Joining Me Now Ep. 23: Why You Should Have 3 Years of Portfolio Draws Available in Cash for Retirement

In this episode, Chad and Rob delve into the complexity of financial planning, covering topics such as insurance, investments, taxes, 401ks, stock options, and more. Chad emphasizes the importance of proactive and ongoing financial planning, highlighting how life changes at different stages require continuous adjustments to financial strategies. The discussion underscores that financial planning is a dynamic process, not a one-time event, with factors like market trends impacting retirement plans and spending decisions.

Timestamps:

On this episode, Chad and Rob discuss the recent market downturn and its impact on retirement planning. Chad highlights the importance of saving for retirement, citing statistics on savings across different generations. Chad invites listeners to an upcoming event focused on retirement readiness and financial planning strategies. Tune in to gain insights on managing your finances for a stress-free retirement.

Timestamps:

Chad starts by discussing the upcoming event, "7 Steps for Retirement Readiness," which covers crucial aspects such as taxes, income, long-term care, safe money, investing, life goals, and health and wellness. He emphasizes the importance of this event in light of the challenges faced by investors in the current economic climate.

Moving on, Chad delves into the world of investing, specifically focusing on the S&P 500, NASDAQ, and popular tech funds like XLK. He highlights the concentration of the S&P 500 in technology stocks and the need for diversification, especially as one approaches retirement and transitions from growth-focused investments to a more balanced portfolio.

The discussion then shifts to the 4% rule, a guideline for determining retirement income. Chad explains that while the 4% rule is a useful starting point, it should not be blindly followed. He emphasizes the importance of having a comprehensive financial plan that considers factors like taxes, healthcare costs, and unexpected expenses.

The episode also explores the active vs passive investing debate. Chad suggests that a combination of both approaches can be beneficial, with passive investing being more tax-efficient in taxable accounts and active management potentially outperforming in certain asset classes like small cap and international stocks.

Lastly, Chad addresses the concept of sequence of returns risk, which refers to the impact of market fluctuations on retirement income. He emphasizes the need for a withdrawal strategy, diversification, and proper planning to mitigate the potential negative effects of market downturns.

Overall, this episode of "New Focus on Wealth" provides valuable insights and practical advice for individuals seeking to enhance their retirement readiness, navigate the active vs passive investing landscape, and understand the risks associated with sequence of returns. Don't miss out on this informative and engaging discussion with Chad Burton, a seasoned financial planner.

Timestamps:

The episode kicks off with a market update, discussing the performance of different indexes and highlighting the impact of China's economy on emerging markets. Chad also explores the challenges faced by regional banks and the potential risks associated with commercial loans and real estate investments.

Moving on to retirement planning, Chad emphasizes the importance of knowing your expenses and understanding how they may change throughout different stages of retirement. He provides valuable insights into the 4% rule, which helps determine if your portfolio can sustain your desired lifestyle in retirement. Chad also touches on the significance of balancing your financial goals with your personal fulfillment, including travel plans, hobbies, and volunteer work.

Throughout the episode, Chad shares practical tips and strategies, such as leveraging pledged asset lines to avoid selling securities, maximizing credit card rewards for travel, and navigating the complexities of timeshares. He also highlights the benefits of working with a certified financial planner to create a comprehensive financial plan tailored to your specific needs and goals.

Don't miss out on this engaging and informative episode that will empower you to make sound financial decisions, plan for retirement, and achieve long-term financial success. Tune in now to gain a new focus on personal finance, wealth management, and the economy.

In this episode of New Focus on Wealth, certified financial planner Chad Burton dives into the important topics of retirement readiness and healthcare costs.

Chad starts by discussing the seven steps to retirement readiness, which include assessing your financial situation, determining your asset allocation, and creating a withdrawal strategy. He emphasizes the importance of having enough safe money to cover expenses and the need for a proper tax plan to minimize taxes in retirement.

The episode also delves into the rising healthcare costs in retirement. Chad highlights a study that reveals a typical US couple may need up to $413,000 to cover healthcare expenses in retirement, especially if they have high prescription drug needs. He explains the complexities of Medicare, supplemental plans, and the impact of income on healthcare costs.

Throughout the episode, Chad emphasizes the need for individuals to prioritize their health and well-being in retirement. He encourages listeners to focus on maintaining a healthy lifestyle and making informed decisions about healthcare coverage.

Don't miss this informative and engaging episode of New Focus on Wealth as Chad Burton provides valuable insights and strategies for retirement readiness and managing healthcare costs.

Timestamps:

In this episode, host Chad & Rob discusses the importance of building a retirement portfolio and proper asset allocation. Chad emphasizes the stages of wealth accumulation and management and introduces the seven steps for retirement readiness. He also announces an upcoming event in Menlo Park, California, where attendees with $500,000 or more in stock market assets can learn about various financial topics. Tune in to gain valuable insights on retirement planning and investment strategies.

Timestamps:

The episode kicks off with a discussion on the seven steps to retirement readiness. Chad emphasizes the need for a comprehensive financial plan that goes beyond just having enough savings. He highlights the importance of tax efficiencies, safe money allocation, and planning for long-term care costs. Listeners are encouraged to attend an upcoming event hosted by Chad, where he will delve deeper into these topics.

Chad also delves into the concept of linear cash flow and its significance in retirement planning. He explains how to calculate the rate of return needed to ensure a comfortable retirement and stresses the importance of being conservative in projections. By using a rate of return just under 6%, Chad helps listeners assess the longevity of their retirement savings.

The conversation then shifts to the challenges retirees face, including healthcare costs and the decision of when to take Social Security. Chad provides valuable insights on navigating Medicare, choosing supplemental insurance, and optimizing Social Security benefits based on individual circumstances. He also highlights the impact of tax planning on retirement income and the benefits of charitable gifting from IRAs.

In addition to financial planning, Chad emphasizes the importance of prioritizing health in retirement. He shares his personal interest in longevity and discusses the emerging research on the gut-brain connection, exercise, and healthy lifestyle choices. Chad encourages listeners to invest in their health now to enjoy a fulfilling retirement.

Timestamps:

The episode starts with a discussion on the potential rate cut by the Fed and its impact on the market. Chad also highlights the importance of diversifying your portfolio, especially if you are overweight in company stock. He shares strategies for reducing exposure to single company stock and maximizing tax benefits, including the net unrealized appreciation (NUA) tax strategy.

Chad emphasizes the significance of understanding tax brackets and deductions in retirement planning. He explains how to leverage the standard deduction and capital gains tax brackets to minimize taxes and optimize your retirement income. Additionally, Chad provides valuable tips for improving your overall health, including cutting out sugar, processed foods, and alcohol, and incorporating intermittent fasting and infrared saunas.

Timestamps: