In this conversation, Alex Murguia and Wade Pfau discuss various topics related to retirement planning, including glide paths, asset allocation, index funds, and tax planning. They address questions about implementing a rising equity glide path, asset allocation across different types of accounts, the performance of index funds, and the availability of withdrawal strategy software for retirees. They also touch on the topic of Medicare and HSA contributions. Overall, the conversation provides valuable insights into retirement planning strategies and considerations.

Takeaways

• Implementing a glide path for retirement asset allocation depends on individual circumstances and goals, and there is no one-size-fits-all approach.
• When considering asset allocation across different types of accounts, it is generally recommended to place tax-efficient assets in taxable accounts and tax-inefficient assets in tax-deferred accounts.
• Index funds generally reflect the performance of the stocks in the index they follow, and their daily performance is based on the weighted average of the proportion of each stock in the index.
• Withdrawal strategy software packages for retirees are primarily available to investment advisors and may not be easily accessible to individual consumers.
• Individuals who work for employers with more than 20 employees can delay applying for Medicare after age 65 to continue contributing to their HSA accounts, but it is important to consult with HR and understand the implications of signing up for Medicare.

Chapters

00:00 Episode 131 Starts 01:29 Asset Allocation and Glide Paths in Retirement 04:07 Understanding Index Fund Performance 07:10 The Drawbacks of Equal-Weighted Indices 10:47 Tax-Efficient Asset Location 21:46 Limitations of Withdrawal Strategy Software 28:00 Managing Medicare and HSA Contributions 32:33 The Value of Professional Advice in Retirement Planning

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 McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”

In this conversation, Alex and Bob discuss the impact of the election on the stock market and retirement planning. They emphasize the importance of looking at historical data and not getting caught up in the rhetoric and uncertainty of the election cycle. They also highlight the recency effect and how campaigns are information machines that can influence market movements. They discuss the complexity of interpreting campaign statements and the countervailing effects they can have. They also mention the upcoming webinar where they will dive deeper into the numbers and provide more insights. The conversation explores the relationship between presidential elections and the stock market. The hosts discuss whether there is a correlation between the political party in power and stock market performance. They also touch on other factors such as the height and handedness of presidents and their impact on the stock market. The hosts emphasize the importance of taking a long-term view when it comes to investing and retirement planning, rather than trying to time the market based on election cycles.

Takeaways

• Look at historical data and avoid getting caught up in the rhetoric and uncertainty of the election cycle.
• Campaigns are information machines that can influence market movements.
• Interpreting campaign statements and their impact on the market is complex and uncertain.
• Consider the countervailing effects of policy proposals and how they may impact the economy and stock market.
• Join the upcoming webinar for a deeper dive into the numbers and insights. There is no clear correlation between the political party in power and stock market performance.
• Other factors such as height and handedness of presidents also do not have a significant impact on the stock market.
• Taking a long-term view and focusing on retirement planning is more important than trying to time the market based on election cycles.
• Understanding historical context and having a framework for interpreting market events can help investors make informed decisions.

Chapters

00:00 Introduction and Setting the Stage 00:29 Discussion on the Election and Stock Market 05:08 The Recency Effect and Campaign Season 07:20 Interpreting Market Movements After an Election 08:46 The Challenge of Timing the Market Based on Current Expectations 09:15 The Difficulty of Predicting Market Reactions to Campaign Statements 13:14 The Volatility of Campaign Season and Uncertainty 15:12 Considering the Impact of Policy Proposals 22:38 Upcoming Webinar and Deeper Dive into the Numbers 25:30 The Impact of Presidential Elections on the Stock Market 33:51 The Relationship Between Election Years and Market Volatility 37:25 Long-Term Investing and Retirement Planning 41:16 Understanding Historical Context and Interpreting Market Events

Links

Register now to attend the next webinar with Retirement Researcher, “The Election and The Stock Market: Understanding the Effects on Your Investments” on 6/25/24 at 1PM ET hosted by Bob French. Visit risaprofile.com/podcast to reserve your spot!

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

In this episode, the conversation covers various aspects of long-term care, including qualifying for long-term care insurance, alternative options for funding long-term care, and the role of Medicaid. Alex and Wade also discuss the importance of planning for long-term care and the potential challenges faced by individuals who cannot afford to pay for care. The conversation concludes with a discussion on how to invest funds set aside for long-term care. The conversation covers various topics related to financial planning and investment management. They discuss fee-only planners, annuities, engaging a fee-only planner, strategies to lower risk during retirement, buying whole life insurance for teenage children, and investing to keep up with inflation. They also touch on the reinvestment of dividends and capital gains for a 74-year-old to offset RMDs. The conversation ends with a lighthearted discussion about push-ups. Listen now to learn more!

Takeaways

• Traditional long-term care insurance is difficult to qualify for if you have chronic conditions.
• Alternative options for funding long-term care include hybrid life insurance with long-term care, annuity with long-term care, and deferred income annuities.
• Medicaid can be an option for long-term care if you have depleted your other resources.
• Investing funds set aside for long-term care depends on your liquidity mindset and the timeline for needing the funds.
• Transparency and client preferences should guide the choice of compensation models for financial planners. Fee-only planners charge a fee for investment management and financial planning, while commission-based planners earn a commission on annuity sales.
• Engaging a fee-only planner may be worth it if you have enough assets, typically around $500,000 or more.
• Whole life insurance for teenage children can be used to protect their insurability in case of future health issues.
• Lowering risk during retirement can be achieved through strategies like adjusting asset allocation, creating bond ladders, and building an income floor.
• Investing in TIPS (Treasury Inflation Protected Securities) can help preserve the inflation-adjusted value of your principal.
• Dividends can be taken out to offset RMDs (Required Minimum Distributions) for IRA accounts.
• Both Wade and Alex need to get back on track with their push-up routines.

Chapters

00:00 Episode 130 starts 00:17 Exploring Alternative Options for Long-Term Care Funding 07:23 Considering Medicaid as a Long-Term Care Option 14:35 Investing Long-Term Care Reserve Assets 19:59 Transparency and Client's Best Interests 23:34 Lowering Risk During Retirement Transition 31:13 Reinvesting Dividends and Capital Gains for RMDs 39:32 The Importance of Regular Exercise

Links

Register now to attend the next webinar with Retirement Researcher, "The Election and The Stock Market: Understanding the Effects on Your Investments" on 6/25/24 at 1PM ET hosted by Bob French. Visit risaprofile.com/podcast to reserve your spot!

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/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”