Thrive Retirement Planning Podcast

Carl Woolston discusses eight critical steps to help you prepare for the retirement jump. He emphasizes financial security, peace of mind, and ensuring you retire to something, not just from something.

Highlights the importance of giving every asset a specific job in retirement planning, moving beyond the single-minded goal of asset growth. Discusses the seven crucial jobs for retirement assets, emphasizing that a well-thought-out approach can ensure financial security, a fulfilling lifestyle, and peace of mind during retirement.

What are your Medicare options? When should you sign up? Do you need to sign up? What's the difference between Medicare Part A, B, C, and D? How much does Medicare cost, and how does it work? My guest Andrea Dover, CPA, lends her Medicare expertise to the podcast.

What are your Medicare options? When should you sign up? Do you need to sign up? What's the difference between Medicare Part A, B, C, and D? How much does Medicare cost, and how does it work? My guest Andrea Dover, CPA, lends her Medicare expertise to the podcast.

What are your Medicare options? When should you sign up? Do you need to sign up? What's the difference between Medicare Part A, B, C, and D? How much does Medicare cost, and how does it work? My guest Andrea Dover, CPA, lends her Medicare expertise to the podcast.

Reverse mortgages can be a financial tool to use during retirement in some situations. Technically, reverse mortgages are called Home Equity Conversion Mortgages or HECM by HUD, and have changed over the years, which has led to misinformation and some skepticism. My guest today is Alan Blood, a mortgage professional in Bountiful Utah, who has extensive experience with reverse mortgages, how today’s products work, and when they might be beneficial. This article summarizes much of the discussion with Alan Blood. See the audio the complete discussion. A LITTLE ABOUT ALAN BLOOD Alan Blood is the owner and Lending Manager at CFG Home Loans. Alan has helped homeowners throughout Utah understand and obtain great mortgage financing. He graduated from the University of Utah College of Law with an emphasis in environmental and real estate law and holds a BA in Economics from Brigham Young University. Alan has been working as a mortgage broker since 1996 and served as the president of the Utah Mortgage Broker’s Association and a national delegate to the National Mortgage Broker’s Association. PEOPLE GET PARALYZED Those who are heading toward or are close to retirement might be feeling additional stress because of all the negative news because that is what is getting attention. The reality is that the market isn't as negative as people think and there is still a lot of opportunity for those who are wanting to make a move or explore different financing options.  As human beings, when the boat begins to rock, we often hold and become paralyzed with fear. At times, inaction can be a good thing, but it can be a major mistake. We can mistakenly say that I shouldn't do anything until everything is ok. Opportunity can exist, even in the midst of uncertainty and chaos. Doing nothing can be a good solution, as long as it is part of a plan and not the default. A great solution can be the decision to do nothing but far too often people don't really look at options or take action because they are paralyzed with fear.  FIXED INCOME (SOCIAL SECURITY) AND REVERSE MORTGAGES Some people may only have their Social Security and their home, but very few other financial assets. One of the options for a reverse mortgage is to supplement income in a situation where limited fixed income exists. Clearly inflation and the cost of living is increasing faster than most fixed income sources. Those who rely on fixed income from Social Security may be getting squeezed tighter and the budget that worked two years ago isn't working today. For someone in retirement and on a fixed income, a reverse option may be a financial tool to consider. You can use a reverse mortgage to create a supplemental income source and make it so that you have non-taxable income each month, depending on your situation. You can also use the reverse mortgage as more of emergency fund, if the water heater breaks or other repairs are needed. Also, if the mortgage is not yet paid off and you're in a fixed income situation, refinancing into a reverse mortgage can free up the need to make a monthly mortgage payment.  WHAT IS A REVERSE MORTGAGE? To begin, all reverse mortgage loans are not HECM (Home Equity Conversion Mortgage) loans, which go through HUD. Some reverse mortgages that are not HECM, could have negative components that are undesirable. Because it is a complex financial instrument, you need to be well informed. Today, we're talking about a HUD reverse mortgage. It's a program where you can use the equity in your home to service debt or create monthly income.  With the mortgages we are most familiar with you get a loan from the bank and then make monthly payments to the bank to service the mortgage. You then use your income or your assets to pay the loan.  With a reverse mortgage, instead of using your income or assets to pay the debt, you're using the equity in the home. So instead of the loan balance going down over time, the loan balance will increase,

