortgage.
Chapters
 
00:00 Introduction and Announcement
03:01 Pirated Books on Amazon
05:07 Reverse Mortgage: Using Retirement Savings
08:06 Impact of Mortgage Rates on Reverse Mortgage
16:27 Misconceptions about Reverse Mortgages
22:38 Metrics for Implementing a Reverse Mortgage
26:30 Effect of Higher Mortgage Rates on Reverse Mortgages
28:30 Conclusion
 
Links 
The Retirement Planning Guidebook: 2nd Edition AND Reverse Mortgages has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
 
This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"

Episode 111: RWS Live (not really): Answering Your Social Security Questions (Part 5)

In this episode, Alex and Wade answer various Social Security questions from their listeners. They discuss the limitations of online Q&A and the importance of seeking professional advice for personalized financial planning. They also address the availability of tools for running hypotheticals on Social Security claiming strategies. The hosts delve into the complexities of claiming Social Security at different ages and the potential impact on taxes and spousal benefits. They provide insights on claiming an ex-spouse's Social Security and discuss the considerations of age difference and life expectancy in determining the optimal claiming strategy. Lastly, they share personal updates on their fitness goals and tease the next episode on reverse mortgages. Listen now to learn more!
 
Takeaways
Seek professional advice for personalized financial planning rather than relying solely on online Q&A.
Tools for running hypotheticals on Social Security claiming strategies are limited, but resources like Open Social Security can provide some insights.
Claiming Social Security at different ages can have implications for taxes, spousal benefits, and survivor benefits.
Eligibility for claiming an ex-spouse's Social Security depends on factors such as length of marriage and timing of divorce.
Consider age difference and life expectancy when determining the optimal Social Security claiming strategy.
Personal updates: Alex and Wade are working on their pull-up goals and discussing the benefits of hanging exercises.
The next episode will cover reverse mortgages.
Chapters
 
00:00 Introduction and Q&A Arc
03:01 The Limitations of Online Q&A
04:13 Tool for Running Hypotheticals on Social Security
07:43 Claiming Social Security at 70 and Tax Planning
11:31 Claiming Ex-Spouse's Social Security
14:45 Claiming Social Security at 62 and Spousal Amount at Full Retirement Age
17:41 Claiming Social Security at 69 and Spousal Amount at 67, or Waiting Until 70
22:47 Impact of Age Difference and Life Expectancy on Claiming Strategy
27:15 Personal Update: Pull-Ups and Hanging Exercises
31:19 Closing Remarks and Preview of Next Episode
 
Links 
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
 
This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

Episode 110: RWS Live (not really): Answering Your Tax-Planning Questions (Part 4)

In this episode, Alex and Wade discuss various tax planning strategies for retirement. They announce a webinar on tax-efficient retirement distributions and highlight the importance of the Retirement Planning Guidebook. They address the impact of taxes on deferred accounts versus non-qualified accounts, including the implications for Social Security benefits and IRMAA surcharges. They also discuss determining the amount to convert to a Roth IRA and the considerations for inherited Roth IRAs. The conversation covers managing taxes for couples with over $5 million, the intersection of tax planning and safety-first income annuities, and the importance of preparation and account setup for retirement. They conclude by addressing strategies to limit the impact of ACA premiums on MAGI. Listen now to learn more!
 
Takeaways
Consider attending the webinar on tax-efficient retirement distributions to gain a deeper understanding of tax planning strategies.
The Retirement Planning Guidebook is a valuable resource for retirement planning and is regularly updated to reflect changes in tax laws.
Tax planning should consider the impact of taxes on deferred accounts versus non-qualified accounts, including Social Security benefits and IRMAA surcharges.
Inherited Roth IRAs may be subject to different rules and tax implications, and it is important to understand the options and potential tax consequences.
Preparation and account setup for retirement can help optimize tax planning strategies and provide more flexibility in managing income and expenses.
Strategies to limit the impact of ACA premiums on MAGI may include suspending Social Security benefits, spending from taxable accounts, and tax-efficient asset management.
Timestamps
00:00 Introduction and Webinar Announcement02:12 Discussion on the Retirement Planning Guidebook03:12 Considerations for Buying the New Book04:08 Tax Planning for Deferred Accounts vs. Non-Qualified Accounts05:03 Impact of Taxes on Social Security Benefits and IRMAA Surcharges07:01 Determining Roth IRA Conversion Amounts09:06 Understanding IRMAA and Social Security Tax Torpedo12:12 Inherited Roth IRAs and Legacy Goals15:04 Managing Taxes in Retirement for Couples with Over $5 Million18:22 Tax Planning and Safety-First Income Annuities22:36 Preparation and Account Setup for Retirement25:21 Limiting ACA Premium Impact on MAGI
 
