Category Archives: Financial Planning

Featured Image

S4: Episode 10 – The Myths and Misconceptions of Fees and Costs



You may have heard the terms “fee” and “cost” used as synonyms, but there is a distinction that could make all the difference in the world of investing. In this episode, Stephen Stricklin and Paul Brock discuss three major misconceptions many people have about fees and costs. 

A fee is something you can “see,” usually in plain sight, and made known up front, sometimes deterring an individual from taking the plunge. A cost is something you can “feel,” usually not laid out clearly in a statement, but you’ll feel the hidden costs in your returns. 

The three most popular money saving misconceptions are: investing on your own, that your 401(k) has no fees, and investing online with a robo-advisor, all of which lead people to believe that they are cutting losses associated with various service fees. Stephen and Paul expose these myths with facts and statistics, showing the fees of working with an advisor actually yields greater return than the costs associated with the three methods above. 

All investments have a cost, and value determines worthiness. The value of having a financial advisor when investing is highly beneficial, and the stats show it is worth it. 

Stephen and Paul Discuss:

  •  The difference between fees and costs. A fee is something that you see, a cost is something that you feel.
  • The myths and misconceptions of fees and costs when it comes to investing.
  • Misconception #1 “I can save money by investing on my own, and pay no fees”
  • Vanguard study 
  • Misconception #2 “I can save money by keeping money in the 401K, where there are ‘no fees’” 
  • Misconception #3 “I can save money by investing online through a robo-advisor, because there are ‘no fees’”
  • Dalbar study 

Resources:
Don’t forget to email info@simplifyyourretirement.com if you have any retirement questions you’d like Stephen and Paul to answer in an upcoming episode OR to get a free Copy of Stephen’s book, Simplify Your Retirement!
info@simplifyyourretirement.com
http://www.simplifyyourretirement.com/book
https://www.investopedia.com/

Connect With Stephen Stricklin:
stephen@wisewealth.com
WiseWealth.com
Simplify Your Retirement
LinkedIn: Stephen Stricklin
LinkedIn: Wise Wealth LLC


S4: Episode 9 – How A Reverse Mortgage Can Enhance Your Retirement With Gabrielle Welter



Are there better uses for your home equity? In today’s episode special guest Gabrielle Welter, along with host Stephen Stricklin, discuss everything reverse mortgages. Gabrielle is a reverse mortgage specialist in the Chicago area, and with 11 years experience in the financial industry, she has a lot to share. 

Gabrielle debunks the negative connotation that a reverse mortgage is the “loan of last resort.” She gives an in depth look into how a reverse mortgage can enhance your retirement portfolio overall. 

She answers questions like; How does a reverse mortgage work if you still have a mortgage payment? What is the cost/value? What happens when you sell your house but there’s still equity in the home? 

Gabrielle Discusses: 

  • Uses for a reverse mortgage, and how it can benefit the retiree- a way to pay for long term care.  
  • Different scenarios for a reverse mortgage and how it would work- even if you still owe money on your mortgage, you can still qualify. 
  • HECM- home equity conversion mortgage
  • Why a reverse mortgage is valuable- Closing costs are high because it is FHA insured, and it is a non-recourse loan, they cannot pass any debt to any errors.
  • Benefits of being FHA insured
  • Explains the scenario of selling the house, still having equity in the home- leaving remaining equity to beneficiaries, “passing money”. 
  • The scenario of not taking equity out of the home, but instead buying a new home, “HECM for purchase” or “H4P”. 

Resources:
Do you have a question to ask for an upcoming podcast episode, or want a FREE copy of our book, Simplify Your Retirement? If so, email:
info@simplifyyourretirement.com
http://www.simplifyyourretirement.com/book
Myhousecounts.com

Connect With Gabrielle Welter:
Myhousecounts.com
LinkedIn: Gabrielle Welter 

Connect With Stephen Stricklin:
stephen@wisewealth.com
WiseWealth.com
Simplify Your Retirement
LinkedIn: Stephen Stricklin
LinkedIn: Wise Wealth LLC

About Our Guest:
Gabrielle Welter is a reverse mortgage specialist in the Chicago area. She has 11 years of experience in the financial industry, and has even owned her own Allstate agency for 5 years. She is passionate about her work, going beyond just a customer-relationship, to a client-relationship, educating her clients and countless others on her social media platforms. Gabrielle is also married, and the mother of three boys and one golden retriever.