The stock market in 2022 has been volatile due to rampant inflation, Russia’s invasion of Ukraine, and the Federal Reserve’s first interest rate increase since 2018. Knowing how to structure a retirement plan that works in volatile markets is key to your success. Creating a strategic plan that works in up and down markets can be life-changing. Timing the market or even overhauling investments every time the market and economy change isn’t a long-term solution. Taking all your money out of the stock market and creating a massive taxable event can be financially devastating. In this episode, I’ll share my market outlook for 2022, how a strategic plan can reduce financial risk, and my favorite method to create a retirement plan, whether the stock market is bullish or bearish. THE VOLATILITY OF 2022 The market is attempting to catch its breath as the first quarter of 2022 ends. There was no shortage of events for the market to navigate, including the Federal Reserve’s first interest rate increase since December 2018, Russia’s invasion of Ukraine, and stubbornly high inflation pressures. The outlook calls for current market themes to last throughout most of 2022. The Federal Reserve expects inflation pressures to ease as the year progresses, but there is a risk inflation will remain elevated longer than forecasted due to rising energy prices. There are many moving parts to pay attention to in the coming months. Investors will be monitoring economic data releases, corporate earnings, and geopolitical issues in eastern Europe for clues about the market’s next move. This year’s U.S. midterm elections will add another dimension as campaign season swings into gear over the coming months. PASSING THE PILLOW TEST In your primary earning years, you’re in the accumulation phase. The goal in the accumulation phase is to put away money in 401(k), IRAs, or other retirement accounts and let them grow. As you approach retirement, you’ll be moving into the distribution (spending) phase. In the distribution phase, the goal is not to exclusively increase your money but to limit significant and catastrophic losses. If you lay down at night to sleep during retirement and the stock market is keeping you up at night, you haven’t passed the pillow test. The pillow test is to be able to be comfortable with the impact outside forces are having on your money. While I believe in the economy and markets, growing your investments is just one of eight parts of a comprehensive plan. Often those who are within a few years of retirement become increasingly uncomfortable with stock market volatility the closer retirement becomes. THE POWER OF A PLAN A typical instrument I use with clients to help them pass the pillow test is a three-bucket approach to planning. The first bucket is where guaranteed sources of income are allocated, such as Social Security and pensions. The second bucket is where the money used for income in the next 5-10 years, on top of Social Security and pensions, will be drawn from. Bucket two money is money that is invested or positioned with much less risk than growth-minded investments. One of the purposes of bucket two money is to reduce the sequence of return risk. Another purpose the bucket two is to reduce overall risk in a portfolio and utilize investments and products that are more conservative. There are numerous investment and insurance-based solutions for bucket two, and clients can weigh the pros and cons of each before making decisions. Bucket three is used for money that a client wants to grow and most likely won’t be needed for ten years or more. Bucket three can be used later in life for health care expenses such as assisted living and nursing care. Money in bucket three can also be used to pass on to children or refill bucket two money later in retirement if necessary. Money in bucket three can also be converted to Roth IRAs strategically before Required Minimum Distributions are taken; often,