Links 
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
To celebrate the updated RPG, Wade is hosting a FREE Webinar where he will be discussing the most significant update, tax planning. Visit risaprofile.com/podcast to register to attend, How to Create Tax-Efficient Retirement Distributions on Monday, February 5th at 2:00 PM ET. 
 
This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"

Episode 109: RWS Live (not really): Answering Your Questions (Part 3)

Wade and Alex are back this week answering more of your questions! This week, we tackle retirement spending and withdrawal rates, the benefits of delaying Social Security and survivor benefits, the concept of replacement ratios for retirement income, the use of annuities for retirement income, the impact of future tax rates and national debt, and the decision to pay off mortgages in retirement. Listen now to learn more!
 
Links 
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
To celebrate the updated RPG, Wade is hosting a FREE Webinar where he will be discussing the most significant update, tax planning. Visit risaprofile.com/podcast to register to attend, How to Create Tax-Efficient Retirement Distributions on Monday, February 5th at 2:00 PM ET. 
 
This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

Episode 108: RWS Live (not really): Answering Your Questions (Part 2)

This week on Retire With Style, we are back to continue working through your questions! Wade and Alex tackle another array of topics including pros and cons of Deferred Annuities, couples retiring at different times, MIGA Bonds, Index Funds and much more. We are having a great time with these and hope you all are finding this useful. You've certainly put us to the test with these great questions! Listen now to learn more. 
 
This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"

Episode 107: RWS Live: New Years Q&A (Part 1)

This week on a special YouTube Live episode of Retire With Style, Wade and Alex are skipping the small talk to take on some of the questions you submitted over the last week. We cover a range of topics from how to handle the RIO Map (Retirement Income Optimization) to the efficiency of Annuity Portfolios and more! We got a ton of great questions from you all and we want to make sure we get to as many as we can, so stay tuned for future episodes in this series where we will continue to work through the list! Listen now to hear Part 1!
 
Links 
Click here and subscribe to the Retire With Style YouTube channel and turn on notifications to be alerted when we go LIVE: https://www.youtube.com/@retirewithstylepodcast 
 
This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

[Best of 2023 Repost] Ep 63: Should I Wait or Should I Go - A Look at Arguments For and Against Delaying Social Security Claiming

Well - looks like Alex and Wade have had a little more fun than expected on New Year's, so let's cozy up next to the fire and throwback to one of our favorite topics - Social Security claiming strategy (specifically Ep. 63).
But we're going to (belatedly) kick off 2024 with a bang - On Monday, January 8th at 1:00 PM ET, Wade and Alex will be hosting a YouTube live session to answer all of your questions! If you have any burning questions about the podcast or anything about retirement planning, please send them to us using the link provided below.
 
Repost from Episode 63
 
A topic of intense debate is about what's the best age to claim Social Security. Should people do it as soon as possible after reaching age 62, or wait until they get closer to 70? Alex and Wade will look at arguments on both sides of the debate and provide our assessment of their legitimacy. Listen now to learn more! 
 
Links
Join us on Jan. 8th at 1:00 PM ET on YouTube Live for a live recording of Retire With Style! Watch and comment live on the Retire With Style YouTube channel: https://www.youtube.com/live/D1TSNgDCmDQ?si=rGe70YujVATVjyaI 
Submit your burning questions for Wade and Alex to answer live here: https://www.surveymonkey.com/r/2G5DBGC 
 
This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"