Simplify Your Retirement
Nov 16, 2020
S1: Episode 6 – Human Bias In Investing
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It can be hard to look beyond our personal biases. But how does bias impact our investment choices? In this episode, Stephen Stricklin dives into human bias and more importantly, investor behavior bias. Discover how personal bias can impact investment choices and reactions to the stock market. In this episode, you will learn: The relationship between human behavior and investing The difference between past market crashes and the current investor reactions How human bias can impact your portfolio What you should be doing during market volatility And more! Tune in now and learn more about investor behavior bias! Resources: Wise Wealth
More episodes from Simplify Your Retirement
Nov 22, 2023
Season 5 Episode 4 Liquidity Planning: How to Plan and Budget Expenses in Retirement
In planning for retirement, creating a budget is crucial for ensuring financial security and making work optional. The simplified approach involves dividing assets into three buckets: one for liquid expenses, another for income, and the third for growth.
The budget, a formal plan for managing monthly income, helps avoid overspending and provides the freedom to enjoy retirement.
Key points on budgeting for retirement:
Living Expenses vs. Lifestyle Expenses:
Distinguish between essential living expenses (e.g., housing, utilities, food) and desired lifestyle expenses (e.g., travel, recreation). Guaranteeing living expenses is crucial.
Start with the Basics:
Ensure a secure retirement by covering the necessities. Just as parents promise a roof, food, and clothes for their children, retirees should guarantee their own living expenses.
Healthcare Costs and Inflation:
Estimating healthcare expenses is a significant concern in retirement. A reasonable starting point could be $450 per person per month. Account for inflation in estimating future expenses. Regularly monitor and adjust the budget as circumstances change.
Customization is Key:
While there's no one-size-fits-all solution, everyone needs to identify their unique retirement number. Use a budget worksheet, estimate high, and adjust for inflation over time. Six months before retirement, start living on the budget to ensure its feasibility. Adjustments can be made based on the real experience.
Remember, the goal is to retire with confidence, peace of mind, and the freedom to enjoy life without financial constraints.
📅 SCHEDULE A CONSULTATION:
816-246-WISE (9473) | info@wisewealth.com | www.wisewealth.com/contact-us
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Nov 8, 2023
Season 5 Episode 3 Liquidity Planning: How to plan for short-term needs and where to invest
Liquidity Planning: How to Plan for Short-Term Needs and Where to Invest
Liquidity is important for everyone, no matter what phase of investing you are in. If you anticipate needing your money within the next five years, it should be readily accessible. The primary objective is to ensure the protection of your income stream and have assets at your disposal.
It’s impossible to grow your income, draw an income stream, and keep it liquid all in one portfolio.
In our 3-bucket approach, funds are distributed into 3 categories: liquid, income, and growth. Anything in the liquid bucket will not be available for growth or income.
There are two reasons someone may want to have liquid assets:
1. Emergency Fund: The recommended amount for an emergency fund may vary depending on your current investment phase.
2. Short-Term Expenses: These are expenses you anticipate in the next five years, such as buying a new car, funding house repairs or renovations, or taking trips.
The objective here is to safeguard this money from market risks. If your financial goals are within 1-3 years, there may be an alternative investment to consider besides a checking account. These could include cash alternatives such as CDs, money market accounts, fixed annuities, or specialty savings accounts. Most people think that having money liquid means it doesn’t earn anything. That is not the case with these alternatives.
Contact our team of professionals for more information about the current return on specific accounts that could benefit you.
816.246.WISE (9473) or info@wisewealth.com
With our Simplify Your Retirement Plan® Process, your income stream will be guaranteed and the plan ultimately leads to financial peace of mind so you can live the retirement you always dreamed of.
Wise Wealth is an education-based financial planning firm that specializes in retirement.
📅 SCHEDULE A CONSULTATION:
816-246-WISE (9473) | wisewealth.com/contact-us | info@wisewealth.com
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Oct 25, 2023
Season 5 Episode 2 The 7 Essential Components of a Retirement Plan
In this episode, we take a big-picture view of what planning is, and what a retirement plan should include.
Products are not a plan.
Someone may think they have a plan because they have a 401(k), pension, or insurance policy in place. Or they plan to get a little more conservative over time with their portfolio. Each of those things may be part of a plan, but they are actually products, they are not a plan.
Hope is not a plan.
When you go to a traditional financial planning firm that is not a specialist in retirement income planning, they will give people a simulation, a percentage chance that you won’t run out of money by a certain time.
There’s a better way to plan for retirement than hoping or assuming or looking at hypothetical assumptions. The numbers can be manipulated, and our concern is with the hypothetical returns.
So, what is a true retirement plan?
A true retirement plan moves beyond just having a policy or a product, it’s understanding why and how it fits within the plan.
We believe there are 7 areas of planning: Liquidity, Income, Investment, Tax, Legacy, Insurance, and Freedom Planning.
We break these down into two phases:
The Income Plan which encompasses Liquidity, Income, and Investment Planning.
The Impact Plan includes Tax, Insurance, and Legacy Planning.
The entire reason we save, and work for 30+ years is so that when we arrive at retirement, we no longer have to worry about the income stream. This is why we believe income planning is the best way to start.
Once the income portion of the plan is complete, then we move into “The Impact Plan” phase. In this phase, the relationship with our clients grows, as we help them define their vision for retirement and beyond.
A long-term relationship is needed to cover all 7 areas of planning with the end goal being FREEDOM. We celebrate our clients who are in the freedom stage of our Simplify Your Retirement® Plan.
If you are new to Wise Wealth and want to learn more about how the Simplify Your Retirement Plan® Process can help lead you to a peaceful and enjoyable retirement, contact us!
📅 SCHEDULE A CONSULTATION:
816-246-WISE (9473) | info@wisewealth.com | www.wisewealth.com/contact-us
View our list of upcoming Simplify Your Retirement workshops: www.wisewealth.com/events
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