Retirement can be an opportunity for a new phase of life. In retirement, you’ll most likely have more freedom than you’ve ever experienced. You get to live life on your terms with no boss and no limit to vacation time. In addition, as you transition into retirement, you’ll literally get to redefine what retirement means to you. This can be both overwhelming and incredibly fun. Below you’ll find 25 ways to thrive during your retirement years (by no means is this list exhaustive). Don’t procrastinate - Today is the day. The past is history and the future is mystery. I like to categorize retirement into 3 parts: family, fulfillment, and finances. Obviously you don’t have to start with all 3. Just pick something, take action, and experiment with the new you. Reach out to old friends - Over the years, we’ve all been touched by good people who have made a meaningful difference in our lives. Reach out and say thanks and connect. You might just be the answer to someone’s prayer. Try a new hobby - What have you wanted to do that you’ve never got around to doing? What have you wanted to try but never found the time? Now’s the time to try painting, golfing, pottery, the guitar, pickleball, yoga or even hula dancing. You might even like it enough that it becomes a regular part of your life. Focus on your family - What does family mean to you? Who do you consider family? What’s the next step in making these relationships even more powerful? Do you need to do something as a group or something one-on-one? You got this! You’ll be glad you did. Protect your hard-earned resources - You’ve worked hard and saved hard. Now is not the time to be taking on new risk with all your investment assets. Make sure a portion of your assets are protected from downturns in the market and economy. You’ll sleep better at night when your financial plan works in both up and down markets. If your plan only works in up markets, I’d suggest making adjustments. Visit a friend or family member who is sick - Research indicates that the more connected you feel to others, the less anxiety and depression you’ll experience. This may help them and you. Take on a project - Projects are bigger than to do lists and will almost always take longer than a day. You could build something, paint some rooms of your house, do a food drive for the food bank, or collect coats for those less fortunate. Take a child or grandchild to lunch - Do you have several children or grandchildren? What would happen if you took various family members out monthly or even weekly. There is nothing like sharing a meal to have those close to you open up and share. Be proactive about your taxes - Most of us like the good kind of surprises but rarely do we like a tax surprise around April. Often people hire tax professionals to look back at the previous year to file taxes. Instead, work with your tax professional and financial planner to create a plan that looks forward. Donate to causes you care about instead of Uncle Sam. Volunteer - How can you get involved in your community? Many organizations are more than happy to have volunteers who are willing to roll up their shirt sleeves. Find a cause that you want to support and make a difference. You’ll be glad you did. Take an unplanned getaway - Where could you go to explore, get a change of scenery, or even visit someone you care about? It doesn’t have to be a long trip but a weekend away can keep the cobwebs away. Take a class - Is there a skill, hobby, or language you’ve always wanted to learn more about? Find local community classes offered through the high school, community college, or community center. A class can sharpen your mind and awaken your creativity, no matter your age. Make amends - Is there a relationship that needs healing in your life? Is there someone you know you need to talk to but have avoided. While it can be extremely uncomfortable to take on awkward conversations, forgiveness can bring balm to the soul.

For most Americans, Social Security will be a foundational piece of their retirement income. How does it work and when should you take it? When is the earliest you can start Social Security and why would you want to delay? In this episode, I’ll answer some of the top questions about Social Security. WHAT ARE THE THREE MAIN TYPES OF SOCIAL SECURITY BENEFITS FOR RETIREMENT? Retired Worker Benefit - This benefit is taken off your own working history.Spousal Benefit - This benefit provides the worker’s spouse with a benefit once the worker has claimed his (or her) own benefit.Widow(er) or Survivor Benefit - This benefit provides a surviving spouse with a benefit after a worker’s death. WHAT IS YOUR PRIMARY INSURANCE AMOUNT? This is the amount of Social Security benefit you’ll receive at full retirement age (between 66-67) based on your own work history. This is based on your highest 35 years of working history, indexed for inflation.Get your statement from ssa.gov. SHOULD YOU TAKE SOCIAL SECURITY AT 62? I did a full show on this. Here is the link. https://thriverp.com/should-you-take-social-security-at-62/If you’re weighing the options of retiring early and taking your Social Security benefits, it’s important to know that you’ll receive a reduced benefit, depending on how early you decide to start your benefit.This reduced benefit is permanent.I’d highly encourage you to consider your spouse’s situation as it pertains to the survivor benefit.If you’re going to continue to work, make sure you’re aware of the earnings test. In summary, $1 in benefits will be withheld for every $2 of earning about an annual limit (in 2021 this is $18,960).The spousal benefit is also reduced if you take it before full retirement age. WHAT IS THE LATEST YOU SHOULD TAKE SOCIAL SECURITY? The latest you would want to take your own benefit is 70.Be aware of DRCs of 8% per year after full retirement age.The latest you would want to take the spousal benefit would be at full retirement age. HOW DOES THE SOCIAL SECURITY SPOUSAL BENEFIT WORK? I did an earlier show on Social Security spousal benefits. You can access it here. https://thriverp.com/navigating-social-security-spousal-benefits/You must be married for at least 1 year and the primary worker must have filed in most cases.To qualify your own benefit based on your own working history can’t be greater than half of the primary worker’s PIA. The spousal benefit can be up to 50% of the higher earning spouse’s PIA. As long as the higher earning spouse has started their benefit, when they took it does not impact the spousal benefit amount. This amount is based solely on PIA and when you claim the spousal benefit.In reality, you get your own benefit and then a spousal boost up to 50% of the higher earner’s PIA. WHEN SHOULD YOU START SOCIAL SECURITY? Starting Social Security is not just about the basics of 62, FRA, and 70.Consider the assets you have saved in 401(k)s, IRAs, and retirement accounts.In some cases it may make sense to delay Social Security and let the benefit get larger, while still being able to retire early from assets.Don’t make your Social Security decisions in a bubble.If you’re a widow there may be additional flexibility on when to start your Social Security.These Social Security decisions can have an impact of more than $100,000 during retirement in some cases.This is all part of the income planning process. ACTION STEPS Watch my free Social Security MasterclassSit down for a free Social Security analysis. We’ll take a look at when you want to retire, the assets you have available, the plans you have to replace your retirement income, and help you decide when to take Social Security.If you would like to sit down and discuss your Social Security benefits, your assets, and create a plan on when to retire, call us at 801-810-8434 or go to thriverp.com and click on get started to learn more.