Featured Image

S4: Episode 8 – Taxes in Retirement – 5 Topics to Be Aware of



Host Stephen Stricklin and Co-Host Paul Brock take on the topic of taxes in retirement in today’s episode, appropriately released on the tax filing deadline date of 2021. An exciting day for some, and dreaded for others, it’s a reality of our financial life we cannot avoid, and certainly a factor to consider when planning for retirement. 

Stephen and Paul take a deep dive into some tax lingo. They bring listeners through five topics pertaining to taxes and retirement: Tax Planning, Effective vs. Marginal Tax Rate, Capital Gains, Social Security benefits and Medicare. They give clarity to these terms, and give examples of scenarios from the point of view of a married couple filing jointly. 

Financial peace comes from having a plan, and having a base understanding of these commonly talked about concepts will help set you up for a successful and peaceful retirement. 

Stephen and Paul Discuss: 

  • Tax Planning; making sure you have a plan to deal with increasing taxes in retirement
  • Effective Tax Rate vs. Marginal Tax Rate
  • Capital Gains; short term vs. long term
  • Taxation on Social Security benefits
  • Medicare; IRMAA 
  • Future FAQ episodes to come 

Resources:
Do you have a question to ask for an upcoming podcast episode, or want a FREE copy of our book, Simplify Your Retirement? If so, email:
info@simplifyyourretirement.com
http://www.simplifyyourretirement.com/book
US Debt Clock Link

Connect With Stephen Stricklin:
stephen@wisewealth.com
WiseWealth.com
Simplify Your Retirement
LinkedIn: Stephen Stricklin
LinkedIn: Wise Wealth LLC

 


Featured Image

S4: Episode 7 – Non-Financial Mistakes to Avoid in Retirement Planning with Samantha Lane



Retirement is not a cliff to jump off of, but an opportunity to build bridges grounded with your values and strengths.

In this episode, Stephen Stricklin is joined by guest Samantha Lane, an Associate Certified Coach who most often works with men and women making the huge transition to retirement. Samantha is passionate about helping individuals through major life changes, and being a guiding light for clients to find balance and satisfaction in their life as retirees. 

Samantha walks us through six non-financial mistakes people make going into retirement, identifying them and giving tips on how to combat them. She brings up some misconceptions many people have about retirement, and encourages listeners to be proactive about their expectations, so that they can have a fulfilling life in retirement. 

Samantha alleviates the heaviness that the new chapter of retirement can bring. The question of “what do I do next?” can be daunting. You don’t need to have all twenty years of retirement planned out, what you need to know is just the next right step forward. 

Samantha discusses:

  • The longevity of life for the average retiree.
  • How she found a life coach, in Minnesota and found clarity to do what she’s doing now.
  • Moving back to Kansas City and starting her own coaching business in 2016.
  • The longevity of your life being tied to your social wellness
  • Six non-financial mistakes people make going into retirement 

Resources:
https://simplifyyourretirement.com
https://www.lumina-coaching.com/
Season 3 Episode 1
Season 3 Episode 2
Season 1
Season 3 Episode 9
https://simplifyyourretirement.com/book/
info@simplifyyourretirement.com

Connect With Samantha Lane:
https://www.lumina-coaching.com/
LinkedIn: Samantha Lane AAC, ICF

Connect With Stephen Stricklin:
stephen@wisewealth.com
WiseWealth.com
Simplify Your Retirement
LinkedIn: Stephen Stricklin
LinkedIn: Wise Wealth LLC

About Our Guest:
Samantha Lane is an Associate Certified Coach with the ICF. She launched Lumina Coaching in May 2016 and has since served dozens of people in support of their best life. She’s a Life Coach passionate about helping people get “unstuck” and gain awareness on developing their personal sense of balance, wellness, and success in life.

She most often works with men and women making the huge transition to retirement; understanding that this life change is not a cliff to jump off of, but an opportunity to build bridges grounded with your values and strengths. When she’s not on a coaching call, you can find her walking her Chocolate Lab, Leo, hanging out with her nieces or nephews, or on a yoga mat. 


