S3E35 – September Retirement Headlines

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We’re back with another round of retirement planning headline news reviews. As we like to say, we read the news so you don’t have to. Although, maybe you will want to after you hear us talk about them. Our goal is to at least help point you to what we think matters.

Below is a list of the articles we discuss in this episode, along with our notes and thoughts about each one.

When Interest Rates Go Down, the Hucksters Spring Up

• Jason Zweig at WSJ runs down a scam
• These things are out there, people prey on vulnerable folks with misleading info

1. Travel offseason (cheaper, less crowded, less stressful)
2. Choose secondary destinations – same, slower pace, etc.
3. Talk to strangers
4. Focus on a few things
5. Stay at least three nights in each place
6. Be ready to improvise

A recession could upend plans for people approaching retirement. Taking these steps can help, experts say

1. Review allocation – risk level correct
2. Consider your sources of income and their security

The Crushing Financial Burden of Aging at Home

1. The cost of in-home care is surging
2. In-home workers are hard to find
3. Implications on freedom for spouses etc.

A ‘ticking time bomb’ could decimate your retirement savings, tax expert says

• Ed Slot book
• The single greatest threat to retirement dreams is future taxes
• Large pre-tax accounts and RMDs
• Great way to get clicks and sell books, but I wouldn’t call it a bomb
• Is something you should think about and plan for
• Many advisors take this too far, mostly because it allows them to sell you things.

Solving the Mystery of an Investment That’s Too Good to Be True

• Too good to be true, then it probably is
• Despite regulation, there are still a lot of bad actors and misleading claims

• Surveys show 77% of current retirees want to stay in their homes
• Making sure that will work requires planning
• Frank conversations about money and things like inheritance
• Prepare the home ahead of time
• Smart home features, lighting, stairs vs. ramps, etc.
• Financial planning around how to get it done is key

5 Critical Financial Steps to Take Before You Retire

1. What role will work play
2. Social Security Planning
3. Retirement Income Style
   1. Stability vs Variability
4. Practice spending before retiring
   1. Spendthrift vs Tightwad
5. The last step is to structure your portfolio for retirement
   1. Strategic Derisking
   2. Cash buckets

• A couple who went out and bought a Van for road trips. They ended up hating it and now travel on cheap hotel/AirBnbs
• The moral of the story is rent and try before you buy.

• Rule of thumbs for withdrawals
  • Take your RMDs
  • Withdrawal from taxable accounts
  • Tap into your tax-deferred savings
  • Use your ROTH accounts
• Factors to consider
  • Current and future tax brackets
  • Retirement goals
  • Market Volatility

Don’t forget to check out the articles David Shotwell has written for The Street. Find them HERE

Conclusion

Thanks for tuning in to this episode of Retirement Headlines! Have thoughts or questions about what we discussed? We’d love to hear from you.

Send an email to info@srbadvisors.com or call 517-321-4832

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About Shotwell Rutter Baer

Shotwell Rutter Baer is proud to be an independent, fee-only registered investment advisory firm. This means that we are only compensated by our clients for our knowledge and guidance — not from commissions by selling financial products. Our only motivation is to help you achieve financial freedom and peace of mind. By structuring our business this way we believe that many of the conflicts of interest that plague the financial services industry are eliminated. We work for our clients, period.

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Call us at 517-321-4832 for financial and retirement investing advice.