Eventually, almost every person asks the question, “Is it time to retire?” The real question is, “Are you prepared?” It’s quite common for people to save for retirement but as it gets closer they begin to wonder if they are ready. They also realize it’s a lot more complicated than they originally thought. In this episode we’ll discuss 5 steps to prepare yourself your retirement day and my methodology to determine if you’re ready. STEP #1: UNDERSTAND YOUR SOCIAL SECURITY BENEFIT Get your statement and know your three numbersUnderstand the spousal benefitUnderstand what happens if you take early or delaySee other shows for more info: Should you take Social Security at 62?Social Security Spousal BenefitsWatch my free Social Security MasterclassDon’t make your Social Security decisions in a bubble! STEP #2: GET A TOTAL OF ALL YOUR RETIREMENT INCOME Determine any other sources of regular income during retirement and when they will begin, such as a pension, annuity, rental income, etc. Make sure you make pension and annuity decisions based on both spouses if you are married.Once you know your Social Security and other income sources you can add these up at different ages. For example, you could run a scenario at 62, 65, full retirement age, and 70. Because Social Security increases as you delay, the monthly benefit will increase as you wait.Write down your total income at various ages. STEP #3: KNOW YOUR RETIREMENT INCOME GAP Your next step is to determine how much you need or want during retirement on a monthly basis. Make sure and take into account health care expenses if you’re going to retire early or a house being paid off early in retirement, for example.The difference between what you want and how much income you’ll have is your income gap. In most cases this isn’t a linear projection meaning you may want a vacation in 5 years, a new car in 2, etc. Making a plan for this is important as well. After all, retirement is supposed to be fun! STEP #4: DETERMINE OTHER ASSETS FOR RETIREMENT Make a list of your 401(k)s, IRAs, or other retirement accounts and total them up.Determine which accounts to pull from first.Analyze the tax consequences of each of these accounts. For example, taking money out of a bank account vs an IRA, or a Roth IRA vs a 401(k).Model different withdrawal rates to decrease your risk of running out of money.Be aware of the sequence of return risk! STEP #5: DEVELOP A STRATEGY Do you have a strategy? Do you understand it? How confident are you about your strategy?Up until now you’ve been accumulating assets. As you approach retirement you’ll most likely need to start spending those assets. You’ll also need to invest differently as retirement approaches and you’re in retirement.Often people forget to preserve their assets (The 10-year rule)Coordinate your Social Security with your other assetsThe 3 bucketsDetermine investment strategies that align with your income plan. Not everything is a hammer! IT DOESN’T HAVE TO BE ALL OR NOTHING We often think of retirement as a thing we do once rather than it being a process.For example, if you’re done with work at 62 but want to delay a little later to take Social Security, you don’t always have to work full-time in the job you dislike until you retire. It’s possible to retire and still work.For example, if you know your Social Security benefit at 66 is going to be $2,500 per month and you’re going to also pull $2,500 from your investments to give you $5,000 per month at 66, you don’t necessarily have to work full-time until 66. With the right income plan, you could potentially retire at 62 and find part-time work that brings in $2,500 per month until 66, which is the same as Social Security. If your assets are sufficient enough, you could also start withdrawing $2,500 per month from your investments.  IS IT TIME TO RETIRE? This can be complicatedThat’s why people like myself do thisMany advisors don’t know S...