Featured Image

S4: Episode 6 – Banking On Yourself With Mark Willis



Joining host Stephen Stricklin is guest Mark Willis, financial advisor and owner of Late Growth Financial Services in Chicago IL, and Co-Host of his podcast Not Your Average Financial Podcast, on the topic of banking on yourself. 

Graduating college with an immense amount of debt, and starting a new job at a CPA firm during the 2008 stock market collapse, Mark wondered “Is there something better than just climbing out of this hole?” Knowing debt is important to move past, but not wanting to throw away crucial years, where money is more valuable due to compound growth and opportunity cost, Mark thought, “Is there a way to turn my debt liability into an asset?”

The Bank on Yourself concept uses a whole life insurance policy tool to build an asset called cash value. Using the “snowbank method” Mark talks about how to continue to pay off debt with minimum payments, and dump the leftover money into the whole life policy that has a non-direct recognition loan. You can borrow against your life insurance cash value and it will continue to grow as if you hadn’t touched a dime of the money! 

Though it took Mark an extra year to finish paying off his student loan debt, he wasn’t back at net zero. He had created a massive asset on his balance sheet.  

Mark discusses:

  • Not Your Average Financial Podcast 
  • His story; how he accumulated student loan debt, and how he overcame it. 
  • “Banking on Yourself” concept 
  • The “snowbank method” 
  • Whole life policy with a non-direct recognition loan
  • What would an easy financial life look like?
  • Being aware that a whole life policy is a long term commitment 
  • Having different assets to pull from in retirement 

Resources:
https://simplifyyourretirement.com
https://nyafinancialpodcast.com 

Connect With Mark Willis:
https://nyafinancialpodcast.com
LinkedIn: Mark Willis

Connect With Stephen Stricklin:
stephen@wisewealth.com
WiseWealth.com
Simplify Your Retirement
LinkedIn: Stephen Stricklin
LinkedIn: Wise Wealth LLC

About Our Guest:
Mark Willis is a certified financial advisor in Chicago, IL, owner of Late Growth Financial Services in Chicago, he specializes in building custom tailored financial strategies. He is the Co-Host of Not Your Average Financial Podcast.


Featured Image

S4: Episode 5 – A Mountain Climber’s Financial Advice With David Rosell – Part 2



Joining Stephen Stricklin for another podcast episode is our guest, David Rosell, financial planner, president and founder of Rosell Wealth Management, author of Failure Is Not an Option, and avid traveler. They discuss common risks that you should consider when planning for retirement. 

Risks that occur in the distribution phase of retirement are inevitable. It’s up to us to be prepared with a plan when we meet these risks. The most common risks that people run into are inflation risk, interest rate risk, and longevity risk. With these uncertainties in mind, we can find peace by having a plan. 

When it comes to distribution planning and how people withdraw their money during these years to handle longevity, there’s a hierarchy of needs, similar to the outline of “Maslow’s Hierarchy of Needs.” First on the list is core expenses, your necessities, and these must be guaranteed for life. Then comes joy expenses, like traveling, hobbies, and grandchildren. Last are goals: education for grandchildren, a vacation home, and leaving a legacy. 

Stephen and David want you to go into retirement with confidence and peace when navigating the inevitable risks. A quote from David’s book says it all, “Hit the ball over the fence, and you can take your time going around the bases. -John Roper.”  

David Discusses:

  • David Rosell’s new book, Failure Is Not an Option
  • Inflation Risk: being aware that the cost of living will double every 20 years, at the rate of 3.5%
  • Interest Rate Risk: considering the uncertainty of the fluctuating value of bonds, making a plan to take all the moving risks into motion.  
  • Longevity Risk: it’s becoming more common to live decades past what people plan for, and this fact makes all other risks more dangerous. 
  • Setting a financial plan based off of “Maslow’s Hierarchy of Needs.” Core expenses, joy expenses, and goals. 
  • David Rosell’s book, Keep Climbing, A Millennial’s Guide to Financial PLanning, and looking forward to book #3 in the making. 

Resources:
https://simplifyyourretirement.com
https://wisewealth.com
https://www.davidrosell.com
Season 1
Season 4 Episode 3 Inflation
Season 4 Episode 4 (Part 1)

Connect With David Rosell:
https://www.davidrosell.com
LinkedIn: David Rosell

Connect With Stephen Stricklin:
stephen@wisewealth.com
WiseWealth.com
Simplify Your Retirement
LinkedIn: Stephen Stricklin
LinkedIn: Wise Wealth LLC

About Our Guest:
David Rosell is the author of Failure Is Not an Option, Creating Certainty in the Uncertainty of Retirement. He is the president and founder of Rosell Wealth Management in Bend, Oregon. He is an extreme traveler, having been to more than 75 countries on 6 different continents, including hitchhiking in Nairobi to Cape Town Africa, climbing the Nepalese Himalayas, and even tearing down the Berlin Wall. 


Featured Image

S4: Episode 4 – A Mountain Climber’s Financial Advice With David Rosell – Part 1



Stephen Stricklin is joined by guest David Rosell, financial planner, president and founder of Rosell Wealth Management, author of Failure Is Not an Option, and world-wide traveler, as they discuss the reality of planning for retirement. 

In his book, David combines his two passions, travel stories, and financial survival tips. He ties in his mountain climbing and travel adventures, with impactful advice about retirement. David says FEAR, False Evidence Appearing Real, is our worst enemy. Fear discourages people from making a solid plan. In climbing, the end goal may be for someone to reach the summit, when in reality the end goal needs to be how to get back down the mountain after reaching the summit. 

People tend to make their decisions based on emotions. David suggests shutting off the TV. From the panic in the reports on the News, to watching the stock market’s fluctuations, it can cause anxiety, and lead to making poor financial decisions. 

The goal is to ultimately enjoy your life, have a plan and make sure your money is invested properly. 

David Discusses:

  • David Rosell’s new book, Failure Is Not an Option
  • His least favorite word: FEAR, which stands for False Evidence Appearing Real
  • Tips on how to not make financial decisions based on an emotional response
  • Preparing for retirement with a solid plan in place
  • Stories about his 1956 Morris Minor, “Peaches,” as a picture of how we should treat our investment accounts

Resources:
https://simplifyyourretirement.com
https://wisewealth.com
https://www.davidrosell.com 

Connect With David Rosell:
https://www.davidrosell.com 

Connect With Stephen Stricklin:
stephen@wisewealth.com
WiseWealth.com
Simplify Your Retirement
LinkedIn: Stephen Stricklin
LinkedIn: Wise Wealth LLC

About Our Guest:
David Rosell is the author of Failure Is Not an Option, Creating Certainty in the Uncertainty of Retirement. He is the president and founder of Rosell Wealth Management in Bend, Oregon. He is an extreme traveler, having been to more than 75 countries on 6 different continents, including hitchhiking in Nairobi to Cape Town Africa, climbing the Nepalese Himalayas, and even tearing down the Berlin Wall.


Featured Image

S4: Episode 3 – Inflation’s Impact on Retirement Planning



Should inflation cause panic? Are spikes in inflation a new phenomenon? How will it impact my retirement?

Join our hosts Stephen Stricklin and Paul Brock for Season 4, Episode 3 as they answer these questions and more! They talk about the importance of considering inflation when relating to retirement, in this timeless episode designed to share with friends and family. Inflation, as defined by Investopedia, is the decline of purchasing power of a given currency over time. Retiree’s feel the impact of inflation more than most. With an average inflation rate of 3% per year, they need to be prepared for a change in the power of their dollar years down the line. 

Discussed in seasons 1 and 2, there are three phases of investing when it comes to retirement; accumulation phase, preservation phase, and distribution phase, and no matter what phase you are in, there are different goals set in regards to inflation. For a practical way to meet the goals of each phase, incorporate the three bucket approach, separating your money into a “liquid bucket,” an “income bucket” and a “growth bucket.” 

Stephen and Paul discuss:

  • What inflation is
  • Misconceptions about inflation
  • Being proactive when it comes to inflation impacting your retirement. 
  • Three phases of investing; accumulation, preservation and distribution, what they are and what each specifically needs to focus on regarding inflation. 
  • The three bucket approach; liquid bucket, income bucket, and growth bucket, and the purpose for each. 

Resources: 

https://simplifyyourretirement.com
https://wisewealth.com
https://www.investopedia.com
Season 1
Season 2
Season 1 Episode 4
Season 1 Episode 8
Season 1 Episode 9
Season 1 Episode 10

Connect With Stephen Stricklin:

stephen@wisewealth.com
WiseWealth.com
Simplify Your Retirement
LinkedIn: Stephen Stricklin
LinkedIn: Wise Wealth LLC


Featured Image

S4: Episode 2 – Money Magic With Laurence Kotlikoff – Part 2



“The biggest risk we face in old age, or maybe the second biggest apart from healthcare costs, is longevity risk – out running our money.” – Laurence Kotlikoff

In this episode, Stephen Stricklin continues his conversation with Laurence Kotlikoff, a Professor of Economics at Boston University and best-selling author. They cover several more details about Laurence’s new book, “Money Magic: An Economist’s Secrets to More Money, Less Risk, and a Better Life”.

A large part of the discussion was around the 5 main risks to one’s living standard that Larry talks about in greater detail in his book. Those 5 risks are earnings risk, mortality risk, longevity risk, inflation risk, and investment risk.

They discuss:

  • Chapter five of his book titled, Get House Rich.
  • Moving out of his house in Boston to a “new” house in Rhode Island.
  • Living Standard and mitigating several different risks.
  • The 5 main risks mentioned in Money Magic.
  • Laurence shares the importance of annuities and why they got one for his mom when she was 88 years old.
  • Stephen and Paul end the episode talking about the importance of retirement plans that are specific to the individual.

Connect With Laurence Kotlikoff:

Connect With Stephen Stricklin:

About Our Guest:
Laurence Kotlikoff is a Professor of Economics at Boston University, Fellow of the American Academy of Arts and Sciences, Fellow of the Econometric Society, Research Associate of the National Bureau of Economic Research, and President of Economic Security Planning, Inc, and a New York Times best-selling author. His columns, articles, and books cover personal finance, generational policy, climate policy, inequality, tax reform, Social Security, banking, robotization, growth, and much more.


Featured Image

S4: Episode 1 – Money Magic With Laurence Kotlikoff – Part 1



Welcome to season 4 of the Simplify Your Retirement Podcast! Season 4 will be packed with exciting guests, and popular FAQ’s Stephen gets from clients.  

In part one of this two-part interview, Stephen Stricklin is joined by Laurence Kotlikoff, a Professor of Economics at Boston University and a best-selling author. They discuss Kotlikoff’s brand-new book, “Money Magic: An Economist’s Secrets to More Money, Less Risk, and a Better Life”.

A magician isn’t smarter than anyone else, he just happens to learn something that he can convey in a way that surprises people. Laurence’s goal is just that – to share what he’s learned in an unconventional and entertaining way that will transform your financial thinking and show you how to improve your financial future.

He shares snippets from his book such as: Why he decided to become an Economist rather than a doctor, why students should consider not borrowing for college, finding a job you love but others hate, among other things. 

Laurence discusses:

  • Why he decided to become an Economist instead of a doctor
  • Discusses his latest book, “Money Magic: An Economist’s Secrets to More Money, Less Risk, and a Better Life”
  • Why he has a chapter in his book on not borrowing for college. 
  • Thinking about those who don’t graduate or even go to college. What are they going to do?
  • Having a smooth living standard over your lifetime.
  • And more

Resources:

https://simplifyyourretirement.com
Season 1
Season 2
Season 3
Larry’s original Episode: S2 Ep3

Connect With Laurence Kotlikoff:

https://kotlikoff.net
LinkedIn: Laurence Kotlikoff
http://maxifi.com

Connect With Stephen Stricklin:

stephen@wisewealth.com
WiseWealth.com
Simplify Your Retirement
LinkedIn: Stephen Stricklin
LinkedIn: Wise Wealth LLC

About Our Guest:
Laurence Kotlikoff is a Professor of Economics at Boston University, Fellow of the American Academy of Arts and Sciences, Fellow of the Econometric Society, Research Associate of the National Bureau of Economic Research, and President of Economic Security Planning, Inc, and a New York Times best-selling author. His columns, articles, and books cover personal finance, generational policy, climate policy, inequality, tax reform, Social Security, banking, robotization, growth, and much more.